Democratic lawmakers in the California Assembly are resisting a recent move by Gov. Gavin Newsom to pass measures aimed at reducing energy expenses for residents and mitigating fluctuations in gas prices. They argue that they require more time to assess the potential consequences of these proposals. This opposition suggests that the state Legislature might convene a special session this year after the session was expected to conclude on Saturday. Assembly Speaker Robert Rivas emphasized that while they agree with Newsom on the importance of lowering energy costs for Californians, the details of the proposals were only disclosed this week.
Californians currently face the highest gas prices in the nation, with an average of $4.64 per gallon for regular unleaded fuel compared to the national average of $3.33. Additionally, electricity bills in the state have nearly doubled over the past decade and are projected to continue surpassing inflation rates until 2027 as California accelerates its transition away from fossil fuels. These ongoing discussions underscore Newsom’s efforts to press the Legislature to implement oil and gas regulations aimed at reducing costs for residents and reinforcing the state’s stance as a climate leader.
One contentious proposal that Assembly Democrats are deliberating further would mandate oil refiners to uphold a minimum fuel inventory to prevent sudden spikes in gas prices. Advocates argue that insufficient supply leads to price increases and assert that enforcing such a measure could potentially save drivers significant amounts of money. However, the Western States Petroleum Association expressed concerns that this requirement could prompt refiners to withhold supplies, thereby negatively impacting consumers. The association’s spokesperson, Kevin Slagle, highlighted the potential cost escalation that could result from supply withholding by refiners.
In addition to addressing gas price fluctuations, other initiatives supported by Newsom include enhancing oversight over wildfire mitigation spending, streamlining renewable energy projects, and offering households a one-time rebate on electricity bills. Lawmakers have already approved a bill to restore power to households previously unable to pay their electric bills. Despite holding a supermajority in the Legislature, Democrats are divided on these proposals. State Senate President Pro Tempore Mike McGuire emphasized the urgency of delivering these measures to Newsom, asserting that Californians cannot afford further delays.
The Governor’s office has indicated that Newsom may consider a special session if the Legislature fails to pass his package to circumvent gas price spikes. Conversely, Republicans have criticized Newsom’s initiative, particularly regarding the proposal on oil refiners, and have called for assurances on how the state plans to prevent fuel shortages under the new plan. Assembly Republican Leader James Gallagher condemned Newsom’s efforts to push through the proposal at the end of the session. Assembly Democratic Caucus Chair Rick Chavez Zbur, who serves on the Utilities and Energy Committee, highlighted the intricate nature of addressing high energy costs and gas price fluctuations. He underscored the importance of safeguarding consumers’ interests and ensuring that any interventions yield tangible benefits for residents.