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2000
ANNUAL REPORT
MARKETING
Legislative Initiatives Proliferated,
Push Marketing to Center Stage
Petroleum marketing issues took center stage this year
in the wake of 1999's unprecedented price volatility.
In response to public concerns over pricing, state Attorney
General Bill Lockyer convened a special Task Force on
Gas Pricing in California to assess the situation. WSPA
Executive Director Doug Henderson represented the petroleum
industry on the Task Force, which also included independent
economists, University of California academics, dealer
organizations, consumer groups and various state agency
delegates. Over the course of its four meetings, the
Task Force reviewed issues such as the impact of CARB
gasoline, supply disruptions, pipeline and refining
capacity and various regulatory proposals including
divorcement and open supply.
While a good deal of important information was exchanged,
the Task Force did not reach a consensus on either the
causes of market volatility or appropriate solutions.
For example, many Task Force members disagreed with
the Attorney General's suggestion of a windfall profit
tax, a proposal which was eventually defeated by the
state legislature after having been introduced by Senator
John Burton (D-San Francisco).
Key Bills Fail
Throughout the year, WSPA successfully opposed several
other marketing-related proposals introduced by a number
of state legislators. Senator Steve Peace’s (D-San Diego)
branded open supply bill died on the floor of the Assembly
Utilities and Commerce Committee, and Senator Jackie
Speier’s (D-Hillsborough) divorcement proposal was held
in the Assembly Appropriations Committee. A price control
proposal by Assemblyman Herb Wesson (D-Los Angeles)
also failed. Two bills that did pass, both of which
were supported by WSPA, included a study of gasoline
reserves sponsored by Assemblyman Kevin Shelley (D-San
Francisco) and a review of pipeline capacity introduced
by Assemblywoman Carol Midgen (D-San Francisco).
The year 2000 saw remarkable fluctuations in all sectors
of the energy market which will undoubtedly draw legislative
attention during 2001, and will include additional marketing-related
regulatory proposals impacting petroleum. WSPA will
work diligently to bring balance to media coverage and
public debate on the issue.
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