Governor Newsom signs law to curb gas price hikes and save money for Californians | Governor of California

“With this new law, the big oil companies are now responsible for stabilizing pump prices. It’s a critical achievement, but our work is not done yet. I will continue to fight to lower the cost of living, because housing, shopping and everyday necessities must be affordable for all Californians. ” – Assembly Speaker Robert Rivas (D-Salinas)

“Today, we have come together to provide much-needed relief at the pump and help keep hard-earned dollars in the pockets of Californians. I thank Governor Newsom, Speaker Rivas, and members of the Senate and Assembly for taking swift action on and this critical issue. That said, we will continue to help lower the cost of living for people in all corners of the Golden State.” – Senate President pro Tempore Mike McGuire (D-North Coast)

Why is it necessary

Price spikes at the pump are profit spikes for oil companies, and are largely caused by refiners not filling up when they go down for maintenance. If this proposal had gone into effect last year, Californians would have saved hundreds of millions — if not billions — of dollars at the pump according to an analysis from the Division of Petroleum Market Oversight (DPMO):

Experts have come out in support of the move, including Stanford economists who hailed the proposal as “an economically sustainable policy that addresses an important problem in a well-planned way” and “additional supply will free up capacity refineries serve Nevada and Arizona, and lower prices in these markets.”

Supporters of the bill include mayors, local leaders, consumer organizations, environmental advocates, labor, business leaders and consumer groups. Last month, the Governor and supporters met and discussed how rising gasoline prices affect the daily lives of millions of Californians, and shared why this project will help families in California.

How we got here

The governor called a special meeting to focus on keeping Californians’ money at the pump. The proposal authorizes the California Energy Commission (CEC) to require petroleum refiners to store a minimum amount of refined fuel throughout the distribution chain to avoid supply shortages that result in higher prices at the pump for consumers. . It also authorizes the CEC to require refiners to schedule refills during scheduled maintenance. The text of the announcement calling the special meeting is available here.

After the 2022 oil price hike, Governor Newsom called a special session and worked with the Legislature to sign a package of reforms responsible for big oil.

A new expert in California has found that the high prices of gasoline are caused by questionable market trading, maintenance of the refinery without proper preparation, and others.

In January of this year, the watchdog sent Governor Newsom and the legislature a letter outlining specific proposals to reform California’s gasoline market, which included a lower demand for price caps due to lack of sustainable supply.

The government’s petrol price expert also found that, by 2023, petrol prices had risen sharply due to ineffective refineries without an adequate recovery plan, which led to net clearing increased as retail prices rose – indicating that clearinghouses played a major role. of price increases between July and September 2023.

Calling experts, community leaders, and consumer advocates

Today the Governor also announced his appointment to the Independent Consumer Fuels Advisory Committee:

Martha Dina Arguello, of Los Angeles, has been appointed to the Independent Consumer Fuels Advisory Committee. Arguello has been the Managing Director at Physicians for Social Responsibility – Los Angeles since 2007. He was Director of Health and Environmental Programs at Physicians for Social Responsibility – Los Angeles from 1999 to 2007. Arguello I am Co-Founder and Co-Chair of Standing Together Against. Neighbors and Californians Digging for a Healthier and Greener Economy. He is a member of the California Environmental Justice Advisory Committee for AB 32 and the Steering Committee of Californians for Biodiversity Change. This position does not require Senate confirmation and compensation is $100 per diem. Arguello is a Democrat.

Michael Jorgenson, of Mill Valley, has been appointed to the Independent Consumer Fuels Advisory Committee. Jorgenson has served as an Assistant Attorney General in the California Department of Justice, Office of the Attorney General since 2018. He was an Assistant District IV Counsel in the Marin County Counsel’s Office from 2017 to 2018. Jorgenson served in a number of roles at the California Department of Justice, Office of the Attorney General from 2003 to 2017, including Deputy Assistant General in the Civil Rights Division, Supervising Assistant General in the Civil Division and Deputy Deputy Minister of Public Affairs. He was an Associate at Berman Tabacco from 2001 to 2003 and at Kelly Gill Sherburne & Herrera from 1999 to 2001. He received a Juris Doctor degree from the University of San Francisco School of Law and a Bachelor of Arts degree in Economics and History from the University. of Michigan. This position does not require Senate confirmation and compensation is $100 per diem. Jorgenson is a Democrat.

Neale Mahoney, of Stanford, has been appointed to the Independent Consumer Fuels Advisory Committee. Mahoney has been a Professor of Economics at Stanford University since 2020. He was a Special Advisor for Economic Policy at The White House from 2022 to 2023. Mahoney was a Professor of Economics at the University of Chicago in from 2013 to 2020. He received a Doctor of Philosophy degree in Economics from Stanford University and a Bachelor of Science degree in Applied Mathematics and Economics from Brown University. This position does not require Senate confirmation and compensation is $100 per diem. Mahoney is a Democrat.

Deborah “Debbie” Meeks, of Walnut Creek, has been appointed to the Independent Consumer Fuels Advisory Committee. Meeks has been the Director of United States West Coast Strategy and Business Coordinator at Shell USA since 2021. He was the Director of Alliances and Portfolios at Shell US Retail from 2017 to 2021. Meeks was the Director of Americas and Mexico Regions, Senior Account Executive, and Senior Account Executive. Account Manager at Shell Catalysts and Technologies from 1995 to 2017. Received a Bachelor of Science degree in Chemical Engineering from California State University, Long Beach. This position does not require Senate confirmation and compensation is $100 per diem. Meeks is a Democrat.

Norman Rogers, of Santa Ana, has been appointed to the Independent Consumer Fuels Advisory Committee. Rogers has been Second Vice President at United Steelworkers Local 675 since 2021, and Plant Operator in Oil Movements at Marathon Petroleum Corporation since 2018. He was Plant Operator for Oil Movements at Tesoro Refinery from 2013 to 2018. Rogers was a member of the Plant Fire Department at Carson Refinery from 2001 to 2021. He was Plant Operator for Oil Movements at BP from 2001 to 2013, and Arco Refinery from 1999 to 2001. This position does not require Senate confirmation and compensation is $100 per diem. Rogers is registered without a party nomination.

Astrid Zuniga, of Modesto, has been appointed to the Independent Consumer Fuels Advisory Committee. Zuniga has been the President of the United Domestic Workers/AFSCME 3930 since 2024 and was the Vice President from 2016 to 2024. He has been the Executive Secretary/Treasurer of the Stanislaus and Tuolumne Central Labor Council since 2013, and a Trustee of Home Support Services since 1998. . Zuniga is a member of the California Democratic Party Executive Board and the Women’s Advisory Committee for AFSCME International. This position does not require Senate confirmation and compensation is $100 per diem. Zuniga is a Democrat.