Gavin Newsom calls special session on gas prices (2024)

Unable to jam through bills he says will lower California gas prices, Gov. Newsom calls the Legislature back into session.

SACRAMENTO, Calif. — Hours before the Legislature prepared to wrap up for the year, Gov. Gavin Newsom Saturday nightcalled a special session to address gasoline prices — giving him more time to persuade lawmakers to act on a package of energy bills that he failed to jam through in the final weeks of the regular session.

But the special session may already be in jeopardy, after the leader of the state Senate immediately rejected the governor’s call for the Legislature to meet this fall, during what would normally be a crucial campaign period for lawmakers leading up to the Nov. 5 election.

In what has become a frequent move, Newsom earlier this monthproposed sweeping plans to bring down energy costs for Californians just as the annual legislative session was drawing to a close, leaving lawmakers little time to react or negotiate with the governor. Increasingly frustrated with the strongarm tactics, the Legislature split this time in its response, sinking Newsom’s measures as the Assembly refused to take them up.

With his special session, Newsom has now extended the clock that ran out tonight until Nov. 30, when the two-year legislative term formally ends, and has injected a renewed sense of urgency into what has become an increasing focus of his political agenda — taking on the oil industry.

“Calling the session now allows the Legislature to begin that work immediately so that the state can resolve this important matter to establish the necessary rules to prevent price spikes next year and beyond,” hesaid in a press release.

The governor’s order requires the special session to begin today, but it did not say when the actual hearings would begin. While the Assembly promptly gaveled into the special session, Senate President Pro TemMike McGuire, a Santa Rosa Democrat, threw cold water on the idea in a statement that seemed to reference bubbling inter-house tension over the legislative package.

“The Senate always had the votes and was ready to get these important measures across the finish line this legislative year,” McGuire said. “We won’t be convening a special session this fall, but we look forward to continuing conversations with the Governor and Speaker about this critical issue in the days and weeks to come.”

While the state constitution gives the governor authority to call a special session and lays out some scope of what can be discussed, there is no enforcement mechanism if the Legislature decides not to meet, according to longtime lobbyist Chris Micheli.

Newsom’s move followed Assembly SpeakerRobert Rivas’ refusal earlier this week to “push through bills that haven’t been sufficiently vetted with public hearings.”

After the governor’s announcement, Rivas said he appreciated the governor calling the special session: “I respect the Pro Tem’s position, the Assembly is united,” he said in a statement. “We want the public to have a voice in this process, and that hasn’t happened yet. We need to get this right.”

The governor’s office said Newsom and the Legislature had been working together on the proposal for months, noting that the first policy recommendation was shared with the Legislature in January, and that there were legislative committee hearings on the topic in May.

The package of energy-related bills includedSenate Bill 950, authored by Democratic Sen.Nancy Skinner, which would regulate refinery maintenance to prevent supply problems and price hikes.

Another bill in the package wasAssembly Bill 3121 by AssemblymembersCottie Petrie-Norris andGregg Hart, which would have given households a one-time credit of between $30 and $70. Petrie-Norris, a Democrat from Irvine, pulled the bill from the Senate energy committee Friday afternoon. The governor called the session before the fate of the full package of bills was determined.

It’s the second time in two years that Newsom has called for a special session — in2022, he convened one in December to push for a tax on oil industry profits. That session, while initially aimed attaxing excessive oil profits, resulted in the creation of awatchdog division at the California Energy Commission to analyze and potentially regulate oil profits.

Newsom referenced the ongoing work of that division in his new proclamation, but said California remained vulnerable to price spikes when refineries undergo maintenance.

In his new proposal, the governor wants to give the energy commission more authority to impose minimum fuel inventories at refineries and require them to lay out plans during maintenance.

The oil industry has already voiced opposition, calling it “regulatory malpractice” and warning that the additional rules would lead to price increases.

Gas prices today in California average $4.64 a gallon, according to the American Automobile Association, compared to the national average of $3.34.

This article was originally published by CalMatters.

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Gavin Newsom calls special session on gas prices (2024)

FAQs

What is the excuse for high gas prices? ›

The cost to refine crude oil into gasoline, including occasional refinery production shutdowns, scheduled and unscheduled. Seasonal factors, such as changing from cheaper gas blends used in the winter, leading to a natural price spike in the spring. Spot shortages, sometimes caused by geopolitical tensions.

Why is California gas prices going up? ›

In a May 2019 report exploring why California gasoline prices had soared to as much as $1.11 a gallon higher than the US average, six core reasons were given: (1) higher cost of producing compliant gasoline (19.6% of the difference), (2) higher fuel taxes (27.5%), (3) Cap & Trade costs (15.8%), (4) Low Carbon Fuel ...

What is the gas price trend in CA? ›

California Retail Gas Price (I:CGRPNM)

California Retail Gas Price is at a current level of 4.451, down from 4.59 last month and down from 5.13 one year ago. This is a change of -3.03% from last month and -13.24% from one year ago.

Is California gas special? ›

California requires a special blend of gasoline that reduces pollution — and costs more money. “California also has seen a drop of 66% in the amount of refineries in operation from where we were 40 years ago,” said Patrick De Haan, head of petroleum analysis for GasBuddy.

What is the real reason behind gas prices? ›

Gasoline price changes in California are primarily driven by the cost of global crude oil and significant unplanned refinery outages.

Who controls gas prices in the USA? ›

Petroleum prices are determined by market forces of supply and demand, not individual companies, and the price of crude oil is the primary determinant of the price we pay at the pump.

How much is gas in Hawaii now? ›

Hawaii average gas prices
RegularMid-Grade
Current Avg.$4.653$4.843
Yesterday Avg.$4.655$4.885
Week Ago Avg.$4.651$4.893
Month Ago Avg.$4.669$4.905
1 more row

What state has the cheapest gas prices? ›

So, where's the cheapest gas as of September 2023? Mississippi has the cheapest gasoline prices in the U.S., where the average cost is $3.29 per gallon. It also has the least expensive diesel prices out of the Top 10 states. Louisiana has the second-cheapest gas, with the average cost hitting $3.36 per gallon.

How much of California gas prices are taxes? ›

Now, the state's gas tax is 60 cents, whereas it was 58 cents from July 2023 to June 2024, according to the California Department of Tax and Fee Administration. This fee is on top of sales tax and the federal fuel tax for gasoline, which currently sits at 18 cents.

Where in California is gas $10 a gallon? ›

The most expensive gas in the US is at this California station at nearly $10 a gallon: Gas Buddy. A gas station in Mendocino, Northern California, is now charging nearly $10 a gallon. According to GasBuddy, it's the most expensive gas in the US.

How much was gas in 1975 in California? ›

Gas Prices in the U.S. Throughout History
YearNational Average Gas Price (Dollars/Gallon) ThenNational Average Gas Price (Dollars/Gallon) In 2022 Dollars
1975$0.57$3.12
1976$0.59$3.04
1977$0.62$2.99
1978$0.63$2.85
90 more rows

How much was gas in 1985 in California? ›

YearJanDec
19850.8800.901
19860.8800.549
19870.6100.683
19880.6730.659
39 more rows

Is California getting rid of gas? ›

California is gearing up to ban the sale of new gas-powered cars -- and now 11 more US states are playing follow the leader. A measure approved by the California Air Resources Board back in August 2022 requires all new cars, SUVs and pickup trucks sold in the state to generate zero tailpipe emissions by 2035.

What state has the most expensive gas? ›

Most expensive US states for gas
  • California ($5.45)
  • Hawaii ($4.78)
  • Washington ($4.67)
  • Nevada ($4.63)
  • Oregon ($4.44)
  • Alaska ($4.37)
  • Arizona ($4.13)
  • Utah ($3.96)
Apr 22, 2024

Why is it so expensive to live in California? ›

Housing, transportation, food, utilities and taxes are the biggest factors driving the state's higher cost of living. Lack of affordable housing is one of the state's most pressing challenges.

Why are gas prices so freaking high? ›

The recent surge in price, he said, is due entirely to the annual reformulation of gas that produces “summer blend” — a gas with additives that reduce evaporation and results in less air pollution and smog. It's a more expensive refining process, which is why prices go up every summer.

Is the government responsible for gas prices? ›

Although gas prices, especially where they sit now, are often assumed to be a force of political influence, they are actually governed by economic drivers and basic laws of supply and demand. So no, President Biden can't just push a button and let everyone pay $3/gallon again.

What is causing oil prices to rise? ›

Like most commodities, the fundamental driver of oil's price is supply and demand in the market. The cost of extracting and producing oil is also an important factor. Oil markets are composed of speculators who are betting on price moves, and hedgers who are limiting risk in the production or consumption of oil.

Why is gas going up in July 2024? ›

California continues to lead the nation with the highest gas tax in 2024, which climbs to 69.8 cents per gallon as of July 1. This increase pushes the Golden State's average price for a gallon of regular gasoline to about $4.79. In other tax news, California also has a new gun and ammo tax effective July 1.

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