California Legislature sends crackdown on Big Oil to governor
Alan Riquelmy
SACRAMENTO, Calif. (CN) — California Governor Gavin Newsom signed a controversial oil and gas bill that could lead to more state oversight of refineries on Monday following a 42-16 vote to approve it in the state Assembly.
Newsom — who called the special session for the Legislature to address rising prices at the pump — had harsh words for the oil industry at a bill signing ceremony, saying it had manipulated and lied to the public.
“I know this wasn’t easy,” Newsom said of the legislative process. “I can only imagine the stuff you said behind my back.
“It’s about time,” he added moments later. “It’s about time we stood up.”
Assembly Bill 1 — authored by Democratic Assemblymembers Gregg Hart, of Santa Barbara, and Cecilia Aguiar-Curry, of Winters — is intended to curb higher gas prices by regulating oil refiners. It gives the California Energy Commission the power to make rules that control refiner maintenance schedules. It also allows the commission to set a minimum inventory threshold refiners must have. Certain criteria must also be met before the commission could implement the new regulations.
“I believe we have a stronger policy before us today than when we started,” Hart said.
Speaking in favor of his bill, Hart said over 20 hours had been spent examining the state’s fuels market and in debate about the bill. Hart noted that when it initially passed the Assembly on Oct. 1, he committed to working on potential changes that would come.
The bill saw revisions after its introduction. It now ensures that any regulations issued by the energy commission must protect the health and safety of the public. Additionally, regulations can’t modify existing requirements for a skilled workforce.
Aguiar-Curry emphasized that the energy commission would issue no regulations unless there was direct benefit to consumers.
The bill landed on the governor's desk Monday having passed both legislative chambers in the special session, after Lawmakers first debated the bill on Oct. 1 and on Friday, when it passed the state Senate, leading to a successful Monday Assembly vote, which ultimately concurred with the Senate amendments, despite industry and Republican opposition.
Industry representatives have told lawmakers that their actions would lead refiners to leave the state, a point Republicans hammered as the bill moved through the legislative process. Democrats pointed to research showing that unplanned refinery maintenance played a role in spiking gas prices. Additionally, California saw higher prices at the pump when gas inventory dipped below 15 days.
Republicans, many of them opposed to the bill, unsuccessfully attempted some procedural maneuvers to stymie the legislation.
Assemblymember and Minority Leader James Gallagher, a Yuba City Republican, made a motion to adjourn the special session before a vote on the bill occurred. Democrats swiftly defeated it before moving on to pass the oil and gas bill. Other than Hart and Aguiar-Curry, no other representatives spoke Monday about the bill on the Assembly floor.
Gallagher slammed the bill after the session, saying it will have the opposite effect and lead to price increases at the pump.
“Once again, the Democrats could not say ‘no’ to Gavin Newsom,” Gallagher said. “Nothing in this legislation does anything to lower the price of gas.”
Gallagher pointed to a handful of bills introduced by Republicans during the special session that he said would have addressed gas prices.
They would have suspended the motor vehicle fuel tax for a year, take $3 billion from the High-Speed Rail Authority and use it to give a $100 rebate to registered owners of gasoline-powered passenger vehicles and remove transportation fuels from the state’s cap-and-trade program.
“They didn’t even get a hearing,” Gallagher said.
The minority leader also pointed to a bill that would have suspended the California Air Resources Board’s low-carbon fuel standard. That board is expected to vote next month on the standard, which some fear could lead to an increase in the cost of gas.
The passage of Assembly Bill 1 heralded the end of the special session. Assemblymembers also passed a state Senate resolution that formally adjourned the Legislature.
Assemblymember Jim Wood, a Healdsburg Democrat, has served as speaker pro tempore this year — the person at the helm of the Assembly during its sessions. He opted against running for reelection this November.
“This is the last time I’ll bang the gavel,” he said as members began to applaud. “Thanks for the memories.”