Speaker Rivas Announces Assembly Legislation to Address Gasoline Price Spikes and Save Californians Money

Assembly leadership ensures legislation receives the public hearings and consideration that Californians deserve

• Cynthia Moreno
• Press Secretary
• 916-319-2029
• [email protected]

As part of the Legislature's special session to prevent surging gas prices, joint authors Assemblymember Cecilia Aguiar-Curry (D-Winters) and Assemblymember Gregg Hart (D-Santa Barbara) will introduce a bill to increase crude oil and fuel capacity, with the ultimate goal of lessening the spikes in the prices Californians' pay at the pump. This legislation reflects the Governor's recent proposal, and with additional safeguards added by the Legislature to protect consumers from unintended consequences.

Principal co-authors of the bill include the following Assembly members: Dawn Addis (D-Morro Bay), Steve Bennett (D-Oxnard), Isaac Bryan (D-Los Angeles), Corey Jackson (D-Riverside), Ash Kalra (D-San Jose), Alex Lee (D-San Jose), and Jim Wood (D-Healdsburg).

"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 can rein-in soaring gas costs and provide real savings at the pump," Speaker Robert Rivas said.

"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.

"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," Assemblymember Gregg Hart said. "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."

"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," Governor Gavin Newsom said.

Stabilizing California Gas Prices

California's oil market is uniquely vulnerable. The small number of refiners in the market mean that prices can be severely impacted by supply disruptions.

Nearly all in-state supply comes from a handful of refineries - almost 90% of state fuel production occurs at seven refineries operated by only five companies. One or more refinery outages can drastically reduce state refining capacity, especially if there is insufficient fuel supply available in advance of an outage.

This price volatility has placed an undue burden on residents, especially those with fixed or limited incomes, and has strained the broader economy.

To stabilize California's oil supply and reduce the pain of price spikes, this Assembly bill requires refineries to maintain adequate reserves and properly plan for refinery shutdowns. Specifically, the California Energy Commission will have the authority to require the state's petroleum refiners to have minimum supply inventories and resupply plans for refinery maintenance periods. The Commission will only be able to adopt these supply regulations if it first determines that they are in the best interests of consumers, will lead to lower average retail prices, increase the fuel supply and reduce the price volatility at the pump.

For additional information, please contact:

Speaker's Robert Rivas Press Secretary Cynthia Moreno: [email protected].

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