California Senate passes bill aimed at preventing gas price spikes
SACRAMENTO, California — The California State Senate on Friday passed a measure aimed at preventing gas prices from rising in a state where filling up at the pump is notoriously expensive.
The proposal, backed by Democratic Gov. Gavin Newsomwould give energy regulators the authority to require refineries to keep a certain amount of fuel on hand. The goal is to try prevent prices from suddenly rising when refineries go offline for maintenance. Supporters say it would save Californians billions of dollars at the pump.
The bill is inspired by findings from the state division of Petroleum Market Oversight, which showed that spikes in gas prices are largely driven by increases in global crude oil prices and unplanned refinery outages.
State Sen. Nancy Skinner, a Democrat who represents Berkeley, said the proposal is about saving money for consumers.
“While global crude oil prices are not something we can control, a shortage of refined gasoline is something we can prepare for,” she said.
Newsom announced the legislation in August, during the final week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to think about it. The governor called the Legislature into special session to try to pass the proposal.
The bill must receive final approval from the state Assembly before it can reach Newsom’s desk.
It has faced intense opposition from Republican lawmakers, labor groups and the oil industry. Some opponents say this could inadvertently raise overall gas prices and threaten worker safety by giving the state more oversight of refineries’ maintenance schedules. They argued that delaying necessary maintenance could lead to accidents.
The Western States Petroleum Association criticized Newsom and Democratic lawmakers who supported the bill, saying it would not benefit consumers.
“If they were serious about affordability, they would be working with our industry on real solutions,” Catherine Reheis-Boyd, the group’s president, said in a statement. “Instead, they are forcing a system they don’t understand. and Californians will pay the price.”
Californians pay the highest rates at the pump due to taxes and environmental regulations. The average price for regular unleaded gas in the state Friday is about $4.67 per gallon, compared to the national average of $3.21, according to AAA.
Republican Senator Brian Dahle said there should not have been a special session to consider the proposal because the bill does not do anything urgent. The proposal fails to address state taxes and regulations that contribute to higher gas prices, he said.
“So, who makes the money?” Dahle said. “Who’s screwing Californians for every gallon of gas? It’s the government.”
Last month, governors of Nevada and Arizona, which import gas from California, sent a letter urging Newsom to reconsider the proposal. They said at the time they were concerned it could raise prices in their states.
This isn’t the first time Newsom has tried to pressure the Legislature to pass oil and gas regulations. He a special session convened in 2022 to impose a tax on the profits of oil companies. The governor then said he wanted a fine, not a tax. He signed the law months later gave state regulators the power to punish oil companies for making too much money.
McGuire, a Democrat who represents the North Coast, said the bill introduced Friday would help address an issue that drastically affects people’s lives.
“Establishing mechanisms to prevent costs from spiraling and household budgets from spiraling downward benefits us all, and by working together we have done just that,” he said in a statement.
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Austin is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on Twitter: @ sophieadanna