BILL NUMBER: SB 448	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 23, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Leno

                        FEBRUARY 21, 2013

   An act to add Section  25367   25356.5 
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 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 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  require the State Energy Resources
Conservation and Development   Commission  , 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   motor vehicle fuel  price
manipulation, establish a methodology to determine whether  motor
vehicle    fuel price manipulation is occurring, and
analyze data and investigate for suspected  motor vehicle 
  fuel price manipulation. The bill would require the
 office   commission  , 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   motor vehicle  fuel market.
   Vote: majority. Appropriation: no. Fiscal committee: 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: 
   SECTION 1.    Section 25356.5 is added to the 
 Public Resources Code   , to read: 
    25356.5.    (a)     In addition to
the requirements of section 25356, the commission 
   (1) Establish a definition for  transportation 
 motor vehicle  fuel market manipulation.
   (2) Identify data necessary to determine whether  motor
vehicle  fuel pricing manipulation is occurring that includes
all of the following:
   (A) Individual  motor vehicle  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  motor vehicle  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   
motor vehicle  fuel price manipulation using both of the
following:
   (A) Producer level analysis.
   (B) Marketwide analysis. 
   (c) 
    (b)  The  office   commission 
, 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,
  include in the biennial assessment specified in
subdivision (b) of Section 25358  a report on further
legislative recommendations to limit the amount of price volatility
and comparative price increase in the California 
transportation   motor vehicle  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) 
    (1)  Increasing    motor   vehicle
 fuel storage. 
   (4) 
    (2)  Leveraging the state's purchasing power related to
the state's fleet. 
   (5) 
    (3)  Increasing timely imports of    motor
  vehicle  fuels during price swings. 
   (d) Upon 
    (c)     The commission shall implement this
section upon  appropriation by the Legislature  from
  of  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. 
 6.