Media Advisory - Hot Fuels Report

For Immediate Release: December 05, 2008
CONTACT: Susanne Garfield - 916-654-4989

MEDIA ADVISORY

Energy Commission Committee Workshop on Hot Fuels Report

Staff reports findings of Fuel Delivery Temperature Study

What: AB 868 Report - Committee Workshop on Fuel Delivery Temperature Study. Summary of the staff report's findings will be presented.

When: Tuesday, December 9, 2008 - Beginning at 9 a.m.

Where: California Energy Commission, 1516 Ninth Street, Sacramento

Webcast: Yes at www.energy.ca.gov/webcast

Questions: Contact the Energy Commission Media Office at (916) 654-4989

ISSUE SUMMARY:

The Energy Commission released the Staff Draft AB 868 Fuel Delivery Temperature Report which conducts a cost benefit analysis regarding implementing Automatic Temperature Compensation (ATC) devices on retail service stations. Like many other liquids, fuel expands and contracts with temperature change. For gasoline, there is one percent less fuel for each fifteen-degree temperature increase. So the warmer the fuel, the less energy and fewer miles to the gallon a vehicle will receive.

The Staff Draft AB 868 Report finds:

California's average annual temperature for gasoline is nearly 71 degrees Fahrenheit, warmer than the 60 degree Fahrenheit reference temperature.

Temperature compensation has been instituted for most wholesale transactions to remove the inequity of temperature variations. Use of ATC devices is already permitted at retail stations however currently no retail station operator has elected to install ATCs.

If ATCs had been installed at California's retail stations during the study period, consumers would have received a more accurate gallon compensated for the warmer temperature or bought about 117 million gallons less. This cost is calculated at about $376 million (at an average of $3 gallon).

Mandated ATCs on fuel dispensers are estimated to cost California retail station owners between $102 million - $123 million per retail outlet for installations. This is about seven-tenths (7/10) of a cent per gallon if costs are passed through to the consumer for the first year.

Recurring consumer costs for ATC maintenance, operation and inspections are estimated at $4.4 million to $15 million or two-hundredths (2/100) to seven-hundredths of a cent (7/100) per gallon.

Draft Staff report available online at: http://www.energy.ca.gov/transportation/fuel_delivery_temperature_study/documents/index.html

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