Governor Gavin Newsome | Twitter Website
Governor Gavin Newsom has signed a new piece of legislation aimed at preventing gas price spikes in California. The measure, known as ABX2-1, was authored by Assemblymembers Gregg Hart and Cecilia Aguiar-Curry along with Senator Nancy Skinner. It grants the state authority to require oil refiners to maintain a minimum inventory of fuel, which is intended to prevent supply shortages that can lead to increased gasoline prices for consumers.
The law also empowers the California Energy Commission to mandate that refiners plan for resupply during maintenance outages. Governor Newsom stated, "Price spikes have cost Californians billions of dollars over the years, and we’re not waiting around for the industry to do the right thing — we’re taking action to prevent these price spikes and save consumers money at the pump."
Assembly Speaker Robert Rivas expressed his support, noting that "big oil companies are now responsible for stabilizing prices at the pump." Senate President pro Tempore Mike McGuire emphasized ongoing efforts to lower living costs across California.
Analysis from the Division of Petroleum Market Oversight suggests that if this proposal had been implemented last year, Californians could have saved significantly on fuel expenses. Stanford economists have endorsed the measure as an economically sound policy addressing a critical issue.
The bill has garnered support from various sectors including mayors, local leaders, consumer organizations, environmental advocates, labor groups, business leaders, and consumer groups. This initiative follows a special session convened by Governor Newsom after gasoline price spikes in 2022 led him to work with the Legislature on reforms holding oil companies accountable.
Additionally, Governor Newsom announced appointments to the Independent Consumer Fuels Advisory Committee. Appointees include Martha Dina Arguello from Los Angeles; Michael Jorgenson from Mill Valley; Neale Mahoney from Stanford; Deborah “Debbie” Meeks from Walnut Creek; Norman Rogers from Santa Ana; and Astrid Zuniga from Modesto. These positions do not require Senate confirmation and come with compensation of $100 per diem.
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