California special session gears up with focus on oil and gas prices

SACRAMENTO, Calif. (CN) — A handful of California Republicans have filed bills in anticipation of a special legislative session set for October, though they have an uphill battle to pass them in a Legislature dominated by Democrats.

Governor Gavin Newsom on Aug. 31 called for the special session to focus on oil and gas prices, a call Assembly Speaker Robert Rivas quickly answered. Rivas last week announced the 19 members who will serve on the Petroleum and Gasoline Supply Committee. Two informational hearings are set for this week, with a hearing on special session Assembly Bill 1 scheduled for Sept. 26.

The Assembly will convene on Oct. 1.

The bill would require refineries to meet certain criteria before conducting maintenance, which officials say has affected fuel prices. It also would require California refiners to maintain a minimum level of refined transportation fuels.

The governors of Nevada and Arizona have publicly pushed back on the bill, saying the California Energy Commission noted it could cause shortages in downstream markets.

“Further amplifying our concerns, refiners have raised the alarm that refinery inventory mandates could result in supply shortages and potential refinery shutdowns, which would have grave impacts to our shared economies and transportation infrastructure across the West,” the governors wrote.

Assemblymembers Cecilia Aguiar-Curry of Winters and Gregg Hart of Santa Barbara, both Democrats, wrote the bill, which has seven Democratic co-authors.

Republicans were quick to follow with their own bills.

Assemblymember Tom Lackey of Palmdale has filed three bills. Assembly Bill 2 would suspend the state’s motor vehicle fuel tax for a year. Lackey told Courthouse News that would save people 60 cents per gallon.

“Their fuel costs are substantial,” Lackey said of motorists in rural areas, some of whom travel over 100 miles daily. “Why wouldn’t we give them relief when this is such a plausible approach?”

Lackey also fired back at Newsom’s claim that suspending the gas tax would do nothing toward reducing gas prices, arguing it’s worked in other states to benefit drivers.

The bill calls for revenue lost by the motor vehicle fuel account, part of the transportation tax fund, to be replenished by the general fund.

Another bill by Lackey would take $3 billion from the High-Speed Rail Authority and use it to give a $100 rebate to registered owners of gasoline-powered passenger vehicles.

“We believe the funds in high-speed rail are excessive,” Lackey said. “It would help remedy the high cost of living.”

Lackey’s final bill would exempt certain energy infrastructure projects from the California Environmental Quality Act. He said that if Newsom wants to increase the state’s fuel storage capacity, exempting those facilities from the cumbersome law would help.

A handful of other Republicans have also filed bills for the special session.

Minority Leader and Assemblymember James Gallagher, a Yuba City Republican, filed Assembly Bill 3.

Gallagher told Courthouse News that his bill would remove transportation fuels for the state’s cap-and-trade program. If they didn’t fall under that program, the price of a gallon of fuel would fall about 30 cents to 35 cents.

“That’s why it’s referred to as the hidden gas tax,” Gallagher said.

Assemblymember Joe Patterson, a Rocklin Republican, introduced a bill that would stop proposed gas price increases. It’s focused on a state proposal to update California’s low carbon fuel standard, which Patterson in a statement said could lead to a 47-cent increase in the cost of a gallon of gas.

Assemblymember Diane Dixon, a Newport Beach Republican, filed a bill that would require the state’s Energy Resources Conservation and Development Commission to regularly update information on its website about gas prices. It would have a dashboard that displayed average gas prices in the Golden State, the state taxes, fees and policies that contribute to those prices, as well as the national average cost of gas.

Dixon in a statement told Courthouse News that she’s filed bills in the past that would have suspended the gas tax and provided more transparency on gas prices. Neither were set for a hearing.

“I don’t give up,” Dixon said. “I decided to participate in his exercise this special session. This dashboard is a simple tool that would offer legislators, the public and the governor clear data on the price of a gallon of gas and of why we pay so much for gas.”

Republican lawmakers are hopeful their bills will get a hearing. Lackey said he believes the public wants a debate on the bills, adding that’s how democracy works.

“I’m going to push for it,” Gallagher said. “I’m going to fight for it because people need it.”