Golden State Today

The California Senate has approved Governor Gavin Newsom's proposal aimed at preventing gasoline price spikes. This development follows the Assembly's approval of the measure last week.

The bill, known as ABx2-1, was authored by Assemblymembers Gregg Hart and Cecilia Aguiar-Curry, along with Senator Nancy Skinner. It seeks to mandate oil refiners in the state to maintain a minimum inventory of fuel to prevent supply shortages that lead to higher gasoline prices for consumers and increased profits for the industry. Additionally, it authorizes the California Energy Commission to require refiners to plan for resupply during maintenance outages.

Governor Gavin Newsom expressed his gratitude towards the Senate for their support, stating: “Californians are one step closer to getting the protections they need against Big Oil’s price spikes. I’m grateful to our partners in the Senate for helping to save Californians money at the pump. Price spikes cost consumers more than $2 billion last year, and we’re taking the action necessary to help put this to an end.”

The measure will now return to the Assembly for a final concurrence vote.

Senate President pro Tem Mike McGuire (D-North Coast) highlighted the impact of rising gas prices on Californians' lives: “Rising gas prices impact everyone in California and nearly every facet of our lives – from how much we’re paying at the pump to the cost of what we’re buying at the store. Putting mechanisms in place to help prevent costs from spiking and sending family budgets into a tailspin benefits us all, and working together, we’ve been able to do just that,” he said. He also thanked Senators, Assembly partners, and Governor Newsom for their collaboration on this effort.

The proposal has received support from various experts, including Stanford economists who described it as "an economically sound policy that addresses an important problem in a well-targeted way." They noted that additional supply would free up refinery capacity, benefiting markets in Nevada and Arizona by reducing prices there as well.

Supporters of the bill include mayors, local leaders, consumer organizations, environmental advocates, labor groups, business leaders, and consumer groups. Last month, discussions were held between Governor Newsom and supporters about how gasoline price spikes affect millions of Californians’ daily lives and why this plan is beneficial for families across California.