California Assembly passes Newsom's gasoline bill in special session

SACRAMENTO, Calif. (CN) — The California Assembly on Tuesday passed legislation that supporters say will help keep gasoline price spikes in check, a win for Governor Gavin Newsom in the special session he called to address gas prices.

Assembly Bill 1 — written by Democratic Assemblymembers Gregg Hart, of Santa Barbara, and Cecilia Aguiar-Curry, of Winters — would give the California Energy Commission power over refineries’ maintenance schedules and minimum inventory requirements. It passed 44 to 17.

Before a refinery could perform maintenance, it would have to meet criteria created by the commission. Additionally, the commission could establish a minimum level of refined transportation fuels refineries must have.

The bill also would create a penalty from $100,000 to $1 million per day for refineries that fail to meet the resupply plans or minimum fuel levels.

The fiscal impact of the bill is unknown, as it didn’t appear before the Assembly’s Appropriations Committee.

Supporters of the bill have said the moves would help stop price spikes at the pump. Opponents, including the governors of Arizona and Nevada, have urged Newsom and the Legislature to reconsider as it could cut into their states’ gas supplies.

“It is about supply — supply and demand,” said Assemblymember Jim Wood, a Healdsburg Democrat. “Any effort to flatten these prices out is welcome.”

Hart said refinery maintenance and low inventory lead to price spikes at the pump. His bill would require refineries to provide resupply plans during maintenance.

“AB 1 does not prohibit a refinery from performing important maintenance,” Hart added.

Aguiar-Curry said the Legislature could have pushed through the bill at the end of the regular session, but a special session gave lawmakers the time for a “thoughtful process.”

Republicans opposed the bill.

Assemblymember Tom Lackey, a Palmdale Republican, said many of his constituents drive two hours to reach their jobs. He advocated that they should instead suspend the gas tax.

“Hardworking Californians deserve better than the governor’s experiment,” he added.

Republican Assemblymember Joe Patterson of Rocklin argued the bill would lead refineries to leave the state, which in turn would require more oil imports and higher prices at the pump.

“My constituents can’t afford the policies of the California State Legislature,” Patterson said.

Assemblymember James Gallagher, a Yuba City Republican and the minority leader, questioned why the Assembly had convened, arguing that the bill would make gas prices rise. He pointed to a handful of Republican bills that he said would have cut prices. However, only one of them received a hearing, with that bill then facing amendments that stripped out any savings.

Gallagher urged the Assembly to approve amendments made to Assembly Bill 1, which would have led to more gasoline infrastructure and storage.

“Otherwise, it’s just a false promise,” Gallagher said of the bill. “With these amendments, what I’m saying is, put your money where your mouth is.”

Democrats voted to shelve the amendments, as well as attempts by Assemblymember Heath Flora to bring other bills to the floor for a vote on Tuesday. Democrats stopped each attempt by the Lodi Republican, leaving only two bills on Tuesday’s agenda up for consideration.

Newsom praised the bill’s passage in a statement.

“Just last year, price spikes cost Californians more than $2 billion — forcing many families to make tough decisions like choosing between fueling up or putting food on the table,” Newsom said. “This has to end, and with the Legislature’s support, we’ll get this done for California families.”

The bill now advances to the state Senate, which initially pushed back on the special session and said it wouldn’t convene. The Senate President Pro Tempore’s Office later backed away from that hard stance, saying it would convene if the Assembly passed the bill.

President Pro Tempore Mike McGuire couldn’t be reached for comment on Tuesday.

The Assembly also passed Assembly Bill 9, written by Assemblymember Cottie Petrie-Norris, an Irvine Democrat. Focused on a report that will detail possible solutions to increasing gas supply, with a specific look at gas containing up to 15% ethanol, the bill passed by the two-thirds required for the urgency measure.

Two Republicans urged their colleagues to support the bill, which passed 67-0.