Will Newsom call a second special session on gas prices?

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With Saturday’s deadline looming to pass the last flurry of bills before adjourning, legislators can see the finish line. But they might have more work ahead: Gov. Gavin Newsom is considering calling a special session to push legislation on gas prices and oil regulations.

The idea, which Newsom discussed with legislative leaders in private meetings this week, is receiving resistance from some Democrats . Today, Senate Democratic leader Mike McGuire went public with his objections: “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. Inflation has been impacting the lives of millions and waiting for a special session will only make the problem worse for working families.”

And the possibility of holding a fall session could be a negotiating tactic:

Newsom’s office told CalMatters the session won’t be necessary if lawmakers pass a proposal the governor announced earlier this month , which directs the California Energy Commission to require oil refineries to keep a minimum stock of fuel as a way to curb price spikes. The proposal is now a bill carried by Oakland Sen. Nancy Skinner and Santa Barbara Assemblymember Gregg Hart , both Democrats.

On Wednesday, the commission and its oversight group that monitors petroleum markets also urged the Legislature to require refineries to maintain reserves and “build a buffer” within existing inventory. Otherwise, officials argue, “the state will likely continue to experience a perpetual cycle of gasoline price spikes, year after year.”

In response to the possible special session, GOP Senate leader Brian Jones of San Diego called for Democratic leaders to “resist Newsom’s undemocratic threats” and for the governor to wait until December when the next session begins. Assembly Republican leader James Gallagher of Chico said he’s ready to call Newsom’s bluff and already knows the first three bills he’d introduce .

• Jones , on social media : Newsom is “scrambling to push another empty promise — one that will almost certainly raise prices and lead to gas shortages.”

This would be the second time in two years that Newsom’s crusade against Big Oil involved a special session. In 2022, he called legislators back to look into oil company profits and suspected price gouging . Though the governor initially talked about taxing excessive oil profits , his efforts ultimately resulted in establishing the watchdog group to analyze and potentially regulate oil profits. (Still, that was enough for the governor to say that “ California took on Big Oil and won .”)

For its part, the oil industry has already pushed back against imposing more rules on fuel storage. Shortly after Newsom announced his proposal, the head of Western States Petroleum Association called it “regulatory malpractice,” and argued that the Newsom administration was “desperate to demonstrate some action” from the recently formed watchdog group. The head of the American Fuel & Petrochemical Manufacturers also argued that mandating supply would “ increase prices for everyone, all the time .”

Californians pay some of the highest gas prices in the nation. As of Wednesday, residents are paying $4.62 a gallon for regular unleaded , compared to the national average of $3.36.

CalMatters covers the Capitol: We have guides and stories to keep track of bills and your lawmakers ; find out how well legislators are representing you ; explore the Legislature’s record diversity ; and to make your voice heard .

CalMatters events: The next is Sept. 12 on the battle over California’s groundwater. Register here to attend virtually. On Sept. 19, CalMatters economy reporter Levi Sumagaysay , who is covering the homeowners’ insurance crisis , will interview California Insurance Commissioner Ricardo Lara. Register here to attend in person at our Sacramento offices or virtually.

Other Stories You Should Know

Big AI bill moves ahead

A California artificial intelligence bill that is getting national attention cleared a key hurdle Wednesday .

As CalMatters tech reporter Khari Johnson explains, the measure scraped by the Assembly with the minimum 41 “yes” votes. After receiving final Senate approval, it will head to the governor’s desk. It’s unclear what Newsom will decide, though during an AI conference in May, he warned against discouraging the AI industry with overregulation.

The expansive bill aims to increase transparency and safety around AI development and to protect whistleblowers at AI companies. Among other things, it requires developers of the most powerful AI tools to test whether their programs have the ability to attack public infrastructure, trigger severe cyber attacks or set off mass casualty events.

• Sen. Scott Wiener , a San Francisco Democrat and bill author, in a statement: “Innovation and safety can go hand in hand — and California is leading the way.”

Learn more about the AI bill in Khari’s story.

On TV: Khari and producer Robert Meeks have a video segment on Khari’s previous story on how tech companies strongly oppose the AI measure . It’s part of our partnership with PBS SoCal. Watch it here . SoCalMatters airs at 5:58 p.m. weekdays on PBS SoCal .

In other legislative news:

• Hot-button bills: CalMatters Capitol reporter Sameea Kamal looks into controversial bills and the impact they could have in an election year . Democrats in safe seats are pushing a measure to assist undocumented immigrants with homeownership, and another to enable judges to review sentences for prisoners serving life without parole, carried by Campbell Sen. Dave Cortese . While the bills are drawing ire from Republicans and could hurt fellow Democrats, their authors make no apologies. As Cortese put it:  “The best policy … is just keep doing what you think is the righteous thing to do.” Read more on end-of-session politics in Sameea’s story.

• Bill tracker: CalMatters is keeping watch on legislation on Newsom’s desk . Our latest includes measures that would designate “entertainment zones” to allow more alcohol sales outdoors (from politics intern Jenna Peterson ); require manufacturers of corn masa flour to add folic acid (from health reporter Ana B. Ibarra ); and cap how many empty beds the state prison system can have (from criminal justice reporter Nigel Duara ).

Why so many CHP vacancies?

From CalMatters’ Nigel Duara:

About one in six California Highway Patrol positions are vacant, a rate much higher than in 2019, despite massive raises in the last two years.

The jobs are unfilled at a sensitive time for Gov. Newsom, whose administration earlier this month agreed to a new contract with the union that represents CHP officers . The deal is expected to cost $500 million over the next three years through a combination of raises and enhanced pay incentives.

Newsom has been deploying CHP officers to combat local crime challenges in Oakland and other cities. He’s also been promoting a recruiting campaign called CHP 1000 that he launched in 2022 to hire hundreds of new officers .

CHP officers got a 7.9% wage increase in 2023, marking their biggest raise in 20 years. In 2022, they received a 6.2% general salary increase . Both are historically high raises for the officers.

Rookie CHP officers today can expect to earn up to $117,000 in the first year on duty, according to the agency.

For reasons the Legislative Analyst’s Office couldn’t explain in a report released last week , the CHP officer vacancy rate skyrocketed by 94% between 2015-2023. In 2019, just 5% of CHP positions were unfilled.

Part of the problem, the analyst’s office report contends, is that the CHP doesn’t face any consequences for failing to make new hires.

• The report: “The current formula does not contain any factor that adjusts pay increases based on the success or failure of CHP to actually recruit and retain employees.”

Raises for CHP officers by state law are based on the average compensation at five other law enforcement agencies: The Los Angeles County Sheriff’s Office and the police departments in Los Angeles, San Diego, Oakland and San Francisco — the five biggest police jurisdictions at the time the law was passed in 1974.

The California Association of Highway Patrolmen union considers it a good deal because it doesn’t have to negotiate with the governor over wage increases. It’s the only state employee union with that arrangement.

Read more on the legislative analysis from Nigel.

California Voices

CalMatters columnist Dan Walters: Months after the $20 hourly minimum wage for fast food workers took effect, its impact on workers and businesses remains unclear .

California’s water and wastewater treatment systems face a looming labor shortage, so it’s vital that more is done to promote careers in the field, writes Travis Hinkle , a distribution system supervisor for San Jose Water.

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