The Santa Barbara Independent republishes stories from CalMatters.org on state and local issues impacting readers in Santa Barbara County.
Only a few months delayed, Gov. Gavin Newsom finally got to take his victory lap over the oil industry on Monday.
Surrounded by Democratic lawmakers and other supporters in the state Capitol rotunda, Newsom signed Assembly Bill X2-1, his proposal to address gasoline price spikes, which he called “a profoundly consequential effort to reduce the costs of working people in the state of California.”
The measure aims to smooth out seasonal surges in prices at the pump by increasing state oversight of refinery maintenance. This could include requiring operators to maintain a minimum fuel reserve that they can dip into when they go offline.
The governor pushed for a version of this bill at the end of the legislative session in August but was rebuffed by lawmakers frustrated that they had no time to vet it. So Newsom called a special session, bringing the occasionally reticent Legislature back to Sacramento in the middle of an election campaign to pass his proposal, despite political jitters and the vocal opposition of organized labor.
But during Monday’s signing ceremony, Newsom reserved his fire for oil companies — one of his primary political punching bags in recent years — eviscerating them as polluters, liars and price gougers.
- Newsom: “They’re screwing you. They’ve been screwing you for years and years and years. There’s no other way to put it.”
Minutes before the event began, the governor released an animated video in which he accused the industry of manipulating prices to scare voters into supporting former President Donald Trump in the November election. Newsom, who has endorsed Vice President Kamala Harris, denied that his proposal was political retribution, but pointed to reports earlier this year that Trump asked fossil fuel executives to finance his campaign in exchange for deregulation.
- Newsom: “When a former president of the United States asks for $1 billion — $1 billion — in a room of oil industry executives to roll back regulations, I think that should scare the hell out of you. It sure as hell scares the hell out of me.”
The Western States Petroleum Association, which represents the oil industry in California, slammed Newsom for “a political performance” that “chose to demonize an industry that powers California’s economy and fuels the daily lives of millions.”
- President and CEO Catherine Reheis-Boyd, in a statement: “The Governor’s attacks, filled with personal insults toward the press and the industry, only serve to divide, not address the urgent issues we face.”
The ceremony followed a succinct floor session in which the Assembly gave final approval to the bill so quickly and unceremoniously that reporters in the back of the chambers didn’t even realize the vote had happened at first.
There was no formal debate before the Assembly concurred in the Senate amendments to the proposal by a 42-16 vote, one more than the minimum for passage. Four Democrats joined Republicans in opposition, while many others abstained.
Assembly Republican Leader James Gallagher of Chico, who briefly and unsuccessfully tried to adjourn the session before members could vote, told reporters it was “a complete travesty” that the special session had “done absolutely nothing but increase” gas prices, referring to arguments that mandating fuel reserves would drive up costs by artificially limiting supply.
“Even if in theory it stops price spikes, it still doesn’t bring them down,” he said following the session. “And the problem is the price is too damn high right now.”
