SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom signed a law Monday aimed at keeping gas prices from rising. This marks the Democrat’s latest move in a battle with the oil industry over energy prices and the effects of climate change.
Californians pay the highest rates at the pump in the US due to taxes and environmental regulations. The average price for regular unleaded gas in the state was about $4.68 per gallon on Monday, compared to the national average of $3.20, according to AAA.
The new legislation is inspired by findings from the state’s Petroleum Market Oversight Department, which showed that spikes in gas prices are largely driven by increases in global crude oil prices and unplanned refinery outages. The law gives energy regulators the authority to require refineries to keep a certain amount of fuel on hand. The aim is to prevent prices from suddenly rising when refineries go offline for maintenance. Supporters say it would save Californians billions of dollars at the pump.
Newsom joined lawmakers at the Capitol to sign the bill, criticizing the oil industry for its efforts to block the legislation.
“They continue to lie and manipulate,” he said. “They reaped unprecedented profits because they could.”
Newsom signed the measure just weeks before the November election, but he said the legislation was not about politics. He still has two years left in his second term.
Opponents of the law have said it could inadvertently raise overall gas prices and threaten worker safety by giving the state more oversight of refineries’ maintenance schedules. Some argued that delaying necessary maintenance could lead to accidents.
“Lawmakers still don’t understand our industry and what is driving high gas prices,” Catherine Reheis-Boyd, president of the Western States Petroleum Association, said in a statement. “Regulators remain fixated on controlling companies with more taxes, fees and expensive requirements. .”
Assembly Republican Leader James Gallagher made a motion for lawmakers to adjourn the session before the Assembly voted to send the bill to Newsom’s desk Monday. The Republicans themselves submitted proposals to lower gas prices, but these were blocked in the Democratic-dominated parliament. One of the bills that failed to pass would have exempted transportation fuels from the state’s cap and trade program.
Newsom announced the legislation in August, during the final week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to think about it. The governor called the Legislature into special session to approve the proposal.
Newsom also called on lawmakers for a special session in 2022 to pass legislation aimed at punishing oil companies for making too much money.
Senate President Pro Tempore Mike McGuire said the new law is just one part of the state’s efforts to help lower the cost of living for Californians.
“This bill lays the foundation for mitigating gas price spikes and providing additional certainty through improved storage and supervision,” he said. “I am convinced that Californians are tired of price spikes.”
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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 Twitter: @sophieadanna
