Newsom Discusses Possible Special Session
Buckle up because we’ve got a fiery situation brewing in California, and it’s all about gas prices, politics, and a governor on the warpath. Governor Gavin Newsom is throwing down the gauntlet with the California legislature, threatening to call a special session if they don’t pass his latest proposal to regulate the state’s oil and gas industry more heavily. Now, if you’re a driver in California, Arizona, or Nevada, you might want to pay extra attention, because this move could hit your wallet hard.
The governor announced the below plan earlier this month to prevent what he describes as oil ‘profit spikes.’
Newsom’s plan takes recommendations from the state’s new oil watchdog including a requirement that refiners keep a fuel reserve to prevent price spikes as a result of of…
— Eytan Wallace (@EytanWallace) August 28, 2024
So, what’s the deal? Newsom’s proposal, pushed by the California Energy Commission (CEC), would require refineries to maintain a minimum fuel reserve. The idea is to prevent supply shortages and, supposedly, stabilize prices. But here’s the kicker: industry analysts, and even some of the CEC’s own staffers, are sounding the alarm that this plan could backfire, driving up fuel costs instead of bringing them down.
Pretty sure this is what we call extortion. How about no on both demands. Go pound sand. https://t.co/iYSVLg3SSb
— Bill Essayli (@billessayli) August 28, 2024
Catherine Reheis-Boyd, CEO of the Western States Petroleum Association, didn’t hold back when she slammed the proposal. According to her, it’s a textbook case of bad regulation—one that could create artificial fuel shortages not just in California, but also in neighboring states like Arizona and Nevada. She points out that California already imports more than 75% of its crude oil from overseas due to existing regulations, and this new mandate could make a bad situation even worse. Imagine fewer refineries pumping out fuel just when we need it most—sounds like a recipe for even higher prices at the pump.
Where does this guy get off? Pass my bill quickly with no transparency or I’ll call a special session. Cool. I’m ready to call his bluff. Call it @GavinNewsom
My first bill in special session will be to remove fuels from Cap & Trade and lower gas prices by .50 cents right… https://t.co/De7rILhz4Z
— James Gallagher (@J_GallagherAD3) August 28, 2024
Now, why is Newsom so desperate to get this bill passed? The legislative session is ticking down with only a few days left, and there’s no deal in sight. Newsom’s urgency seems to be ramping up, and he’s even threatening to convene a special session—a move that’s ruffling feathers among both Democrats and Republicans. Some Democratic lawmakers are pushing back, saying there hasn’t been enough time to properly review the proposal, while others are wary of the political fallout. After all, they’ve got re-elections and higher office bids to think about.
Republicans in Sacramento aren’t holding back either. Assemblyman Bill Essayli (R-Riverside) called out Newsom’s tactic for what it is—an extortion attempt to ram through a controversial bill without the usual transparency and debate. Essayli, along with others, is ready to counter with his own proposals in a special session, including measures that could actually reduce gas prices by removing fuels from Cap & Trade and streamlining regulations around pipelines and refinery storage.