I asked Tim Hamilton, an oil industry analyst who advises OilWatchdog, to take a look at the first bill to emerge from Assembly Speaker Fabian Nuñez’s promise to rein in the oil industry in California. This measure, AB1552, sponsored by freshman legislator Mike Feuer, would require oil companies and refiners to report much more operational and profit info to the state’s energy commission. It also makes investigations of the industry easier for the state attorney general. But, as Tim notes, there is one big “hole in the bucket”—far too much of the additional info will be classified as trade secrets, and not made public.
"This bill tweaks the industry’s current information reporting requirements and does so in a fairly broad fashion. It concentrates on importing, exporting, spot market transactions and actual costs and brings in futures market traders, which is highly desirable.
"In addition, the California Attorney General is granted access to all the information reported by oil companies, which has been a problem in the past when the AG launches investigations. This is a big plus as well, as they will be able to track things without a huge subpoena battle that challenges their resources.
"That being said, the public will be denied access to any information that is company specific. The California Energy Commission will have additional data for public review, but it will be averaged and disguised to the point where the public can’t tell which company did what. This is the hole in the bucket.
"Still, it’s a very good step in the right direction, provided the CEC reports all the info in the best fashion it will be capable of publishing. One suggestion I’d have is to insert a paragraph that directs the CEC to make a concentrated effort to provide he public with the highest level of transparency allowable. This would apply pressure to the CEC to perform and grant it legislative protection from ‘Oilies’ and their lawyers, who will otherwise argue that the intent of the law is only to educate state employees and not the public."
Note of caution: Feuer, in his first year in the state Assembly, is smart and has good instincts, but not much real power. Without a tough push from Nuñez and later from Senate leader Don Perata, the bill will get good press and then a quiet death.