SB 1245: Sale of gasoline: petroleum: branded and unbranded: report.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2024, and every 3 years thereafter, to submit an assessment to the Governor and 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 authorizes the State Air Resources Board (state board) to grant variances from gasoline specifications adopted by the state board and to impose fees and conditions in granting a variance.

Existing law requires the commission, in the first assessment after January 1, 2026, to evaluate the cost and supply impacts of allowing the sale of gasoline with alternative specifications to support a reliable and affordable supply of transportation fuels in California. If the evaluation finds that allowing the sale of gasoline with alternative specifications is likely to support a reliable and affordable supply of transportation fuels in California, existing law requires the commission, in coordination with the state board, to recommend a strategy to facilitate the sale of gasoline with those alternative specifications that, at a minimum, considers, among other things, the use of a fee, as provided, associated with the sale of gasoline with those alternative specifications to mitigate for any increase in emissions.

This bill would require the commission to submit that assessment on or before July 1, rather than January 1, of the applicable year. The bill would require the commission to implement, rather than recommend, that strategy and would require the strategy to consider the use of fees and conditions, rather than fees alone, developed for the purposes described above.

Existing law establishes the Division of Petroleum Market Oversight in 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 division to report its findings and recommendations to improve market performance, at least annually, to the Legislature, the Governor, the commission, the Attorney General, and the California Department of Tax and Fee Administration.

This bill would make the annual report due on or before July 1 of each year, and would require the report due on or before July 1, 2027, to analyze the price differential between branded and unbranded gasoline sold in California and the market barriers to competition in the gasoline imports market, as provided.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 13, 2026August 13 hearing: Held in committee and under submission.
2. August 5, 2026August 5 set for first hearing. Placed on suspense file.
3. June 25, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 4.) (June 24). Re-referred to Com. on APPR.
4. June 15, 2026From committee with author's amendments. Read second time and amended. Re-referred to Com. on U. & E.
5. June 10, 2026June 10 set for first hearing canceled at the request of author.
6. May 18, 2026Referred to Com. on U. & E.
7. April 30, 2026In Assembly. Read first time. Held at Desk.
8. April 30, 2026Read third time. Passed. (Ayes 36. Noes 0. Page 4114.) Ordered to the Assembly.
9. April 28, 2026Read second time. Ordered to consent calendar.
10. April 27, 2026From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.
11. April 17, 2026Set for hearing April 27.
12. April 14, 2026From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 17. Noes 0. Page 3842.) (April 13). Re-referred to Com. on APPR.