Amended in Senate August 31, 2015

Amended in Senate July 14, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 232

Introduced by Assembly Member begin delete Obernolte end delete begin insert Mark Stone end insert

begin delete

(Coauthors: Assembly Members Alejo, Bigelow, Dodd, Gallagher, Gipson, Gordon, Gray, Lackey, Levine, Mayes, Melendez, Olsen, Quirk, Waldron, Wilk, and Wood)

end delete begin delete

(Coauthors: Senators Hill, Liu, McGuire, Morrell, Nielsen, and Roth)

end delete

February 4, 2015

begin delete An act to amend Section 4222 of, and to amend, repeal, and add Sections 4213 and 4220 of, the Public Resources Code, relating to forestry and fire prevention, and declaring the urgency thereof, to take effect immediately. end delete begin insert An act to add Section 21204 to the Business and Professions Code, to repeal Section 7873 of the Labor Code, and to amend Section 25354 of, and to add Sections 25355, 25359, 25360, 25361, and 25367 to, the Public Resources Code, relating to energy resources, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 232, as amended, begin delete Obernolte end delete   begin insert Mark Stone end insert . begin delete State responsibility areas: fire prevention fees. end delete begin insert Petroleum: information reports: turnarounds and shutdowns. end insert

begin insert

(1) Existing law, the Petroleum Industry Information Reporting Act of 1980, requires refiners, among others, to provide periodic reports to the State Energy Resources Conservation and Development Commission containing designated information regarding petroleum supplies and price, including monthly California weighted average prices and sales volumes for specified motor fuels and oils, as specified. Existing law authorizes any person required to submit this information to request that specific information be held in confidence. The act requires the commission to gather, analyze, and interpret the reported information related to the supply and price of petroleum products and to publish at the end of each preceding quarter a summary, analysis, and interpretation of that information.

end insert begin insert

This bill would instead require each refiner to report monthly to the commission daily prices and sales volumes at all locations in California for those specified motor fuels and oils and also the occurrence of all turnarounds, as defined, and all unplanned shutdowns, as specified. This information would not be subject to confidentiality provisions and would be subject to public disclosure within 24 hours of receipt by the commission.

end insert begin insert

The bill would require a refiner, on or before January 1, 2017, and annually thereafter, to submit information to the commission regarding planned turnarounds for all refinery process units and plants for the following calendar year. On the date of a planned turnaround, the bill would require the commission to verify that a refiner has the amount of gasoline inventory that was previously reported to the commission and to report any discrepancy to the Attorney General and the Legislature. The bill would require a refiner to report to the commission within 24 hours of any undisclosed turnaround or unplanned shutdown and would require this report to contain specified information and be signed under penalty of perjury by an officer or director of the entity that owns the refinery. The bill would also require a refiner to report to the commission its quarterly profits from operations and the amount of annual taxes paid, as provided. The bill would require each refiner and major marketer, as defined, to report to the commission within 24 hours regarding purchases, sales, or exchanges of petroleum products measuring 2,500 barrels or more, as specified. The information submitted pursuant to these provisions would be subject to public disclosure within 24 hours of receipt by the commission.

end insert begin insert

This bill would require the commission to publish on its Internet Web site specified information reported by a refiner, including the information described above, and aggregated information on gasoline exports, as specified. The bill would authorize the commission to charge refiners a reasonable fee to cover certain of the commission’s costs under the bill, to be deposited into the Energy Resources Programs Account and continuously appropriated to the commission for those purposes.

end insert begin insert

Commencing on January 1, 2017, this bill would require every refiner to submit an annual inventory supply plan to the commission for review and approval. The bill would authorize the commission to require a refiner to revise its inventory supply plan or maintenance schedule in certain circumstances. The bill would require this inventory supply plan to be signed under penalty of perjury by an officer or director of the entity that owns the refinery. The bill would require the commission to impose an administrative fine, as provided, on a refiner that fails to submit and obtain approval of an inventory supply plan, fails to revise an inventory supply plan as directed by the commission, or fails to follow its approved plan. The information submitted pursuant to these provisions would be subject to public disclosure within 24 hours of receipt by the commission.

end insert begin insert

Because the bill would expand the crime of perjury, it would impose a state-mandated local program.

end insert begin insert

(2) Existing law makes it unlawful for certain refiners, distributors, manufacturers, and transporters of motor vehicle fuels or oils engaged in business in this state, either directly or indirectly, to engage in price discrimination, as specified. Existing law authorizes any person injured by a violation of these provisions to bring an action to recover treble damages and attorney’s fees.

end insert begin insert

This bill would, in addition, make it unlawful for any refiner, distributor, manufacturer, or transporter of motor vehicle fuels or oils engaged in business in this state, either directly or indirectly, to knowingly engage in any act, practice, or course of business, to distort or attempt to distort, the market conditions of any motor vehicle fuels or oils, or to intentionally fail to state a material fact that distorts or is likely to distort those market conditions at a time of heightened demand. In addition to any award of damages, the bill would require a violation of these provisions to be punished by disgorgement of all moneys, property, and any proceeds derived directly or indirectly from the prohibited conduct, which would be paid by order of the court to the state and deposited into the General Fund.

end insert begin insert

(3) Existing law requires every petroleum refinery employer to, every September 15, submit to the Division of Occupational Safety and Health a full schedule for the following calendar year of planned turnarounds, as defined.

end insert begin insert

Existing law, except as specified, prohibits the division from releasing to the public any information submitted to the division pursuant to these provisions that is designated as a trade secret, as defined. Existing law requires the division to notify a petroleum refinery employer in writing of a request for the release of information to the public that includes information that the petroleum refinery employer has notified the division is a trade secret, as provided. Existing law authorizes an employer to seek a court order prohibiting public disclosure. Existing law establishes misdemeanor penalties for knowingly and willfully disclosing these trade secrets.

end insert begin insert

This bill would repeal the latter provisions dealing with trade secrets.

end insert begin insert

(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin insert

(5) This bill would declare that it is to take effect immediately as an urgency statute.

end insert begin delete

Existing law requires the state to have the primary financial responsibility for preventing and suppressing fires in areas that the State Board of Forestry and Fire Protection has determined are state responsibility areas, as defined. Existing law requires that a fire prevention fee be charged on each habitable structure on a parcel that is within a state responsibility area. Existing law requires that the fee be collected annually by the State Board of Equalization in accordance with specified procedures, and specifies that the annual fee shall be due and payable 30 days from the date of assessment by the state board. Existing law authorizes a petition for redetermination of the fee to be filed within 30 days after service of a notice of determination, as specified.

end delete begin delete

This bill would, for a period of 5 years, extend the time when the annual fire prevention fee is due and payable from 30 to 60 days from the date of assessment by the State Board of Equalization and authorize the petition for redetermination to be filed within 60 days after service of the notice of determination, as specified.

end delete begin delete

This bill would declare that it is to take effect immediately as an urgency statute.

end delete

Vote: ²⁄₃. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

end insert begin insert

This act shall be known and may be cited as the
Open the Books Act of 2016.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 21204 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 21204. end insert   

(a) Notwithstanding Section 21201, it shall be unlawful
for any refiner, distributor, manufacturer, or transporter of motor
vehicle fuels or oils engaged in business in this state, either directly
or indirectly, to do either of the following:

(1) Knowingly engage in any act, practice, or course of business,
including the making of any untrue statement of material fact, for
purposes of distorting, or attempting to distort, the market
conditions of any motor vehicle fuels or oils.

(2) Intentionally fail to state a material fact that under the
circumstances renders a statement made by the refiner, distributor,
manufacturer, or transporter misleading, provided that the
omission distorts or is likely to distort market conditions for any
motor vehicle fuels or oils.

(b) This section shall be liberally construed to apply to acts
that, among other things, are taken for the purpose of
manipulating, or attempting to manipulate, the price of motor
vehicle fuels or oils, including, but not limited to, unnecessarily
reducing the supply or availability of those products at a time of
heightened demand.

(c) Any person injured by a violation of this section may bring
an action for the recovery of damages pursuant to Section 21202.

(d) In addition to any award of damages, a violation of this
section shall be punished by disgorgement of all moneys, property
or property interests, and any proceeds traceable thereto, that
were derived directly or indirectly from conduct prohibited by this
section, or acquired or maintained directly or indirectly through
conduct prohibited by this section. All moneys and proceeds from
property ordered disgorged pursuant to this subdivision shall be
paid by order of the court to the state and deposited into the
General Fund.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 7873 of the end insert begin insert Labor Code end insert begin insert is repealed. end insert

begin delete

7873.  

(a) As used in this section, “trade secret” means a trade
secret as defined in subdivision (d) of Section 6254.7 of the
Government Code or Section 1061 of the Evidence Code, and shall
include the schedule submitted to the division pursuant to
subdivision (b) of Section 7872 of this code, and the scheduling,
duration, layout, configuration, and type of work to be performed
during a turnaround. Upon completion of a turnaround, the
scheduling and duration of that turnaround shall no longer be
considered a trade secret. The wages, hours, benefits, job
classifications, and training standards for employees performing
work for petroleum refinery employers is not a trade secret.

(b) (1) If a petroleum refinery employer believes that
information submitted to the division pursuant to Section 7872
may involve the release of a trade secret, the petroleum refinery
employer shall nevertheless provide this information to the
division. The petroleum refinery employer may, at the time of
submission, identify all or a portion of the information submitted
to the division as trade secret and, to the extent feasible, segregate
records designated as trade secret from the other records.

(2) Subject to subdivisions (c), (d), and (e), the division shall
not release to the public any information designated as a trade
secret by the petroleum refinery employer pursuant to paragraph
(1).

(c) (1) Upon the receipt of a request for the release of
information to the public that includes information that the
petroleum refinery employer has notified the division is a trade
secret pursuant to paragraph (1) of subdivision (b), the division
shall notify the petroleum refinery employer in writing of the
request by certified mail, return receipt requested.

(2) The division shall release the requested information to the
public, unless both of the following occur:

(A) Within 30 days of receipt of the notice of the request for
information, the refinery petroleum employer files an action in an
appropriate court for a declaratory judgment that the information
is subject to protection under subdivision (b) and promptly notifies
the division of that action.

(B) Within 120 days of receipt of the notice of the request for
information, the refinery petroleum employer obtains an order
prohibiting disclosure of the information to the public and promptly
notifies the division of that action.

(3) This subdivision shall not be construed to allow a petroleum
refinery employer to refuse to disclose the information required
pursuant to this section to the division.

(d) (1) Except as provided in subdivision (c), any information
that has been designated as a trade secret by a petroleum refinery
employer shall not be released to any member of the public, except
that such information may be disclosed to other officers or
employees of the division when relevant in any proceeding of the
division.

(2) If the person requesting the release of the information or the
petroleum refinery employer files an action to order or prohibit
disclosure of trade secret information, the person instituting the
proceeding shall name the person or the petroleum refinery
employer as a real party in interest.

(A) The petroleum refinery employer filing an action pursuant
to paragraph (2) of subdivision (c) shall provide notice of the action
to the person requesting the release of the information at the same
time that the defendant in the action is served.

(B) The person filing an action to compel the release of
information that includes information that the petroleum refinery
employer has notified the division is a trade secret pursuant to
paragraph (1) of subdivision (b) shall provide notice of the action
to the petroleum refinery employer that submitted the information
at the same time that the defendant in the action is served.

(3) The court shall award costs and reasonable attorneys’ fees
to the party that prevails in litigation filed pursuant to this section.
The public agency shall not bear the court costs for any party
named in litigation filed pursuant to this section.

(e) This section shall not be construed to prohibit the exchange
of trade secrets between local, state, or federal public agencies or
state officials when those trade secrets are relevant and reasonably
necessary to the exercise of their authority.

(f) An officer or employee of the division who, by virtue of that
employment or official position, has possession of, or has access
to, trade secret information, and who, knowing that disclosure of
the information to the general public is prohibited by this section,
knowingly and willfully discloses the information in any manner
to a person he or she knows is not entitled to receive it, is guilty
of a misdemeanor. A contractor with the division and an employee
of the contractor, who has been furnished information as authorized
by this section, shall be considered an employee of the division
for purposes of this section.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 25354 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25354.  

(a) Each refiner and major marketer shall submit
information each month to the commission in begin delete such end delete begin insert the end insert form and
begin insert to the end insert extent begin delete as end delete begin insert that end insert the commission prescribes pursuant to this
section. The information shall be submitted within 30 days after
the end of each monthly reporting period and shall include the
following:

(1)  begin insert (A) end insert begin insert   end insert Refiners shall report, for each of their refineries,
feedstock inputs, origin of petroleum receipts, imports of finished
petroleum products and blendstocks, by type, including the source
of those imports, exports of finished petroleum products and
blendstocks, by type, including the destination of those exports,
refinery outputs, refinery stocks, and finished product supply and
distribution, including all gasoline sold unbranded by the refiner,
blender, or importer.

begin insert

(B) Refiners shall also report, for each of their refineries, the
occurrence of all turnarounds within the meaning of Section 7872
of the Labor Code and all unplanned shutdowns. The information
reported pursuant to this paragraph shall include any changes to
the information reported pursuant to Section 25355, including any
changes to the scope or duration of any turnaround or unplanned
shutdown and an explanation of the cause or causes of the change.

end insert

(2) Major marketers shall report on petroleum product receipts
and the sources of these receipts, inventories of finished petroleum
products and blendstocks, by type, distributions through branded
and unbranded distribution networks, and exports of finished
petroleum products and blendstocks, by type, from the state.

(b) Each major oil producer, refiner, marketer, oil transporter,
and oil storer shall annually submit information to the commission
in begin delete such end delete begin insert the end insert form and begin insert to the end insert extent begin delete as end delete begin insert that end insert the commission prescribes
pursuant to this section. The information shall be submitted within
30 days after the end of each reporting period, and shall include
the following:

(1) Major oil transporters shall report on petroleum by reporting
the capacities of each major transportation system, the amount
transported by each system, and inventories thereof. The
commission may prescribe rules and regulations that exclude
pipeline and transportation modes operated entirely on property
owned by major oil transporters from the reporting requirements
of this section if the data or information is not needed to fulfill the
purposes of this chapter. The provision of the information shall
not be construed to increase or decrease any authority the Public
Utilities Commission may otherwise have.

(2) Major oil storers shall report on storage capacity, inventories,
receipts and distributions, and methods of transportation of receipts
and distributions.

(3) Major oil producers shall, with respect to thermally enhanced
oil recovery operations, report annually by designated oil field,
the monthly use, as fuel, of crude oil and natural gas.

(4) Refiners shall report on facility capacity, and utilization and
method of transportation of refinery receipts and distributions.

(5) Major oil marketers shall report on facility capacity and
methods of transportation of receipts and distributions.

(c) Each person required to report pursuant to subdivision (a)
shall submit a projection each month of the information to be
submitted pursuant to subdivision (a) for the quarter following the
month in which the information is submitted to the commission.

(d) In addition to the data required under subdivision (a), each
integrated oil refiner (produces, refines, transports, and markets
in interstate commerce) who supplies more than 500 branded retail
outlets in California shall submit to the commission an annual
industry forecast for Petroleum Administration for Defense, District
V (covering Arizona, Nevada, Washington, Oregon, California,
Alaska, and Hawaii). The forecast shall include the information
to be submitted under subdivision (a), and shall be submitted by
March 15 of each year. The commission may require
California-specific forecasts. However, those forecasts shall be
required only if the commission finds them necessary to carry out
its responsibilities.

(e) The commission may by order or regulation modify the
reporting period as to any individual item of information setting
forth in the order or regulation its reason for so doing.

(f) The commission may request additional information as
necessary to perform its responsibilities under this chapter.

(g) Any person required to submit information or data under
this chapter, begin delete in lieu thereof, end delete begin insert instead, end insert may submit a report made to
any other governmental agency, if:

(1) The alternate report begin delete or reports contain end delete begin insert contains end insert all of the
information or data required by specific request under this chapter.

(2) The person clearly identifies the specific request to which
the alternate report is responsive.

(h) Each refiner shall submit to the commission, within 30 days
after the end of each monthly reporting period, all of the following
information in begin delete such end delete begin insert the end insert form and begin insert to the end insert extent begin delete as end delete begin insert that end insert the
commission prescribes:

(1)  begin delete Monthly California weighted average end delete begin insert Daily end insert prices and sales
volumes begin delete of end delete begin insert at all locations in California for end insert finished leaded regular,
unleaded regular, and premium motor gasoline sold through
company-operated retail outlets, to other end-users, and to
wholesale begin delete customers. end delete begin insert customers, including, but not limited to, the
dealer tank wagon price or rack zone pricing. end insert

(2)  begin delete Monthly California weighted average end delete begin insert Daily end insert prices and sales
volumes begin insert at all locations in California end insert for residential sales,
commercial and institutional sales, industrial sales, sales through
company-operated retail outlets, sales to other end-users, and
wholesale sales of No. 2 diesel fuel and No. 2 fuel oil.

(3)  begin delete Monthly California weighted average end delete begin insert Daily end insert prices and sales
volumes begin insert at all locations in California end insert for retail sales and wholesale
sales of No. 1 distillate, kerosene, finished aviation gasoline,
kerosene-type jet fuel, No. 4 fuel oil, residual fuel oil with 1 percent
or less sulfur, residual fuel oil with greater than 1 percent sulfur
and consumer grade propane.

(i) (1)  begin delete Beginning the first week after the effective date of the
act that added this subdivision, and each week thereafter, an end delete begin insert An end insert
oil refiner, oil producer, petroleum product transporter, petroleum
product marketer, petroleum product pipeline operator, and
terminal operator, as designated by the commission, shall submit
a begin insert weekly end insert report in the form and extent as the commission prescribes
pursuant to this section. The commission may determine the form
and extent necessary by order or by regulation.

(2) A report may include any of the following information:

(A) Receipts and inventory levels of crude oil and petroleum
products at each refinery and terminal location.

(B) Amount of gasoline, diesel, jet fuel, blending components,
and other petroleum products imported and exported.

(C) Amount of gasoline, diesel, jet fuel, blending components,
and other petroleum products transported intrastate by marine
vessel.

(D) Amount of crude oil imported, including information
identifying the source of the crude oil.

(E) The regional average of invoiced retailer buying price. This
subparagraph does not either preclude or augment the current
authority of the commission to collect additional data under
subdivision (f).

(3) This subdivision is intended to clarify the commission’s
existing authority under subdivision (f) to collect specific
information. This subdivision does not either preclude or augment
the existing authority of the commission to collect information.

begin insert

(j) Notwithstanding Section 25364 or any other law, information
reported under subparagraph (B) of paragraph (1) of subdivision
(a) or under subdivision (h) shall be subject to public disclosure
within 24 hours of receipt by the commission.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 25355 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25355. end insert   

(a) On or before January 1, 2017, and on or before
January 1 annually thereafter, a refiner shall submit to the
commission information on both of the following in the form and
to the extent that the commission prescribes:

(1) A full schedule of all planned turnarounds for all refinery
process units or plants for the following calendar year and a
description of the scope and expected duration of each turnaround.

(2) The amount of gasoline inventory anticipated in advance of
each planned turnaround at each refinery process unit or plant.

(b) A refiner shall report to the commission within 24 hours of
any turnaround not previously disclosed under subdivision (a) or
any unplanned shutdown that occurs in a refinery process unit or
plant. The report shall be in the form that the commission
prescribes and shall include a description of the refinery process
unit or plant involved in the shutdown, the expected duration of
the shutdown, and the reasons for the shutdown. The report shall
be signed under penalty of perjury by an officer or director of the
entity that owns the refinery.

(c) For purposes of this section, “turnaround” has the same
meaning as defined in Section 7872 of the Labor Code.

(d) Notwithstanding any other law, information reported under
this section shall be subject to public disclosure within 24 hours
of receipt by the commission.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 25359 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25359. end insert   

(a) Notwithstanding any law, each refiner shall report
to the commission, within seven days of the refiner’s most recent
quarterly report to shareholders, in the form and to the extent the
commission prescribes, the amount of profits the refiner generated
from the operations of its refineries operating in this state during
the period covered by the quarterly report to shareholders.

(b) Notwithstanding any other law, each refiner shall report to
the commission, within seven days of each annual report by the
refiner to shareholders, in the form and to the extent the
commission prescribes, the amount of taxes the refiner paid to this
state in the most recent tax year.

(c) Notwithstanding any other law, information reported under
this section shall be subject to public disclosure within 24 hours
of receipt by the commission.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 25360 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25360. end insert   

(a) Notwithstanding any law, each refiner and major
marketer shall report to the commission information regarding
all purchases, sales, or exchanges of petroleum products measuring
2,500 barrels or above in this state within 24 hours of each
transaction. For each transaction of this type, the refiner or major
marketer shall submit to the commission all of the following
information in the form and to the extent that the commission
prescribes:

(1) The type of product traded.

(2) All parties involved in the transaction.

(3) The location of the product at the time of transaction.

(4) The terms of the transaction.

(5) The means of transportation.

(b) Notwithstanding any other law, information reported under
this section shall be subject to public disclosure within 24 hours
of receipt by the commission.

(c) For purposes of this section, and notwithstanding Section
25126, “major marketer” means a person who sells at least 2,500
barrels of oil per calendar year, or a person who sells an amount
less than 2,500 barrels of oil per calendar year that the commission
determines has a major effect on energy supplies.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 25361 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25361. end insert   

(a) Notwithstanding Section 25364 or any other law,
the commission shall publish on its Internet Web site the
information submitted pursuant to subparagraph (B) of paragraph
(1) of subdivision (a) of Section 25354, and Sections 25355, 25359,
and 25360.

(b) The commission shall publish on its Internet Web site on a
monthly basis both of the following:

(1) Aggregated information on gasoline exports, including the
destination of those exports.

(2) Information submitted pursuant to subdivision (h) of Section
25354 in the aggregate and in detail by refinery.

(c) On the date of a planned turnaround, the commission shall
verify that a refiner has the amount of gasoline inventory that was
reported pursuant to paragraph (2) of subdivision (a) of Section
25355. The commission shall report any discrepancy between the
reported amount and actual amount of gasoline inventory to the
Attorney General and to the Legislature.

(d) The commission may charge and collect from refiners a
reasonable fee to cover the cost of performing its duties required
by this section. Moneys received by the commission pursuant to
this subdivision shall be deposited in the Energy Resources
Programs Account and, notwithstanding Section 13340 of the
Government Code, are continuously appropriated for expenditure
by the commission for purposes of performing those duties.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 25367 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25367. end insert   

(a) Commencing on January 1, 2017, and each year
thereafter, every refiner shall submit an annual inventory supply
plan to the commission for review and approval. The plan shall
be in the form and contain the information required by the
commission and, at a minimum, shall include all of the following:

(1) A description of how the refiner will ensure a sufficient
inventory to meet anticipated demand, based on the previous year’s
consumption, including through reserves, imports, trades, or other
arrangements that will allow the necessary supply to come to
market.

(2) The minimum working inventory the refiner plans to keep
on hand, averaged on a monthly basis for each month of the year,
which will comport with demand projection and production
schedules.

(3) A crisis plan detailing the refiner’s planned response for
dealing with unplanned outages at each of its refineries, and
including a contingency production, import, strategic inventory,
or trading plan to ensure adequate supplies to meet monthly
demand.

(b) The commission shall only approve a refiner’s inventory
supply plan if the commission is satisfied that the plan sets forth
sufficient arrangements to ensure a sufficient inventory to meet
annual demand. The commission may, at any time, require a refiner
to revise its inventory supply plan or maintenance schedule if the
commission determines that the contents of the plan or schedule
do not provide adequate arrangements to ensure a sufficient
inventory or production to meet demand.

(c) The commission shall, upon notice and hearing consistent
with due process, impose an administrative fine on a refiner that
fails to submit and obtain approval of an inventory supply plan as
required by this section, fails to revise an inventory supply plan
as directed by the commission, or fails to follow its approved plan.
The amount of the administrative fine shall be not less than fifty
thousand dollars ($50,000) and not more than one million dollars
($1,000,000) per day during which the refiner operates without
an approved inventory supply plan or does not follow its approved
plan. In assessing the fine, the commission shall take into account
the intentionality and severity of the refiner’s action.

(d) The inventory supply plan submitted pursuant to subdivision
(a) shall be signed under penalty of perjury by an officer or
director of the entity that owns the refiner.

(e) Notwithstanding any other law, information reported under
this section shall be subject to public disclosure within 24 hours
of receipt by the commission.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert begin insert

The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order to provide consumers transparency at a time when oil
prices are at an historic low and the difference between those
prices and gas prices is at an historic high, it is necessary that
this act take effect immediately.

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SECTION 1.  

Section 4213 of the Public Resources Code is
amended to read:

4213.  

(a) (1) The fire prevention fee imposed pursuant to
Section 4212 shall be collected annually by the State Board of
Equalization in accordance with the Fee Collection Procedures
Law (Part 30 (commencing with Section 55001) of Division 2 of
the Revenue and Taxation Code).

(2) Notwithstanding the appeal provisions in the Fee Collection
Procedures Law, a determination by the department that a person
is required to pay a fire prevention fee, or a determination by the
department regarding the amount of that fee, is subject to review
under Article 2 (commencing with Section 4220) and is not subject
to a petition for redetermination by the State Board of Equalization.

(3) (A) Notwithstanding the refund provisions in the Fee
Collection Procedures Law, the State Board of Equalization shall
not accept any claim for refund that is based on the assertion that
a determination by the department improperly or erroneously
calculated the amount of the fire prevention fee, or incorrectly
determined that the person is subject to that fee, unless that
determination has been set aside by the department or a court
reviewing the determination of the department.

(B) If the department or a reviewing court determines that a
person is entitled to a refund of all or part of the fire prevention
fee, the person shall make a claim to the State Board of
Equalization pursuant to Chapter 5 (commencing with Section
55221) of Part 30 of Division 2 of the Revenue and Taxation Code.

(b) The annual fire prevention fee shall be due and payable 60
days from the date of assessment by the State Board of
Equalization.

(c)  On or before each January 1, the department shall annually
transmit to the State Board of Equalization the appropriate name
and address of each person who is liable for the fire prevention
fee and the amount of the fee to be assessed, as authorized by this
article, and at the same time the department shall provide to the
State Board of Equalization a contact telephone number for the
board to be printed on the bill to respond to questions about the
fee.

(d) If in any given fiscal year there are sufficient amounts of
money in the State Responsibility Area Fire Prevention Fund
created pursuant to Section 4214 to finance the costs of the
programs under subdivision (d) of Section 4214 for that fiscal year,
the fee may not be collected that fiscal year.

(e) This section shall become inoperative on the date that is five
years after the effective date of the act adding this subdivision,
and, as of January 1, 2021, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2021,
deletes or extends the dates on which it becomes inoperative and
is repealed.

SEC. 2.  

Section 4213 is added to the Public Resources Code,
to read:

4213.  

(a) (1) The fire prevention fee imposed pursuant to
Section 4212 shall be collected annually by the State Board of
Equalization in accordance with the Fee Collection Procedures
Law (Part 30 (commencing with Section 55001) of Division 2 of
the Revenue and Taxation Code).

(2) Notwithstanding the appeal provisions in the Fee Collection
Procedures Law, a determination by the department that a person
is required to pay a fire prevention fee, or a determination by the
department regarding the amount of that fee, is subject to review
under Article 2 (commencing with Section 4220) and is not subject
to a petition for redetermination by the State Board of Equalization.

(3) (A) Notwithstanding the refund provisions in the Fee
Collection Procedures Law, the State Board of Equalization shall
not accept any claim for refund that is based on the assertion that
a determination by the department improperly or erroneously
calculated the amount of the fire prevention fee, or incorrectly
determined that the person is subject to that fee, unless that
determination has been set aside by the department or a court
reviewing the determination of the department.

(B) If the department or a reviewing court determines that a
person is entitled to a refund of all or part of the fire prevention
fee, the person shall make a claim to the State Board of
Equalization pursuant to Chapter 5 (commencing with Section
55221) of Part 30 of Division 2 of the Revenue and Taxation Code.

(b) The annual fire prevention fee shall be due and payable 30
days from the date of assessment by the State Board of
Equalization.

(c) On or before each January 1, the department shall annually
transmit to the State Board of Equalization the appropriate name
and address of each person who is liable for the fire prevention
fee and the amount of the fee to be assessed, as authorized by this
article, and at the same time the department shall provide to the
State Board of Equalization a contact telephone number for the
board to be printed on the bill to respond to questions about the
fee.

(d) If in any given fiscal year there are sufficient amounts of
money in the State Responsibility Area Fire Prevention Fund
created pursuant to Section 4214 to finance the costs of the
programs under subdivision (d) of Section 4214 for that fiscal year,
the fee may not be collected that fiscal year.

(e) This section shall become operative on the date that is five
years after the effective date of the act adding this section.

SEC. 3.  

Section 4220 of the Public Resources Code is amended
to read:

4220.  

(a) A person from whom the fire prevention fee is
determined to be due under this chapter may petition for a
redetermination of whether this chapter applies to that person
within 60 days after service upon him or her of a notice of the
determination. If a petition for redetermination is not filed within
the 60-day period, the amount determined to be due becomes final
at the expiration of the 60-day period.

(b) This section shall become inoperative on the date that is five
years after the effective date of the act adding this subdivision,
and, as of January 1, 2021, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2021,
deletes or extends the dates on which it becomes inoperative and
is repealed.

SEC. 4.  

Section 4220 is added to the Public Resources Code,
to read:

4220.  

(a) A person from whom the fire prevention fee is
determined to be due under this chapter may petition for a
redetermination of whether this chapter applies to that person
within 30 days after service upon him or her of a notice of the
determination. If a petition for redetermination is not filed within
the 30-day period, the amount determined to be due becomes final
at the expiration of the 30-day period.

(b) This section shall become operative on the date that is five
years after the effective date of the act adding this section.

SEC. 5.  

Section 4222 of the Public Resources Code is amended
to read:

4222.  

If a petition for redetermination of the application of this
chapter is filed within the period specified in subdivision (a) of
Section 4220, the department shall reconsider whether the fee is
due and make a determination in writing. The department may
eliminate the fee based on a determination that this chapter does
not apply to the person who filed the petition.

SEC. 6.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to ensure a smooth beginning for the 2016 fire
prevention fee collection period and to provide relief at the earliest
possible time to the rural property owners that this act seeks to
assist, it is necessary that this act take effect immediately.

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