New California Bill Looks to Stabilize Gas Prices

Assemblymembers Hart and Aguiar-Curry Proposal Would Require Refineries to Hold Sufficient Reserves

By Caitlin Scialla Fri Sep 06, 2024 | 12:58pm

Newly drafted legislation aims to address the exorbitant gas costs that plague California. Introduced by assemblymembers Gregg Hart (D-37) and Cecilia Aguiar-Curry (D-4), the bill proposes stricter regulations on oil refineries. Specifically, the bill hopes to stabilize California’s oil supply by requiring that refineries maintain adequate reserves in order to account for any interruptions or unplanned shutdowns.

California is in a uniquely vulnerable position when it comes to gas supply. Many factors contribute to the state’s limited fuel supply, including special environmental policies, higher gas taxes, and a scant number of refineries.

This bill focuses on refineries. Since there are only a handful of in-state refineries, a single refinery outage can usher in substantial repercussions throughout California. Any interruptions to refineries, such as maintenance, curb an already precarious fuel stock and can translate to huge price spikes that Californians must fork over at the pump.

Californians already pay a premium for gasoline. According to AAA Gas Prices, the current cost of regular gas per gallon averaged $4.59 in California. In Santa Barbara particularly, the average price for regular gas came to $4.69. These numbers dwarf what is seen in other areas of the country. AAA Gas Prices calculates the current average cost of gas in Texas to be $2.90. And in Austin, the most expensive city in Texas, residents are paying around $2.84 per gallon.

Hart and Aguiar-Curry’s bill would ensure that refineries maintain sufficient inventories of fuel and properly plan for closures. Refineries would be subject to penalties for failing to comply with the new standards.

As put by Hart, “When gas prices spike because of supply constraints, everyday Californians suffer and the oil industry profits. This legislation will protect California consumers by ensuring refineries maintain a stable fuel supply. This bill is a common-sense solution. By requiring oil companies to better plan for refinery shutdowns, we can save Californians a lot of money.”

This legislation is seemingly part of a larger project that is being undertaken by multiple California legislators to mitigate soaring gasoline costs and target Big Oil head-on. On August 31, Governor Gavin Newsom called a special session to discuss a package of substantial energy bills that were not passed during the regular session. Hart and Aguiar-Curry’s bill was presented during this special session on Tuesday, September 3.