California Senate Passes Governor Newsom's Gasoline Price Spike Prevention Bill

With the Senate's approval, ABx2-1 now heads back to the Assembly for a final concurrence vote.Photo byDylan HunteronUnsplash

In a major legislative step, the California Senate has passed Governor Gavin Newsom’s proposal aimed at preventing gasoline price spikes, marking a significant win in the special session called by the Governor to tackle rising fuel costs. The Senate's approval of ABx2-1, authored by Assemblymembers Gregg Hart and Cecilia Aguiar-Curry, along with Senator Nancy Skinner, comes just a week after the Assembly passed the measure.

The bill, which now returns to the Assembly for a final concurrence vote, seeks to combat fuel price hikes by requiring oil refiners to maintain a minimum fuel inventory. This is intended to mitigate supply shortages that often lead to price surges. Additionally, the California Energy Commission would be empowered to ensure refiners plan for resupply during maintenance outages, further stabilizing the market.

Governor Newsom praised the Senate's action, saying, “Californians are one step closer to getting the protections they need against Big Oil’s price spikes. Price spikes cost consumers more than $2 billion last year, and we’re taking the action necessary to help put this to an end."

Senate President pro Tem Mike McGuire emphasized the wide-reaching impact of rising gas prices. "Rising gas prices impact everyone in California and nearly every facet of our lives – from how much we’re paying at the pump to the cost of what we’re buying at the store," said McGuire. He commended the swift work of lawmakers, adding, "Thank you to all of the Senators for the hard work and focus this week, and to our Assembly partners and Governor Newsom for their partnership on this effort.”

The bill has garnered significant support from a broad coalition of mayors, local leaders, consumer organizations, environmental advocates, and business groups. Experts, including Stanford economists, have also lauded the proposal, noting its potential to stabilize refinery capacity, which could help lower prices not only in California but in neighboring states like Nevada and Arizona.

As gasoline price fluctuations continue to affect California residents, this legislation is seen as a crucial step toward protecting consumers from sudden, profit-driven cost increases at the pump.

What’s Next?

With the Senate's approval, ABx2-1 now heads back to the Assembly for a final concurrence vote, bringing the state one step closer to implementing what many hope will be a long-term solution to gas price volatility.