Bill to Stop Newsom’s Stealth Gas Tax Increase Introduced During Extraordinary Legislative Session

A bill to freeze proposed increases in gas prices in California was introduced in the Assembly on Wednesday, with the ultimate aim to halt Governor Gavin Newsom’s planned update to the state’s Low Carbon Fuel Standard.

According to ABX2-4, authored by Assemblyman Joe Patterson (R-Rocklin), the bill would target “the Newsom administration’s proposal to update California’s Low Carbon Fuel Standard, which may result in an increase of 47 cents per gallon over the next year.” The bill itself was made in response to a California Air Resources Board (CARB) evaluation from earlier this year that found that acceleration of the Low Carbon Fuel Standard could raise the price of gas by as much as 47 cents per gallon next year and up to 52 cents by 2026. While CARB later said that that scenario is “highly unlikely“, it is very likely that the Standard, which already adds another 7 cents on gas in California, will raise prices next year because of Newsom’s planned update.

The bill also comes on the heels of another extraordinary session bill, ABX2-1, which would alter price and inventory controls on oil refineries in the state. The bill, which would also lead to higher gas prices, would also effect the neighboring states of Nevada and Arizona, with both Governors of the respective states recently coming out and urging California not to pass the bill.

In a message on X, Patterson said, “Today in our “extraordinary session”, I introduced legislation to freeze the Governor’s proposed gas price increase of up to 47 cents.”

Today in our “extraordinary session”, I introduced legislation to freeze the Governor’s proposed gas price increase of up to 47 cents. pic.twitter.com/wHBKSdOW0Z

— Joe Patterson (@Patterdude) September 11, 2024

He then expanded on that in a press release, explaining that “Californians continue to identify the high cost of living as one of their biggest concerns with life in our state. Working families can’t absorb yet another state regulation that drives up the price of gas. The governor’s focus should be on ensuring that hardworking Californians can afford to live in this state rather than calling an extraordinary session to distract from the real problem.

“The Legislature should consider a variety of proposals to bring prices down during this special session, not just rubberstamp the governor’s plan. My proposal represents a simple way to prevent even more pain at the pump. More Californians are living in poverty than anywhere else in the nation. I am focused on solutions to reduce the cost of living and the idea that Governor Newsom and his administration is considering legislative and regulatory proposals to increase the price of gas is mind-boggling.”

The Assemblyman’s office later told the Globe. “Bills passed in the extraordinary session go into effect 91 days after the extraordinary session adjourns. Of course only if signed but not dependent on when signed. The Assemblyman’s bill suspends for one year.”

The bill was received positively on Wednesday. This included many tax watchdogs who have stressed that Californians need more relief at the pumps, especially when faced with such a potentially massive jump up next year.

“California has been pushing electric to a ridiculous degree for years, and ABX2-1 and what Newsom is doing with the prices in the coming years are just further examples of this,” explained Houston-based oil and gas price consultant Francis Reeves to the Globe on Wednesday. “It’s good to know that people in the state are still fighting for the people. We’ve had a lot of Californians move out here in the past several years, with high gas prices being one of the reasons. But thankfully many who could have moved have stayed and are fighting for the people too.

“Look, I know there is a rivalry between Texas and California. But we both want what is best. California sends a lot of rescue workers here when a natural disaster happens, and we do the same for example. And when it comes to gas prices, you know, it’s good to see California is still fighting to keep them low against all those awful taxes and, what do you call it, fuel standards?

“We’ve seen a lot of Californians not want higher prices, so this is definitely a needed bill.”