Ahead of first special session vote, Governor Newsom meets with supporters of proposal to prevent gas price spikes

News

Sep 26, 2024

What you need to know: Local leaders, labor, business groups, community organizations, environmental advocates and consumer groups met with the Governor to share their support for his proposal to prevent gasoline price spikes.

SACRAMENTO - Ahead of the first vote of the special session on gasoline price spikes, Governor Gavin Newsom today met with supporters of his proposal at the Capitol in Sacramento.

The Assembly's special session committee is set to vote later today on ABx2-1, authored by Assemblymembers Gregg Hart and Cecilia Aguiar-Curry. The bill allows the state to require oil refiners to manage a minimum inventory of fuel to avoid supply shortages that create higher gasoline prices for consumers - and higher profits for the industry. It would also authorize the California Energy Commission to require refiners to plan for resupply during scheduled refiner maintenance.

Supporters of the bill include mayors, local leaders, consumer organizations, environmental advocates, labor, business leaders and consumer groups. At the meeting, the Governor and supporters discussed how gasoline price spikes affect millions of Californians' everyday lives, and shared why this plan will help California families.

There's a reason why leaders from across our state are supporting our plan to prevent gas price spikes - we're all impacted when Big Oil fleeces us at the pump. Last year alone, price spikes cost California families billions of dollars while refiners made record profits. And with the help of the legislature, we're going to protect Californians from future price gouging.

Governor Gavin Newsom

What they are saying

Consumer groups

Jamie Court, President of Consumer Watchdog: "The last price spike in 2023 cost California consumers an extra $2 billion. If by requiring refiners to keep two days extra supply on hand, we can save half that amount, the minimum inventory requirements will have a huge return for the state. Governor Newsom's pioneering proposal is one more check on the profiteering of the 4 oil refiners that make 90% of California gasoline."

Rosemary Shahan, President of Consumers for Auto Reliability and Safety: "Consumers deserve the peace of mind that comes with reliable fuel access, especially during refinery maintenance. Governor Newsom's bill is a critical step toward ensuring that we don't face unnecessary spikes that cause tremendous hardship for California consumers. By holding big oil accountable to maintain a reserve of fuel, we can protect families and businesses from the financial strain of unexpected disruptions. It's time for us to prioritize consumer safety and stability in our energy supply."

Lea Ann Tratten, Consumer Attorneys of California, Political Director: "The oil industry has shown they have no compunction about decreasing inventory to manipulate the spot market and gouge consumers at the pump. CAOC applauds the Governor's efforts through the Special Session to protect consumers and their pocket books from oil industry greed."

Environmental advocates, community organizations and nonprofits

Daniel Barad, Western States Policy Manager, Union of Concerned Scientists: "I commend Governor Newsom for fighting back against the oil industry's efforts to manipulate the market and harm consumers with high gas prices. The governor is well aware that California's gasoline refining sector is becoming highly concentrated, and he is leading the effort to ensure oil companies don't abuse their market power by holding them accountable for better managing refinery shutdowns. Establishing requirements for minimum fuel storage is also a critical step in planning for a safe and equitable petroleum phaseout as gas consumption declines in California and the state moves toward zero-emission transportation."

Gabriel Medina, Executive Director of La Raza Community Resource Center: "San Franciscans are already faced with the skyrocketing cost of groceries and inaccessibly high rents. Artificially high gas prices create desperate choices for parents trying to get to work or take their children to school. Governor Newsom's proposal gives families protection against the price gouging of Big Oil."

Connie Cho, Senior Policy Advisor, Asian Pacific Environmental Network: "We strongly support the amended ABX2-1 that will hold oil companies accountable for price-gouging and require a minimum inventory with a health-and-safety-first approach, without expanding the polluting fossil fuel infrastructure that will soon be obsolete."

Eve Birge, CEO of White Pony Express: "As the CEO of one of CA's largest food recovery organizations, gas literally fuels our food pick-up and distribution operation. [Each week, we provide 100 nonprofits with food for their clients and are dependent on a fleet of 14 refrigerated vehicles to reach them.] When gas prices spike, it jeopardizes our ability to meet the need. It also has devastating consequences for our most vulnerable neighbors who are barely able to make ends meet."

Raquel Mason, Senior Legislative Manager, California Environmental Justice Alliance: "Exorbitant gas prices impact all Californians, but those in lower-income environmental justice communities pay for our addiction to fossil fuels with their health and safety as well as their wallet. We thank Governor Newsom and Assemblymembers Hart and Aguiar-Curry for their leadership on ABX2-1 and strongly support the amended bill that will protect all Californians from price spikes while protecting the public health of refinery communities."

Silvia Paz, Executive Director of Alianza Coachella Valley: "Our communities cannot prosper when the price of goods they rely on every day is unpredictable. I commend the Governor's proposal to safeguard our communities that are most affected by the oil industry and protect individuals and small businesses that are disproportionately impacted by fluctuating fuel costs."

Maribel Nunez, Executive Director of Inland Community Land Trust: " I fully support the passage of AB X2-1 and express my gratitude to the Governor and legislature for holding the oil industry accountable. The detrimental effects of the oil sector on residents of the Inland Empire have led to increased costs and worsening air quality, underscoring the urgency of this legislation. It is essential that we develop solutions to protect consumers and working-class families while accelerating the shift to clean, electric transportation, thereby enhancing air quality and reducing pollution in our communities."

Labor

Tia Orr, Executive Director of SEIU California: "Corporate greed is squeezing workers from every direction; SEIU members are fighting bosses' relentless attacks on their paychecks while also being gouged by corporations at the gas pump and the grocery store and by landlords and big banks. ABX2-1 will strengthen 2023's SB 1-X2 and is an important measure to curb oil company price gouging and relieve some pressure on working families struggling to keep up with the costs of commuting. We applaud the efforts of Gov. Newsom and the bill authors whose efforts will ensure workers don't have to choose between filling up the tank and paying their rent or for other basic needs."

Doug Moore, Executive Director, United Domestic Workers: "When Big Oil refuses to rectify supply chain issues that allow them to raise gas prices and gouge consumers, it is California's lowest-income workers who pay the biggest price. At UDW, we support Governor Newsom's efforts through AB X2-1 that would hold these corporations accountable for their actions and protect consumers, especially our providers, at the pump."

Michelle Gutierrez-Vo, California Nurses Association President: "California nurses are proud to support this proposal to put an end to gas price spikes. Our members know all too well how gas price spikes can impact Californians when having to decide between filling our tanks, putting food on the table, or seeking medical treatment. We can't let corporate greed stand in the way of California families getting ahead."

Amber Parrish, Executive Director, United Food and Commercial Workers Western States Council: "When Big Oil lets supplies run low, they can charge higher prices and earn windfall profits, while California consumers are left to face the brunt of price spikes at the pump. Many Californians already pinch pennies to make ends meet. They can't afford to pay astronomical gas prices when they visit the pump. AB X2-1 is a common sense solution that provides realistic solutions to support communities and consumers and we're proud to support it."

Academic and business leaders

Ryan Cummings, Economist at Stanford Institute for Economic Policy Research: "The proposal is based on sound economics. The market power of refiners in California leads to inefficiencies that costs consumers and businesses in California billions of dollars annually. A minimum inventory requirement will help reduce these costs and lower prices at the pump."

Robert Fellmeth, Price Professor of Public Interest Law and Executive Director, Consumer Protection Policy Center: "California consumers have long suffered from unchecked and unjust gas price spikes. AB X2-1 is designed with consumers in mind to help protect all Californians from harmful business practices and ensure market stability."

Matt Petersen, President & CEO Los Angeles Cleantech Incubator: "I strongly support the passage of AB X2-1, and thank Governor Newsom along with the legislature for holding the fossil fuel industry accountable for its actions. We need to provide solutions to protect consumers while we accelerate the transition to clean, electric transportation that will reduce air and climate pollution from cars and trucks that impacts our frontline communities the most."

Local leaders

Rodrigo Espinoza, Merced County Supervisor: "I applaud the Governor, and I support his proposal for a special session. I will always support legislation that helps to protect the residents in my district from rising costs. Working-class families cannot afford higher gas prices - this proposal will ensure that Merced County residents can fuel their daily commutes without having to worry about unnecessary price spikes at the pump. We must do whatever we can to support our hardworking families."

Miguel Arias, Fresno City Councilmember: "I fully support Governor Newsom's proposal to mandate minimum gasoline inventories and resupply plans. This is a critical step toward protecting our working-class families from price gouging at the pump. Families living paycheck to paycheck cannot afford gas spike hikes and we cannot allow oil companies to take advantage and pad their profits at the expense of Central Valley communities."

Mayor Rey Leon, City of Huron: "In rural California, our communities bear the brunt of rising gas prices. I commend Governor Newsom for taking this action, fighting for Farmworker and low-income families like those in my city of Huron is crucial. Protecting hard-working people from market manipulation and unjustifiable price hikes is critical. Let's continue to fight for equity in the Golden state!"

Felipe Hernandez, Santa Cruz County Supervisor: "I commend the Governor for this proposal. As a former Mayor and current Santa Cruz County Supervisor, I have consistently supported legislation that protects our residents from the rising cost of living. This initiative will ensure that Californians can commute without the burden of unpredictable fuel price spikes. I urge the legislature to prioritize the Governor's timely call to action and implement the tools necessary to stabilize fuel costs, promoting economic equity for all our shared constituents."

Mayor Emmanuel Estrada, City of Baldwin Park: "The proposal to mandate minimum gasoline inventories and resupply plans is a crucial step in protecting working-class families from price gouging at the pump. With gas price spikes disproportionately affecting those with tighter budgets, it's essential to ensure that oil companies cannot exploit refinery maintenance to boost profits at the expense of consumers. By empowering the California Energy Commission to enforce these measures, we can provide much-needed relief to families who are already struggling with rising costs. This initiative is a strong commitment to fairness and accountability in the energy market, ensuring that everyday Californians are not left to bear the brunt of unnecessary price hikes."

Mayor Betsy Stix, City of Ojai: "I'm proud to support the Governor's special session to address the oil price spikes. The City of Ojai is committed to reducing its dependence on fossil fuel. Limiting Big Oil's capability to hold consumers hostage at the gas pump with price hikes is aligned with the City's efforts."

Mayor James Butts, City of Inglewood: "I applaud and commend the Governor on this proposal. As the Mayor of Inglewood, I have always been a supporter of any legislation that can provide my residents protections from the burden of the rise in living costs. This proposal will ensure that Californians can fuel their daily commutes without having to worry about unnecessary price spikes at the pump. I look forward to seeing the legislature prioritize the Governor's timely call to action and implement necessary tools that can stabilize fuel costs to promote economic equity for our shared constituency."

Mayor John Erickson, City of West Hollywood: "As we continue to navigate a more unpredictable economy, we must ensure we're doing everything in our power to help our constituents that are constantly being burdened by rising prices. By prioritizing affordability and transparency, the Governor's proposal will ensure that we're protecting our families and local businesses from unexpected costs at the pump."

Mayor James Light, City of Redondo Beach: "Governor Newsom's proposal for a special session to tackle gas price spikes is timely and critical for Californians, including right here in Redondo Beach. High fuel prices contribute to the spiraling costs of goods and services and impacts us all. I am hopeful the legislature will prioritize this call to action and provide the State with the right tools to protect against unjustified fuel price increases."

Steve Madrone, Humboldt County Supervisor: "I applaud Governor Newsom's proposal to mandate Big Oil backfill supply during refinery maintenance, which is crucial for stabilizing gas prices. Residents in Humboldt County face some of the highest gas prices in the state, and no one should be forced to choose between buying gas or groceries. It's time we put families first in this vital energy economy."

Greg Pratt, Humboldt Transit Authority, General Manager: "Humboldt Transit Authority is facing unprecedented cost increases from every direction. I applaud and commend the Governor for keeping a watchful eye and providing protections against anticompetitive price gouging. This supports my agency's ability to maintain operations and provide an essential public service to Humboldt County and the California North Coast. I look forward to seeing the legislature prioritize the Governor's timely call to action and implement necessary tools that can stabilize fuel costs and help increase operational certainty for public transit agencies."

Eric Lucan, Marin County Supervisor: "I wholeheartedly support the Governor's proposal to protect Marin County residents from Big Oil price gouging. As a Marin County Supervisor, I believe this proposal is essential for shielding our community from rising living costs driven by excessive profit margins. I urge the legislature to take this proposal seriously and act swiftly to safeguard families in Marin County and across California."

Vicente Sarmiento, Orange County Supervisor: "Our residents and small businesses bear the burden of higher prices at the pump when oil companies manipulate gas supplies to cause instability and price spikes that yield them higher profits. I commend Governor Newsom for convening this special session to bring corporate greed front and center and increase oversight of refiners. We need to ensure that these companies maintain adequate gas supplies, and that consumers are protected from market manipulation, collusion, and unjustifiable price spikes."

Mayor Todd Gloria, City of San Diego: "From San Diego to Sacramento, the rising cost of living remains one of the most pressing challenges facing all Californians, and that is especially evident at the gas pump. I appreciate Governor Newsom's leadership in calling a special session to develop legislative solutions that protect Californians from exploitative price spikes. We must do all that we can to ease the financial burden on our residents and this is one key area for us to do that."

Nora Vargas, San Diego County Chairwoman: "For far too long, Californians have borne the brunt of unjustifiable price hikes at the pump, while Big Oil has reaped record profits. AB X2-1 is a critical step toward ensuring transparency, accountability, and fairness in our gasoline market. By empowering the California Energy Commission to enforce minimum fuel inventories and resupply plans, we can protect consumers from price gouging and promote greater price stability. I strongly support this legislation as a way to hold the oil industry accountable and deliver relief to hardworking families across San Diego County and beyond."

Mayor Farrah Khan, City of Irvine: "It's time to hold Big Oil accountable with legislation that will prevent gas price spikes - which are profit spikes. That's why I support Governor Newsom's proposal to require that oil refineries maintain minimum supply inventories, which would help prevent price spikes and save Irvine residents and Californians money."

Mayor Pro Tem Fred Jung, City of Fullerton: "I strongly support Governor Newsom's bold proposal to prevent gas price spikes in California. This initiative is a crucial step toward protecting consumers from unpredictable fuel costs that strain household budgets and impact small businesses. By increasing transparency, we're not only stabilizing our economy but also paving the way for a more equitable energy future for all Californians."

Mayor Ulises Cabrera, City of Moreno Valley: "I commend the Governor and the legislature for making ABX2-1 a priority and for holding a special session to tackle the sudden increase in gas prices. As Mayor, I hear directly from residents about how rising living costs affect their families. I fully support this proposal to ensure that the oil industry provides sufficient fuel supplies and to safeguard consumers and small businesses from high gas prices that threaten their financial stability."

Mayor Gil Hurtado, City of South Gate: "For cities like South Gate, access to affordable fuel is not just a convenience - it's a necessity. I'm proud to support the Governor's plan to ensure that oil corporations are held responsible for unfair gas price hikes. Households, including those I represent as a Mayor, depend on every dollar, and sudden gas price increases can be the difference between paying their bills or getting to work. I urge the legislature to act swiftly on this proposal!"

Chairman Luis Plancarte, County of Imperial Board of Supervisors: "As Californians face unprecedented gas price spikes, it's essential that we act swiftly and thoughtfully to provide relief. The Special Session is an opportunity to prioritize working families, ensure transparency in the energy market, and develop long-term solutions that benefit all communities, especially those hardest hit like ours in Imperial County. I stand with Governor Newsom in supporting this critical effort."

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