California Governor Gavin Newsom convened a special legislative session last month to discuss lowering oil prices and proposed new regulations on oil refiners. As lawmakers returned to their posts to continue the meeting, Republicans also introduced a package of bills.
On Wednesday, Republican members of the California Assembly introduced a set of seven bills aimed at providing “immediate and long-term relief” to drivers.
One of the bills, Assembly Bill X2-3, proposed by Assembly Republican Leader James Gallagher, seeks to allow importing fuel from outside of California and converting it to cheaper winter blend fuel ahead of time, while excluding the fuel from the state’s cap-and-trade carbon emission trading program, which imposes fines on companies exceeding statutory emission levels.
According to data from the Western States Petroleum Association, this program has increased the cost of gas by approximately 30 cents per gallon.
Gallagher stated in an interview with Epoch Times, “I do believe this special session is a sham, but if we are going to have it, we need some real policy measures that will actually bring prices down. Keeping the fuel in the carbon emission trading system will drive prices up again, and it will be a sizable one, so we take them out of there.”
Another bill introduced by Assemblyman Tom Lackey, Assembly Bill X2-2, proposed temporarily suspending fuel taxes for one year, resulting in a reduction of over 68 cents per gallon of gasoline.
According to the Tax Foundation, California currently has the highest fuel taxes in the United States, with Illinois ranking second at 66.5 cents per gallon, while Alaska has the lowest fuel tax at around 9 cents per gallon.
Lackey stated that this measure is aimed at helping alleviate the inflation pressure in the state. However, Governor Newsom expressed concern that suspending taxes would damage roads, bridges, and tunnels.
Lackey also introduced three additional measures to lower fuel costs for Californians, including Assembly Bill X2-5, which would provide a $100 rebate to drivers; Assembly Bill X2-6, aimed at expanding California’s fuel reserves by reducing development regulations; and an untitled bill that would allow oil drilling in California.
Assemblyman Joe Patterson proposed Assembly Bill X2-4, which would freeze proposed fuel tax increases, including those related to California’s low carbon fuel standard. Patterson explained that the current low carbon fuel standard adds an 11-cent tax per gallon of gasoline, with the potential for an additional 52-cent increase.
In a press release on the 11th, Patterson stated that the high cost of living has been a major concern for Californians, and working families cannot afford new regulations that push up fuel prices.
Assemblywoman Diane Dixon introduced Assembly Bill X2-7, which calls for the California Energy Commission to update a public dashboard to help consumers understand the impact of taxes and regulations on fuel prices; the page will compare California fuel prices to the national average. She stated that this bill aims to enhance transparency.
According to AAA, as of the 12th, the average gas price in California was $4.76 per gallon, compared to the national average of $3.24.
Dixon pointed out that data from the U.S. Bureau of Labor Statistics shows that California households spend an average of $2,300 per year on fuel, emphasizing the need for accessible data to understand the factors contributing to high fuel prices.
She said, “If Sacramento truly cannot understand how bad policies and high fuel taxes impact Californians’ spending on fuel, perhaps this dashboard tool will provide a clearer explanation.”
Meanwhile, in an effort to curb oil prices, Governor Newsom is pushing for a mandatory requirement on oil refiners to maintain a certain level of fuel reserves at all times. He argues that this can hedge against the risk of price spikes.