SACRAMENTO – California lawmakers will meet in a special session after the conclusion of their legislative 12 months on Saturday to debate measures proposed by Governor Gavin Newsom to cut back spikes in gasoline prices on the pump.
Newsom called the Legislature into special session on Saturday after Assembly Democrats rebuffed his efforts to pass the energy package he unveiled this week. California must act now to “prevent price spikes next year and beyond,” he said.
“It should be natural for gas refineries to plan ahead and replenish their inventories when they are down for maintenance to avoid price spikes. But these price spikes are actually profit spikes for the big oil companies, and they are using the same old scaremongering tactics to maintain the status quo,” he said in a press release.
According to AAA, Californians pay the very best prices within the nation on the pump: a median of $4.64 per gallon for normal unleaded gasoline, in comparison with the national average of $3.33. Electricity bills within the state have also nearly doubled up to now decade and are expected to outpace inflation by 2027 as California rushes to transition away from fossil fuels.
The proposals and the potential for a special session have divided the Democrats, who’ve an awesome majority in Parliament.
House Speaker Robert Rivas said his members wanted the special session to permit more time to contemplate the proposals and welcomed Newsom's decision to call a special session. But members of the Senate, including Republicans, rejected the thought of returning to Sacramento for more work after the legislative deadline on Saturday.
State Senate President pro tempore Mike McGuire said in a press release responding to Newsom that the Senate “will not convene a special session this fall, but we look forward to continuing discussions with the Governor and Speaker on this critical issue in the coming days and weeks.” Instead, he wants lawmakers to pass the package Newsom supported on Saturday.
It's not immediately clear when the special session will begin or how long it can last. With the Senate refusing to convene, it's also not clear how the Legislature would proceed. Veteran lobbyist Chris Micheli said there is no such thing as a mechanism to force either chamber to call a special session, however the governor could still sue the Senate.
It's not the primary time Newsom has tried to pressure the Legislature to pass oil and gas regulations. The Democrat called a special session in 2022 to pass a tax on oil corporations' profits. At the time, he said he wanted a penalty, not a tax. The law he signed months later gave state regulators the ability to punish oil corporations in the event that they made an excessive amount of money.
At the centre of the political battle is a draft law that will require oil refineries to keep up a minimum stock of fuel with the intention to avoid spikes in fuel prices.
The price of gasoline rises when corporations run out of supplies, supporters say, and the measure could save motorists tens of millions of dollars. The Western States Petroleum Association, then again, says the bill would force refineries to carry back supplies and hurt consumers.
“When deliveries are held back, costs increase,” said WSPA spokesman Kevin Slagle.
According to the California Energy Commission, there have been 63 days from June to October last 12 months when California refineries had lower than 15 days of gas inventory, in comparison with 49 days in the course of the same period in 2022 and just 35 days in 2021.
Lawmakers also had reservations a few proposal to offer households a one-time refund on their electric bills and a proposal to streamline renewable energy projects. They had already sent Newsom a bill earlier this week to revive power to households that were previously unable to pay their electric bills.
Republican Senator Kelly Seyarto called Newsom's proposals “ridiculous” and supported McGuire's decision to not call the special session.
The special session is vital, said Assembly Democratic Caucus Chairman Rick Chavez Zbur, who sits on the Energy and Utilities Committee. The proposal to handle energy affordability can be brought up again next session, he said.
The focus of the special session is on reducing gasoline price spikes on the pump.
“The entire caucus is committed to working with the governor to make sure we lower gas prices and lower energy costs in the state,” Zbur said. “This is something we need to do urgently, but we also need to do it right.”
Austin is a corps member of 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 issues that aren't as often covered. Follow Austin on X: @sophieadanna
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