California Assembly passes gasoline refinery measure aimed at easing pump price spikes

A bill pushed by Gov. Gavin Newsom as part of a bid to end spikes in gas prices overwhelmingly passed the California State Assembly in a special session Tuesday afternoon and now heads to the state Senate.

The Assembly voted 44-17 to approve the measure, ABx2-1, that would call on the California Energy Commission, the state’s main energy policy agency, to adopt regulations forcing gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price gouging at the pump, which critics of the oil industry say has allowed them to pull in hefty profits.

“This is a critical consumer victory that takes away a tactic oil refiners have used for decades to keep gas prices and refiner profits artificially high,” said Jamie Court, president of Consumer Watchdog, a consumer advocacy group, in a statement. “(The measure) will set a national example in how to fight back against outrageous price gouging at the pump.”

But critics worry the move could actually raise gas prices and jeopardize worker safety.

Newsom called the legislature into the special session in late August after Democrats in the Assembly pushed back on his efforts to pass the measure as part of a last-minute energy package. In September, members of a special gas committee met for more than 16 hours to hammer out the language and provisions of the bill.

“I’m grateful to the Assembly for joining with me in our efforts to prevent gas price spikes and save Californians money at the pump,” Newsom said in a statement Tuesday. “Just last year, price spikes cost Californians more than $2 billion — forcing many families to make tough decisions like choosing between fueling up or putting food on the table. This has to end, and with the legislature’s support, we’ll get this done for California families.”

Californians pay the highest prices in the nation at an average of $4.68 a gallon for regular unleaded as of Tuesday, compared to the national average of $3.20, according to AAA.

“There are great savings for Californians if we can avoid these price spikes,” said Assemblymember Steve Bennett, a Democrat representing Ventura and one of 10 lawmakers who spoke in favor of the bill on the Assembly floor Tuesday.

But the controversial proposal divided Democrats, who hold a supermajority in the legislature.

Democratic Assemblymember Al Muratsuchi, who represents several cities in Los Angeles County where three oil refineries are located, said he had concerns about the health and safety of refinery workers if they are constrained by the bill from doing shutdowns to perform maintenance and repairs.

Critics also included the governors of two neighboring states, a Republican in Nevada and a Democrat in Arizona.

The bill also generated fierce opposition from Republicans and the oil industry.

“Hard-working Californians deserve better than the governor’s experiment,” said Assemblymember Tom Lackey, a Republican representing Palmdale. “If the goal is to lower gas prices, we must suspend the gas tax.”

Californians pay roughly $1.38 in taxes per gallon of gas.

Western States Petroleum Association President and CEO Catherine Reheis-Boyd said in a statement that the “math behind this proposal is incomplete and fails to address key operational questions.”

“This theory of cost savings is just that — a theory,” Reheis-Boyd said in a statement. “Without a deep understanding of the complexities of refinery operations, policymakers are gambling with consumers’ wallets. We, as an industry, are ready to roll up our sleeves and address the root causes of California’s volatile energy market, which has been shaped by decades of policies.”