Gov. Gavin Newsom is on the war path to push through his proposed mandate on oil refiners, an effort he says will prevent spikes in the price of gas in California.
But California regulators have a vote scheduled next month, just days after the election, that could raise gas prices by around half a dollar.
The backstory: Newsom called a special session of the Legislature to consider his proposal, which would require oil refiners to keep a minimum supply of fuel on hand to prevent price spikes.
- The Assembly passed Newsom’s mandate last week, and it is now working its way through the Senate.
Driving the news: The California Air Resources Board (CARB) will vote on new restrictions on the carbon intensity of fuels in November.
- It’s a proposal that CARB said last year could raise gas prices by $0.47 per gallon. The LA Times reported that the increase could be even greater, reaching $0.65 per gallon.
- The proposed restriction on the carbon intensity of fuels would lead to higher costs passed through to consumers.
The big picture: While Newsom is pushing for his mandate, CARB is trying to publicly walk back from its $0.47 estimation.
- A CARB official told legislators that the $0.47 per gallon increase was based on a forecasting model that can never capture real world conditions, but CARB has yet to provide a revised estimate since the increase was first floated in September of last year.
What CARB has to say: Steven Cliff, the Chairperson of CARB, told the LA Times that the regulator body will not provide any new projections.
- The board, Cliff said, will examine all economic impacts, including economic growth, job creation and public health.
Bipartisan concern: Members of both parties in Sacramento are wary of the CARB proposal, especially given the current special session going on.
- “For me, this special session has been about ensuring that gas prices are going down,” Asm. Corey Jackson (D–Perris) told the LA Times. “And certainly, if CARB is creating regulations that will increase gas prices, we’re going to have to take a look at that and see if we have to rein in their authority.”
- Asm. Joe Patterson (R–Rocklin) questioned the timing of Newsom’s special session just ahead of the CARB vote.
- “It just feels like the governor is more concerned about sticking it to the oil companies than he is about the actual costs of gasoline,” Patterson said.
