The California State Assembly passed a bill on Tuesday, supported by Governor Gavin Newsom, which aims to prevent gas price spikes, especially during the high-demand summer months. The bill would allow state energy regulators to require companies to maintain a certain fuel inventory, using existing storage to avoid sudden price hikes when refineries close for maintenance. However, the state must first confirm that the benefits of these rules would outweigh any potential cost increases for consumers.

Assemblymember Gregg Hart, who authored the bill, said it encourages refineries to plan ahead, saving Californians money at the pump while still allowing refineries to maintain profits. Another bill advanced by the Assembly requires a report by July 1, 2025, on ways to increase gas supply. Both bills now await the state Senate’s approval.

Supporters claim the bill could save billions for California residents, while opponents argue that it may inadvertently raise gas prices and compromise worker safety by allowing more state control over refinery schedules. Catherine Reheis-Boyd, CEO of the Western States Petroleum Association, expressed concerns that delaying necessary refinery maintenance could lead to accidents.

Governor Newsom’s proposal follows his ongoing conflict with the oil industry over profits and emissions, as his administration claims oil companies benefit from gas price surges. He first introduced the legislation in August, during a special legislative session he called after Assembly Democrats asked for more time to consider the bill.

Senate President Pro Tempore Mike McGuire said the Senate will vote on the bill soon, with the goal of providing gas price relief to Californians.

This isn’t Newsom’s first attempt to pressure lawmakers into passing oil and gas regulations. In 2022, he called a special session to push for a tax on oil company profits, later evolving the proposal into a penalty for excessive profits, which was signed into law months later.

Newsom stated that his current proposal would help families avoid tough choices, like choosing between gas and groceries. Californians face the highest gas prices in the U.S., with the current average at $4.68 per gallon compared to the national average of $3.20. The California Energy Commission notes that the state’s price spikes are exacerbated by the fact that four refiners control 90% of the fuel supply, making any refinery maintenance shutdowns have a significant market impact.

Republican lawmakers oppose Newsom’s minimum inventory proposal, arguing that there isn’t sufficient evidence it will lower gas prices. Assembly Republican Leader James Gallagher pushed for an exemption for transportation fuels from the state’s cap-and-trade program as a solution to reduce prices, but this proposal was blocked last week.

Critics of Newsom’s bill argue that it doesn’t directly address the high gas prices currently affecting Californians. Assemblyman Gallagher questioned the effectiveness of the special session, asking why no legislation is being considered that would immediately lower prices at the pump.