After some uncertainty over the weekend, California lawmakers appear headed for a special session to consider Gov. Gavin Newsom’s proposed mandate on oil refiners.
Newsom and Asm. Speaker Robert Rivas (D–Hollister) announced Wednesday that will target the oil industry in what Democrats say is a move to prevent spikes in gas prices.
Flashback: Last Saturday Newsom called a special session of the Legislature to consider his proposal to require oil refiners to keep a minimum reserve on hand to reduce price spikes.
- With his action coming just hours before the end of the Legislative year, Rivas said the Assembly welcomes the special season. But State Senate President Pro Tempore Mike McGuire said the Senate had already been ready to move forward with the proposal for months and will not convene a special session.
The big picture: Newsom and Rivas moved forward with the legislation that will be tackled during the special session, saying Wednesday that it will save Californians hundreds of millions of dollars annually.
- Assembly Bill 1 was introduced Tuesday night by Asm. Gregg Hart (Santa Barbara) and Asm. Cecilia Aguiar-Curry (D–Winters).
- Further, McGuire’s office said Wednesday that he had a productive meeting with Newsom on Tuesday regarding the proposal, signaling that the Senate will soon change its tune on the special session.
Go deeper: AB 1 would give the California Energy Commission (CEC) the power to mandate oil refiners to maintain a minimum inventory of refined fuel to avoid supply shortages.
- The CEC would also be able to require oil refiners to plan for resupply during scheduled refiner maintenance.
- Oil refiners who don’t comply would be penalized by the state.
- AB 1 makes no mention of California’s state gas tax, which currently sits at $0.60 per gallon.
What they’re saying: Rivas said California must stop oil companies from making record profits at the expense of Californians.
- “During this important special session, the Assembly will convene public hearings that thoroughly vet proposals,” Rivas said. “We’ll hear from experts and ensure that the public has a voice in the process. I’m committed to delivering solutions that rein-in soaring gas costs and provide real savings at the pump.”
- Newsom added, “I’m glad to see the Assembly is moving this important proposal forward to save Californians hundreds of millions of dollars at the pump. Gas price spikes are profit spikes for Big Oil, and California won’t stand by as families get gouged.”
The other side: Republicans pushed back on Newsom’s proposal, saying it is his fault that gas prices are so high.
- “After six years of Newsom’s failed leadership, Californians’ gas prices have soared by $1.33/gallon and are still some of the highest in the country,” said Assembly Republican Leader James Gallagher (Yuba City). “This stunt from the governor will only make things worse. When we come back for this special session, Assembly Republicans will be ready with smart proposals to increase our energy supplies and bring costs down.”
- Asm. Joe Patterson (R–Rocklin) called on Democrats to not blindly support the mandate.
- “Californians are tired of getting ripped off at the pump thanks to Democrats’ high taxes and regulations – and they see right through Newsom’s attempt to blame everyone but himself,” Patterson said. “Newsom’s sham special session proposal will do absolutely nothing to address California’s outrageous gas prices and will likely drive costs even higher. I hope the majority party will support a transparent process that allows for bills from both sides of the aisle, instead of blindly doing the Governor’s bidding.”
