In the face of unified opposition from every legislative Republican, legislative Democrats were forced to abandon Senate Bill 950. The last minute proposal from Governor Gavin Newsom threatened to upend the oil and gas industry in California and cost consumers heavily at the pump.
“Just like any other proposal, Newsom’s bill to raise gas prices must be fully scrutinized during an open public hearing, where all its consequences can be properly heard and considered,” said Senate Minority Leader Brian W. Jones (R-San Diego). “This announcement is a significant victory for Californians—not just at the gas pump, but also in protecting our democratic process. I thank Assembly Speaker Rivas for defending the integrity of the legislative process and telling the governor no.”
The governor’s plan, introduced as SB 950 just hours before the constitutional deadline to amend bills for the year, would require refiners to withhold fuel inventory from the market. However, the California Energy Commission warned “it may artificially create shortages in downstream markets” and “increase average prices for refiners to maintain additional storage.”
In a letter to Newsom this morning, Legislative Republicans demanded answers on the projected impacts of his fuel storage mandate proposal.
“I’m glad to see my Democratic colleagues call Newsom’s bluff and reject this latest effort to jam through a half-baked policy that would make life in California harder and more expensive,” said Assembly Republican Leader James Gallagher (R-Yuba City). “If the Legislature does come back for a special session, I hope Democrats will focus on bringing costs down instead of a scheme that seems designed only to protect Newsom’s political career.”
California gas prices are consistently the highest in the continental United States and legislative Republicans have spearheaded efforts to reduce taxes and fees on consumers to lower prices at the pump. Legislative Democrats and the governor have widely opposed those efforts to-date.