The California Senate on Friday advanced Gov. Gavin Newsom's (D) controversial proposal to tighten rules on fuel storage at refineries. This is an attempt to avoid future supply shortages and pump price increases.
“Californiaans are one step closer to getting the protection they need from big oil's soaring prices,” Newsom said. stated in a statement After the proposal was passed in a special session.
“We are grateful to our partners in the Senate for helping us save Californians money,” the governor continued. “Last year's price gouging cost consumers more than $2 billion, and we are taking the necessary steps to end this.”
of ABx2-1 BillThe bill, approved by Congress earlier this month, would allow states to require oil refiners to maintain minimum inventories of the fuel. By doing so, the governor's office explained, it will prevent supply shortages that would lead to higher gasoline prices for consumers.
The bill, which must return to the Legislature for a final consent vote, would give the California Energy Commission the power to mandate resupply plans for refiners during maintenance outages.
“Rising gas prices are impacting everyone in California and nearly every aspect of our lives, from the amount we pay for gas to the price of what we buy at the store,” said Senate Pro Tempore Mike. McGuire (Democrat) said. In a statement.
“We all benefit from putting mechanisms in place to prevent rising costs and worsening household finances,” Mr McGuire added.
Nevertheless, the bill failed to pass unanimously in both chambers, with some Democrats joining Republicans in voting against the bill or abstaining from voting.
After ABx 2-1 was passed by Congress earlier this month, the Western States Petroleum Association, an industry group representing oil companies, called the proposal rushed and incomplete. Characterized.
The group's president and chief executive officer, Catherine Rehuis Boyd, said she is not sure how many days refiners will have to hold supply from the market and how high storage costs will be. I questioned it.
“This cost reduction theory is just a theory,” she says. stated in a statement. “Without a deep understanding of the complexities of operating a refinery, policymakers are gambling with consumers' wallets.”
On the eve of the state Senate vote, representatives of several labor unions I sent a letter to the congressman to express opposition to the bill.
The authors specifically note that the California Energy Commission, an unelected ratepayer-funded organization, has “unprecedented regulatory power to bureaucratically direct the maintenance of the safety of the state's refineries.” I objected to the fact that it was acquired.
“When we collectively tried to raise legitimate safety concerns about ABX2-1, we were dismissed, gaslighted, and told by the same lawyers and economists that there was nothing to worry about.” added the agent.
State Sen. Brian Dahl (R) expressed concern that the bill would “create artificial shortages by restricting supply” and called the proposal “an attempt to collect money at the pump from oil refiners and consumers.” “plan,” he explained.
still Sacramento Bee editoriala group of Stanford University economists called Newsom's proposal “on the right track,” calling past price hikes and shortages “painful for millions of Californians.” Ta.
“With so much market power, there is limited incentive to build up strong foreign exchange reserves,” the economists said.
