Golden State Today

California has enacted a new law, ABX2-1, aimed at stabilizing the state's oil market and protecting consumers from abrupt gas price hikes. The legislation was signed by Governor Gavin Newsom and co-sponsored by Attorney General Rob Bonta. It was authored by Assemblymember Gregg Hart (D-Santa Barbara), Assemblymember Cecilia Aguiar-Curry (D-Winters), and Senator Nancy Skinner (D-Berkeley).

Attorney General Rob Bonta stated, “Californians have been paying too much for gas, while year after year, oil companies report record profits at their expense. Let’s be clear – the price spikes consumers see at the pump are profit spikes for big oil. Enough is enough. ABX2-1 will save Californians billions of dollars and reduce opportunities for Big Oil to manipulate the market.”

Governor Gavin Newsom expressed similar sentiments: “Price spikes have cost Californians billions of dollars over the years, and we’re not waiting around for the industry to do the right thing — we’re taking action to prevent these price spikes and save consumers money at the pump.”

Assemblymember Gregg Hart emphasized consumer benefits: “This landmark legislation is a win for consumers, and a win for accountability in the state’s gasoline market.” He added that ABX2-1 "will save working California families billions at the gas pump."

Assembly Majority Leader Cecilia Aguiar-Curry noted that ABX2-1 underwent extensive scrutiny: “ABX2-1 was the subject of an extensive amount of scrutiny, testimony and participation by Members of the Legislature in over 18 hours of hearings."

The law targets California's isolated fuel market vulnerabilities by requiring refineries to maintain adequate reserves and plan shutdowns carefully. It empowers the California Energy Commission to enforce regulations ensuring refiners maintain minimum inventory levels if it leads to lower prices.

Attorney General Bonta continues his efforts to protect consumers against price manipulation. He recently encouraged Southern California residents who bought gas in 2015 to claim payments from a $50 million settlement with gas trading firms accused of tampering with prices.

In addition, last year he co-sponsored SBX1-2 with Senator Nancy Skinner (D-Berkeley) and Governor Newsom. This law increased transparency within the oil industry through an independent watchdog targeting market manipulation.