With Saturday’s deadline to pass the last bills before adjournment fast approaching, lawmakers can see the finish line. But there may be more work ahead: Gov. Gavin Newsom is considering calling a special session to push through legislation on gas prices and oil regulation.
The idea, which Newsom discussed in private meetings with legislative leaders this week, is facing resistance from some Senate Democrats. And the possibility of holding a fall session could be a negotiating tactic:
Newsom’s office told CalMatters that the session will not be necessary if lawmakers pass a proposal the governor announced earlier this month that would direct the California Energy Commission to require oil refineries to maintain a minimum supply of fuel to curb price spikes. The proposal is now a bill introduced by Oakland Sen. Nancy Skinner and Santa Barbara Rep. Gregg Hart, both Democrats.
On Wednesday, the commission and its oversight group that monitors petroleum markets also urged lawmakers to require refiners to hold reserves and build “a buffer” within existing supplies. Otherwise, officials argue, “the state will likely continue to experience a perpetual cycle of gasoline price spikes year after year.”
In response to the potential special session, Republican Senate Leader Brian Jones of San Diego urged Democratic leaders to “resist Newsom’s undemocratic threats” and ask the governor to wait until December, when the next session begins. Republican House Leader James Gallagher of Chico said he is ready to call Newsom’s bluff and already knows the first three bills he will introduce.
- Joneson social media: Newsom is “desperately trying to push through another empty promise – one that will almost certainly raise prices and create gasoline shortages.”
This would be the second time in two years that Newsom’s crusade against the oil industry has involved a special session. In 2022, he reconvened lawmakers to investigate oil company profits and alleged price gouging. Although the governor initially talked about taxing excessive oil profits, his efforts ultimately led to the creation of a watchdog group to analyze and potentially regulate oil profits. (Still, that was enough for the governor to say, “California stood up to the oil industry and won.”)
The oil industry, for its part, has already pushed back against the imposition of more fuel storage regulations. Shortly after Newsom announced his proposal, the head of the Western States Petroleum Association called it “regulatory misconduct” and argued that the Newsom administration was “desperately trying to show off something from the recently formed oversight group.” The head of the American Fuel & Petrochemical Manufacturers also argued that mandated supply would “raise prices for everyone, all the time.”
Gasoline prices in California are among the highest in the country. As of Wednesday, residents are paying $4.62 per gallon for regular unleaded gasoline, compared to the national average of $3.36.
