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<\/a><\/p>\nOn Saturday, Governor Newsom\u00a0convened a special session<\/a>\u00a0of the legislature to make oil refiners manage California\u2019s gasoline supply responsibly and save Californians money at the pump.<\/p>\n \u201cI’m glad to see the Assembly is moving this important proposal forward to save Californians hundreds of millions of dollars\u00a0at the pump. Gas price spikes are profit spikes for Big Oil, and California won\u2019t stand by as families get gouged.\u201d Governor\u00a0Gavin Newsom \u201cOur Assembly understands the assignment, and that is to do everything in our power to lower the cost of living in our state,”\u00a0said Majority Leader Cecilia Aguiar-Curry (D-Winters).<\/strong>\u00a0“I appreciate Speaker Rivas taking action to address gas price spikes and ensuring legislation gets the public hearings and consideration that Californians deserve.”<\/p>\n \u201cWhen gas prices spike because of supply constraints, everyday Californians suffer and the oil industry profits. This legislation will protect California consumers by ensuring refineries maintain a stable fuel supply,\u201d\u00a0said\u00a0Assemblymember Gregg Hart (D-Santa Barbara).<\/strong>\u00a0\u201cThis bill is a common-sense solution. By requiring oil companies to better plan for refinery shutdowns, we can save Californians a lot of money from reduced gas prices.\u201d<\/p>\n Principal co-authors of the bill include the following Assemblymembers: Dawn Addis (D-Morro Bay), Steve Bennett (D-Oxnard), Isaac Bryan (D-Los Angeles), Corey Jackson (D-Riverside), Ash Kalra (D-San Jose), Alex Lee (D-San Jose), Jim Wood (D-Healdsburg).<\/p>\n Gas price spikes on consumers are profit spikes for oil companies, and they\u2019re overwhelmingly caused by refiners not backfilling supplies when they go down for maintenance.<\/p>\n During a\u00a0recent workshop<\/a>, officials from the California Energy Commission (CEC) and the Division of Petroleum Oversight (DPMO) presented data showing the urgent need for Governor Gavin Newsom\u2019s new proposal to protect Californians from price spikes.<\/p>\n If this proposal had been in effect last year, Californians could have saved hundreds of millions \u2014 if not billions \u2014 of dollars at the pump as evidenced by this DPMO analysis: The Governor\u2019s special session is focused on passing the\u00a0Governor\u2019s plan to save Californians money at the pump<\/a>. It would authorize the California Energy Commission (CEC) to require petroleum refiners to maintain a minimum inventory of refined fuel throughout the distribution chain to avoid supply shortages that create higher prices at the pump for consumers. It would also authorize the CEC to require refiners to plan for resupply during scheduled refiner maintenance. Text of the proclamation calling for a special session is available\u00a0here<\/a>.<\/p>\n Following gasoline price spikes in 2022, Governor Newsom called for a special session and worked in partnership with the Legislature to sign into law a\u00a0package of reforms holding Big Oil accountable<\/a>, including the creation of a new independent watchdog, the Division of Petroleum Market Oversight. That agency found that higher gasoline prices last September were\u00a0caused by a suspicious market transaction<\/a>, refiners scheduling maintenance without properly preparing for it such as ensuring they could backfill supply to make up for lost production, and more.<\/p>\n In January of this year, the watchdog\u00a0sent Governor Newsom and the Legislature a letter<\/a>\u00a0outlining specific proposals to reform California\u2019s gasoline spot market, which included a minimum inventory requirement to prevent price spikes due to lack of a stable gasoline supply.<\/p>\n
\n\u201cWe must stop oil companies from raking-in record profits at the expense of Californians,”\u00a0said Speaker Robert Rivas (D-Salinas).<\/strong>\u00a0“During this important special session, the Assembly will convene public hearings that thoroughly vet proposals. We\u2019ll hear from experts and ensure that the public has a voice in the process. I\u2019m committed to delivering solutions that rein-in soaring gas costs and provide real savings at the pump.”<\/p>\n
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\nPreventing gas price spikes<\/p>\n