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Gavin Newsom calls special session to address gas prices

IN SUMMARY:

Unable to pass bills he claims will lower gas prices in California, Gov. Newsom calls the Legislature back into session.

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Hours before the Legislature prepared to close out the year, Gov. Gavin Newsom called a special session to address gasoline prices, giving him more time to persuade lawmakers to act on a package of energy bills that he failed to pass in the final weeks of the regular session.

But the special session may already be in jeopardy, after the state Senate leader immediately rejected the governor’s call for the Legislature to convene this fall, during what would normally be a crucial campaign period for lawmakers ahead of the Nov. 5 election.

In what has become a frequent move, Newsom earlier this month proposed sweeping plans to lower energy costs for Californians just as the annual legislative session was coming to a close, leaving lawmakers little time to react or negotiate with the governor. But increasingly frustrated with the heavy-handed tactics, the Legislature was divided this time in its response, sinking Newsom’s measures when the Assembly refused to take them up.

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With his special session, Newsom can now extend the time that ran out tonight until Nov. 30, when the two-year legislative term formally ends, and inject a renewed sense of urgency into what has become an increasing focus of his political agenda: taking on the oil industry.

“Convening the session now allows the Legislature to begin that work immediately so that the state can resolve this important matter to establish the rules necessary to prevent price spikes next year and beyond,” said in a press release.

The governor’s order calls for the special session to begin today, but it does not say when the actual hearings will begin. His announcement caused an uproar in both chambers: While Assembly Democrats took a break to meet, there was a failed motion in the Senate to adjourn the session.

Newsom’s decision followed Assembly Speaker Robert Rivas’ refusal this week to “move forward bills that have not been sufficiently vetted with public hearings.”

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The governor’s office said in response that he and the Legislature had been working together on the proposal for months, noting that the first policy recommendation was shared with the Legislature in January and that there were legislative committee hearings on the topic in May.

Unlike the Assembly, Senate Democratic Leader Mike McGuire had opposed a special session, saying Friday that the Senate was “ready to pass the bills, send them to the governor and sign them into law.”

After the governor’s announcement, Rivas posted on X He said he appreciated the governor calling the special session: “I respect the Pro Tem’s position, the Assembly is united,” he wrote. “We want the public to have a voice in this process, and that hasn’t happened yet. We need to get this right.”

The package of energy-related bills included Senate Bill 950, authored by Democratic Senator Nancy Skinner, which would regulate refinery maintenance to prevent supply problems and price increases.

The other key bill in the package was Assembly Bill 3121, introduced by Assemblymembers Cottie Petrie-Norris and Gregg Hart, which would have given households a one-time credit of between $30 and $70. Petrie-Norris, D-Irvine, withdrew the bill from the Senate energy committee on Friday afternoon. The governor called the session back into session before the fate of the full package of bills was determined.

It is the second time in two years that Newsom has called a special session; in 2022, he called one in December to push for a tax on oil industry profits. That session, while initially aimed at taxing excessive oil profits resulted in the creation of an oversight division within the California Energy Commission to analyze and potentially regulate oil profits.

Newsom referenced the ongoing work of that division in his new proclamation, but said California remained vulnerable to price spikes when refineries undergo maintenance.

In his new proposal, the governor wants to give the energy commission more authority to impose minimum fuel inventories at refineries and require them to develop plans during maintenance.

Gasoline prices today in California average $4.64 per gallon, according to the American Automobile Association, compared with the national average of $3.34.

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