Union of Concerned Scientists Inc.
10/11/2024 | Press release | Distributed by Public on 10/11/2024 13:59
California Plan to Prevent Gasoline Price Spikes During Refinery Shutdowns Passes the Senate
SACRAMENTO, Calif. - The California state government just moved one step closer to protecting its residents from sudden increases in gas prices.
Earlier today the California Senate passed a Gov. Gavin Newson proposed bill requiring refiners to store enough gasoline to protect consumers from price spikes at the pump.
The bill, which would make California the first state in the nation to impose minimum inventory requirements on oil refiners when they go offline for maintenance, was approved last week by the Assembly. The bill will return to the Assembly next week for a concurrence vote and then will head to the governor's desk for his signature.
The following statement is by Daniel Barad, western states policy manager at the Union of Concerned Scientists:
"The bill fixes an issue with oil supply and demand. When refiners don't set aside adequate fuel in advance of shutdowns, gas prices spike for Californians. This bill will help avoid those spikes by requiring refiners to store a minimum amount of fuel during shutdowns.
"I commend Gov. Newsom, Speaker Rivas, Pro Tem McGuire and the entire legislature for fighting back against the oil industry's efforts to manipulate the market and harm consumers with high gas prices. Our leaders understand that California's gasoline refining sector is becoming highly concentrated and is leading the effort to ensure oil companies don't abuse their market power by holding them accountable for their management of refinery shutdowns.
"Establishing requirements for minimum fuel storage is 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."
See the resources attached below for more information:
Fact Sheet: A Petroleum Phaseout Plan for California