CA Legislators Ask AG to Investigate Gas Prices

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@alifornia Legislature

January 28, 2019

Members of the CoSiarnia Legislaure have sen the allached leller io Attemey Gescral Xavier
Becerra ask'sg she Califienia Dopastwent of fusca w investigate au vcesplainsd “sere wae
tha: as bes. deeded iu dhe stare"s gssoline prices. The >:imary besis for this nexprest sin the
Firings nf Fae 20. 7 Final Rep" oF Mes Poitaleum Mbrist advisory Cmmiae, which was
established by Cre Calilinnia Coeruy Canis it 2014,

‘he follossiep lapistatrs ares gnato-ies:

Assen alymevaher Mare Lavin: of Marin Cecrty: Senior Jery Fil Sun Mateo:
Acceinalynieaiber Isl Quisk of lag ward: Senatee Haney Stern of Cacoga Pooks
‘sssorvalymicaibsr Fin Wood ef Santa Rosa: Asssrablerember David Chiu of San Francis:
Agscrvalyines user Ris Fund Please of Sama Menicts Assemblymember Ash Kalea of San Jos
aber Mure Same of Ssouts Valley: Assemblymember Butfy Wicks of Osklind:
“Assormalgmember Lauea Fiedman af Gleudale: Assorablymember Roboeen Puusr-Koba al
‘Onde; Agsemblymembse Slinley VU, Weher San Diego; Sertar Ber. Aller. oF Santa Monica:
Sonstar Jim Beall of San. fase: <\3semnblgmembor Roker! Riess af Al tsk: Senator Mice
Metinire of Neullsbury; Senator Neey Skinner ol Therkeley; atk! Senatir Seatt Wiencr at San
rameisen

Asseraalein

Magia Lnquisies

Kye Schepers Teslie Guevama

Olive af Asscinblyraersner Mare Levine OMfice of Sate Senator
sparc ca go ie, Cewuruaen va.
0 16051-4053
Galifornia Legislature

auaey 28, 2019

‘he Honrable Xavier B
Sulomney Gener). Stabe of Califoceia
1299 Street, Suite 170
Shersrnenio, CA 9814

Dur Antostey General event

We, the undetsigued lesvTabes re wontacting you to ase he Califia Lpartment of Justice to
‘unc un investiye tion into waseline priexs i the stats, The pene basis for Fs oat isthe
“inal Kept” of the Petroleum Market Advisary Camnicise PMC), shit was Foerned by the
Califirnta Pnergy Couneission (CPCI ia Docembe: 2014 ks review Califorcie’s pertolour tael-
navel eretions

Siyminied ‘0 the CHC in Sepleraber 2017. che Final Repwot mt! that een after avcousting fox
Califiunia's gasoline ax, thel-blend and gresntouss gaa seduction wok, “greene puiege since
Fohmary 2615 tawe exhibited a cont uous und signilennt unexplacned dllerentaleismpane in
the rest of the eau”

University of Califia, Nerke ey, Professor Sevtuin Bunenstein, he farmer elitr of the PMA
observed lt Oc: snes Kedetars 205 this unexplained surshac3e “ba: cost Cal Forman
snore Hrs $17 Liliou, or ubsur $170 tor faenly a eur”

‘We mote nits just es he PAC mnesabers did in uheir Final Repor® that che Califoradu cst
Aifferental does notin iusl"ieyply that any mnacleet pavtvipunts have nled egally, Lewes,
there ace w auinber nf isdications Ut che slats": xnssine markt Lacks subst eucnpsett ad
‘hw Califora.ans are eoueuerniaily paying a scener prive, Feynd shat eam otherwise be
neconnied te, comnparal Ur residenls oF ates rae

As Professor Horenctcin has wored, be unexplained “oinshange shows ty oetveen the refineries
an! out gas tanks in Be distribution ste zta.iig netwar,” here ermine pressures may 3°
JngulTivien. “Far w-ete stations her “are synod by ties oe bitve hueleron

(eis possible, as staled in the Final Repou, tet Ieptstieal issues hyve conerbated te che
lime, #5 this gas-price geupl monito-ing tke sctebarge supaests. The surcharge averaged 3 ears
for 2000 Io 2014 and was nover mere Char (2. eens in ay’ 0 those yoaes, cit dovared in 2015
after the Tormames“eiinery tte and in 2018 hus averaged about 4 cots per gallon

Le fonia's resateinnd Gasoline Surchavge = 24

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os a

wt Ur]

In their Final Report, the PMAC members siorgly urged “tho State :0 cstablist an
‘otgautizavons) serusrure aod fe comet yeswursen” Ia. woul! pew. a “in-depth suis and
‘vuchisions” repardirg, ihe nnexplained gasoline sucharge. We vianeur wd are orm Is
socking the fonding that DOL ney ned to casey our and eonclude an investigation,

Srreerely,
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a an Ger

LM. for BAM sos
we oe Om eae Bo KD

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