Bill Text: CA SB1322 | 2021-2022 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Energy: petroleum pricing.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2022-09-16 - Chaptered by Secretary of State. Chapter 374, Statutes of 2022. [SB1322 Detail]

Download: California-2021-SB1322-Introduced.html

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CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1322

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Introduced by Senator Allen

February 18, 2022

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An act to amend Section 25362 of, and to add Section 25355 to, the Public Resources Code, relating to energy.

LEGISLATIVE COUNSEL'S DIGEST

SB 1322, as introduced, Allen. Energy: petroleum pricing.

The Petroleum Industry Information Reporting Act of 1980 requires each refiner, within 30 days after the end of each month reporting period, to submit to the State Energy Resources Conservation and Development Commission, certain information regarding petroleum sales volumes and price. The act requires the commission to notify a refiner that has failed to timely provide the required information and imposes a civil penalty on the refiner that fails to submit the required information within 5 days of being notified of the failure.

This bill would enact the California Oil Refinery Cost Disclosure Act and would require operators of refineries in the state, within 7 days of the end of each month, to submit a report to the commission containing the volume of crude oil refined into gasoline in the prior month, the average price paid for each barrel of crude oil that is refined into gasoline in the prior month, and the gross and net refining margins, as defined, per barrel of gasoline sold in the prior month. The bill would require the commission to post those reported data, within 14 calendar days of the end of each month, on its internet website. The bill would require the commission to notify a refiner that has failed to timely submit the information required by the bill and would impose the above-described civil penalty on the refiner as specified above.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 This act shall be known, and maybe cited, as the California Oil Refinery Cost Disclosure Act.

SEC. 2.

 The Legislature finds and declares all of the following:

(a) In October of 2019, the State Energy Resources Conservation and Development Commission issued an analysis on gasoline prices in California pursuant to a request from Governor Newsom for an in-depth analysis of the causes of the increased differential between national and California gasoline price.

(b) In the analysis, the commission states that “the primary cause of the increased differential is simply that California retail gasoline outlets are charging higher prices than those in other states.”

(c) The analysis finds that “[w]hile all retailers in California have increased their retail margins above the national average, higher-priced brands, such as [Phillips] 76, Chevron, and Shell have increase their margins far beyond their competitors.”

(d) The analysis concludes that “[t]he overall California increase in retail margins, above that experienced by the rest of the U.S. has resulted in California gasoline consumers paying an estimated additional $1,500,000,000 in 2018 and $11,600,000,000 over the last five years.”

SEC. 3.

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

25355.

 (a) For purposes of this section, the following definitions apply:

(1) “Gross refining margin” means the difference between the weighted average price of the finished unleaded regular, mid-grade, and premium gasoline sold by a refiner in the state and the average price of crude oil used by the refinery to produce the gasoline.

(2) “Net refining margin” means the gross refining margin minus the refinery’s fixed operational costs.

(b) Within seven calendar days of the end of each month, the operator of each refinery operating in the state that produces gasoline shall submit a report for the refinery containing all of the following information:

(1) The volume of crude oil refined into gasoline in the prior calendar month.

(2) The average price paid for each barrel of crude oil that is refined into gasoline in the prior calendar month.

(3) The gross and net refining margin per barrel of gasoline sold in the prior calendar month.

(c) Notwithstanding Section 25364, within 14 calendar days of the end of each month, the commission shall post on it internet website the data reported pursuant to this section for the prior calendar month, both in aggregate and separately for each refinery in the state.

SEC. 4.

 Section 25362 of the Public Resources Code is amended to read:

25362.

 (a) The commission shall notify those persons who have failed to timely provide the information specified in Section 25354. 25354 or 25355. If, within five days after being notified of the failure to provide the specified information, the person fails to supply the specified information, the person shall be subject to a civil penalty of not less than five hundred dollars ($500) nor more than two thousand dollars ($2,000) per day for each day the submission of information is refused or delayed, unless the person has timely filed objections with the commission regarding the information and the commission has not yet held a hearing on the matter, or the commission has held a hearing and the person has properly submitted the issue to a court of competent jurisdiction for review.

(b) Any A person who willfully makes any false statement, representation, or certification in any record, report, plan, or other document filed with the commission shall be subject to a civil penalty not to exceed two thousand dollars ($2,000).

(c) For the purposes of this section, the term “person” shall mean, in addition to the definition contained in Section 25116, any responsible corporate officer.