California Assembly won't act on Gov. Newsom's oil and gas proposal before end of legislative session (2024)

With less than 48 hours left in the state's legislative session, California lawmakers in the Assembly will not move forward with Gov. Gavin Newsom's proposal to set new regulations for the oil and gas industry. Assembly Speaker Robert Rivas on Friday signaled he is open to the governor's call for a possible special legislative session on the issue. "The Assembly has been ready to stop skyrocketing prices at the gas pump and deliver significant relief to Californians to lower their monthly energy bills," Rivas said in a statement to KCRA 3. "We shared our affordability legislative proposals in June, and we’re on the same page with Governor Newsom about the absolute urgency of getting this done. If the Governor calls a special session, we’re going to do the work and deliver results. What I’m not going to do is push through bills that haven’t been sufficiently vetted with public hearings. Doing so could lead to unintended consequences on Californians’ pocketbooks." The governor's proposal, which was written into SB 950 on Wednesday afternoon, tries to prevent gas price spikes by authorizing the California Energy Commission to require oil refiners to maintain a minimum fuel reserve to avoid supply shortages that create higher prices for consumers. The idea has received resistance from some lawmakers who have said there has not been enough time. Chevron on Friday sent the California Energy Commission a letter warning Newsom's proposal would increase gas prices for customers beyond California, with impacts in Nevada and Arizona. Read the letter here."California policymakers continue to risk making the state 'uninvestable,' which erodes energy infrastructure and increases consumer costs," wrote Andy Walz, president of Chevron's America Products.Newsom earlier this week threatened to call a special legislative session if lawmakers did not approve it by Saturday's deadline. "We appreciate the Legislature’s partnership in working to reduce costs for Californians," said Newsom's spokesperson Izzy Gardon. "Whether it’s during this legislative session or in a special session, the Governor remains focused on the ultimate goal — lowering costs for Californians. We are thankful for the Senate and Assembly’s continued commitment to this effort."The Assembly's decision is expected to cause tension with the State Senate. Senate Pro Tem Mike McGuire on Thursday said he wanted to act on the proposal now. "The Senate will not support convening a special session this fall. Californians shouldn’t have to wait for relief at the pump and on their utility bills," McGuire said in a statement. "We’ve been working nonstop to deliver results and get these measures across the finish line. We’re ready - right now - to get the bills passed, sent to the Governor, and signed into law." As of Friday, the average price of a gallon of regular unleaded gas in California is $4.63. That's down from $5.29 a year ago and $5.27 at the same period in 2022, according to KCRA 3's gas prices tracker. Prices peaked at $6.44 in June 2022, AAA said. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter