In a bold move that underscores his ongoing battle against the petroleum industry, California Governor Gavin Newsom has introduced a new legislative proposal aimed at curbing the power of Big Oil by mandating that refiners maintain a stable inventory of fuel. This initiative, announced as the legislative session nears its close, seeks to mitigate the frequent price surges at gas stations, which Newsom attributes directly to the profit-driven tactics of the oil sector.
“Price spikes at the pump are profit spikes for Big Oil,” Newsom declared, emphasizing the need for regulatory oversight. He further elaborated, “Refiners should be required to plan ahead and backfill supplies to keep prices stable, instead of playing games to earn even more profits. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year.”
This proposal is not just about stabilizing gas prices but is also a strategic component of Newsom’s broader environmental agenda, which includes significant pushes against traditional fossil fuel industries. However, this move has not been without criticism. Assembly Republican Leader James Gallagher lambasted the governor’s plan as “a half-baked attempt to distract from that simple fact” that state policies, under Democratic leadership, have led to California’s high gasoline costs.
Gallagher argued, “If Newsom was serious about bringing down prices, he would streamline the approval process for new gas storage projects, stop pushing new regulations that will add even more costs and make it easier to produce energy here in California.” He continued, pointing out the broader implications of Democratic policies: “Democrats have imposed the strictest regulations and highest gas taxes in the country – and that is all reflected in the price at the pump.”
Despite these criticisms, discussions about the proposal are ongoing. “We are in ongoing discussions with the governor about his petroleum market’s oversight proposal,” said Nick Miller, a spokesperson for Assembly Speaker Robert Rivas.
In related legislative maneuvers, Assemblyman Isaac Bryan highlighted recent compromises made with the oil industry, particularly concerning a contentious bill impacting oil drilling near residential areas. “As was agreed upon, we limited the scope of this bill to the largest urban oil field in the state that is directly in my district,” Bryan stated. He emphasized the community impact, saying, “It’s time for this oil field to pay a penalty for the harm it’s caused the surrounding communities and invest those funds in a sustainable future for the people who’ve lived around it.”
Bryan also noted the environmental significance of these legislative efforts: “ensuring that the original setbacks law could go into effect immediately is the most important environmental win that we could achieve all year.”
As the legislative session winds down, the fate of Newsom’s proposal remains uncertain, but what is clear is the continuing tug-of-war between state governance aiming for environmental and economic stability, and an oil industry that remains a powerful player in California’s political landscape.
