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California leaders divided over Gavin Newsom's call for another special session on gas prices

Ari Plachta and Nicole Nixon, The Sacramento Bee on

Published in News & Features

California lawmakers are divided over whether to call yet another special legislative session on gasoline prices at the behest of Gov. Gavin Newsom, who wants to pass a regulation on oil refineries in an effort to avoid gasoline price spikes.

It would be the second time Newsom convened lawmakers to deal with the issue — the last being in the wake of summer 2022, after gas prices topped $6 per gallon.

Newsom and lawmakers want to pass legislation to meant to prevent gasoline price spikes and to give credits of around $30 to most electric ratepayers, but can’t agree on when to do it.

The tug-of-war over a special session to consider a multi-measure package of climate and energy bills released just before deadline Wednesday underscores the last-minute nature of policymaking in the California legislature.

Assembly leaders were pushing for more time to deliberate details to the proposals, but leaders in the senate have resisted the idea of a special session, and say their priority bills from that package — primarily on permitting for renewable energy projects — are ready to go to a vote.

Senate President pro Tem Mike McGuire, D-Healdsburg, said his chamber “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,” McGuire said in a statement. “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.”

By Thursday afternoon, assembly members were telegraphing the possibility of passing the bills before the deadline of midnight Saturday, despite their preference for a special session.

“The work is happening in real time,” said Assemblymember Isaac Bryan, D-Los Angeles. “There’s always a lot of potential towards the end of session.”

“I think Californians expect us to take a really hard look at their monthly bills and do everything we can to lower prices,” Assemblymember Cottie Petrie-Norris, D-Irvine, said.

Petrie-Norris, who is carrying a pair of bills meant to reduce electricity rates, said she was “happy to do that work as part of a special session” or during a regular session.

 

Earlier this month, Newsom unveiled his intentions to compel California oil refineries to stockpile additional fuel reserves. The regulation, he argued, would ward off price spikes by avoiding supply shortages when facilities undergo regular maintenance.

The end-of-session bill, SB 950, authored by Senator Nancy Skinner, would require oil refiners to show resupply plans to the Energy Commission and prove they are adequate to cover losses from refinery maintenance.

The proposal provoked significant backlash from representatives of California’s oil industry and legislative Republicans, who say requiring refineries to have a supply stockpile could lead to short-term price spikes.

“It really doesn’t matter when the governor forces the vote on this issue,” said Kevin Slagle, a spokesperson for the Western States Petroleum Association. “It’s a vote for raising fuel costs on Californians.”

The governor’s office is quick to note that similar policies have been passed in Australia, Japan and the European Union.

The regulation would mark a concrete outcome of Newsom’s multiyear public crusade against oil companies.

It began after the 2022 gas price spike, after which the governor called lawmakers into a special legislative session to tackle “price gouging” at the pump.

The resulting law, SB X1-2, established a watchdog division within the California Energy Commission to investigate. Last September, the division’s Newsom-appointed ‘oil czar’ recommended imposing minimum gasoline storage requirements for refiners.

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©2024 The Sacramento Bee. Visit sacbee.com. Distributed by Tribune Content Agency, LLC.

 

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