Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1191

Introduced by Assembly Member Patterson

February 22, 2013

An act to amend begin delete Section 25301 end delete begin insert Sections 25304 and 25364 end insert of the Public Resources Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1191, as amended, Patterson. Energy: assessments and forecasts.

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The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board, commonly known as the state board, as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt a statewide greenhouse gas emissions limit, as defined, to be achieved by 2020, equivalent to the statewide greenhouse gas emissions levels in 1990. The state board is additionally required to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions. Pursuant to the act, the state board has adopted the Low Carbon Fuel Standard regulations.

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Existing law requires, beginning November 1, 2003, and every 2 years thereafter, the State Energy Resources Conservation and Development Commission, commonly known as the California Energy Commission, to adopt an integrated energy policy report that contains an overview of certain topics including specified transportation forecasting and assessment activities.

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This bill would require the California Energy Commission, commencing November 1, 2014, until November 1, 2020, to conduct the transportation forecasting and assessment activities annually and, in conducting the transportation forecasting and assessment activities, to also evaluate the sufficiency of credits issued under the Low Carbon Fuel Standard regulations, as specified.

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Existing law requires the State Energy Resources Conservation and Development Commission, at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices.

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This bill would make technical, nonsubstantive changes to this provision.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

The Legislature finds and declares all of the
following:

(a) California’s transportation energy sector provides citizens
and businesses with the means and mobility for many essential
activities. Industries, commercial businesses, households, transit
agencies, and governments, both state and local, rely on
transportation energy and expect that the necessary supplies will
be available for movement of goods and people over highways,
rail, waterways, and air. Transportation fuels also provide energy
for off-road, industrial, agricultural, commercial, military, and
recreational uses.

(b) State law charges the California Energy Resources
Conservation and Development Commission with the responsibility
of conducting transportation forecasting and assessment activities,
including, but not limited to, assessments of the risks of supply
disruptions, price shocks, or other events and the consequences
of these events on the availability and price of transportation fuels
and on the state’s economy.

(c) Under state law, these transportation forecasts and
assessments are included in the biennial integrated energy policy
adopted by the commission. For the purposes of ensuring
consistency in the underlying information that forms the foundation
of energy policies and decisions affecting the state, existing law
requires the State Air Resources Board and other state agencies
to carry out their energy-related duties and responsibilities based
upon the information and analyses contained in the report.

(d) In January 2007, Governor Schwarzenegger issued Executive
Order S-01-07, which established the goal of developing a low
carbon fuel standard (LCFS) to reduce the carbon intensity of
transportation fuels by at least 10 percent by 2020. The Executive
Order provides that the LCFS shall apply to all providers of
transportation fuels in California, shall be measured on a full fuels
cycle basis, and shall authorize compliance through market-based
methods.

(e) Executive Order S-01-07 directed the State Air Resources
Board to determine if the LCFS could be adopted as a discrete
early action measure under the California Global Warming
Solutions Act of 2006 and, if so, to consider adoption of the LCFS
on the list of Discrete Early Action Measures required to be
identified by June 30, 2007, pursuant to Section 38560.5 of the
Health and Safety Code.

(f) In 2010, the LCFS became fully operative through the
adoption of regulations by the State Air Resources Board in
Subarticle 7 (commencing with Section 95480) of Article 4 of
Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations.

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begin insert SEC. 2. end insert   

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begin insert Section 25304 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25304.  

begin insert (a) end insert begin insert   end insert The commission shall conduct transportation
forecasting and assessment activities to meet the requirements of
paragraph (2) of subdivision (a) of Section 25302 including, but
not limited to:

begin delete

(a)

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begin insert (1) end insert  Assessment of trends in transportation fuels, technologies,
and infrastructure supply and demand and the outlook for wholesale
and retail prices for petroleum, petroleum products, and alternative
transportation fuels under current market structures and expected
market conditions.

begin delete

(b)

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begin insert (2) end insert  Forecasts of statewide and regional transportation energy
demand, both annual and seasonal, and the factors leading to
projected demand growth including, but not limited to, projected
population growth, urban development, vehicle miles traveled, the
type, class, and efficiency of personal vehicles and commercial
fleets, and shifts in transportation modes.

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(c)

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begin insert (3) end insert  Evaluation of the sufficiency of transportation fuel supplies,
technologies, and infrastructure to meet projected transportation
demand growth. Assessment of crude oil and other transportation
fuel feedstock supplies; in-state, national, and worldwide
production and refining capacity; product output storage
availability; and transportation and distribution systems capacity
and use.

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(4) Evaluation of the sufficiency of credits issued under the Low
Carbon Fuel Standard regulations, including both of the following:

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(A) Data on the projected and actual costs of credits.

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(B) Availability and source of credits.

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(5) Assessment of the excess or deficiency of credits, if any.

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(d)

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begin insert (6) end insert  Assessments of the risks of supply disruptions, price shocks,
or other events and the consequences of these events on the
availability and price of transportation fuels and effects on the
state’s economy.

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(e)

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begin insert (7) end insert  Evaluation of the potential for needed changes in the state’s
energy shortage contingency plans to increase production and
productivity, improve efficiency of fuel use, increase conservation
of resources, and other actions to maintain sufficient, secure, and
affordable transportation fuel supplies for the state.

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(f)

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begin insert (8) end insert  Evaluation of alternative transportation energy scenarios,
in the context of least environmental and economic costs, to
examine potential effects of alternative fuels usage, vehicle
efficiency improvements, and shifts in transportation modes on
public health and safety, the economy, resources, the environment,
and energy security.

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(g)

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begin insert (9) end insert  Examination of the success of introduction, prices, and
availability of advanced transportation technologies, low- or
zero-emission vehicles, and clean-burning transportation fuels,
including their potential future contributions to air quality, energy
security, and other public interest benefits.

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(h)

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begin insert (10) end insert  Recommendations to improve the efficiency of
transportation energy use, reduce dependence on petroleum fuels,
decrease environmental impacts from transportation energy use,
and contribute to reducing congestion, promoting economic
development, and enhancing energy diversity and security.

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(b) Notwithstanding Section 25302, and commencing November
1, 2014, until November 1, 2020, the commission shall conduct
the transportation forecasting and assessment activities described
in this section annually.

end insert begin insert

(c) For purposes of this section, “Low Carbon Fuel Standard
regulations” means those regulations adopted by the state board
in Subarticle 7 (commencing with Section 95480) of Article 4 of
Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations.

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begin insert SEC. 3. end insert   

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begin insert Section 25364 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25364.  

(a) Any person required to present information to the
commission pursuant to Section 25354 may request that specific
information be held in confidence. Information requested to be
held in confidence shall be presumed to be confidential.

(b) Information presented to the commission pursuant to Section
25354 shall be held in confidence by the commission or aggregated
to the extent necessary to assure confidentiality if public disclosure
of the specific information or data would result in unfair
competitive disadvantage to the person supplying the information.

(c) (1) Whenever the commission receives a request to publicly
disclose unaggregated information, or otherwise proposes to
publicly disclose information submitted pursuant to Section 25354,
notice of the request or proposal shall be provided to the person
submitting the information. The notice shall indicate the form in
which the information is to be released. Upon receipt of notice,
the person submitting the information shall have 10 working days
in which to respond to the notice to justify the claim of
confidentiality on each specific item of information covered by
the notice on the basis that public disclosure of the specific
information would result in unfair competitive disadvantage to the
person supplying the information.

(2) The commission shall consider the respondent’s submittal
in determining whether to publicly disclose the information
submitted to it to which a claim of confidentiality is made. The
commission shall issue a written decision which sets forth its
reasons for making the determination whether each item of
information for which a claim of confidentiality is made shall
remain confidential or shall be publicly disclosed.

(d) The commission shall not make public disclosure of
information submitted to it pursuant to Section 25354 within 10
working days after the commission has issued its written decision
required in this section.

(e) No information submitted to the commission pursuant to
Section 25354 shall be deemed confidential if the person submitting
the information or data has made it public.

(f) With respect to petroleum products and blendstocks reported
by type pursuant to paragraph (1) or (2) of subdivision (a) of
Section 25354 and information provided pursuant to subdivision
(h) or (i) of Section 25354, neither the commission nor any
employee of the commission may do any of the following:

(1) Use the information furnished under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 for any purpose other than the statistical purposes
for which it is supplied.

(2) Make any publication whereby the information furnished
by any particular establishment or individual under paragraph (1)
or (2) of subdivision (a) of Section 25354 or under subdivision (h)
or (i) of Section 25354 can be identified.

(3) Permit anyone other than commission members and
employees of the commission to examine the individual reports
provided under paragraph (1) or (2) of subdivision (a) of Section
25354 or under subdivision (h) or (i) of Section 25354.

(g) Notwithstanding any other provision of law, the commission
may disclose confidential information received pursuant to
begin insert paragraph (1) of end insert subdivision (a) of Section 25304 or Section 25354
to the State Air Resources Board if the state board agrees to keep
the information confidential. With respect to the information it
receives, the state board shall be subject to all pertinent provisions
of this section.

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SECTION 1.  

Section 25301 of the Public Resources Code is
amended to read:

25301.  

(a) At least every two years, the commission shall
conduct assessments and forecasts of all aspects of energy industry
supply, production, transportation, delivery and distribution,
demand, and prices. The commission shall use these assessments
and forecasts to develop energy policies that conserve resources,
protect the environment, ensure energy reliability, enhance the
state’s economy, and protect public health and safety. To perform
these assessments and forecasts, the commission may require
submission of demand forecasts, resource plans, market
assessments, and related outlooks from electric and natural gas
utilities, transportation fuel and technology suppliers, and other
market participants. These assessments and forecasts shall be done
in consultation with the appropriate state and federal agencies
including, but not limited to, the Public Utilities Commission, the
Division of Ratepayer Advocates, the State Air Resources Board,
the Independent System Operator, the Department of Water
Resources, the Department of Transportation, and the Department
of Motor Vehicles.

(b) In developing the assessments and forecasts prepared
pursuant to subdivision (a), the commission shall do all of the
following:

(1) Provide information about the performance of energy
industries.

(2) Develop and maintain the analytical capability sufficient to
answer inquiries about energy issues from government, market
participants, and the public.

(3) Analyze and develop energy policies.

(4) Provide an analytical foundation for regulatory and policy
decisionmaking.

(5) Facilitate efficient and reliable energy markets.

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