Assemblymember Hart and Majority Leader Aguiar-Curry to Author Special Session Legislation to Stop Gas Price Spikes

For immediate release:

Tuesday, September 3, 2024

SACRAMENTO, CA - Today, Assemblymember Gregg Hart (D-Santa Barbara) and Majority Leader Aguiar-Curry (D-Winters) announced that they will be introducing legislation to stabilize California's oil market. The bill ensures refineries have adequate fuel reserves to avoid the supply shortages that hike gas prices and penalize consumers. The measure reflects the Governor's proposal, with legislative guardrails added to protect consumers from any unintended consequences.

"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," said Assemblymember Hart. "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 from reduced gas prices."

"Our Assembly understands the assignment, and that is to do everything in our power to lower the cost of living in our state. I appreciate Speaker Rivas taking action to address gas price spikes and ensuring legislation gets the public hearings and consideration that Californians deserve," Majority Leader Cecilia Aguiar-Curry said.

"We must stop oil companies from raking-in record profits at the expense of Californians. During this important special session, the Assembly will convene public hearings that thoroughly vet proposals. We'll hear from experts and ensure that the public has a voice in the process. I'm committed to delivering solutions that rein-in soaring gas costs and provide real savings at the pump," Speaker Robert Rivas said.

"I'm glad to see the Assembly is moving this important proposal forward to save Californians hundreds of millions of dollars at the pump. Gas price spikes are profit spikes for Big Oil, and California won't stand by as families get gouged," said Governor Gavin Newsom.

California's oil market is uniquely vulnerable. The State's air quality standards and isolated fuels market mean that prices can be severely impacted by supply disruptions. Nearly all in-state supply comes from a handful of refineries-three in Northern California and five in Southern California, with only one small refinery in Central California. A single refinery outage could drastically reduce refining capacity, by up to 45% in Northern California and 35% in Southern California. This volatility, combined with the higher costs compared to other states, has placed an undue burden on residents with fixed or limited incomes and strained the broader economy.

To stabilize California's oil supply and prevent price spikes, the bill requires refineries to maintain adequate reserves and properly plan for refinery shutdowns. Specifically, the California Energy Commission will have the authority to require California's petroleum refiners to implement resupply plans and arrangements that adequately offset production losses from refinery maintenance. The Commission can only adopt these regulations if it determines that they will lead to lower average retail prices, increase the fuel supply, and reduce the price volatility at the pumps for consumers.

Gregg Hart represents the California Assembly's 37th Assembly District, which includes Santa Barbara, Goleta, Carpinteria, Montecito, Summerland, Buellton, Solvang, Lompoc, Guadalupe, Santa Maria, Orcutt, and Nipomo. He currently serves as the Chair of the Joint Legislative Audit Committee and Assembly Select Committee on the Nonprofit Sector.

CONTACT: Jimmy Wittrock, (916) 319-2037, [email protected]