Gov. Newsom calls special legislative session on gas prices, oil supply (2024)

Gov. Gavin Newsom called a special legislative session on gas prices after state lawmakers in the Assembly refused to pass his oil and gas proposal by the end of the legislature's regular session. The order divided Democratic leaders of the Senate and Assembly late Saturday night. Lawmakers in the Assembly gaveled into the special session and adjourned from it within minutes at around 7:40pm on Saturday, while lawmakers in the State Senate said they would refuse to convene.Newsom made the announcement about five hours before the legislature's Saturday midnight deadline to pass new laws for the year. "It should be common sense for gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price spikes," Newsom said in a statement. "But these price spikes are actually profit spikes for Big Oil, and they’re using the same old scare tactics to maintain the status quo. We look forward to working with our Legislative partners during the special session to act on this urgently needed legislation." Newsom's call for a special session was expected after Assembly Speaker Robert Rivas said lawmakers in his house needed more time to review the governor's proposal. The proposal tries to prevent gas price spikes by authorizing the California Energy Commission to require oil refiners to maintain a minimum fuel reserve to avoid supply shortages.Lawmakers in the State Senate did not want the special session and were prepared to vote on the proposal by the end of the regular session, that was officially put into writing on Wednesday afternoon."The Senate always had the votes and was ready to get these important measures across the finish line this legislative year and deliver the relief Californians need at the pump and on their electricity bills," 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.”In response, Newsom's spokesman Izzy Gardon pointed to the section of the state's constitution that empowers the governor to call the session and requires the legislature to gather for it. "The special session has already begun," Gardon said. Rivas has been supportive of the special session to focus on the topic."Since my early days as a County Supervisor, I’ve been fighting against Big Oil," said Assembly Speaker Robert Rivas in a statement. "Companies can’t be allowed to rake-in billions of dollars in oil profits while hard-working Californians pay record prices at the pump. My absolute priority is lowering the cost of living, and I appreciate the Governor calling a special session to reign-in soaring gas prices. While I respect the Pro Tem’s position, the Assembly is united: We want the public to have a voice in this process, and that hasn’t happened yet. We need to get this right." Assembly Republican Minority Leader James Gallagher said he would introduce his own proposals during the special session."From increasing the gas tax to a new regulation increasing prices 50 cents a gallon, Newsom has been all in on higher gas prices - so why would anybody expect him to stop now?" Gallagher said in a statement. "His own energy regulators warned that this scheme could drive up prices and cause shortages, but that’s not stopping him." The Western States Petroleum Association has been running ads against Newsom's push. Chevron also sent a letter to state regulators, warning Newsom's proposal would impact customers not only in California, but also in Arizona and Nevada. This marks the second time in two years the governor has called a special legislative session related to gas prices. He called one after major price spikes in the fall of 2022.

SACRAMENTO, Calif. —

Gov. Gavin Newsom called a special legislative session on gas prices after state lawmakers in the Assembly refused to pass his oil and gas proposal by the end of the legislature's regular session. The order divided Democratic leaders of the Senate and Assembly late Saturday night.

Lawmakers in the Assembly gaveled into the special session and adjourned from it within minutes at around 7:40pm on Saturday, while lawmakers in the State Senate said they would refuse to convene.

Newsom made the announcement about five hours before the legislature's Saturday midnight deadline to pass new laws for the year.

"It should be common sense for gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price spikes," Newsom said in a statement. "But these price spikes are actually profit spikes for Big Oil, and they’re using the same old scare tactics to maintain the status quo. We look forward to working with our Legislative partners during the special session to act on this urgently needed legislation."

Newsom's call for a special session was expected after Assembly Speaker Robert Rivas said lawmakers in his house needed more time to review the governor's proposal. The proposal tries to prevent gas price spikes by authorizing the California Energy Commission to require oil refiners to maintain a minimum fuel reserve to avoid supply shortages.

Lawmakers in the State Senate did not want the special session and were prepared to vote on the proposal by the end of the regular session, that was officially put into writing on Wednesday afternoon.

"The Senate always had the votes and was ready to get these important measures across the finish line this legislative year and deliver the relief Californians need at the pump and on their electricity bills," 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.”

In response, Newsom's spokesman Izzy Gardon pointed to the section of the state's constitution that empowers the governor to call the session and requires the legislature to gather for it.

"The special session has already begun," Gardon said.

Rivas has been supportive of the special session to focus on the topic.

"Since my early days as a County Supervisor, I’ve been fighting against Big Oil," said Assembly Speaker Robert Rivas in a statement. "Companies can’t be allowed to rake-in billions of dollars in oil profits while hard-working Californians pay record prices at the pump. My absolute priority is lowering the cost of living, and I appreciate the Governor calling a special session to reign-in soaring gas prices. While I respect the Pro Tem’s position, the Assembly is united: We want the public to have a voice in this process, and that hasn’t happened yet. We need to get this right."

Assembly Republican Minority Leader James Gallagher said he would introduce his own proposals during the special session.

"From increasing the gas tax to a new regulation increasing prices 50 cents a gallon, Newsom has been all in on higher gas prices - so why would anybody expect him to stop now?" Gallagher said in a statement. "His own energy regulators warned that this scheme could drive up prices and cause shortages, but that’s not stopping him."

The Western States Petroleum Association has been running ads against Newsom's push. Chevron also sent a letter to state regulators, warning Newsom's proposal would impact customers not only in California, but also in Arizona and Nevada.

This marks the second time in two years the governor has called a special legislative session related to gas prices. He called one after major price spikes in the fall of 2022.

Gov. Newsom calls special legislative session on gas prices, oil supply (2024)

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