Newsom calls lawmakers into special session to address high gas prices (2024)

By Sophie Austin and Tran Nguyen | Associated Press/Report for America

SACRAMENTO — California lawmakers will come back in a special session after they wrap up their legislative year on Saturday to debate measures proposed by Gov. Gavin Newsom aimed at reducing gas price spikes at the pump.

Newsom called the Legislature into the special session Saturday after Democrats in the Assembly pushed back on his efforts to pass the energy package that he unveiled this week. California must act now to “prevent price spikes next year and beyond,” he said.

“It should be common sense for gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price spikes. 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,” he said in a statement.

Californians pay the highest rates at the pump in the nation at an average of $4.64 a gallon for regular unleaded, compared to the national average of $3.33, according to AAA. Electricity bills in the state have also nearly doubled in the last decade and are expected to keep outpacing inflation through 2027 as California races to transition away from fossil fuel.

The proposals and possibility of a special session have divided Democrats, who hold a supermajority in the Legislature.

Assembly Speaker Robert Rivas said his members wanted the special session to allow for more time to consider the proposals and applauded Newsom’s decision to call a special session. But members of the Senate, including Republicans, opposed the idea of coming back to Sacramento for more work after the legislative deadline on Saturday.

State Senate President Pro Tempore Mike McGuire said in a statement responding to Newsom that the Senate “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.” He instead wants the Legislature to pass the package Newsom is supporting Saturday.

It’s not immediately clear when the special session will start and how long it will last. With the Senate refusing to convene, it’s not clear how the Legislature would process. Veteran lobbyist Chris Micheli said there is no mechanism to force a chamber to convene a special session, but the governor could still take the Senate to court.

It’s not the first time Newsom has tried to apply pressure on the Legislature to pass oil and gas regulations. The Democrat called a special session in 2022 in an effort to pass a tax on oil company profits. He then said he wanted a penalty, not a tax. The law he ended up signing months later gave state regulators the power to penalize oil companies for making too much money.
At the center of the political fight is a bill to require oil refiners to maintain a minimum inventory of fuel, with a goal of avoiding gas price spikes.

Gas price starts to spike when companies have too little supply on hand, supporters said, and the measure could help save drivers millions of dollars. But Western States Petroleum Association said the bill would push refiners into withholding supplies and hurt consumers.

“When you withhold supplies, costs go up,” WSPA spokesperson Kevin Slagle said.

There were 63 days from June through October last year in which refiners in California maintained fewer than 15 days of gas supply, according to the California Energy Commission. That was up from 49 days during the same timespan in 2022 and 35 days in 2021.

Lawmakers also had concerns with a proposal to give households a one-time rebate for electricity bills and one to streamline renewable energy projects. They already sent Newsom a bill earlier this week to restore power to households that were previously not able to pay their electric bills.

Republican Sen. Kelly Seyarto said Newsom’s proposals “ridiculous” and supported McGuire’s decision to not convene for the special session.

The special session is needed, said Assembly Democratic Caucus Chair Rick Chavez Zbur, who sits on the Utilities and Energy Committee. The proposal to address energy affordability will be brought back next session, he said.

The special session will focus on reducing gas price spikes at the pump.

“The entire Assembly caucus is committed to working with the governor to make sure that we’re lowering gas prices and addressing energy affordability in the state,” Zbur said. “It’s something we need to do urgently, but it also requires us to do it right.”

Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna

Newsom calls lawmakers into special session to address high 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.

What can the government do about high gas prices? ›

Supply of this refined fossil fuel could then approach demand, steadying gasoline prices. Other suggested fixes for the federal government are to enact a “windfall profits tax” on fossil fuel companies; to set price controls on the market; or to use the Defense Production Act to force an increase in refinery output.

Why are 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 ...

Why is California gas prices higher than any other state? ›

Several factors go into what drivers pay for gas, including refining costs, taxes, distribution and marketing, and crude oil prices, according to the U.S. Energy Information Administration. High taxes are partly to blame in California. The state has the highest gasoline taxes in the nation, according to EIA.

What is the real reason for high gas prices? ›

Why do gas prices rise? In general, gas prices rise when oil supply decreases, according to EIA. Any disruptions to crude oil supplies, refinery operations, or gas pipeline deliveries can result in fluctuating fuel costs.

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.

Are oil companies gouging prices? ›

WHAT YOU NEED TO KNOW: California gas prices have been on a three-month decline as the California Gas Price Gouging and Transparency Law continues to shine light on the oil industry. Separately, Attorney General Rob Bonta just reached a $50 million settlement with two gas trading firms for manipulating prices.

What is the new gas price law in California? ›

The latest regulation is a product of the March 2023 California Gas Price Gouging and Transparency Law (SBX1-2), which provides CEC with unprecedented authority to promulgate regulations that will increase state regulatory control over the transportation fuels market.

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

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.

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.

Why is California paying $70 more for gasoline? ›

"We pay 70 cents more per gallon than the average state for gasoline in terms of taxes, and yet what we pay at the pump, it's consistently $1.20 or more," Court said. The two taxes unique to California are cap and trade at 30 cents and low carbon fuel standard at 11 cents.

Why is gas cheaper in Texas vs California? ›

While just two states away, the price of fuel in Texas was approximately $2 less than the west coast in 2022. Curbed by its access to more than 4 million barrels of oil a day and one of the lowest gas taxes in the country, Texans enjoy much lower transportation costs as the largest oil producing state in the U.S.

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

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.

How can the US lower gas prices? ›

The most effective solutions are long-term projects, including increasing housing density, building “complete streets,” improving public transport systems and electrifying vehicle fleets.

Why is US oil production so high? ›

Crude oil production in the United States began increasing again in 2009, as producers increasingly applied hydraulic fracturing and horizontal drilling techniques, and has increased steadily since.

References

Top Articles
How To Make Pommes Aligot (Cheesy Whipped Potatoes)
Craigslist Condado De Orange Ca
Ups Notary Store Near Me
2022 Basketball 247
[Re-Usable] - SSNSonicHD - Expanded & Enhanced
799: The Lives of Others - This American Life
Chevrolet Colorado - Infos, Preise, Alternativen
Castle Nail Spa (Plano)
Jsmainnn
Nashville Tranny
Spacebar Counter - Space Bar Clicker Test
Trinket Of Advanced Weaponry
8 Restaurant-Style Dumpling Dipping Sauces You Can Recreate At Home
Buhl Park Summer Concert Series 2023 Schedule
C.J. Stroud und Bryce Young: Zwei völlig unterschiedliche Geschichten
Sabermetrics Input Crossword Clue
Craigslist Pets Peoria Il
Swgoh Boba Fett Counter
Japan’s Dagashi Treats: A Tasty Trip Down Memory Lane – Umami bites
Half Inning In Which The Home Team Bats Crossword
Nancy Pazelt Obituary
Kind Farms Reserve Medical And Recreational Cannabis Photos
Jinx Cap 17
Punishment - Chapter 1 - Go_mi - 鬼滅の刃
Overton Funeral Home Waterloo Iowa
San Antonio Craigslist Free
Bx11
Mighty B Wcostream
Vilonia Treasure Chest
Lima Crime Stoppers
Redgifs.comn
How Much Does Costco Gas Cost Today? Snapshot of Prices Across the U.S. | CostContessa
Kp Scheduling
Palindromic Sony Console For Short Crossword Clue 6 Letters: Composer Of
Lvc Final Exam Schedule
Pokerev Telegram
Myrtle Beach, South Carolina: Abwechslungsreicher Freizeitspaß unter der Südstaaten-Sonne
9044906381
Otter Bustr
Hubspot Community
Tapana Telugu Movie Download Kuttymovies
charleston rooms & shares - craigslist
Huskersillustrated Husker Board
Delta Incoming Flights Msp
Traftarım 24
My Vidant Chart
Locate Td Bank Near Me
Sparkle Nails Phillipsburg
Function Calculator - eMathHelp
Vorschau: Battle for Azeroth – eine Tour durch Drustvar
Right Wrist Itching Superstition
Latest Posts
Article information

Author: Stevie Stamm

Last Updated:

Views: 5544

Rating: 5 / 5 (80 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.