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Committee advances amendments to let station operators dedicate pumps for alternative fuels, continues ordinance for technical fixes
Summary
Rules Committee discussed amendments to prohibit franchise and supply agreements that block franchisees from buying alternative fuels; key changes include allowing a station operator to dedicate a tank to an alternative fuel and redefining 'alternative fuel' to require at least 20% non-petroleum content. Committee continued the item for technical work and scheduling.
Item 10 proposed amendments to the Police Code to prohibit clauses in franchise and fuel-supply agreements that restrict station operators from purchasing motor fuel from alternative suppliers or installing alternative fuels. Supervisor Ammiano said the measure aims to make it easier for station operators to offer renewable or alternative fuels without breaching supplier contracts.
The City Attorney described key amendments: require refiners and distributors to allow station operators to dedicate one tank to an alternative fuel; and revise the definition of 'alternative fuel' so it must contain at least 20 percent non-petroleum content rather than being strictly non-petroleum. Western States Petroleum Association and other trade commenters raised technical concerns about Section 42e2 and the practical effect on contracts whose terminals are outside the city.
The committee accepted several cleanup amendments but continued the measure to the call of the chair to reconcile technical questions about contract nexus and implementation. Supervisors indicated they will schedule further hearings in January and circulate amendment language for review.
