“This new law puts the responsibility on big oil companies to stabilize pump prices. This is an important achievement, but our work is not done yet. I will continue to fight to lower the cost of living because housing, food, and household goods must be more affordable for all Californians. ” — Assembly Speaker Robert Rivas (D-Salinas)
“Today, we are coming together to help provide needed relief efforts and keep Californians’ hard-earned money in their pockets. Thank you to Governor Newsom, Speaker Rivas, and members of the Senate and Congress for taking action. But that doesn’t mean our work will stop. We will work to lower the cost of living for people in every corner of the Golden State. I will continue to do so. It is a necessity.” — Senate President Pro Tempore Mike McGuire (D-North Coast)
why is it necessary
Higher prices at the pump are a surge in profits for oil companies, driven in large part by refiners not backfilling supply when they are shut down for maintenance. If the proposal had been implemented last year, Californians could have saved hundreds of millions, if not billions, of dollars in pump costs, according to an analysis by the Petroleum Market Oversight Office (DPMO).
Experts, including economists at Stanford University, support the policy, saying the proposal is “an economically sound policy that addresses important issues in a targeted way” and that “the additional supply would help Nevada and “It will free up refinery capacity to serve the state.” Arizona is also lowering prices in these markets. ”
Supporters of this bill include mayors, local leaders, consumer groups, environmental advocates, labor, business leaders, and consumer groups. Last month, the governor and advocates met to discuss how rising gas prices are impacting the daily lives of millions of Californians and share why this plan will help California families. .
How we got here
The governor called a special session to focus on saving Californians money. The proposal would require the California Energy Commission (CEC) to require oil refiners to maintain minimum inventories of refined fuels throughout the distribution chain to avoid supply shortages that would cause higher prices for consumers. approved to require. The CEC also allows refiners to require resupply plans during routine maintenance of refinery equipment. The text of the declaration calling for a special session is available here.
In response to rising gas prices in 2022, Governor Newsom called a special legislative session and worked with Congress to sign a series of reforms to hold big oil companies accountable.
California’s new watchdog agency has found that soaring gasoline prices are being caused by suspicious market transactions and poorly prepared refinery maintenance.
In January, the watchdog sent a letter to Governor Newsom and the Legislature outlining specific proposals to reform California’s gasoline spot market, including minimum inventory requirements to prevent price spikes due to lack of reliable supply. .
The state’s gas price watchdog also found that gas prices spiked in 2023. The main cause is that the refinery is shut down. Failure to properly plan for backfilling supplies caused refining margins to skyrocket as spot and retail prices rose. This indicates that refining margins accounted for the largest portion of the price increase from July to September 2023.
Convening experts, community leaders, and consumer advocates
The Governor also today announced appointments to the Independent Consumer Fuels Advisory Council.
Los Angeles resident Martha Dina Arguello has been appointed to the Independent Consumer Fuels Advisory Council. Arguello has served as executive director of Physicians for Social Responsibility of Los Angeles since 2007. From 1999 to 2007, he served as Director of the Health and Environment Program at Physicians for Social Responsibility in Los Angeles. Arguello is co-founder and co-chair of Standing Together Against. Neighborhood drilling and Californians for a healthy and green economy. She is a member of the California Air Resources Board AB 32 Environmental Justice Advisory Committee and the Californians Steering Committee for Pesticide Reform. This position does not require Senate confirmation and compensation is $100 per day. Arguello is a Democrat.
Michael Jorgenson of Mill Valley has been appointed to the Independent Consumer Fuels Advisory Committee. Mr. Jorgenson has served as a Supervisory Deputy Attorney General in the California Department of Justice’s Office of the Attorney General since 2018. From 2017 to 2018, he served as Deputy County Attorney IV in the Marin County Attorney’s Office. Mr. Jorgenson has held several positions in the California Department of Justice. He served in the Attorney General’s Office from 2003 to 2017, including as Deputy Attorney General in the Public Rights Division, Deputy Attorney General for Supervision in the Civil Division, and Deputy Attorney General in the Civil Division. He was an associate at Berman Tabacco from 2001 to 2003 and Kelly Gill Sherburne & Herrera from 1999 to 2001. He received his J.D. from the University of San Francisco School of Law and his BA in Economics and History from the University. of Michigan. This position does not require Senate confirmation and compensation is $100 per day. Jorgenson is a Democrat.
Neil Mahoney of Stanford University has been appointed to the Independent Consumer Fuels Advisory Committee. Mahoney has been a professor of economics at Stanford University since 2020. From 2022 to 2023, he served as Special Policy Advisor for Economic Policy at the White House. Mahoney was a professor of economics at the University of Chicago from 2013 to 2020. He holds a Doctor of Philosophy in Economics from Stanford University and a Bachelor of Science in Applied Mathematics and Economics from Brown University. This position does not require Senate confirmation and compensation is $100 per day. Mahoney is a Democrat.
Walnut Creek resident Deborah “Debbie” Meeks has been appointed to the Independent Consumer Fuels Advisory Committee. Meeks has been the Manager, U.S. West Coast Policy and Business Coordinator at Shell USA since 2021. She served as Alliance and Portfolio Manager at Shell US Retail from 2017 to 2021. Meeks was an account manager at Shell Catalysts and Technologies from 1995 to 2017, where he served as regional manager, principal account executive, and senior for the Americas and Mexico. She received her Bachelor of Science in Chemical Engineering from California State University, Long Beach. This position does not require Senate confirmation and compensation is $100 per day. Meeks is a Democrat.
Norman Rogers of Santa Ana has been appointed to the Independent Consumer Fuels Advisory Committee. Mr. Rogers has served as second vice president of United Steelworkers Local 675 since 2021 and as a plant operator for oil transportation at Marathon Petroleum Corporation since 2018. He was a plant operator for oil transportation at the Tesoro Refinery from 2013 to 2018. He served as a member of the Carson Refinery Fire Department from 2001 to 2021. From 2001 to 2013 he was a plant operator for oil transportation at BP, and from 1999 to 2001 he was a plant operator at the Arco refinery. The position does not require Senate confirmation and is compensated at a per diem rate of $100. Rogers is registered as nonpartisan.
Astrid Zuniga of Modesto has been appointed to the Independent Consumer Fuels Advisory Committee. Mr. Zuniga has served as President of United Domestic Workers/AFSCME 3930 since 2024 and as Vice President from 2016 to 2024. She has been the Secretary-General and Treasurer of the Stanislaus Tuolumne Central Labor Council since 2013 and a care worker for Home Support Services since 1998. Zuniga is a member of the California Democratic Party Executive Committee and the Women’s Advisory Board of AFSCME International. This position does not require Senate confirmation and compensation is $100 per day. Mr. Zuniga is a Democrat.
