Saturday evening, Aug. 31, just prior to the end of the 2023-24
legislative session, Gov. Gavin Newsom issued a proclamation calling for
a special legislative session to address concerns about the high price
of gasoline in California.

Earlier in August, Newsom had offered a set of bills to address this
problem, but no action was taken, which is the reason he wants the
legislature to convene in special session. However, the Assembly and the
State Senate are not in agreement about convening a special session.

Assembly Speaker Robert Rivas (D-Salinas) said the Assembly would
convene and it began its special session Saturday night. Rivas and
Committee chairs have not set a date for hearings on the bills.

Senate President pro Tempore Michael McGuire (D -North Coast) said he
does not plan to call the Senate back. McGuire argued that action could
have been taken during the regular session. The Senate was ready and
does not need a special session. It adjourned Sunday morning, just after
midnight.

“We have all been working on this California Made and Clean Energy
Package for months, and some of these proposals have been in discussions
for the better part of a year. The Senate always had the votes and was
ready to get these important measures across the finish line this
legislative year and deliver the relief Californians need at the pump
and on their electricity bills,” McGuire said in his public statement.
“We won’t be convening a special session this fall, but we look forward
to continuing conversations with the Governor and Speaker about this
critical issue in the days and weeks to come.”

His Republican colleague, Minority Leader Brian Jones (R-San Diego)
agreed fully with McGuire’s response.

“Thank you pro Tem McGuire for defending the integrity of the
legislative process and telling the governor ‘No’,” said Jones.
“Governor Newsom has been sitting on this bill proposal since January,
and now, with no plan in place, he’s trying to force an unnecessary
special session. Just like any other proposal, the governor’s bill to
raise gas prices must be fully scrutinized in an open, public hearing
where all its consequences can be properly evaluated.”

However, the Newsom’s office indicated that the State Constitution gives
the Governor the authority to call a special session, and the individual
houses do not have a choice.

The governor’s office pointed to the text of the state constitution,
which reads: “On extraordinary occasions the Governor by proclamation
may cause the Legislature to assemble in special session. When so
assembled it has power to legislate only on subjects specified in the
proclamation but may provide for expenses and other matters incidental
to the session.”

Newsom’s legislative proposal would have authorized the California
Energy Commission to require that petroleum refiners maintain a minimum
fuel reserve to avoid supply shortages that create higher prices for
consumers.

In his press release for the special session, he stressed, “It should be
common sense for gas refineries to plan ahead and backfill supplies when
they go down for maintenance to avoid price spikes. But these price
spikes are actually profit spikes for Big Oil, and they’re using the
same old scare tactics to maintain the status quo. We look forward to
working with our Legislative partners during the special session to act
on this urgently needed legislation.”

Last Tuesday, Sept.3, as part of the special session on gas prices,
Newsom and Rivas announced legislation intended to prevent gasoline
price spikes.

Assembly Bill 1, which joint authors Majority Leader Cecilia
Aguiar-Curry (D- Winters) and Assemblymember Gregg Hart (D-Santa
Barbara) introduced last week, addresses the problem of gasoline price
spikes at the pump.

AB 1 would repeal the Independent Consumer Fuels Advisory Committee and
establish a 6-member Expert Advisory Committee to advise the Energy
Commission.

Currently, the Energy Commission, in consultation with other agencies,
considers ways to manage necessary refinery turnarounds and maintenance
in order to limit the impacts of maintenance-related production losses
on fuel prices. The Commission may promulgate regulations governing the
timing of turnaround and maintenance.

To stabilize California’s oil supply and prevent price spikes, the bill
requires refineries to maintain adequate reserves and properly plan for
refinery shutdowns. AB 1 would authorize those regulations to include
criteria that are required to be met before a refinery commences a
turnaround or maintenance event. The Energy Commission, along with the
Expert Advisory Committee would consider the effects of refiners’
inventories of fuel and feedstocks and blending components on the price
of transportation fuels in California.

“Our Assembly understands the assignment, and that is to do everything
in our power to lower the cost of living in our state. I appreciate
Speaker Rivas taking action to address gas price spikes and ensuring
legislation gets the public hearings and consideration that Californians
deserve,” Aguiar-Curry said in a press release with the legislation.

The Republicans have offered their own response to the gas price
problem. “Anyone who took the time to actually read the bill from
Assemblyman Tom Lackey (R-Palmdale) can see all the money drivers would
save on their taxes would be backfilled with money from the state’s
general fund,” said Republican leader James Gallagher (R Yuba City).

Lacky’s bill would suspend California’s gas tax of 60 cents per gallon
for one year.