BILL NUMBER: SB 448	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Leno

                        FEBRUARY 21, 2013

   An act to  amend Section 25357 of   add
Section 25367 to  the Public Resources Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 448, as amended, Leno. Energy: petroleum supply and pricing.
   Existing law establishes the State Energy Resources Conservation
and Development Commission  (commission)  in the
 Natural  Resources Agency, and specifies the powers and
duties of the commission with respect to energy resources in the
state. Under existing law, various provisions regulate petroleum
supply and pricing. Existing law  further  requires
the commission to obtain and analyze monthly production reports
prepared by the State Oil and Gas Supervisor under a specific
provision.  Existing law authorizes the State Lands Commission to
  enter into oil and gas leases for the extraction and
removal of oil and gas deposits on state lands. Existing law requires
the leases to include a royalty provision.  
   This bill would make a technical, nonsubstantive change to this
latter provision.  
   This bill would, upon appropriation by the Legislature from moneys
generated by the collection of royalty payments from the oil and gas
leases, establish the Office of Price Investigation and Manipulation
Prevention in the State Energy Resources Conservation and
Development Commission and would require the office to identify fuel
price manipulation, establish a methodology to determine whether fuel
price manipulation is occurring, and analyze data and investigate
for suspected fuel price manipulation. The bill would require the
office, in consultation with the State Air Resources Board and other
relevant state agencies, to prepare and submit to the Legislature a
report on further legislative recommendations to limit the amount of
price volatility and comparative price increase in the California
transportation fuel market. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25367 is added to the 
 Public Resources Code   , to read:  
   25367.  (a) The Office of Price Investigation and Manipulation
Prevention is hereby established in the commission.
   (b) The office shall do all of the following:
   (1) Establish a definition for transportation fuel market
manipulation.
   (2) Identify data necessary to determine whether fuel pricing
manipulation is occurring that includes all of the following:
   (A) Individual fuel producer data, including all of the following:

   (i) Production or throughput data.
   (ii) Emission data or operational data.
   (iii) Sales volumes.
   (iv) Price.
   (B) Marketwide pricing data.
   (3) Establish an analytical methodology necessary to evaluate
whether fuel price manipulation is occurring that includes both of
the following:
   (A) Producer level analysis.
   (B) Marketwide analysis, comparing real time prices to expected
prices based on modeling output.
   (4) Analyze the data and investigate for suspected fuel price
manipulation using both of the following:
   (A) Producer level analysis.
   (B) Marketwide analysis.
   (c) The office, in consultation with the State Air Resources Board
and other relevant state agencies, shall prepare and submit to the
Legislature, pursuant to Section 9795 of the Government Code, a
report on further legislative recommendations to limit the amount of
price volatility and comparative price increase in the California
transportation fuel market. The report shall include an evaluation of
strategies doing all of the following:
   (1) Increasing fuel diversification.
   (2) Reducing overall demand of gasoline and diesel.
   (3) Increasing fuel storage.
   (4) Leveraging the state's purchasing power related to the state's
fleet.
   (5) Increasing timely imports of fuels during price swings.
   (d) Upon appropriation by the Legislature from moneys generated by
the collection of royalty payments from oil and gas leases entered
into pursuant to Article 2 (commencing with Section 6826) of Chapter
3 of Part 2 of Division 6, the commission shall implement this
section.  
  SECTION 1.    Section 25357 of the Public
Resources Code is amended to read:
   25357.  The commission shall obtain and analyze monthly production
reports prepared by the State Oil and Gas Supervisor under Section
3227.