California SB 1245

Existing law requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2024, and every 3 years thereafter, to submit an assessment to the Governor and the Legislature that, among other things, identifies methods to ensure a reliable supply of affordable and safe transportation fuels in California and evaluates the price of transportation fuels, including branded and unbranded retail prices, alternate formulations of gasoline with lower carbon impact, and other products suitable for production from refineries in California, as provided. Existing law authorizes the State Air Resources Board (state board) to grant variances from gasoline specifications adopted by the state board and to impose fees and conditions in granting a variance. Existing law requires the commission, in the first assessment after January 1, 2026, to evaluate the cost and supply impacts of allowing the sale of gasoline with alternative specifications to support a reliable and affordable supply of transportation fuels in California. If the evaluation finds that allowing the sale of gasoline with alternative specifications is likely to support a reliable and affordable supply of transportation fuels in California, existing law requires the commission, in coordination with the state board, to recommend a strategy to facilitate the sale of gasoline with those alternative specifications that, at a minimum, considers, among other things, the use of a fee, as provided, associated with the sale of gasoline with those alternative specifications to mitigate for any increase in emissions. This bill would require the commission to submit that assessment on or before July 1, rather than January 1, of the applicable year. The bill would require the commission to implement, rather than recommend, that strategy and would require the strategy to consider the use of fees and conditions, rather than fees alone, developed for the purposes described above. Existing law establishes the Division of Petroleum Market Oversight in the commission to, among other things, provide independent oversight and analysis of the transportation fuels market for the protection of consumers by identifying market design flaws, market power abuses, and any other manner by which market participants act to harm competition or act contrary to the best interests of the consumers in the state. Existing law requires the division to report its findings and recommendations to improve market performance, at least annually, to the Legislature, the Governor, the commission, the Attorney General, and the California Department of Tax and Fee Administration. This bill would make the annual report due on or before July 1 of each year, and would require the report due on or before July 1, 2027, to analyze the price differential between branded and unbranded gasoline sold in California and the market barriers to competition in the gasoline imports market, as provided.