Petroleum Supply And Pricing - - CA Public Resources

Section § 25350

This law emphasizes the crucial role the petroleum industry plays in California's economy and the well-being of its residents. It states that the state government needs to have a deep understanding of the industry's operations at all times. This is necessary to handle potential disruptions like fuel shortages or oversupplies and to ensure all sectors, including emergency services and businesses, have adequate and affordable fuel supplies.

The law also highlights the importance of collecting detailed data on various aspects of the petroleum industry. This includes information on crude oil production, fuel supplies, exports, prices, and distribution. Such data is vital for the state to craft effective energy policies that support California's economic health and public welfare.

(a) The Legislature finds and declares that the petroleum industry is an essential element of the California economy and is therefore of vital importance to the health and welfare of all Californians.

(b) The Legislature further finds and declares that a complete and thorough understanding of the operations of the petroleum industry is required by state government at all times to enable it to respond to possible shortages, oversupplies, or other disruptions and to assess whether all consumers, including emergency service agencies, state and local government agencies, and agricultural and business consumers of petroleum products have adequate and economic supplies of fuel.

(c) The Legislature further finds and declares that information and data concerning all aspects of the petroleum industry, including, but not limited to, crude oil production, production and supplies of finished branded and unbranded gasoline, supplies of diesel fuel and other distillates, supplies of blendstocks used to make gasoline and other refined products, refining, product output, exports of finished gasoline, diesel fuel, and blendstocks, prices, distribution, demand, and investment choices and decisions are essential for the state to develop and administer energy policies that are in the interest of the state’s economy and the public’s well-being.

petroleum industry role economic importance fuel supply disruptions energy policy development crude oil production data gasoline and diesel supply refined products distribution energy policy public welfare California economy emergency services fuel needs petroleum industry operations data collection fuel price information energy investment decisions

(Amended by Stats. 2000, Ch. 288, Sec. 3. Effective January 1, 2001.)

Section § 25352

This section establishes the name of the law as the Petroleum Industry Information Reporting Act of 1980.

This chapter shall be known and may be cited as the Petroleum Industry Information Reporting Act of 1980.

Petroleum Industry Information Reporting 1980 California Energy Law Industry Reporting Act Petroleum Sector Regulations Energy Reporting Requirements Industry Data Collection Petroleum Legislation Energy Industry Compliance

(Added by Stats. 1980, Ch. 1055, Sec. 4. Effective September 26, 1980.)

Section § 25354

This statute requires refiners and major marketers to submit detailed monthly and annual reports to the commission. These reports must include information on petroleum product inputs, outputs, inventories, transportation, and sales. The law also covers reporting requirements for oil transporters, storers, producers, marketers, pipeline operators, and port operators, with specific details on production, maintenance schedules, and transportation routes.

The commission can modify reporting requirements and ensure data confidentiality. Additionally, refiners must report advanced plans for maintenance, turnarounds, and potential shutdowns to maintain fuel supply stability. Reports of nonfloating crude oil transportation and spot market transactions are also mandated.

The law aims to ensure transparent oversight of petroleum industry activities to prevent supply shortages or price spikes in the state, while protecting sensitive information from public disclosure.

(a) Each refiner and major marketer shall submit information each month to the commission in such form and extent as the commission prescribes pursuant to this section. For purposes of this section, the term “refiner” and “refinery” shall include refiners and refineries as defined in Sections 25127 and 25128, and also those persons and facilities that process renewable feedstocks instead of crude oil feedstocks and otherwise meet the definitions in Sections 25127 and 25128. The information shall be submitted within 30 days after the end of each monthly reporting period and shall include the following:

(1) Refiners shall report, by volume, price, and type, for each of their refineries, feedstock inputs, origin of petroleum receipts, imports of finished petroleum products and blendstocks and ethanol, including the source of those imports, exports of finished petroleum products and blendstocks and ethanol, including the destination of those exports and the entity receiving those exports, refinery outputs, refinery stocks, finished product supply and distribution, including all gasoline sold unbranded by the refiner, blender, or importer, and all current inventories of refined and unrefined petroleum products.

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

(b) Each major oil producer, refiner, marketer, oil transporter, oil storer, pipeline operator, or port through which refined gasoline is imported or exported, shall annually submit information to the commission in such form and extent as 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.

(6) Pipeline operators and port operators shall report their capacities for all pipelines and ports used to transport refined gasoline.

(7) All major oil producers, refiners, marketers, oil transporters, oil storers, pipeline operators, or port operators submitting information under this subdivision shall include in the report for each reporting period the full names of all persons or entities that directly or indirectly own 10 percent or more of the major oil producer, refiner, marketer, oil transporter, oil storer, pipeline operator, or port operator submitting the information.

(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 that produces, refines, transports, and markets in interstate commerce and that 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 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)

(1) Destination facilities shall submit to the commission, by deadlines set by the commission, the following information regarding crude oil transported to or within California via rail car or marine vessel:

(A) The route of transport within California.

(B) The marketable crude oil name.

(C) The loading facility, including the loading facility name, and the latitude, longitude, and state where the facility is located.

(D) The name of the destination facility, the type of facility, and the latitude and longitude where the facility is located.

(E) Whether the crude oil is nonfloating oil, as defined in Section 8670.3 of the Government Code.

(2) The commission shall quarterly prepare and make available to the public a report based on the data collected pursuant to paragraph (1) that shall include, at a minimum, the routes of transport of crude oil within California, the types of crude oil transported over each of those routes, and the frequency with which nonfloating oil has been transported over each of those routes during the reporting period. The commission shall aggregate information used in a report prepared under this paragraph to the extent necessary to assure confidentiality if public disclosure of the specific information or data would result in unfair competitive disadvantage to the person supplying the information or would adversely affect market competition.

(3) The commission may require additional information to be submitted as necessary to perform its responsibilities under this chapter.

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

(1) The alternate report or reports contain all of the information or data required by this chapter.

(2) The person clearly identifies the specific provision of this chapter 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 such form and extent as the commission prescribes:

(1) Monthly California weighted average prices and sales volumes of finished leaded regular, unleaded regular, and premium motor gasoline sold through company-operated retail outlets, to other end-users, and to wholesale customers.

(2) Monthly California weighted average prices and sales volumes 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, No. 2 fuel oil, and any renewable fuels.

(3) Monthly California weighted average prices and sales volumes 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) Beginning the first week after January 1, 2004, and each week thereafter, an 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 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 paragraph (3) of subdivision (f).

(F) Copies of all contracts or agreements entered into, or amendments to contracts or agreements, with other oil refiners, oil producers, petroleum product transporters, petroleum product marketers, petroleum product pipeline operators, terminal operators, or any other entity that trades in petroleum products whether or not those entities take possession of petroleum products, as designated by the commission, during the monthly reporting period, along with records of every transaction made under those contracts or agreements and the prices charged for those transactions.

(3) This subdivision is intended to clarify the commission’s existing authority under subdivision (f) to collect specific information. This subdivision neither precludes nor augments the existing authority of the commission to collect information.

(j) All importers of refined products and renewable fuels via marine vessel shall report to the commission, at least 96 hours before the arrival of a marine vessel delivery to California, all of the following information:

(1) The name of the product tanker or name of the barge, including associated tug name.

(2) The loading location or locations for cargo.

(3) The volume by each type of transportation fuel, such as gasoline, gasoline blending components, diesel fuel, renewable diesel fuel, jet fuel, sustainable aviation fuel, biodiesel, and ethanol.

(4) The cargo landed cost, including the cost incurred to purchase, load, transport, and all other costs and fees to deliver, each type of transportation fuel, such as gasoline, gasoline blending components, diesel fuel, renewable diesel fuel, jet fuel, sustainable aviation fuel, biodiesel, and ethanol.

(5) The status of any transportation fuel as sold before discharge, the identity of the buyer for any presold product, and the sale price of any presold product.

(6) The planned discharge location, such as the marine berth designation, or locations.

(7) The foreign, domestic, and intrastate marine movements of the vessel from the port of origin to the port of delivery of the cargo.

(k) Nonrefiners, such as proprietary storage companies, that commercially trade in gasoline, gasoline blending components, diesel fuel, or renewable diesel fuel inventory not subject to contractual supply obligations, shall submit weekly reports to the commission, starting 30 days after the effective date of the act adding this subdivision, that include the weekly inventory volume, by type, such as gasoline, gasoline blending components, diesel fuel, or renewable fuels, for each position holder by name of company, and copies of all contracts or agreements entered into with any refiners, oil producers, petroleum product transporters, petroleum product marketers, petroleum product pipeline operators, terminal operators, or any other entity that trades in petroleum products whether or not those entities take possession of those products, as designated by the commission.

(l) Refiners and nonrefiners that consummate spot market transactions shall submit a daily report to the commission, starting 30 days after the effective date of the act adding this subdivision, that includes all of the following information for each transaction occurring during the preceding day:

(1) The identity of the spot market where the transaction occurred.

(2) Whether the transaction was reported to the Oil Price Information Service (OPIS), or any other price reporting service, and the time of the reporting.

(3) The date of the transaction.

(4) The time of the transaction.

(5) The contract identification number for the transaction.

(6) The position sequence number for the transaction.

(7) The contract position identification number for the transaction.

(8) The name, or nonanonymized identification of the executing trader for the transaction.

(9) The counterparty for the transaction, including company name and name or nonanonymized identification of the executing trader.

(10) Whether the reporting entity is the seller or buyer.

(11) The broker, including company name and name or nonanonymized identification of the executing broker.

(12) The type of refined transportation fuel, such as gasoline, diesel, or jet fuel.

(13) The product name for each type of refined transportation fuel.

(14) The volume of each transaction in thousands of barrels, or specified unit of measurement if unable to be indicated in thousands of barrels.

(15) The invoiced volume of each transaction in thousands of barrels, or specified unit of measurement if unable to be indicated in thousands of barrels.

(16) The time and date the material that is the subject of the transaction is scheduled to be delivered or was delivered.

(17) The delivery location specified in the contract for the transaction and the actual delivery location.

(18) The method of transportation for the delivery, such as pipeline, marine vessel, or truck, and the name of the transport.

(19) The actual title transfer date.

(20) The contract subcycle, including descriptors such as “Any,” “L3,” “FH,” “BH,” “C1,” “C2,” “C3,” or “C4.”

(21) The type of pricing method, including exchange of futures for physical (EFP), fixed price, fixed date range, floating date range, reference formula, OPIS close, event-related date range, such as three days on and around delivery or discharge, or any other utilized method of pricing.

(22) The contract price formula, including the differential from any contract formula and the unit of measurement for any price differential.

(23) The pricing start and end dates for each contract.

(24) The price value of the contract.

(25) For EFP contracts, the name of the futures product, the contract month of the futures product expressed as the two-digit month and the two-digit year (MM-YY), and the price value of the futures product.

(m) It is the intent of the Legislature that all refiners shall, while protecting the health and safety of the public and employees, schedule planned maintenance and turnaround in a manner that ensures minimum levels of transportation fuels in production or reserves necessary to prevent supply shortages or price spikes. To advance that purpose, refiners shall report maintenance activities for each refinery to the commission as follows:

(1) Notwithstanding any other law, a refiner shall notify the executive director of the commission of all plans to undertake turnaround and planned maintenance. A refiner’s notification shall include, at a minimum, all of the following information:

(A) A brief description of planned work.

(B) The scheduled start date.

(D) The individual process units involved.

(E) The name and operational capacity of each process unit.

(F) The estimated daily decrease in output of material or substance produced by the unit, such as gasoline, diesel, or jet fuel components.

(G) The projected quantity of contractual supply obligations for finished gasoline due during the planned maintenance event or turnaround.

(H) The drawdown of inventory levels of gasoline and gasoline blending components and other material or substance produced by the unit that are controlled by the refiner at the refinery and at other storage locations in California during the planned maintenance event or turnaround, the current levels of such inventories at the time notice is provided, and the anticipant levels of such inventories immediately before the commencement of the planned maintenance event or turnaround.

(I) Imports of gasoline and gasoline blend components and other material or substance produced by the unit in preparation for or during the planned maintenance event.

(J) Planned purchases of gasoline and gasoline blending components and other material or substance produced by the unit from other market participants in California related to the planned maintenance event.

(K) Planned reductions of noncontracted sales of gasoline or other material or substance produced by the unit related to the planned maintenance event.

(2) The refiner’s notification shall be submitted to the executive director of the commission at least 120 days before the planned maintenance or turnaround.

(3) Before submitting its turnaround schedule notification to the Division of Occupational Safety and Health pursuant to Section 7872 of the Labor Code, each refiner shall submit its turnaround schedule to the executive director of the commission. When submitting its schedule to the division, each refiner shall indicate that, for each scheduled turnaround, the notification to the commission was submitted.

(4) For unplanned maintenance resulting in a shutdown of a refinery process of greater than 24 hours, submit initial and final reports as follows:

(A) The initial report, due within 48 hours of the initial outage, shall include all of the following information:

(i) The name and operational capacity of each process unit involved in the unplanned outage.

(ii) The initial estimated daily decrease in output of gasoline, diesel, and jet fuel components from each process unit affected by the unplanned outage.

(iii) The current inventory levels of the material or substance produced by the unit affected by the unplanned outage that are controlled by the refiner at the refinery and at other storage locations in California during the unplanned maintenance event.

(iv) A description of the reason for the unplanned maintenance or outage.

(v) The projected duration of production reduction.

(B) The final report, due within 48 hours of the completion of repairs, shall include all of the following information:

(i) The return-to-service date.

(ii) The total decreased output of gasoline, diesel, and jet fuel components from each of the affected process units.

(iii) The total increased output from other process units by type of refined product to partially compensate for the reduced output from the process units affected by the unplanned outage.

(iv) The amount of material obtained from other sources that compensated for the decrease described in clause (ii) and enabled the refiner to cover for the loss of that production.

(v) The drawdown of inventory levels of any material or substance produced by the unit that are controlled by the refiner at the refinery and at other storage locations in California during the unplanned maintenance event.

(5) Upon receipt of a notification under this subdivision, the executive director of the commission shall review the notification and may request any additional information from the refiner that is necessary for the commission to assess the potential effect of the planned maintenance event on the supply and prices of transportation fuels in the state.

(n)

(1) Notwithstanding any other law, information in the notification provided to the commission by a refiner providing a notice or report of its planned maintenance, unplanned maintenance, or turnaround schedule, including notifications under subdivision (m) shall be considered confidential information not subject to public disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The commission may share the information with other state agencies, including the Attorney General, only if the other state agency agrees to maintain the confidentiality of the information.

(2) The commission may adopt guidelines to prescribe the manner in which the executive director of the commission shall implement subdivision (m) at a commission business meeting. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to any regulations, guidelines, or other standards adopted by the commission pursuant to this paragraph.

(o) Refiners shall report annually to the commission their planned production levels and schedule for turnarounds and planned maintenance for the following 12 months, by month and by finished product.

(p)

(1) The operator of any refinery in this state shall report to the Commission at least 12 months in advance if that refinery operator intends to permanently shut down, shut down to reconfigure, or sell a refinery in a transaction that may result in a refinery shutting down or reconfiguring.

(2) Upon receipt of a notice pursuant to paragraph (1), the commission shall notify the Legislature in a manner that does not disclose confidential information, if applicable.

(3) After the completion of the report by the commission required by Section 25371 and its submission to the Legislature, the commission may modify the notice required under this subdivision. The commission shall not reduce the notice period to less than 12 months.

petroleum product reporting refinery maintenance schedules crude oil transportation marketable crude oil petroleum inventories supply network distribution refinery outputs petroleum product forecasts refinery shutdown notifications spot market transactions confidential reporting transportation fuel supply renewable feedstocks processing nonfloating oil frequency pipeline and port capacities

(Amended by Stats. 2023, 1st Ex. Sess., Ch. 1, Sec. 2. (SB 2 1x) Effective June 26, 2023.)

Section § 25354.2

This law involves the commission working with labor and industry experts to manage refinery maintenance in a way that protects workers, communities, and public safety while minimizing fuel price impacts. The commission can create rules for when and how refineries perform maintenance, ensuring they don't disrupt fuel supplies. These rules must prioritize safety and require refineries to demonstrate plans for maintaining fuel availability during maintenance.

This law does not change existing safety or labor requirements, such as those allowing workers to conduct emergency shutdowns for safety reasons. Additionally, it does not waive any obligations of employers to follow labor wage and workforce skill regulations.

(a) The commission, in consultation with the Labor and Workforce Development Agency and labor and industry stakeholders, shall consider ways to manage necessary refinery turnarounds and maintenance that would protect the health and safety of employees, local communities, and the public, and minimize the impact of maintenance-related production losses on fuel prices. The commission may, by regulation, impose requirements governing the timing of turnaround and maintenance developed through consultations under this section.

(b) Regulations adopted under this section shall do, but not be limited to, both of the following:

(1) Protect the health and safety of employees, local communities, and the public.

(2) Include criteria that are required to be met before a refinery commences a turnaround or maintenance event, including, but not limited to, demonstrating to the satisfaction of the executive director of the commission, through a report required by subdivision (m) of Section 25354, that the refiner has made resupply plans or other arrangements sufficient to ensure that the loss of production during the turnaround or maintenance event does not adversely affect the California transportation fuels market.

(c) This section does not modify any requirements of, or standards issued pursuant to, Section 6311 of, or Part 7.5 (commencing with Section 7850) of Division 5 of, the Labor Code, including the authority of employees to perform an emergency shutdown of the refinery and necessary maintenance work for safety.

(d) A regulation adopted, or action taken, pursuant to this section shall not excuse an employer’s compliance with the skilled and trained workforce and wage requirements set forth in Section 25536.7 of the Health and Safety Code.

refinery maintenance safety regulations fuel supply planning employee safety community health public safety labor consultations fuel market impact resupply plans emergency shutdown skilled workforce requirements turnaround timing maintenance criteria production losses executive director evaluation

(Amended by Stats. 2024, 2nd Ex. Sess., Ch. 1, Sec. 1. (AB 1 2x) Effective January 13, 2025.)

Section § 25354.4

This law allows the California commission, alongside a consumer advisory committee, to assess and regulate fuel inventories held by refiners in the state to stabilize fuel prices. It sets guidelines for minimum fuel inventories, considering factors like refinery size, seasonal changes, and market conditions. The goal is to minimize price volatility while ensuring health and safety standards are maintained. Exemptions for small refiners facing economic hardships and adjustments based on supply-demand shifts are included. The law also mandates annual reports to evaluate the effectiveness of these regulations. Compliance mechanisms and restrictions on forcing infrastructure expansion are also detailed. This law will be in effect until January 1, 2033.

(a) The commission, in consultation with the Independent Consumer Fuels Advisory Committee established pursuant to Section 25373, shall consider the effects of refiners’ inventories of fuel and feedstocks and blending components on the price of transportation fuels in California. The commission may, by regulation, develop and impose requirements for refiners operating in the state to maintain minimum levels of inventories of refined transportation fuels meeting California specifications, including any feedstocks and blending components for those fuels.

(b) Regulations adopted under this section shall protect the health and safety of employees, local communities, and the public, and shall provide for all of the following:

(1) A process for establishing minimum inventory levels specified for each refiner or each refining region, and for each fuel or blending component type.

(2) A process for maximizing the use of existing storage infrastructure.

(3) A process for waiving, if appropriate, minimum inventory requirements for a small refinery, as defined in Section 80.2 of Title 40 of the Code of Federal Regulations, as that section read on the effective date of the bill that added this section, if the refiner of the small refinery demonstrates that those requirements would impose a disproportionate economic hardship.

(4) A process for adjusting, if appropriate, minimum inventory requirements for one or more refiners based on region, season, refinery size and storage capacity, and changes in regional or statewide supply and demand for refined transportation fuels meeting California specifications.

(5) Market conditions under which a refiner would be permitted or required to draw down its inventories below an established level and requirements for the rebuilding of those drawn-down inventories, including a metric or threshold based on market conditions that would automatically require a refiner to draw down inventories and provide that fuel to the market.

(c) Notwithstanding subdivision (a), the commission shall not adopt a regulation pursuant to this section unless it finds that the likely benefits to consumers from avoiding price volatility outweigh the potential costs to consumers. In making that determination, the commission shall consider all of the following factors, but no single factor shall be determinative:

(1) Whether it is likely that the minimum levels of inventories of refined transportation fuels will lead to greater supply in the California transportation fuels market than would exist without the minimum levels of inventories.

(2) Whether it is likely that the minimum levels of inventories of refined transportation fuels will lead to lower average retail prices on an annual basis than would exist without the minimum levels of inventories, and whether it is likely that the minimum levels of inventories will reduce the severity of retail price volatility.

(3) Whether easing of supply chain inefficiencies or constraints would lead to greater supply in the California transportation fuels market than requirements to establish minimum levels of inventories of refined transportation fuels.

(4) Whether it is likely that supply gains achieved through the adoption of the minimum levels of inventories of refined transportation fuels will be offset by actions of market participants not subject to these regulations and thereby have the effect of reducing supply in the market.

(d)

(1) A regulation adopted under this section shall not modify any requirements of, or standards issued pursuant to, Section 6311 of, or Part 7.5 (commencing with Section 7850) of Division 5 of, the Labor Code, including the authority of employees to perform an emergency shutdown of the refinery and necessary maintenance work for safety.

(2) A regulation adopted, or action taken, pursuant to this section shall not excuse an employer’s compliance with the skilled and trained workforce and wage requirements set forth in Section 25536.7 of the Health and Safety Code.

(e) In developing or amending regulations adopted under this section, the commission may consider the use of a compliance mechanism for each refiner that is tradable between or within each refining region for refiners to meet the minimum inventory requirements adopted pursuant to this section.

(f) The commission shall not apply a minimum inventory requirement under this section to a refiner in a manner that would be met only by the construction of additional storage infrastructure, as determined by the commission.

(g) One year after the adoption of any regulation pursuant to this section, and each year thereafter in which a regulation pursuant to this section is in effect, the commission shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, that includes a reevaluation of the effectiveness of that regulation, including whether the regulation continues to meet the cost effectiveness test described in subdivision (c), and shall provide an update on the factors identified in subdivision (c) regarding the implemented regulation.

(h) For purposes of this section, “refining region” means the two in-state regions of concentrated refineries, where the preponderance of refining capacity is located in the San Francisco Bay area and the Los Angeles area.

(i) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

refiners' fuel inventories transportation fuel prices California fuel specifications minimum inventory levels refiners' regulations fuel blending components consumer price volatility refinery exemptions fuel supply chain regional supply and demand emergency refinery shutdown market conditions storage infrastructure annual legislative report Los Angeles refining region

(Added by Stats. 2024, 2nd Ex. Sess., Ch. 1, Sec. 2. (AB 1 2x) Effective January 13, 2025. Repealed as of January 1, 2033, by its own provisions.)

Section § 25354.6

If a refiner or person doesn't comply with certain regulations, the commission must notify them. If they don't fix the issue within three days, they'll face daily fines ranging from $100,000 to $1,000,000 for each day the noncompliance continues.

The commission's executive director will issue a complaint, and there will be a hearing to decide and enforce the penalty, calculated from the fourth day onward. This process follows specific procedures. If needed, the commission can go to court to ensure compliance.

This law will be active starting January 1, 2033.

(a) The commission shall notify a refiner or person who fails to comply with the requirements of Section 25354.2, or fails to comply with the regulations adopted under that section. If, within three days after being initially notified of the failure to comply, the refiner or person continues or persists in its noncompliance, the refiner or person shall be subject to an administrative civil penalty of not less than one hundred thousand dollars ($100,000), and not more than one million dollars ($1,000,000), per day for each day that the noncompliance occurs or persists.

(b) The executive director of the commission shall issue and serve a complaint on the refiner or person, and the commission shall hold a hearing, adopt a decision, and require payment of the penalty in accordance with the procedures described in Section 25534.1, with the penalty to be assessed based on each day of noncompliance following the third day after the initial notification by the commission.

(c) Judicial review and enforcement of an order imposing an administrative civil penalty under this section may be had in accordance with the procedures described in Section 25534.2.

(d) The commission may seek any form of injunctive or remedial relief from a court of competent jurisdiction to enforce compliance with Section 25354.2, and regulations adopted under that section.

(e) This section shall become operative on January 1, 2033.

refiner compliance noncompliance penalties administrative civil penalty daily fines commission notification hearing process court enforcement injunctive relief remedial relief regulatory compliance 2033 effective date compliance enforcement

(Repealed (in Sec. 3) and added by Stats. 2024, 2nd Ex. Sess., Ch. 1, Sec. 4. (AB 1 2x) Effective January 13, 2025. Operative January 1, 2033, by its own provisions.)

Section § 25355

This law requires California refineries to report detailed monthly data about gasoline production. Refineries must provide information such as the quantity of crude oil received, the cost of crude oil, the cost and quantity of imported gasoline, and various sales figures. They also need to calculate and report their gross and net refining margins, which essentially show how much profit they're making per barrel, after accounting for operating costs.

The California commission will then publish this data online within 45 days. This includes gross and net refining margins both in total for the state and for each refinery, as well as aggregated production data for transparency.

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

(1) “Gross gasoline refining margin” means the difference, expressed in dollars per barrel, between the volume-weighted average price of wholesale gasoline sold by a refiner in the state and the average price of crude oil received by the refinery.

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

(3) “Operational costs” means costs, expressed in dollars per barrel, necessarily incurred by the operator of a refinery in the state to produce gasoline meeting California specifications, including, but not limited to, costs of labor, electricity, natural gas, chemicals, maintenance, hydrogen, and other intermediate oil products, federal renewable identification numbers, obligation costs, capital investments, logistics costs, and additive costs.

(b) Within 30 days of the end of each calendar month, the operator of each refinery operating in the state that produces gasoline meeting California specifications shall submit to the commission a report for the refinery containing all of the following information:

(1) The volume, in barrels, of crude oil received in that month, separated into domestic and foreign subtotals.

(2) The volume-weighted average crude oil acquisition cost paid for crude oil that is received and intended to be refined during that month, separated into domestic and foreign crude oil acquisition costs.

(3) The volume in barrels of refined gasoline received or imported in that month from entities other than the refiner.

(4) The volume-weighted average cost of any refined gasoline received or imported by a refiner during that month.

(5) The quantity, in barrels, of wholesale gasoline meeting California specifications sold and the corresponding volume-weighted average prices, less all applicable local, state, and federal taxes, separated by unbranded rack sales, branded rack sales, bulk sales, spot pipeline sales, and dealer tankwagon (DTW) sales in that month.

(6) Separate quantification of the volume-weighted fees or estimated valuations of costs embedded in all wholesale gasoline sales associated with the low-carbon fuel standard (LCFS) and associated with the cap and trade cap-at-the-rack (CAR) program, for each volume-weighted average price for: (A) unbranded rack sales, (B) branded rack sales, (C) bulk sales, (D) spot pipeline sales, and (E) DTW sales, in that month.

(7) The gross gasoline refining margin per barrel of gasoline sold in that month.

(8) The operational costs per barrel of gasoline sold in that month, including a complete description and amount of each category of cost identified in paragraph (3) of subdivision (a) and any other category of cost.

(9) The net gasoline refining margin per barrel of gasoline sold in that month.

(c) Within 45 days of the end of each calendar month, the commission shall post on its internet website all of the following:

(1) The gross gasoline refining margin data reported pursuant to this section for that month, and any gross gasoline refining margin independently calculated by the commission, as a volume-weighted gross refining margin in aggregate for all the combined refineries in the state.

(2) The gross gasoline refining margin data reported for that month, and any gross gasoline refining margin independently calculated by the commission, in aggregate for each refiner with more than one refinery operating within California.

(3) The net gasoline refining margin data reported pursuant to this section for that month, and any net gasoline refining margin independently calculated by the commission, as a volume-weighted net refining margin in aggregate for all the combined refineries in the state.

(4) The net gasoline refining margin data reported for that month, and any net gasoline refining margin independently calculated by the commission, in aggregate for each refiner with more than one refinery operating within the state.

(5) The aggregated data submitted pursuant to paragraphs (1) through (4), inclusive, of subdivision (b) for that month.

refinery operational costs gasoline refining margins crude oil acquisition costs wholesale gasoline sales unbranded rack sales branded rack sales bulk sales spot pipeline sales dealer tankwagon sales low-carbon fuel standard costs cap-and-trade program gross refining margin net refining margin volume-weighted average price transparency in fuel pricing

(Amended by Stats. 2023, 1st Ex. Sess., Ch. 1, Sec. 4. (SB 2 1x) Effective June 26, 2023.)

Section § 25355.5

This section allows the commission to set a cap on how much profit refiners in the state can make from selling gasoline, known as the 'maximum gross gasoline refining margin.' If a refiner's profit margin exceeds this cap, they can face penalties. The penalties increase based on how much they exceed the limit, and the commission evaluates the potential benefits versus costs to consumers before setting these limits and penalties.

The commission must also consider various market factors, such as supply and demand or if prices at the pump might rise, before implementing these caps and penalties. There's a process for public comment before any regulation is finalized, and if penalties are needed, they will be added to a fund to help combat the effects of price gouging. Exemptions and adjustments are possible if a refiner shows good cause or if it's deemed that the policy is not serving its intended purpose. A state audit is scheduled to review the effectiveness of these measures by 2033.

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

(1) “Gross gasoline refining margin excluding state program costs” means the amount, expressed in dollars per barrel and calculated by the commission on a monthly basis, equal to the volume-weighted average rack price of wholesale gasoline sold by a refiner in the state, less the volume-weighted fees or estimated valuations of costs embedded in all of the refiner’s wholesale gasoline sales associated with the low carbon fuel standard and the cap and trade cap-at-the-rack program, less the refiner’s volume-weighted average acquisition cost.

(2) “Maximum gross gasoline refining margin” means the maximum amount of gross gasoline refining margin excluding state program costs established under subdivision (b).

(3) “Volume-weighted average acquisition cost” means the combined volume-weighted average of the refiner’s volume-weighted average crude oil acquisition cost and the refiner’s volume-weighted cost of acquiring refined gasoline imported to California or received from an entity other than the refiner.

(4) “Volume-weighted average rack price of wholesale gasoline” means the combined volume-weighted average of the refiner’s rack price of the branded and unbranded rack sales reported under paragraph (5) of subdivision (b) of Section 25355.

(5) “Volume-weighted average crude oil acquisition cost” means the amount reported as required by paragraph (2) of subdivision (b) of Section 25355.

(b) The commission may, by regulation or order at a business meeting, subject to the requirements of subdivision (f), set a maximum gross gasoline refining margin.

(c)

(1) If the commission sets a maximum gross gasoline refining margin under subdivision (b), it shall also establish a penalty for exceeding that maximum margin, by regulation or order at a business meeting, subject to the requirements of subdivision (f), that may be the same meeting described in subdivision (b).

(2) The penalty shall be a percentage of the amount by which the refiner’s gross gasoline refining margin excluding state program costs exceeds the maximum gross gasoline refining margin, converted from dollars per barrel to dollars per gallon, multiplied by the number of gallons sold by the refiner during the calendar month for all transactions described in paragraph (6) of subdivision (b) of Section 25355.

(3) Subject to subdivision (j), the penalty shall be tiered, such that the penalty percentage shall increase with the amount by which the refiner’s gross gasoline refining margin excluding state program costs exceeds the maximum gross gasoline refining margin, as follows:

(A) Amounts earned by a refiner that exceed the maximum gross gasoline refining margin by less than ten cents ($0.10) per gallon shall be subject to the base penalty percentage set by the commission.

(B) Amounts earned by a refiner that exceed the maximum gross gasoline refining margin by ten cents ($0.10) to twenty cents ($0.20), inclusive, per gallon shall be subject to a penalty percentage higher than the base penalty percentage.

(C) Amounts earned by a refiner that exceed the maximum gross gasoline refining margin by more than twenty cents ($0.20) per gallon shall be subject to a penalty percentage higher than the penalty percentage set under subparagraph (B).

(d) In establishing a maximum gross gasoline refining margin and penalty, the commission shall consider information reported under subdivision (b) of Section 25355 and any other public data and reports that it determines will assist its analysis. The commission shall also consider confidential information submitted pursuant to Sections 25354 and 25355. A refiner may submit additional information and facts for the commission to consider under an application for confidential designation pursuant to Section 25364.

(e) The commission shall not set a maximum gross gasoline refining margin or accompanying penalty under subdivisions (b) and (c), respectively, unless it finds that the likely benefits to consumers outweigh the potential costs to consumers. In making that determination, the commission shall consider all factors that in its discretion it deems relevant, including at a minimum all of the following factors, although no one factor shall be determinative:

(1) Whether it is likely that the maximum gross gasoline refining margin and penalty will lead to a greater imbalance between supply and demand in the California transportation fuels market than would exist without the maximum margin and penalty.

(2) Whether it is likely that the maximum gross gasoline refining margin and penalty will lead to higher average prices at the pump on an annual basis than would exist without the maximum margin and penalty.

(3) Whether case-by-case exemptions from the gross gasoline refining maximum margin will be sufficient to ensure that individual refiners have an opportunity to demonstrate the need for a greater margin before they make decisions about production.

(f) Decisions of the commission under subdivision (b) to adopt a regulation or order setting a maximum gross gasoline refining margin, under subdivision (c) to adopt a regulation or order establishing a penalty for exceeding the maximum gross gasoline refining margin, under subdivision (e) regarding the benefits and costs to consumers, and under subdivision (k) regarding adjustments to, or rescission of, the maximum gross gasoline refining margin or penalty, shall be made in accordance with all of the following procedures:

(1) A notice and draft decision, regulation, or order shall be posted publicly at least 30 days before the business meeting at which adoption of the decision, regulation, or order will be considered.

(2) The commission shall receive written comments on the draft decision, regulation, or order.

(3) The commission shall hear public comment on the draft decision, regulation, or order at its business meeting.

(g) If the commission has set a maximum gross gasoline refining margin and penalty, the margin and penalty shall take effect 60 days following the commission’s regulation or order establishing the margin and penalty pursuant to subdivisions (b) and (c), respectively. Within 15 days of the regulation or order establishing a maximum gross gasoline refining margin and penalty, the commission shall notify refiners by a means determined by the commission that may include, but is not limited to, mail, email, or internet website posting.

(h) If the commission has set a maximum gross gasoline refining margin under subdivision (b), it shall be a violation of this section for a refiner to exceed the maximum gross gasoline refining margin.

(i) In addition to any other remedy that may be available, the commission may petition a court to enjoin a refiner from violating this section.

(j) The commission may impose an administrative civil penalty for a violation of this section in the amounts established pursuant to subdivision (c).

(k) The commission may, by regulation or order, at a business meeting, subject to the requirements of subdivision (f), rescind or adjust the maximum gross gasoline refining margin and the penalty percentages and amounts specified in subdivisions (b) and (c) to ensure that a sufficient, affordable, and fairly priced supply of gasoline is available to Californians. A refiner may submit information and facts for the commission to consider in support of any rescission or adjustment under an application for confidential designation pursuant to Section 25364. Rescission of, or adjustments to, the maximum gross gasoline refining margin and the penalty percentages and amounts specified in subdivisions (b) and (c), respectively, pursuant to this subdivision shall be effective on the first day of the calendar month at least 15 days after the commission gives public notice of the rescission or adjustment, unless the commission orders otherwise.

(l) Notwithstanding Section 25901 and except as provided in subdivision (n), a petition for writ of mandate pursuant to Section 1085 of the Code of Civil Procedure shall be the exclusive remedy available to challenge any regulation, order, decision, rule, guideline, or adjudication of an exemption request adopted by the commission under this section. The court’s review shall be limited exclusively to the record before the commission. Any petition shall be filed within 30 days of the commission’s decision.

(m)

(1) The commission shall consider a refiner’s request for an exemption from the maximum gross gasoline refining margin and shall grant the exemption upon a showing by the refiner, based on competent and reliable evidence and subject to the commission’s review, examination, and investigation of the evidence, that an application of the maximum gross gasoline refining margin would be unconstitutional as applied to the refiner. The commission may, in its discretion, grant a request for an exemption upon a showing by the refiner of good cause for an exemption, subject to alternative maximum margins or other conditions as the commission may set.

(2) Any refiner seeking an exemption shall, at a minimum, file a statement with the commission, signed under penalty of perjury, setting forth the facts that form the basis for the request for exemption. A refiner may submit information and facts under an application for confidential designation pursuant to Section 25364 to support its application for an exemption.

(n)

(1) Before imposing the administrative civil penalty under subdivision (j), the executive director of the commission shall issue and serve a complaint on the refiner, and the commission shall hold a hearing, adopt a decision, and require payment of the penalty in accordance with the procedures described in subdivisions (a) to (d), inclusive, of Section 25534.1.

(2) Judicial review and enforcement of an order imposing an administrative civil penalty under subdivision (j) may be had in accordance with the procedures described in subdivisions (a) and (b) of Section 25534.2.

(3) Penalties collected under this section shall be deposited into the Price Gouging Penalty Fund, which is hereby created in the State Treasury and shall be used, upon appropriation by the Legislature, to address any consequences of price gouging on Californians.

(4) The commission shall make public, on a quarterly basis, the name and address of each refiner that has exceeded the maximum gross gasoline refining margin for any month during the previous quarter, and the amount of administrative civil penalty to be assessed.

(o) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to any regulation, order, decision, rule, guideline, adjudication of an exemption request, or adjustment of the maximum gross gasoline margin, adopted by the commission under this section.

(p) The California State Auditor shall begin, no earlier than January 1, 2032, and complete, no later than March 1, 2033, an audit and performance review of the maximum gross gasoline refining margin and penalty set pursuant to this section. The California State Auditor shall make determinations in a report to the Legislature and the commission, by no later than June 1, 2033, as to whether this section is achieving the intended goal to reduce gasoline price spikes and stabilize the gasoline fuel supply market for California consumers. Within 60 days of the issuance of the report, the commission shall hear from the California State Auditor at a business meeting of the commission. If the California State Auditor concludes that the maximum gross gasoline refining margin and penalty should be terminated, then the commission shall cease implementing the maximum gross gasoline refining margin and penalty provisions no later than 180 days after the issuance of the report, unless the Legislature has enacted subsequent legislation to extend the maximum gross gasoline refining margin and penalty provisions in the meantime.

gasoline refining margin profit cap refiner penalties price gouging rack price refiners' acquisition cost public data analysis exemption requests supply-demand imbalance consumer cost-benefit analysis civil penalties confidential submissions refiner exemption Price Gouging Penalty Fund state audit 2033

(Amended (as added by Stats. 2023, 1st Ex. Sess., Ch. 1, Sec. 5) by Stats. 2023, Ch. 53, Sec. 3. (SB 124) Effective July 10, 2023.)

Section § 25355.7

This law requires a yearly report by March 1st from the California commission, with the help of the California Department of Tax and Fee Administration, analyzing gasoline prices and their effect on state revenues. To prepare the report, the department can access all necessary sales and fuel transaction records, even if confidential, but must keep sensitive business information private. If anyone fails to provide requested information, they may face a daily penalty of up to $10,000 until compliance. The Attorney General and other specified entities can receive this data for report preparation, but any public disclosure will keep taxpayer information aggregated to protect competitiveness.

(a) Notwithstanding Section 10231.5 of the Government Code, on or before March 1, 2024, and March 1 of each year thereafter, the commission, in cooperation with the California Department of Tax and Fee Administration, shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, that includes a review of the price of gasoline in California and its impact on state revenues for the previous calendar year.

(b)

(1) (A) To facilitate the report required in subdivision (a) and to assist the commission in providing independent analysis and oversight of the market for transportation fuels, and in identifying potential market design flaws and market power abuses, the California Department of Tax and Fee Administration may, notwithstanding any other law, use any information that comes into its possession and may request from any person records required to be maintained pursuant to Section 7053 or 8301 of the Revenue and Taxation Code or any other records in a person’s possession, custody, or control that the California Department of Tax and Fee Administration deems necessary for these purposes. Records that the California Department of Tax and Fee Administration may request, include, but are not limited to, sales prices and contracts for unbranded rack sales, branded rack sales, bulk sales, spot pipeline sales, dealer tankwagon sales, imported fuel transactions, and retail sales of gasoline meeting California specifications, including prices per gallon of gasoline charged by retailers by retail location and by grade of gasoline.

(B) Except as provided in paragraph (4), the information, including, but not limited to, business affairs or trade secrets, provided to the California Department of Tax and Fee Administration pursuant to this section shall constitute confidential information for purposes of Section 7056 of the Revenue and Taxation Code or Section 15570.84 of the Government Code and shall not be subject to public disclosure.

(2)

(A) The records requested pursuant to paragraph (1) shall be provided in the form and manner specified by the California Department of Tax and Fee Administration within 30 days of the notice of request.

(B) The California Department of Tax and Fee Administration shall provide written notification to the commission within 10 days after the failure or refusal of any person to provide information or records in the time and manner as specified pursuant to subparagraph (A).

(3) For purposes of the report required by subdivision (a), the commission may impose a civil penalty after receiving notification from the California Department of Tax and Fee Administration that a person has failed or refused to provide information or records in the time and manner as required. A civil penalty under this subdivision shall be imposed under the procedures set forth in subdivision (a) of Section 25362, except that the maximum penalty amount shall be ten thousand dollars ($10,000) per day.

(4)

(A) Notwithstanding any other law, the California Department of Tax and Fee Administration may provide any information provided to it by any person pursuant to this subdivision to the commission, to the Attorney General, to any contractor retained to prepare reports required by this section, or any entity that the California Department of Tax and Fee Administration may contract with for the purpose of preparing the reports required by this section. The Attorney General may request from the commission or the California Department of Tax and Fee Administration any information collected pursuant to Section 25354 or 25355 or this section, or Chapter 4.6 (commencing with Section 25730).

(B) Except as provided in subdivision (c), the information, including, but not limited to, business affairs or trade secrets, provided pursuant to this paragraph shall be confidential and shall not be subject to public disclosure by the commission, the Attorney General, any contractor retained to prepare the reports required by this section, or the California Department of Tax and Fee Administration or its contractors.

(c) Notwithstanding any other law, the reports required by this section shall only disclose confidential taxpayer information presented in aggregate form to the extent necessary to ensure confidentiality if public disclosure of the specific information or data would result in unfair competitive disadvantage to the person supplying the information or would adversely affect market competition.

gasoline prices state revenues California Department of Tax and Fee Administration confidential information market analysis fuel transaction records civil penalty report preparation Attorney General information disclosure trade secrets retail gasoline sales market power abuses sales prices competitive disadvantage

(Added by Stats. 2023, 1st Ex. Sess., Ch. 1, Sec. 6. (SB 2 1x) Effective June 26, 2023.)

Section § 25356

This law requires a commission with expertise in the petroleum industry to collect and analyze data about the supply and pricing of petroleum products, mainly focusing on motor fuels. They must explore shortages, economic and environmental impacts, and use forecasting methods employed by the industry. Additionally, they look at prices, including retail fuel prices, industry profits, and trends related to supply and demand. The law mandates the commission to assess efforts to expand refinery capacity and resource acquisition within the state. It also aims to develop an information system to help the state manage any shortages. Finally, they must evaluate how state and federal policies affect the petroleum supply and pricing.

(a) The commission, utilizing its own staff and other support staff having expertise and experience in, or with, the petroleum industry, shall gather, analyze, and interpret the information submitted to it pursuant to Section 25354 and other information relating to the supply and price of petroleum products, with particular emphasis on motor vehicle fuels, including, but not limited to, all of the following:

(1) The nature, cause, and extent of any petroleum or petroleum products shortage or condition affecting supply.

(2) The economic and environmental impacts of any petroleum and petroleum product shortage or condition affecting supply.

(3) Petroleum or petroleum product demand and supply forecasting methodologies utilized by the petroleum industry in California.

(4) The prices, with particular emphasis on retail motor fuel prices, including sales to unbranded retail markets, and any significant changes in prices charged by the petroleum industry for petroleum or petroleum products sold in California and the reasons for those changes.

(5) The profits, both before and after taxes, of the industry as a whole and of major firms within it, including a comparison with other major industry groups and major firms within them as to profits, return on equity and capital, and price-earnings ratio.

(6) The emerging trends relating to supply, demand, and conservation of petroleum and petroleum products.

(7) The nature and extent of efforts of the petroleum industry to expand refinery capacity and to make acquisitions of additional supplies of petroleum and petroleum products, including activities relative to the exploration, development, and extraction of resources within the state.

(8) The development of a petroleum and petroleum products information system in a manner that will enable the state to take action to meet and mitigate any petroleum or petroleum products shortage or condition affecting supply.

(b) The commission shall analyze the impacts of state and federal policies and regulations upon the supply and pricing of petroleum products.

petroleum supply motor vehicle fuels fuel price analysis petroleum shortages economic impact environmental impact supply forecasting retail fuel prices industry profits refinery capacity expansion supply trends conservation trends petroleum acquisitions state policies impact federal policies impact

(Amended by Stats. 2000, Ch. 288, Sec. 5. Effective January 1, 2001.)

Section § 25357

This law requires the commission to get and study monthly production reports from the State Oil and Gas Supervisor as stated in a different section, Section 3227.

The commission shall obtain and analyze monthly production reports prepared by the State Oil and Gas Supervisor pursuant to Section 3227.

commission monthly production reports State Oil and Gas Supervisor analyze reports Section 3227 oil production gas production energy data analysis resource management regulatory compliance production monitoring energy industry oversight California energy reports

(Added by Stats. 1980, Ch. 1055, Sec. 4. Effective September 26, 1980.)

Section § 25358

This law requires a commission to publish and submit a detailed report to the Governor and Legislature each quarter, summarizing and analyzing information it has received. This quarterly report is separate from another report due under a different section. People can submit written comments about the report's accuracy. Every two years, the commission must also assess this information and include it in a fuels report.

The commission has the authority to gather necessary information for its reports, and must mention any difficulties in obtaining this information, such as uncooperative sources. If the commission misses a report deadline, it must explain the delay in writing to all legislators within five days.

(a) Within 70 days after the end of each preceding quarter of each calendar year, the commission shall publish and submit to the Governor and the Legislature a summary, an analysis, and an interpretation of the information submitted to it pursuant to Section 25354 and information reviewed pursuant to Section 25357. This report shall be separate from the report submitted pursuant to Section 25322. Any person may submit comments in writing regarding the accuracy or sufficiency of the information submitted.

(b) The commission shall prepare a biennial assessment of the information provided pursuant to this chapter and shall include its assessment in the biennial fuels report prepared pursuant to Section 25310.

(c) The commission may use reasonable means necessary and available to it to seek and obtain any facts, figures, and other information from any source for the purpose of preparing and providing reports to the Governor and the Legislature. The commission shall specifically include in the reports its analysis of any unsuccessful attempts in obtaining information from potential sources, including the lack of cooperation or refusal to provide information.

(d) Whenever the commission fails to provide any report required pursuant to this section within the specified time, it shall provide to all members of the Legislature, within five days of the specified time, a detailed written explanation of the cause of any delay.

quarterly report biennial assessment information analysis Governor and Legislature fuels report information insufficiency uncooperative sources report delay explanation written comments reasonable means for information report submission information gathering legislative communication deadline compliance report accuracy

(Amended by Stats. 1984, Ch. 1184, Sec. 6.5.)

Section § 25362

This law says that if someone doesn't provide certain information on time, as required by two specific sections, the commission will let them know. If they still don't provide the information within five days, they could be fined between $5,000 and $20,000 every day until they do, with a cap at $500,000.

If someone lies or submits false information in documents filed with the commission, the penalty can be up to $40,000. There are established procedures for handling these penalties and any court reviews needed.

Besides fines, the commission can ask a court to order someone to provide the required information if they continue to withhold it. The law defines "person" to include responsible corporate officers as well.

(a) The commission shall notify those persons who have failed to timely provide the information specified in Section 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 thousand dollars ($5,000) nor more than twenty thousand dollars ($20,000) per day for each day the submission of information is refused or delayed, up to a maximum penalty of five hundred thousand dollars ($500,000) per submission.

(b) 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 forty thousand dollars ($40,000).

(c) The administration of civil penalties under this section shall be subject to the procedures provided in Section 25534.1, and to the procedures for judicial review under Section 25534.2.

(d) In addition to any civil penalty provided for by this section, if a person fails to timely provide the information specified in Section 25354 or 25355, the commission may petition a court for an order compelling the person to provide that information.

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

penalties for late submission civil penalties false statements fines information submission requirements commission notifications corporate officer responsibility court orders for compliance Section 25354 Section 25355 compliance enforcement daily fines maximum financial penalties judicial review procedures legal compliance obligation responsible corporate officers

(Amended by Stats. 2023, 1st Ex. Sess., Ch. 1, Sec. 7. (SB 2 1x) Effective June 26, 2023.)

Section § 25364

This law allows people submitting information to the commission to request confidentiality, assuming it will stay confidential unless there's a strong reason to disclose it. The commission must notify those who submitted the information before making it public, giving them a chance to justify keeping it private if disclosure would hurt their competitiveness or the market.

The commission isn't allowed to use or share detailed information except for law enforcement or specific reporting purposes and must ensure confidentiality unless the information was already made public by the submitter. Exceptions exist for sharing with certain government entities like the State Air Resources Board or the Attorney General, provided they agree to maintain confidentiality.

In emergencies, such as oil spills, confidential information might be shared with responders. When requested, the commission can share summarized data with legislative bodies under specific conditions to protect market fairness, and all parties involved must keep the information confidential.

(a) A person required to present information to the commission pursuant to Section 25354 or 25355 or a person making a request for exemption pursuant to Section 25355.5 may request that specific information be held in confidence. Information requested to be held in confidence shall be presumed to be confidential.

(b) Information presented to the commission pursuant to Section 25354, 25355, or 25355.5 shall be held in confidence by the commission or aggregated to the extent necessary to ensure confidentiality if public disclosure of the specific information or data would result in unfair competitive disadvantage to the person supplying the information or would adversely affect market competition.

(c)

(1) Whenever the commission receives a request to publicly disclose unaggregated information, or otherwise proposes to publicly disclose information submitted pursuant to Section 25354, 25355, or 25355.5, notice of the request or proposal shall be provided to the person submitting the information. The notice shall indicate the form in which the information is to be released. Upon receipt of notice, the person submitting the information shall have 10 working days in which to respond to the notice to justify the claim of confidentiality on each specific item of information covered by the notice on the basis that public disclosure of the specific information would result in unfair competitive disadvantage to the person supplying the information or would adversely affect market competition.

(2) The commission shall consider the respondent’s submittal in determining whether to publicly disclose the information submitted to it to which a claim of confidentiality is made. The commission shall issue a written decision that sets forth its reasons for making the determination whether each item of information for which a claim of confidentiality is made shall remain confidential or shall be publicly disclosed.

(d) The commission shall not make public disclosure of information submitted to it pursuant to Section 25354, 25355, or 25355.5 within 10 working days after the commission has issued its written decision required in this section.

(e) Information submitted to the commission pursuant to Section 25354, 25355, or 25355.5 shall not be deemed confidential if the person submitting the information or data has made it public.

(f) With respect to petroleum products and blendstocks reported by type pursuant to paragraph (1) or (2) of subdivision (a) of Section 25354, information provided pursuant to subdivision (h) or (i) of Section 25354, and information provided under Section 25355, the commission, the State Air Resources Board, or the Attorney General, or any employee or contractor of those entities, shall not do any of the following:

(1) Use the information furnished under paragraph (1) or (2) of subdivision (a) of Section 25354, under subdivision (h) or (i) of Section 25354, or under Section 25355 for any purpose other than law enforcement or the statistical purposes for which it is supplied.

(2) Make any publication whereby the information furnished by any particular establishment or individual under paragraph (1) or (2) of subdivision (a) of Section 25354, under subdivision (h) or (i) of Section 25354, or under Section 25355 can be identified.

(3) Permit anyone other than commission members, the State Air Resources Board, the Attorney General, and employees or contractors of those entities to examine the individual reports provided under paragraph (1) or (2) of subdivision (a) of Section 25354, under subdivision (h) or (i) of Section 25354, or under Section 25355.

(g) Notwithstanding any other law, the commission may disclose confidential information received pursuant to subdivision (a) of Section 25304, or Section 25354 or 25355 to the State Air Resources Board or the Attorney General if the state board or the Attorney General agrees to keep the information confidential. With respect to the information it receives, the state board and the Attorney General shall be subject to all pertinent provisions of this section.

(h)

(1) Notwithstanding any other law, the commission shall, upon request, timely disclose confidential information received pursuant to subdivision (a) of Section 25304 or Section 25354 or 25355, or data provided under a contract entered into pursuant to Section 25367 or 25373, to the Speaker of the Assembly, the Senate Committee on Rules, the appropriate policy committees in the Assembly or the Senate, or staff members of each, provided that the information shall be provided only in aggregated or otherwise anonymized form, and each individual person receiving or having access to the information shall first agree, in writing, to keep the information confidential. Any person or committee receiving information under this subdivision shall be subject to all pertinent provisions of this section.

(2) Aggregated or otherwise anonymized information disclosed under paragraph (1) shall be made available by the commission to the public no more than quarterly, upon request of the Speaker of the Assembly, the Senate Committee on Rules, or the appropriate policy committees in the Assembly or the Senate, under conditions as the commission may determine are necessary to ensure that public disclosure of the specific information would not result in unfair competitive disadvantage to the person supplying the information or adversely affect market competition.

(i) Notwithstanding any other law, the commission may disclose confidential information received pursuant to paragraph (1) of subdivision (f) of Section 25354 to the administrator for oil spill response, appointed pursuant to Section 8670.4 of the Government Code, upon request for oil spill planning and preparedness purposes, and to first responders in the event of an accident or spill. Information disclosed to the administrator or first responders pursuant to this subdivision that has been identified as confidential under subdivision (a) shall not be disclosed to any other entity except pursuant to a request in accordance with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). Upon receipt of a records request seeking information disclosed pursuant to this subdivision, the administrator or first responder receiving the request shall provide the destination facility who provided the confidential information to the commission with an opportunity to submit, within a reasonable time, a response and information in support of exemption from disclosure before making the determination whether the requested records are exempt from disclosure. A requirement or deadline contained in the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) shall not be extended or waived as a result of this subdivision.

(j) This section does not apply to aggregate data that are required to be posted on the commission’s internet website pursuant to subdivision (c) of Section 25355.

confidentiality request competitive disadvantage market competition public disclosure notice and justification confidential information aggregated data State Air Resources Board Attorney General law enforcement information anonymization oil spill response California Public Records Act legislative access data sharing conditions

(Amended by Stats. 2024, 2nd Ex. Sess., Ch. 1, Sec. 5. (AB 1 2x) Effective January 13, 2025.)

Section § 25366

If another state agency collects confidential information related to the duties of the commission, they must share it with the commission. The commission must also keep this information confidential.

Any confidential information pertinent to the responsibilities of the commission specified in this division which is obtained by another state agency shall be available to the commission and shall be treated in a confidential manner.

confidential information state agency commission responsibilities information sharing confidentiality data handling state collaboration agency cooperation secure information transfer protected data privacy obligations government coordination interagency information exchange confidential data access secured information exchange

(Added by Stats. 1980, Ch. 1055, Sec. 4. Effective September 26, 1980.)

Section § 25367

This law indicates that any adoption or change of regulations under this chapter is treated as an emergency to quickly protect public interests, and these emergency rules stay effective for two years. The chapter can function without additional regulations, as it is self-executing.

The commission can make contracts without approval from other state departments, bypassing certain standard procedures. Also, regulations or decisions by the commission aren’t considered projects under the California Environmental Quality Act, though actual projects following these rules still must comply with it. These points apply to any regulation, guideline, or decision made before or after this law was effective.

(a) Except as otherwise provided, the adoption of, or amendment to, regulations or orders implementing this chapter shall be considered by the Office of Administrative Law as an emergency, and necessary for the immediate preservation of the public peace, health, safety, and general welfare. Notwithstanding any other law, the emergency regulations or orders adopted to implement this chapter shall remain in effect for two years. Although the commission may adopt regulations to further define terms or prescribe reporting procedures or calculation methodologies pursuant to this chapter, or prescribe any other method of implementing this chapter, the provisions of this chapter are self-executing and shall not require any implementing regulation to be effective.

(b) The commission may enter into contracts to implement this chapter, and the contracts shall not require the review, consent, or approval of the Department of General Services or any other state department or agency and are not required to comply with requirements under the State Contracting Manual or the Public Contract Code.

(c)

(1) Any regulation, guideline, other standard adopted, or decision rendered, by the commission under this chapter is not a “project” for purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000)). However, nothing in this section exempts any project undertaken pursuant to a regulation, guideline, other standard adopted, or decision rendered, pursuant to this chapter from the California Environmental Quality Act.

(2) This subdivision is declarative of existing law and shall apply to all regulations, guidelines, other standards adopted, or decisions rendered, under this chapter whether before or after the effective date of this subdivision.

emergency regulations public peace preservation self-executing provisions commission contracts bypassing standard procedures California Environmental Quality Act project exemption self-executing chapter State Contracting Manual Public Contract Code emergency adoption immediate preservation public health and safety general welfare regulation amendment

(Amended by Stats. 2024, 2nd Ex. Sess., Ch. 1, Sec. 6. (AB 1 2x) Effective January 13, 2025.)

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Energy Conservation And Development

Chapter 4.5Petroleum Supply and Pricing

Section § 25350

Section § 25352

Section § 25354

Section § 25354.2

Section § 25354.4

Section § 25354.6

Section § 25355

Section § 25355.5

Section § 25355.7

Section § 25356

Section § 25357

Section § 25358

Section § 25362

Section § 25364

Section § 25366

Section § 25367

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