California Senate Special Committee on Fuel/Price Spikes Passes Gov. Newsom’s Bill to Create Gas Shortages
Calif. Energy Commission is 3 months behind on refiner management report
By Katy Grimes, October 8, 2024 7:42 am
You are probably getting tired of me rhetorically asking, “If the ‘Big Oil’ companies are so greedy, why are they only greedy in California and not greedy in every state?”
The California Senate Special Committee on Fuel Supply and Price Spikes (you read that right) voted Monday to pass Governor Gavin Newsom’s proposal to decrease the state’s gas supply, which will clearly result in even higher gas prices at the pump.
Californians are already paying the highest gas prices in the entire country – even higher than Hawaii, according to AAA today. The US average price per gallon of gas is $3.18 – California’s average is $4.68 – a $1.50 difference – just about the exact amount of California’s gas taxes.
Texans pay $2.77 per average gallon of gas. That’s a difference of nearly $2.00 per gallon that Californians pay a premium for.
The highest priced gas in California is in Mono County where one gallon of gas costs $5.96. In Alpine County it’s $5.80. Humbolt County $5.41, Sacramento County $4.74, Los Angeles County $4.58, San Diego $4.60, and $5.03 per gallon in San Francisco.
California Governor Gavin Newsom called for a special legislative session after accusing California’s oil refineries of price gouging – a clear sign that he is economically illiterate, or he is trying to create gas shortages. The governor claimed that “Gas price spikes on consumers are profit spikes for oil companies, and they’re overwhelmingly caused by refiners not backfilling supplies when they go down for maintenance.”
The Governor’s ABX2-1 will give the California Energy Commission more authority to impose new mandates for oil storage requirements on oil refineries in California, even as California is on the verge of an energy crisis with the push for electrification by 2035, as John Kabatek, California State Director, National Federation of Independent Business warned last week. “The regulation requirements in ABX2-1 will artificially create a fuel shortage crisis due to limiting the distribution of fuel.”
Where yesterday’s hearing is disconcerting is that the committee chairman Sen. Steven Bradford expressed concerns and skepticism ABX2-1 will result in any good even saying it could do more harm. KCRA reported:
Committee chair, Senator Steven Bradford, noted that a special advisory committee established through the last special session on gas prices has yet to materialize because Newsom’s administration has yet to appoint anyone.
Bradford also noted that the CEC is three months behind on a refiner management report.
“How can we justify more requirements on agencies when they can’t respond in a timely manner?” Bradford posed.
Thank you Senator Bradford for stating the obvious.
However, he still voted to pass the grievously flawed bill out of the committee, which passed mostly along party lines.
“California ranks third in the nation in oil refining capacity. The state’s 17 refineries – located in the Central Valley, Los Angeles County and the San Francisco Bay Area – have a combined capacity of nearly two million barrels per calendar day,” the Western States Petroleum Association says.
After the Assembly passed Newsom’s ABX2-1, WSPA reported:
“As California’s special session unfolds, the notion of mandating refineries to store fuel supplies may seem like a simple fix to price spikes, but the reality is far more complex. The math behind this proposal is incomplete and fails to address key operational questions. For example, how many days of supply will refiners be forced to withhold from the market? What will the storage costs be? And crucially, what happens if a price spike never materializes—are Californians then stuck paying more year-round for no reason?
“This theory of cost savings is just that—a theory. 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. We call on legislators to do the same. Californians deserve solutions grounded in reality, not rushed ideas pushed through during a special session. This bill lacks the time, detail, and diligence required to truly address the problem.
Indeed, Californians deserve solutions grounded in reality, not rushed ideas pushed through during a special session.
The other thing that happened Monday is “Senate Democrat leadership blocked Senator Rosilicie Ochoa Bogh’s (R-Yucaipa) bill to immediately halt the state’s gas tax and provide significant economic relief to California consumers at the pump,” Sen. Ochoa Bogh reported Monday.
“Senator Ochoa Bogh’s measure would have suspended the gas tax for one year and ensured cost savings were passed directly to the consumer. If passed, the bill would have taken effect immediately.”
She reported that the same bill has been introduced in this Extraordinary Session in the Assembly, but was not given a hearing.
“It’s shameful that Senate Democrats are engaging in political theatrics while California families continue to bear the brunt of the highest gas prices in the nation,” added Senator Ochoa Bogh. “They’re putting on a show while families are struggling to make ends meet. My bill would have lowered gas prices by 60 cents per gallon – real savings for real people.”
What California voters and taxpayers are witnessing is the failed state of California breaking down under a treacherous Democrat supermajority.
“Newsom’s scheme won’t do a damn thing to lower gas prices, and he knows it,” said Assembly Republican Leader James Gallagher (Yuba City) said last week. “As long as Democrat politicians refuse to stand up to the governor, costs at the pump are only going to increase.”
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So, we see that that Newsom and the rest of the Democrats voted for an agenda/scheme that will further bankrupt the state and us its citizens. They are definitely not pushing Make California Great Again policies. Well during an election season this should be used by every Republican running for a seat no matter what level they are at. The nuts and bolts of the bill should be broken down so that folks that have not read the bill can understand what it actually does and rebuffs the claims that Newsom will make that it actually solves a problem. I would think that the Ca GOP would be able to do this task but after reading their “official recommendations” I’m not sure that I would trust them to give us an accurate read of the bill. Every current elected Republican should issue a press release coming out against the bill and give interviews in every television and radio market in the state. Actually, this could be used as a tool to win races if used effectively. If Republicans only complain about it for a day or two publicly and do not press their grievances aggressively this will be a nothing burger until it goes into effect and people complain about the higher prices for everything. At the national level they are complaining that the Republicans are “pouncing” on things in my summation at the California level Republicans are getting rolled. Some are valiantly trying but the overall coordination and organization is weak and fractured.
And what do you get with your extra $20 – $30 per gas tank fill-up? Accosted at gas stations filling up, the worst roads in the country, toll lanes and booths on freeways so you can pay even more money for nothing, some of the worst pollution in the world both with trash everywhere and in the smoke filled air, highway patrol pulling you over for crazy expensive traffic violations while completely ignoring all of the surrounding crimes and a government that spits in your face and tells you how wonderful they are!! What a bargain!!!!!
The ABX2-1 bill will stop the oil corporations from, purposely, cutting on back on production, to increase the gasoline price.
Gavin Newsom and your Democrat masters in the legislature are gouging drivers by imposing the highest gas taxes and fees in the country! They then steal those funds and use it for purposes other than maintaining and improving roads and highways. They blocked Senator Rosilicie Ochoa Bogh’s bill that would have immediately suspended the state’s gas tax for one year and ensured cost savings of more than 60 cents per gallon that would have been passed on directly to the consumer.
What your Democrat master’s ABX2-1 will do is give oil refiners more incentive to shut down the few remaining refineries in the state? No doubt that is what Newsom and the criminal Democrat mafia in the legislature want to see happen?
The California petroleum market is so profitable that all the original integrated oil companies except Chevron have left the state.