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October 2, 2024 - SACRAMENTO — On Tuesday, lawmakers in the California State Assembly approved legislation that will require oil companies to maintain minimum fuel reserves to bring stability to prices at the gas pump.
Assembly Bill x2-1, authored by Assemblymembers Gregg Hart (D-Santa Barbara) and Cecilia Aguiar-Curry (D-Winters), received three informational and legislative hearings during this year’s special session on gas price spikes and supply, amounting to no more than 16 hours of public discussion and testimony.
Because of the Assembly’s public and transparent process, the legislation set forth protects frontline communities by prohibiting the construction of additional storage, mandating that workforce safety is the primary consideration when establishing regulations, and reinstates the stakeholder advisory committee ensuring that industry, labor and environmental justice have a seat at the table.
The Assembly also passed AB x2-9, mandating the California Air Resources Board to complete its review of increased ethanol fuel blend by summer 2025, among which will also address supply concerns and other provisions.
Both bills will now go to the Senate for a vote as part of the special session.
What Speaker Robert Rivas Says
“I thank my Assembly colleagues for returning this special session to closely vet today’s proposals and ensure the public has a voice in this process. It’s the right thing to do, and it has made for stronger and smarter policy. Now, these bills not only require oil companies to maintain minimum fuel reserves to stabilize gas prices, but they also protect industry workers and frontline communities. We delivered an important and needed solution. But our work is far from over, and we will continue to fight to lower the cost of living in our state for all Californians,” Speaker Robert Rivas (D-Salinas) said.
What Assemblymember Gregg Hart Says
“The Assembly took a stand for California consumers today. The facts are clear- when gas prices spike, it costs everyday Californians billions at the pump, while the oil industry profits. ABX2-1 will hold oil refineries accountable and promote stability in the fuel market. Price-gouging at the pump should not be the norm. I look forward to advancing this bill in the Senate,” Assemblymember Gregg Hart (D-Santa Barbara) said.
What Majority Leader Cecilia Aguiar-Curry Says
“This bill was the subject of an extensive amount of scrutiny, testimony and participation by Members of the Special Committee. I am proud of the work done by our Chair, Assemblymember Petrie-Norris, my colleague and joint author Assemblymember Hart, and all the Committee Members who spent no more than 16 hours hearing testimony and asking in-depth questions about AB x2-1,” Assembly Majority Leader Cecilia Aguiar Curry (D-Winters) said. “The language is clear that no regulations will move forward unless there is a tangible benefit to California gas consumers, and that the safety of our workers is paramount in any action by the State. We will actively engage in the regulatory process to assure those goals are met.”
What Assemblymember Cottie Petrie-Norris Says
“As Chair of the Special Session Committee on Petroleum and Gasoline Supply, I want to acknowledge the hard work of the Speaker, the authors, and the committee members, all of whom spent countless hours diving into the topic of California’s petroleum market and ways to lower prices for the Californians whom we represent. Transitioning California’s fuel market is one of the critical missions of our time, and I am committed to ensuring that we rein in price spikes and soaring prices,” Assemblymember Cottie Petrie-Norris said.
How We Got Here
At the conclusion of the regular 2023-24 legislative year in August, Governor Gavin Newsom called for a special session to address surging spikes in gasoline prices and supply.
In early September, the Assembly announced a plan for legislative action, with the introduction of AB x-2 1 by joint authors Assemblymember Gregg Hart (D-Santa Barbara) and Assemblymember Cecilia Aguiar-Curry (D-Winters) to increase minimum fuel levels and liquidity, with the goal of lessening the spikes in the prices Californians’ pay at the pump. Assemblymember Cottie Petrie-Norris (D-Irvine) also introduced AB x2-9, mandating the California Air Resources Board to complete its review of increased ethanol fuel blend by summer 2025, among which will also address supply concerns and other provisions.
The legislation reflected Governor Newsom’s proposal, with significant additional legally-binding safeguards added by the Assembly to protect consumers from unintended consequences.
Speaker Rivas also announced the formation of the Petroleum and Gasoline Supply Committee, a bipartisan group of 19 members, led by Chair Assemblymember Cottie-Petrie-Norris (D-Irvine) and Vice Chair Jim Patterson (R-Fresno). The committee held three focused hearings, with no more than 16 hours of testimony and discussion from experts, stakeholders and the public, ensuring the legislative proposals were thoroughly vetted.
The legislation passed on the Assembly Floor today represents a balanced solution for all Californians that includes safeguards to protect consumers, prioritizes worker safety and addresses supply concerns without requiring the construction of new storage.
Speaker of the Assembly Robert Rivas represents California’s 29th Assembly District, which includes all of San Benito County and portions of Monterey, Santa Cruz, and Santa Clara Counties. For a full biography of Speaker Rivas, click here.
Source: Speaker of the Assembly Robert Rivas
