Fuels

California Energy Board Seeks 'Hot Fuel' Input

Consumer watchdog group decries "ripoff"
SANTA MONICA, Calif. -- The California Energy Commission (CEC) Transportation Committee will conduct a workshop on December 9 to receive comments on the Fuel Delivery Temperature Study staff draft report. Assembly Bill (AB) 868 requires the CEC to prepare a cost-benefit analysis and present findings and recommendations to the state legislature on the implementation of automatic temperature control devices at retail gas stations.

This public workshop will discuss the findings and recommendations written in the completed draft staff report on the Fuel Delivery Temperature [image-nocss] Study designated by AB 868. The report will be released two weeks prior to the workshop date. (Click here to access the draft report and related documents.)

The CEC will present the summary of findings and recommendations in the current report and will address any outstanding issues associated with this study's cost-benefit analysis. It requests that all interested stakeholders, in addition to advisory group members, share and comment on any technical information or insight relevant to the cost-benefit analysis associated with the study.

Additionally, it requests that all interested stakeholders review the draft staff report and provide comments and feedback. The CEC Transportation Committee will consider the input and comments made by stakeholders and direct staff in finalizing the cost-benefit analysis study and revising sections to the draft staff report. The committee members have the authority to request an additional workshop before the CEC sends the report to the legislature in February.

According to the CEC, "Fuel expands and contracts with temperature change. Gasoline volume expands 1% for every 15 degree increase in temperature. Energy content does not increase with this expansion; therefore, warmer fuel reduces vehicles' mileage per gallon."

In 2008, the CEC held three staff public workshops regarding AB 868 one each in January, March, and June. The scheduled deadline for the report has been extended and is now due to the legislature no later than Feb. 12, 2009. Following the workshop, written comments on the workshop topics must be submitted by Jan. 5, 2009. (Click here for more details.)

Nonprofit advocacy group Consumer Watchdog claims that a CEC draft report "proves beyond doubt that consumers are unfairly treated at the pump," yet fails to recommend that the "ripoff" be fixed through temperature compensation devices at the pump.

Consumer Watchdog, in a letter to the CEC, said that if it does not call for a technical solution, it must "recommend adoption of a cost-free but less accurate solution-a statewide reference temperature of 71 degrees. This would require no equipment and little regulatory adjustment. It would offer less benefit to consumers in warmer parts of the state, and be a greater cost burden on retailers in colder parts of the state. But by recommending an outright ban on adjustment at the pump, you leave yourselves no other option. To keep 'hot fuel' sales in place is, as your own study confirms, patently unfair to consumers." (Click here to view the full text of Consumer Watchdog's letter.)

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