BILL NUMBER: SB 448	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 6, 2013
	AMENDED IN SENATE  APRIL 23, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Leno

                        FEBRUARY 21, 2013

   An act to add Section 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   of  moneys generated by the
collection of royalty payments from the oil and gas leases, to
identify 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 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 
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 25356.5 is added to the Public Resources Code,
to read:
   25356.5.  (a) In addition to the requirements of  section
  Section  25356, the commission  shall do all
of the following: 
   (1) Establish a definition for  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.
   (b) The commission, in consultation with the State Air Resources
Board and other relevant state agencies, shall 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
 motor vehicle  fuel market. The report shall
include an evaluation of strategies doing all of the following:
   (1) Increasing  motor vehicle  fuel storage.
   (2) Leveraging the state's purchasing power related to the state's
fleet.
   (3) Increasing timely imports of  motor vehicle 
fuels during price swings. 
   (c) For purposes of this section, "fuel" means gasoline and diesel
derived from petroleum.  
   (c) 
    (d)  The commission shall implement this section upon
appropriation by the Legislature 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.