20250SB__133797AMD INTRODUCED 2026-02-20 AMENDED_SENATE 2026-04-13 AMENDED_ASSEMBLY 2026-06-29 2025 SB AMD Introduced by Senator Richardson LEAD_AUTHOR SENATE Richardson

An act to add

Section 25370.5 to the Public Resources Code, relating to energy. energy State Energy Resources Conservation and Development Commission: air districts and local governments: transportation fuels refining facilities: memoranda of understanding.

Existing law requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2024, and every years thereafter, to submit an assessment to the Legislature that, among other things, identifies methods to ensure a reliable supply of affordable and safe transportation fuels in California and evaluates the price of transportation fuels, including branded and unbranded retail prices, alternate formulations of gasoline with lower carbon impact, and other products suitable for production from refineries in California, as provided.

Existing law establishes the Division of Petroleum Market Oversight within the commission to, among other things, provide independent oversight and analysis of the transportation fuels market for the protection of consumers by identifying market design flaws, market power abuses, and any other manner by which market participants act to harm competition or act contrary to the best interests of the consumers in the state.

Existing law requires the director of the division, when requested, to appear before the appropriate policy committees of the Legislature to provide an update on the division’s performance as compared to its objectives, the status of competition in the transportation fuels markets, and other information the committees request.

This bill would require the commission, on or before January 31, 2029, to enter into memoranda of understanding with relevant air districts and local governments with transportation fuels refining facilities within their jurisdictions to enable the coordination that is needed to ensure the transportation fuels sector is successfully managed and maintains environmental, public health, labor, economic, and consumer protections. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1. "?>The Legislature finds and declares all of the following: (1)</xhtml:p>"?> (

a) California’s pioneering climate and air quality policies are critical to protecting our communities’ health, which has led to a rapid evolution of California’s petroleum market. (2)</xhtml:p>"?> (

b) Decreasing demand, economic factors, and volatility of the international petroleum market introduces uncertainty to the petroleum industry that impacts consumers, the workforce, and fence-line communities. (3)</xhtml:p>"?> (

c) Successfully managing the state’s longstanding leadership in addressing climate, air quality, health, and environmental issues will require coordinated actions by, and strategic alignment of, state, regional, and local jurisdictions. (4)</xhtml:p>"?> (

d) An abrupt loss of refinery capacity and the resulting increased need for imported fuel to compensate for that loss is likely to create new risks for stable fuel prices and supply. (5)</xhtml:p>"?> (

e) Sudden and unmanaged exits of critical legacy energy infrastructure can have significant negative impacts on energy security, local governments, worker safety, consumer prices, public health, environmental protection, and the communities that depend on jobs and revenue from those industries. (6)<xhtml:span class="EnSpace"/>Market adjustments must also align with California’s trailblazing climate policies.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>Industry participants have identified several intersecting regulatory and administrative issues in maintaining systemwide stability, including crude oil extraction and delivery, the State Energy Resources Conservation and Development Commission’s regulatory tools, the At Berth Regulation, the California Cap-and-Invest Program, and other issues related to local, regional, and state authorities.</xhtml:p><xhtml:p>(8)</xhtml:p>"?> (

f) The State Energy Resources Conservation and Development Commission continues to engage with a wide range of impacted stakeholders and communities to develop a holistic view of the petroleum value chain and to establish solutions that best protect consumers. (b)<xhtml:span class="EnSpace"/>It is the intent of the Legislature to develop a holistic view of the petroleum value chain and to establish solutions that best protect consumers.</xhtml:p>"?> <caml:Num>SEC. 2.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:PRC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'25372.5'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section 25372.5 is added to the <caml:DocName>Public Resources Code</caml:DocName>, <caml:Positioning>immediately following

Section 25372.4</caml:Positioning>, to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_58E04907-550E-46E4-8E09-93210F765416"><caml:Num>25372.5.</caml:Num><caml:LawSectionVersion id="id_0FFCF704-0609-4E1D-B33A-540166318E95"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Interagency Working Group on Transportation Fuels Transition Strategy is hereby established, to be led by the commission, and consisting of all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The California Environmental Protection Agency.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The Natural Resources Agency.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The Transportation Agency.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The State Air Resources Board.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The State Water Resources Control Board.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The Department of Industrial Relations.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>The State Lands Commission.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>Relevant air districts.</xhtml:p><xhtml:p>(9)<xhtml:span class="EnSpace"/>Local governments.</xhtml:p><xhtml:p>(10)<xhtml:span class="EnSpace"/>Airports.</xhtml:p><xhtml:p>(11)<xhtml:span class="EnSpace"/>Ports.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Local agencies may participate in the Interagency Working Group on Transportation Fuels Transition Strategy.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The Interagency Working Group on Transportation Fuels Transition Strategy shall do both of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Develop priority policies and programs informed by the Transportation Fuels Transition Plan prepared pursuant to

Section 25371.3 and the assessment described in

Section 25371.4.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Strengthen coordination and communication regarding policies and regulations across state, regional, and local authorities, communities, and stakeholders in order to inform transportation fuels policy development and implementation, including both of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Develop recommendations, as needed, for policies and programs that ensure a successfully managed transportation fuels sector that maintains environmental, public health, labor, economic, and consumer protections while state-of-the-art new clean energy systems are developed and implemented to meet California’s demand for transportation fuels and energy.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Propose opportunities for partnership between the Governor’s office, state agencies, boards, commissions, offices, the Independent Consumer Fuels Advisory Committee established pursuant to

Section 25373, and other entities, as necessary, and the Legislature in order to advance solutions to strategically align regulations and permitting processes across all levels of government that could best support achievement of state policy goals.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>The commission shall annually convene at least one public meeting of the Interagency Working Group on Transportation Fuels Transition Strategy to provide members of the public with information and to receive information and comments from the public.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The commission shall request representatives from the entities listed in subdivision (

a) to attend the public meeting.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The public meeting may be combined with a meeting of the Independent Consumer Fuels Advisory Committee.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection>"?>

SEC.

Section 25370.5 is added to the Public Resources Code , to read: 25370.5. On or before January 31, 2029, the commission shall enter into memoranda of understanding with relevant air districts and local governments with transportation fuels refining facilities within their jurisdictions to enable the coordination that is needed to ensure the transportation fuels sector is successfully managed and maintains environmental, public health, labor, economic, and consumer protections.