SACRAMENTO, Calif. — A dispute is brewing between Governor Gavin Newsom and California’s legislative leadership over oil and gas prices in the legislative session's final days.
Senate Bill 950 was gutted and amended to a proposal backed by Newsom Wednesday to expand inventory requirements for refineries in an attempt to lower gas prices. The new requirements would have been overseen by the California Energy Commission (CEC).
Newsom was contemplating a special legislative session focused solely on oil and gas prices this fall, similar to one he called in late 2022.
The Western States Petroleum Association sent a letter to the CEC opposing SB 950, claiming regulating storage requirements would increase gas prices not only in California but also increase gas prices in Arizona and Nevada, too.
Senate president pro tempore Mike McGuire says the senate would not support the convening of a special session later in the year as he wanted to take immediate action.
“The Senate will not support convening a special session this fall. Californians shouldn’t have to wait for relief at the pump and on their utility bills. Inflation has been impacting the lives of millions and waiting for a special session will only make the problem worse for working families. We’ve been working nonstop to deliver results and get these measures across the finish line. We’re ready — right now — to get the bills passed, sent to the Governor and signed into law,” McGuire said in a statement.
Newsom’s last-minute attempt to rein in gas prices was met with opposition from members of his party as the Assembly refused to hear the bill, essentially killing the proposal for the year.
Assembly Speaker Robert Rivas released the following statement as to why the measure is not moving forward.
“The Assembly has been ready to stop skyrocketing prices at the gas pump and deliver significant relief to Californians to lower their monthly energy bills. We shared our affordability legislative proposals in June, and we’re on the same page with Governor Newsom about the absolute urgency of getting this done. If the Governor calls a special session, we’re going to do the work and deliver results. What I’m not going to do is push through bills that haven’t been sufficiently vetted with public hearings. Doing so could lead to unintended consequences on Californians’ pocketbooks."
Newsom’s press office says this is not a last-minute maneuver as the governor has been working with the legislature over the issue of gas prices since January.
“We appreciate the Legislature’s partnership in working to reduce costs for Californians. Whether it’s during this legislative session or in a special session, the Governor remains focused on the ultimate goal — lowering costs for Californians. We are thankful for the Senate and Assembly’s continued commitment to this effort.” said Daniel Villaseñor, deputy director of communications for Governor Newsom’s press office in a statement.
California has one of the highest average gas prices in the country, according to AAA. It's about $4.63 per gallon of regular fuel.
