Grasping for relevance, California Gov. Gavin Newsom is in the midst of a bit of a temper tantrum this week with the legislature – threatening to convene a special session if they don’t pass his proposal to further regulate California’s oil and gas industry. Industry analysts say that the proposal, which would force refineries to “maintain a minimum fuel reserve to avoid supply shortages,” would lead to increased prices for drivers in California, Arizona, and Nevada.
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This asinine proposal is from Newsom’s California Energy Commission (CEC), which was formed in 2023 after a Newsom called a special session in 2022 demanding that legislators “do something” to prevent alleged price gouging by Big Oil. Commission members are political appointees, but the staffers are not. And, according to political consultant Rob Stutzman, the CEC’s own staffers believe this proposal will make prices higher, not lower.
Side note: While many will say, “California, this is what you voted for,” pay attention – this method of addressing “price gouging” is undoubtedly what a President Kamala Harris would use if elected, so it behooves all Americans who want to be able to feed their families to have knowledge of what’s going on here.
Here’s Newsom’s propaganda sheet on the topic:
Western States Petroleum Association CEO Catherine Reheis-Boyd said Tuesday of Newsom’s proposal, which was only unveiled August 15:
“There are bad regulations, and then there are regulations so detrimental that industry experts, the California Energy Commission, and anyone with a basic understanding of economics can clearly see the harm they will cause consumers. Governor Newsom’s refinery supply mandate will create artificial shortages of fuel in California, Arizona and Nevada by forcing refiners to withhold fuels from the market. Lawmakers who vote for this mandate will be voting to increase gas costs for their constituents.
“This literal last-minute mandate is the latest in a series of actions by this administration to limit fuel supplies to consumers. California already faces a de facto production ban, forcing more than 75 percent of the crude our state uses to be shipped in from overseas. Additionally, upcoming ‘at berth’ regulations, set to take effect in just a few months, may exacerbate this problem by restricting shipping and causing significant declines in the supply of crude oil and other transportation fuel products needed to meet the state’s energy demands. WSPA has repeatedly warned the administration and lawmakers about the cumulative effects of these supply-limiting policies, but to no avail.
“It’s noteworthy that legislators are considering such radical energy policies at a time when the nation is closely examining how the ‘California model’ will impact their families and pocketbooks.”
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Back to Newsom’s extortion tactic. There are only four days left in this year’s legislative session, and a deal on this bill isn’t imminent, so Newsom’s freaking out a bit. KCRA’s Ashley Zavala reported:
The special legislative session request is receiving pushback from some Democratic lawmakers, sources told KCRA 3.
The sources said the governor has been trying to get lawmakers to include new language into a bill that would address gas prices by setting new regulations around oil storage. The idea has received resistance from some lawmakers who have said there has not been enough time to review the proposal. Lawmakers have days to still sort through hundreds of other proposed laws.
Sources in the Assembly said Democratic members seemed mostly open to the idea to give the governor’s proposals more time and attention. Sources in the State Senate said members of the party were less enthusiastic, with several pushing back against the idea of coming back to Sacramento in the fall.
Well, of course. They’ve got to get re-elected, and some of them are running for higher office.
Republicans in Sacramento are also fighting back. Asm. Bill Essayli (R-Riverside) called Newsom’s action out for exactly what it is:
And Assembly Republican Leader James Gallagher raised the stakes:
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Gallagher outlined three bills he would introduce in that special session – bills that would actually decrease oil prices.
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, Gavin Newsom.
My first bill in special session will be to remove fuels from Cap & Trade and lower gas prices by .50 cents right off the bat.
My second will be CEQA streamlining of pipelines and refinery storage so we can cease being an energy island.
And my third will be to repeal his stupid price gouging law that has done literally nothing to lower gas prices.
We’re with Gallagher. Go ahead, make our day, Gavin.