Governor Gavin Newsom’s grand plan for an energy overhaul, which seemed promising just a day ago, is now in jeopardy. The latest buzz is whether the Legislature will agree to Newsom’s proposal to reconvene for a special session next month. This would be the second time Newsom has called lawmakers to address soaring gas prices, following a similar session in 2022 when prices peaked at $6.44 per gallon.
Legislators are not enthusiastic about the idea. Senator Nancy Skinner, who is championing Newsom’s new refinery proposal, introduced today as SB 950, urged quick action. “Be smart, get it done now,” she said.
In addition to the refinery proposal, which seeks to grant the state power to require oil refiners to store more gasoline to prevent price spikes, Newsom is pushing for a broader set of climate and energy bills. This “clean energy transition package” includes SB 950 and ten other bills covering various priorities for the Assembly and Senate.
The proposed package features two Assembly bills aimed at making electricity more affordable by using energy efficiency funds to offer customers a one-time credit of around $30. The Senate’s contribution includes four bills: one for streamlining clean energy permits, a hydrogen bill, a wildfire spending proposal, and another to restore service for delinquent electricity customers.
While the Assembly is supportive of the electricity affordability measure, and the Senate favors the permit streamlining proposal (SB 1272), there are concerns. Renewable energy developers are uncertain whether the permit proposal will effectively benefit them.
Timing is now a critical issue. The Assembly showed tentative support for a special session, but several senators are pushing to finalize negotiations by the current session’s deadline. The oil industry is adding pressure by highlighting national concerns about altering fuel prices.
“It’s noteworthy that legislators are considering such radical energy policies at a time when the nation is closely examining how the ‘California model’ will impact their families and pocketbooks,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association.
Governor Newsom’s spokesperson, Izzy Gardon, confirmed the offer for a special session but emphasized the governor’s preference to address the issues within the current session. “We’re focused on this one,” Gardon stated.
As the deadline approaches, the possibility of a special session is intensifying negotiations, potentially affecting legislative dynamics as lawmakers aim to pass hundreds of bills by Sunday’s midnight deadline.