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Committee hears CEC request to make petroleum market‑oversight positions permanent as refineries close
Summary
CEC and the Division of Petroleum Market Oversight asked lawmakers for staff to continue monitoring refinery closures, imports and resupply planning; lawmakers and LAO pressed for justification and asked whether existing hires can be repurposed.
Alicia Gutierrez, director of the Energy Assessments Division at the California Energy Commission, and Varshaa Servaisor, deputy director for policy in the Division of Petroleum Market Oversight, presented a BCP package asking for roughly $1.7 million for seven CEC positions to implement ABX2‑1 responsibilities and an additional $473,000 to convert a limited‑term DPMO research/data specialist role into permanent status. The presenters said closures of in‑state refineries and volatility in global markets have increased supply‑monitoring workloads; DPMO’s functions include market oversight, economic analysis, investigations and coordinated resupply and minimum‑inventory planning.
Lawmakers pressed for evidence that the program has detected opportunistic pricing or 'gouging' and requested contract and procurement documents tied to major programs. DPMO declined to discuss ongoing investigations in detail but said its data analysis previously showed increases in margins not matched by input costs in the 2022 period and that ongoing daily/monthly reporting and triannual assessments remain important. LAO said it found adequate justification for the positions in the BCP but recommended legislative attention to scope and trade‑offs.
Department of Finance and CEC staff described continuing analytic work on resupply regulations and a plan to publish a resupply workshop; DOF said the CEC was not originally resourced for ABX2‑1 responsibilities and that additional capacity is necessary. Lawmakers asked for follow‑up data on import sources and the status of inventories and requested copies of contract documents where appropriate; CEC and CPUC staff agreed to follow up in writing.
Public commenters who had been following the earlier DSGS discussion also supported extending funding for demand‑response and energy‑efficiency grants to schools; multiple stakeholders asked the committee to ensure that new positions and resources produce clear, published oversight outputs.
