The California Legislature on Tuesday passed legislation aimed at curbing spikes in gas prices, an action prompted by Gov. Gavin Newsom’s political battle with the oil industry over the state’s nation-leading per-gallon cost at the pump.
The extended discussions at the state Capitol on affordability underscore the challenges state Democratic leaders face in carrying out their agenda to transition California away from dependence on fossil fuels.
In the ongoing special legislative session called by Newsom, the Democratic-led Assembly approved bills that give the state the authority to place new requirements on California oil refiners to keep adequate reserves. The mandate may prevent future price increases but does not provide any immediate relief at the pump.
It’s the second year in a row lawmakers have targeted California’s gas price hikes. The proposals must also be adopted by the Senate and signed by the Governor to become law.
“The goal is simple: guarantee that fuel reserves are readily available to consumers during maintenance events and supply disruptions,” said Assembly member Greg Hart (D-Santa Barbara), who introduced one of the two bills approved Tuesday. Did. “Let’s act now to provide relief to Californians who need gasoline in their cars to get to work, take their kids to school, vote and visit loved ones.”
As the November election approaches, lawmakers rejected Republican calls to change climate laws to provide potentially bigger and faster savings to consumers.
“If we’re not really here to lower gas prices for consumers, why are we here?” asked Assembly Republican Leader James Gallagher (R-Yuba City) during a floor session. “And what I’m hearing is that we’re actually considering this proposal from the governor that doesn’t lower gas prices. At best, in theory, it would prevent gas prices from rising. But the people I’m hearing from, and I’m sure you’re hearing from your constituents too, think the price of gas is too high right now.
The Legislature on Tuesday passed legislation to give the California Energy Commission the authority through its rule-making process to require that oil refiners maintain minimum inventory levels to avoid shortages when equipment is shut down due to maintenance issues.
The lower house also approved a bill that sets a July 1 deadline for the Energy Commission and the California Air Resources Board to recommend ways to increase the state’s gasoline supply, such as adding more ethanol to the fuel. Limiting the use of summer mix or adopting other possible solutions.
The governor alleges that a handful of oil refineries, which produce the state’s special blend of environmentally friendly fuel, are manipulating the market to maximize their profits at the expense of Californians.
After gathering more information about pricing Law passed in last special session on oil prices Last year, state regulators reported that fees at the pump increase when oil companies do not maintain enough refined gasoline to cover production shortfalls or protect against the effects of unplanned maintenance.
“I’m grateful to the Assembly for joining me in our efforts to stop gas price increases and save Californians money at the pump,” Newsom said in a statement. “Just last year, price gouging cost Californians more than $2 billion – forcing many families to make difficult decisions like choosing between filling up fuel or keeping food on the table. “This has to end, and with the support of the Legislature, we will do that for California families.”
Newsom was not present during the vote. He attended the inauguration of Mexican President Claudia Sheinbaum in Mexico City on Tuesday.
Oil companies say the price increases are a result of the state’s climate change policies, which increase the cost of getting gasoline to market and force the state to rely on a smaller number of refineries. The industry says the legislature’s repeated efforts to regulate the complex oil market could have the counterproductive result of driving up the prices they seek to reduce.
Assembly Speaker Robert Rivas (D-Hollister) refused to vote in the lower chamber on a similar resolution that Newsom sought to push through the Legislature in the final weeks of the regular session in late August. And had cited the need for more time to conduct the hearing. And consider the bill.
Newsom’s office began talking with the Senate and Assembly in the early summer about legislation that would allow his administration to require that petroleum refiners maintain a stable inventory. Newsom and his aides had hoped the bill would become part of a package of legislation supported by the Senate and Assembly, which did not materialize.
After Rivas said the Assembly wanted more time, Newsom called a special session for August 31.
Through a series of hearings last month, Assembly members sorted through conflicting narratives from the governor and the industry to understand the best path forward in regulating a complex oil market.
Gallagher introduced a proposal that would exempt transportation fuels from California’s cap-and-trade program, which he said could save consumers 30 cents per gallon of gasoline. The bill would also require regulators to waive requirements for California to use summer blending of gasoline, which is more expensive when prices rise or supply is low.
Assembly Democrats rejected the bill in legislative hearings. Republicans expressed concern that prices will continue to rise next year under the cap-and-trade program and changes to the state’s low-carbon fuel standard.
“This is the biggest dog and pony show I’ve seen here in 10 years,” Assemblyman Devon Mathis (R-Visalia) said during the floor vote. “We are blaming everything possible for why gas is so expensive in our state, except the fact that the governor and this body have not stepped up.”
After the vote, Rivas offered a reminder that the special session was called specifically to deal with price increases.
“The state estimates this will benefit local residents by approximately $2 billion,” he said of the potential savings to consumers. “But as the state faces this affordability crisis, we need to do a lot more at the gas pump and many other areas.”
Democrats in the California Senate, who said they wanted to pass Newsom’s original proposal about the supply mandate before the regular session ends, have waited for the Assembly to vote on the bills before reconvening the upper chamber in a special session. Decided to do.
The Senate Pro Tem’s office said the House “will be ready to convene its meeting, establish its procedures, and act swiftly to provide relief to all Californians” following the Assembly’s action. The Senate is expected to gather early next week to review the bills.
