California Legislators Face Deadline as Newsom Mulls Special Session on Gas Prices and Oil Regulations
As California's legislative session approaches its final deadline, lawmakers are racing to pass a series of bills before adjourning. However, the work may not end there. Governor Gavin Newsom is considering calling a special session to push for additional legislation focused on gas prices and oil regulations. This move, intended to address the state's persistently high fuel costs, has sparked debate among legislators, with some Democrats openly opposing the idea.
Potential Special Session on Gas Prices and Oil Regulations
Governor Newsom has been in private discussions with legislative leaders this week, exploring the possibility of a special session aimed at passing new laws related to gas prices and oil refinery regulations. The governor's proposal centers on requiring oil refineries to maintain a minimum stock of fuel to curb price spikes, a measure Newsom believes is essential for protecting Californians from fluctuating gas prices.
Despite the governor’s intentions, the idea of convening a special session has met resistance. Senate Democratic leader Mike McGuire publicly expressed his opposition, stating, “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.”
Legislative Tactics and Negotiations
The proposed special session may serve as a strategic negotiation tool rather than an immediate legislative action. Newsom’s office has indicated that the session could be avoided if lawmakers pass a current proposal introduced earlier this month. This proposal, now a bill sponsored by Sen. Nancy Skinner of Oakland and Assemblymember Gregg Hart of Santa Barbara, directs the California Energy Commission to mandate that oil refineries maintain fuel reserves to prevent drastic price spikes.
Support for this approach comes from the California Energy Commission and its oversight body, which recently urged the Legislature to adopt these measures to build a buffer within existing fuel inventories. Without such safeguards, officials warn, California could face recurring cycles of gasoline price spikes year after year.
Opposition from Republican Leaders
The potential for a fall special session has drawn criticism from Republican leaders. GOP Senate leader Brian Jones of San Diego urged Democratic lawmakers to resist what he described as Newsom’s “undemocratic threats.” He argued that the governor should wait until December, when the next regular legislative session begins. Assembly Republican leader James Gallagher of Chico challenged Newsom’s proposal, stating he was ready to “call Newsom’s bluff” and had plans to introduce the first three bills of the session.
Jones also voiced his concerns on social media, accusing Newsom of “scrambling to push another empty promise — one that will almost certainly raise prices and lead to gas shortages.”
Historical Context and Industry Pushback
This isn’t the first time Governor Newsom has considered a special session to tackle issues related to the oil industry. In 2022, he called legislators back to examine oil company profits and potential price gouging. While the initial focus was on taxing excessive oil profits, the outcome was the creation of a watchdog group tasked with analyzing and potentially regulating oil profits. Newsom heralded the effort as a victory, stating, “California took on Big Oil and won.”
However, the oil industry has been vocal in its opposition to further regulations on fuel storage. Following Newsom's recent proposal, the head of the Western States Petroleum Association labeled the plan as “regulatory malpractice” and accused the administration of being “desperate to demonstrate some action” from the newly established watchdog group. Similarly, the American Fuel & Petrochemical Manufacturers argued that mandating supply levels would ultimately “increase prices for everyone, all the time.”
The Impact on Californians
California residents continue to bear some of the highest gas prices in the country. As of Wednesday, the average price for a gallon of regular unleaded gasoline in California was $4.62, significantly higher than the national average of $3.36. This persistent disparity underscores the urgency felt by both the public and lawmakers to find effective solutions that can bring relief to consumers.
Resources and Upcoming CalMatters Events
For those following the developments in California's legislative efforts, CalMatters provides comprehensive coverage of the Capitol, including guides and stories that track bills and lawmakers’ actions. Californians can learn about the Legislature’s record diversity and how well their representatives are serving them, as well as ways to make their voices heard. CalMatters also hosts events to discuss critical issues facing the state. The next event, scheduled for September 12, will address the ongoing battle over California’s groundwater.
Additionally, on September 19, CalMatters economy reporter Levi Sumagaysay will interview California Insurance Commissioner Ricardo Lara regarding the homeowners’ insurance crisis. Both events offer opportunities to attend virtually or, in the case of the latter, in person at the Sacramento offices. As the legislative deadline approaches, California’s lawmakers face critical decisions that could impact millions of residents. With Governor Newsom’s potential special session on the horizon, the debate over gas prices and oil regulations remains a contentious issue. Whether through regular or special sessions, the outcome will play a pivotal role in shaping California’s approach to managing fuel costs and industry regulation in the coming months.
