California Governor Gavin Newsom signs a law intended to prevent gas prices from rising

SACRAMENTO, Calif. – California Governor Gavin Newsom signed a law on Monday intended to prevent gas prices from rising. This marks the latest move by Democrats in their battle with the oil industry over energy prices and the effects of climate change.

Californians pay the highest prices at the pump in the U.S. due to taxes and environmental regulations. According to AAA, the average price for regular unleaded gasoline in the state was about $4.68 a gallon on Monday, compared to the state average of $3.20.

The new legislation was inspired by findings from the state Department of Petroleum Markets Supervision that showed gas price spikes are largely caused by rising global crude oil prices and unplanned refinery outages. The law gives energy regulators the power to require refineries to keep a certain amount of fuel on hand. The aim is to prevent prices from suddenly rising when refineries go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.

Newsom signed the bill alongside lawmakers at the Capitol and criticized the oil industry for its efforts to block the bill's passage.

“They continue to lie and continue to manipulate,” he said. “They have made unprecedented profits because they can.”

Newsom signed the measure just weeks before the November election, but said the legislation was not about politics. His second term runs for two years.

Opponents of the law say it could inadvertently drive up overall gas prices and endanger worker safety by giving the state more control over refineries' maintenance schedules. Some argued that delaying necessary maintenance could lead to accidents.

“Legislators still do not understand our industry or what is driving high gas prices,” Catherine Reheis-Boyd, president of the Western States Petroleum Association, said in a statement. “Regulators remain fixated on policing companies with higher taxes, fees and costly claims.”

Assembly Republican Leader James Gallagher requested an adjournment before the Assembly voted to send the bill to Newsom's desk on Monday. Republicans put forward their own proposals to lower gas prices, but these were blocked in the Democratic-dominated Parliament. One of the bills that did not advance would have exempted transportation fuels from the state's emissions trading program.

Newsom introduced the bill in August, the final week of the regular legislative session. But lawmakers in the state Legislature said they needed more time to think about it. The governor called the Legislature into a special session to pass it.

Newsom also called lawmakers into a special session in 2022 to pass legislation aimed at punishing oil companies for making too much money.

State Senate President Pro Tempore Mike McGuire said the new law is just one part of the state's efforts to reduce the cost of living for Californians.

“This bill creates the conditions to mitigate gas price spikes and provide additional certainty through improved storage and oversight,” he said. “I firmly believe that Californians are fed up with price increases.”

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Austin is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on Twitter: @sophieadanna