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AB-1610 Fuels: refineries.(2007-2008)

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AB1610:v93#DOCUMENT

Amended  IN  Senate  September 06, 2007
Amended  IN  Senate  August 20, 2007
Amended  IN  Senate  July 17, 2007
Amended  IN  Senate  July 05, 2007
Amended  IN  Assembly  June 06, 2007
Amended  IN  Assembly  June 04, 2007

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 1610

Introduced  by  Assembly Member Nunez, Eng

February 23, 2007

An act to add Sections 25360 and 25361 to the Public Resources Code, relating to fuels.


LEGISLATIVE COUNSEL'S DIGEST


AB 1610, as amended, Nunez. Fuels: refineries.
(1) Existing law establishes the State Energy Resources Conservation and Development Commission (Energy Commission) in the Resources Agency, and specifies the powers and duties of the commission with respect to energy resources in the state. Existing law requires major oil producers, refiners, major marketers, major oil transporters, and major oil storers to supply to the commission weekly, monthly, and annually certain designated information regarding petroleum supplies.
This bill would require an owner or operator of a refinery in the state to submit information to the Energy Commission relating to the capacity and operational status of the refinery.
The bill would require the Energy Commission to maintain records of refinery downtime, as the bill would define that term, for 5 years, and authorize the Energy Commission or its designee to undertake specified inspections of refineries and their documents.
The bill would authorize the Energy Commission to request a refinery in the state to voluntarily adjust or delay a scheduled major maintenance.
The bill would subject violations of its provisions to specified civil and criminal penalties, thereby imposing a state-mandated local program by creating a new crime.
The bill would require the Energy Commission to provide on a quarterly basis opportunity for public comment concerning gasoline prices and availability, and to report in writing to specified legislative committees, quarterly, certain information relating to refineries.
(2) The bill would require the California Law Revision Commission to review all relevant state and federal laws and regulations, as they pertain to refineries, and to prepare a report to the Legislature by January 1, 2009 2010, identifying the laws and regulations that may be in conflict.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 25360 is added to the Public Resources Code, to read:
25360.

(a)As used in this section, “downtime” means any period of inoperation of a refinery that reduces its normal capacity to refine petroleum.

(b)An owner or operator of a refinery in this state shall report to the commission all of the following:

(1)On a monthly basis, whether and to what extent, during the preceding month, a refinery was down or operating at reduced capacity and the reasons therefor. This accounting shall reflect the actual downtime at each refinery. The report shall include all of the following:

(A)Reasons for each unscheduled downtime at each refinery.

(B)Amount of product lost due to downtime.

(C)Actions taken by the refinery and its parent company to minimize disruption of the market or price swings due to downtime.

(D)Reasons for scheduled maintenance that took longer than scheduled.

(E)Information on the type of each scheduled project at each refinery.

(2)On a daily basis, the operational status of each refinery.

(3)(A)On March 1 of each year, information regarding scheduled major maintenance for the next 12 months and projections for the next three years.

(B)Estimated project timeline for listed scheduled major maintenance projects.

(C)Estimated gasoline production loss due to downtime resulting from scheduled major maintenance projects.

(D)If scheduled major maintenance projects reported pursuant to this paragraph take longer than scheduled, provide reasons for those extended maintenance periods.

25360.
 (a) An owner or operator of a refinery in the state shall report to the commission all of the following:
(1) On a monthly basis, whether and to what extent, during the preceding month, a refinery was operated at below normal production rates, as determined by the commission, due to an unplanned outage. The report shall include all of the following:
(A) The duration of, and explanation for, an unplanned outage.
(B) The amount of gasoline and diesel fuel production loss resulting from an unplanned outage.
(C) Actions taken by the refiner or its parent company to secure additional supplies, build inventory, and minimize disruption of the market or price swings due to downtime.
(2) On March 1 of each year, provide all of the following:
(A) A listing of scheduled major maintenance projects for the following 12 months, and the next three years.
(B) Estimated project timeline for listed scheduled major maintenance projects.
(C) Estimated gasoline and diesel fuel production loss due to downtime resulting from scheduled major maintenance.
(3) If a scheduled major maintenance project reported pursuant to paragraph (2) takes longer than scheduled, provide all of the following:
(A) Reasons for scheduled major maintenance projects taking longer than estimated.
(B) Operational status of the facility on a daily basis.
(C) Amount of gasoline and diesel fuel production lost.

(c)(1)

(b) The commission shall maintain records of refinery downtime for five years.

(2)

(c) (1) (A) The commission, or its designee, may inspect the records, data, accounts, books, or documents of a refinery, if the inspection is reasonably related to the public interest of the people of the state ensuring compliance with this section.

(3)

(B) The commission shall not create a mandatory schedule of inspections described in paragraph (2) subparagraph (A).

(d)Information submitted to the commission pursuant to this section shall be held in confidence by the commission and Section 25364 is applicable.

(e)(1)

(2) The commission, or its designee, may inspect and investigate a refinery within the state without notice, to ensure that the interests of California’s citizens and consumers are served, protected, and represented in relation to the availability of gasoline compliance with this section.

(2)

(3) The commission may contract out inspections and investigations made pursuant to paragraph (1) or (2), if it is more cost efficient than the commission performing those inspections and investigations itself.
(d) Information submitted to the commission or its designee pursuant to this section shall be held in confidence by the commission and its designee pursuant to Section 25364.

(f)

(e) (1) The commission may request a refinery in the state to voluntarily adjust or delay a scheduled major maintenance, if the maintenance is not a regulatory compliance, reliability, or safety repair.
(2) The refinery shall respond in writing within one week 14 days if the refinery denies the request and explain the grounds for refusal.

(g)

(f) (1) The commission shall provide on a quarterly basis an opportunity for public comment concerning gasoline prices and availability.
(2) The commission shall report in writing to the appropriate policy and fiscal committees of the Legislature, on a quarterly basis, aggregate maintenance information for the prior quarter, including, but not limited to, information concerning refinery downtime, scheduling, and coordination, and wholesale price fluctuations.

(h)

(g) (1) The commission shall notify a person who has failed to timely provide the information required by this section. If, within five days after being notified of the failure to provide the information, the person fails to supply the information, the person shall be subject to a civil penalty of not less than five hundred dollars ($500), but not 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.
(2) A person who willfully violates this section is guilty of a misdemeanor punishable by imprisonment in the county jail for a period not to exceed one year, or by a fine of not more than ten thousand dollars ($10,000), or by both that fine and imprisonment.
(3) The remedies and penalties provided by this section and Section 25362 are cumulative to each other.

(i)

(h) Nothing in this section shall result in the modification, delay, or abrogation of a deadline, standard, rule, or regulation adopted by a federal, state, or local agency for the purposes of protecting public health or the environment, including, but not limited to, a requirement imposed by the State Air Resources Board or by an air pollution control district or an air quality management district.

SEC. 2.

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

25361.
 The California Law Revision Commission shall review all relevant state and federal laws laws and regulations, including, but not limited to, commission regulations, Division of Occupational Safety and Health regulations, State Air Resources Board regulations, California regional water quality control board regulations, and air pollution control and air quality management district regulations, as they pertain to refineries, and refineries. In reviewing those laws and regulations, the California Law Revision Commission shall separately review those laws and regulations that specifically regulate refineries and those general health and safety regulations that also apply to refineries. The California Law Revision Commission shall prepare a report to the Legislature by January 1, 2009 2010, identifying the laws and regulations that may be in conflict.

SEC. 3.

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