AB 2672

The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission and prescribes the commission’s authorities, duties, and responsibilities pertaining to energy matters, including the provision of independent oversight and analysis of the transportation fuels markets for the protection of consumers. Existing law requires the commission to submit an assessment to the Legislature, on or before January 1, 2024, and every 3 years thereafter, regarding transportation fuels in the state. Existing law requires that the first assessment submitted after January 1, 2026, 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, and, 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, requires the commission, in coordination with the State Air Resources Board, to recommend a strategy to facilitate the sale of gasoline with those alternative specifications that considers, among other things, the use of a fee associated with the sale of gasoline with those alternative specifications to mitigate for any increase in emissions. This bill would require the commission to triennially submit that assessment on or before July 1, rather than January 1, and would require that the commission’s recommended strategy’s discussion of that fee include recommendations regarding the appropriate fee amount to protect consumers from price impacts and avoid market disruptions. Existing law requires the commission to 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. Existing law authorizes the commission, by regulation, to impose requirements governing the timing of turnaround and maintenance, and requires that those regulations include criteria that are required to be met before a refinery commences a turnaround or maintenance event, including the refiner making 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. This bill would expressly provide that those resupply plans or other arrangements may include the sale of gasoline that meets alternative specifications, as provided. Existing law requires the state board to adopt and implement motor vehicle emission standards, in-use performance standards, and motor vehicle fuel specifications for the control of air contaminants and sources of air pollution, as provided. Existing law authorizes the state board to grant variances from gasoline specifications adopted by the state board and to impose fees and conditions on those variances, as provided. Existing law requires that the revenues from those variance fees, except as provided, be transmitted to the Treasurer for deposit into the High Polluter Repair or Removal Account and makes those revenues available, upon appropriation by the Legislature, to implement a program for accelerated retirement of light-duty vehicles to achieve specified emission reductions. This bill would instead require those revenues to be available, upon appropriation by the Legislature, to implement or fund a program for accelerated replacement of light-duty vehicles manufactured before 2004, or that are at least 20 years old, with cleaner and more efficient motor vehicles. The bill would require the commission to adopt regulations specifying the circumstances under which sellers of gasoline are required to apply for and make use of a variance, as provided. The bill would require those regulations to be adopted and implemented for the purpose of protecting consumers from price impacts associated with supply disruptions. The bill would require the state board to consider amendments to the variance process, as provided. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2 3 of the membership of each house of the Legislature.