Newsom signs bill aimed at preventing gas price spikes

Governor Gavin Newsom held a press conference on Monday afternoon to announce the passing of a measure aimed at preventing significant increases in gas prices.

ABX 2-1 requires the California Energy Commission “in consultation with the Labor and Workforce Development Agency and labor and industry stakeholders, to consider ways to manage necessary refinery turnarounds and maintenance that would protect the health and safety of employees and the public, and minimize the impacts of maintenance-related production losses on fuel prices.”

The bill was authored by Assemblymember Gregg Hart, Assemblymember Cecilia Aguiar-Curry, and Senator Nancy Skinner.

Newsom called the legislature into a special session to deal with the bill and on. Oct. 11 , the state Senate advanced the proposal.

Andy Lipow, an oil industry analyst, told KNX News’ Jon Baird that there could be issues with the new proposals.

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“These new rules on top of the other rules that have already been adopted in the state of California might have the unintended consequence of companies deciding to simply shut down their refinery operations, reducing overall supply period,” he said.

He added that those who live in Arizona and Nevada, which get their gas from California, are wary of this proposed law.

“Those adjacent states are worried that by refiners carrying inventory for California, those states might get short-changed,” he said.

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