SACRAMENTO, Calif. (CN) — California lawmakers met in a special session on Thursday to discuss solutions for rising gas prices that have troubled consumers for years.
The state Assembly Committee on Petroleum and Gasoline Supply voted 13-2 to advance Assembly Bill 1. This bill aims to stabilize and lower gas prices for consumers.
If passed, the California Energy Commission could require refineries to keep a minimum supply of fuel on hand. Lawmakers believe this could help reduce the price spikes Californians have experienced in recent years.
“This is a common-sense solution used by many developed countries,” said Tai Milder, director of the Division of Petroleum Market Oversight. He mentioned similar plans in Australia, Switzerland, and Germany.
However, the fuel industry opposes the bill due to a provision allowing the commission to set rules for refinery maintenance shutdowns. They argue this could micromanage the industry, threaten worker safety, and potentially create fuel shortages that would increase gas prices.
“We don’t think it’s wise for the Legislature to give another state agency the power to raise everyday gas prices on consumers,” said Zachary Leavy, a lobbyist with the Western States Petroleum Association.
The Assembly will reconvene on October 1 for a floor vote on the bill. State Senate President Pro Tempore Mike McGuire has indicated that the Senate will meet if the Assembly passes it.
Governor Gavin Newsom supports the legislation, but the governors of Arizona and Nevada have expressed concerns about its potential effects on downstream markets.
During the session, lawmakers questioned a panel of experts from regulatory agencies and the fuel industry. Milder explained that fuel price spikes often occur due to planned and unplanned refinery maintenance, particularly in late summer. He believes requiring refineries to store extra fuel could help prevent these shortages.
Joe Patterson, a Republican from Fresno, raised concerns about whether these requirements would be effective in California, noting that market conditions here are different.
Others, like Rick Chavez Zbur, requested more time for discussion and suggested an informational hearing before finalizing the bill.
Afterward, Minority Leader and Assemblymember James Gallagher, a Republican from Yuba City, introduced another gas price bill, Assembly Bill 3. This bill aims to remove transportation fuels from the state’s cap-and-trade program. If passed, it could lower gas prices by 30 to 35 cents per gallon.
Gallagher criticized the focus on preventing spikes, stating, “The price is already too damn high!” He argued that his bill could provide immediate relief, while AB 1 might take longer to implement.
“So here’s the deal. Let’s pass both bills and see what happens,” he challenged. “Let’s find out whose idea really lowers gas prices.”
Ultimately, Gallagher’s bill did not advance, receiving just two votes in favor and twelve against.
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