CALIFORNIA LEGISLATURE    2023   2024 1st Ext.

Assembly Bill
No. 3

Introduced by Assembly Member Bains

February  17,  2023

An act to add Chapter 6.68 (commencing with Section 25271) to Division 20 of the Health and Safety Code, relating to petroleum refineries.


LEGISLATIVE COUNSEL'S DIGEST


AB 3, as introduced, Bains. Petroleum refineries: imports.
The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act authorizes the state board to include the use of market-based compliance mechanisms in its regulation of emissions of greenhouse gases. Existing law requires the state board to designate a specified market-based compliance mechanism as the rule for petroleum refineries and oil and gas production facilities to achieve their greenhouse gas emissions reductions, as provided.
The Petroleum Industry Information Reporting Act of 1980 requires each refiner, within 30 days after the end of each monthly reporting period, to submit to the State Energy Resources Conservation and Development Commission certain information regarding imports of finished petroleum products and blendstocks by type, including the source of those imports, as provided. Existing law requires the commission to request from destination facilities, as defined, certain information regarding crude oil transported to or within California via railcar or marine vessel, and to quarterly prepare and make available to the public a report based on that collected information, as provided.
This bill would, commencing January 1, 2030, prohibit a petroleum refinery licensed to operate in the state from using oil originally extracted outside the state for more than 60% of the total oil that the refinery processes on an annual basis. Commencing January 1, 2035, the bill would prohibit a petroleum refinery licensed to operate in the state from using oil originally extracted outside the state for more than 50% of the total oil that the refinery processes on an annual basis.
Vote: MAJORITY     Appropriation: NO     Fiscal Committee: NO     Local Program: NO    

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


SECTION 1.

 Chapter 6.68 (commencing with Section 25271) is added to Division 20 of the Health and Safety Code, to read:
CHAPTER  6.68.  Petroleum Refineries

25271.
 (a)  For purposes of this chapter, the following terms have the following meaning:
(1)     Imported oil,    means oil brought into the state that was not originally extracted within the boundaries of the state.
(2)     Oil    means crude oil, or any fraction thereof, that is liquid at 60 degrees Fahrenheit and 14.7 pounds per square inch absolute pressure.
(3)     Petroleum refinery    means an establishment that has the Standard Industrial Classification Code 2911 and that is not subject to the permit requirements for the recycling of used oil imposed pursuant to Article 9 (commencing with Section 25200) of Chapter 6.5.
(4)     Process,    in regards to oil, means to acquire and refine into petroleum products through the application of heat, pressure, or other catalysts.
(b)  As of January 1, 2030, no more than 60 percent of the total oil that a petroleum refinery licensed to operate in the state processes on an annual basis may be imported oil.
(c)  As of January 1, 2035, no more than 50 percent of the total oil that a petroleum refinery licensed to operate in the state processes on an annual basis may be imported oil.