Refiners in California starting in June must file maintenance schedules with the state's energy commission at least 120 days in advance of planned work, and diagnostic reports within two days of unplanned shutdowns.
The new reporting requirements, part of the SB X1-2 bill passed in March 2023, take effect following an 8 May meeting of the California Energy Commission (CEC) where the measures were finalized. The CEC will now be able to gather a broad range of data from refiners and set a maximum gross gasoline refining margin in an effort to avoid price spikes at the pump.
If companies identify a need for maintenance less than 120 days before the planned work, a report to the CEC is required within two business days of the discovery, according to the reporting form posted in the SB X1-2 docket.
The reporting form includes space for a description of the work, unit level details and information on the expected effect of a turnaround on transportation fuel inventories at the refinery.
The same information will be required for unplanned maintenance, with a report to be sent to the CEC within two business days of the initial outage or lowered rates, and within two business days of the completion of work or return to normal throughputs.
The additional information will aide the CEC in analyzing refiner margins and determine whether a margin cap and subsequent penalties are warranted, according to the commission.
Industry groups think many of the reporting requirements are burdensome and politically motivated, often requesting information unnecessary to determine margins.
Marine import reporting on horizon
At the same 8 May business meeting, the CEC moved closer to finalizing a requirement for importers of foreign and domestic refined products and renewable fuels to report shipments at least four days before delivery.
The reporting form includes information on vessel routes, costs and products shipped.
The CEC approved for the marine reporting requirements to be submitted to the state's Office of Administrative Law for a 10-day review before a targeted 20 May start date.
By tracking import data, the CEC aims to build a more accurate picture of what drives retail fuel prices and refiner margins in the state.
"In many cases these forms request information that has questionable or no relevance at all to the CEC's efforts to minimize or prevent price spikes," said Sophie Ellinghouse, general counsel for trade group the Western States Petroleum Association, during public comments on the marine reporting requirements at the 8 May meeting.
