9-24-07 by Court
Turns out that ambitious reform plan Speaker Nunez promoted for the cameras this summer has fizzled. Surprise, surpise. The only legislation on Governor Schwarzenegger’s desk at the end of session are two bills endorsed by Big Oil.
For the record, here’s the final wrap-up of this year’s edition of "As Big Oil Isn’t Reformed."
Four bills supported by Speaker Núñez were touted as beneficial to consumers: two on oil refinery oversight and information reporting, one on the “hot fuel” ripoff, and one on state encouragement of alternative fuels, including biofuels. Their outcome:
1. “Hot fuel.” AB868. Passed, sent to governor. This bill was a Trojan horse. As FTCR discovered after its introduction, it was written and sponsored by the California Independent Oil Marketers Assn, a gasoline and diesel industry lobby. Rather than move toward fixing the retail sale of gasoline that loses value and energy as its temperature increases, the bill parrots the industry line: Study it to death and demand “cost-benefit” analysis by a politically appointed panel.
2. Alternative fuels, AB118. Passed, sent to governor. Sold as being similar to Proposition 87 as funding vehicle for renewable fuels development. However, while Prop 87 would have assessed an extraction fee on oil producers, AB118 put the cost burden on drivers, taking oil companies off the hook for renewable fuel development. Supported by the Western States Petroleum Association.
3. Refinery data reporting, AB1552. Expired in Senate Committee. This is the bill that FTCR supported most strongly. It would have gathered key supply and operating cost information about refinery operations, allowing the public to have a more transparent view of the relation between supply restriction and record refinery profits. Would have made it simpler for the Attorney General to get data on suspected price manipulation. In large part it would have supplied information that the California Energy Commission said last year that it lacked and needed. Assembly staff reported heavy oil industry lobbying against the bill. FTCR offered formal support of this bill.
4. Refinery oversight, AB1610. Amended to death, failed in Senate vote. This bill in its original form would have provide some boots-on-the-ground oversight of refinery operations and production outages. However, an amendment by Speaker Núñez removed the independence of an oversight board by eliminating the Attorney General and state Controller. By the time the measure came to a final vote it was grossly weakened by appeasement of oil industry opponents, asking mostly for a little more information reporting by refineries. There was no effective enforcement or independent oversight. Even so, it did not pass.
The 2006 record is even worse.
Gas-gouging law, AB457. Withdrawn from final Assembly vote by Speaker Núñez. Cosponsored by then-Atty. Gen. Bill Lockyer, would have narrowly allowed investigation of price-gouging above the retail level, i.e. at refinery level. Expected to pass by Lockyer’s office, but never brought to final vote on last day of legislative session. Speaker said he would revive the bill this year, but did not do so.