Newsom Signs Bill to Regulate Fuel Inventory
California Governor Gavin Newsom has enacted a new bill aimed at addressing the rising gas prices that have burdened Californians. Signed on Monday, the legislation mandates that oil refineries maintain a minimum inventory level of fuel, intended to prevent shortages during maintenance downtimes. This move comes as part of Gov. Newsom’s broader strategy to mitigate the impact of escalating fuel costs, which have been exacerbated by fluctuations in global crude oil prices and unexpected refinery outages.
During a press conference in Sacramento, Newsom criticized oil companies and the Western States Petroleum Association (WSPA) for what he described as “mistruths” and “manipulation” regarding the bill’s intentions. He emphasized the ongoing struggles faced by many California residents at the gas pump, asserting that the oil industry has played a significant role in the current climate crisis. “They continue to lie and manipulate,” he stated, placing blame squarely on the shoulders of the oil companies and their representatives.
Oil Industry Responds with Accusations of Political Theater
In response to Gov. Newsom’s remarks, WSPA President and CEO Catherine Reheis-Boyd condemned the governor’s comments as politically motivated attacks filled with personal insults. She described his rhetoric as “politics above policy,” suggesting that the governor’s focus on disparaging the industry distracts from meaningful discussions about the challenges facing California’s energy sector.
Reheis-Boyd argued that calling industry workers “polluted hearts” undermines the contributions of those who fuel California’s economy and maintain daily operations. She expressed her astonishment at what she deemed an aggressive and inflammatory stance from the governor. “His attacks only serve to divide, not address the real issues that we’re trying to deal with,” she added.
Concerns Over Potential Consequences of the New Law
The legislation has sparked concerns among opponents who warn that it could inadvertently lead to higher gas prices and compromise worker safety by increasing state oversight of refinery maintenance. Critics argue that the law, while well-intentioned, could have unintended consequences that ultimately hurt consumers rather than help them.
Gov. Newsom initially proposed the bill in August during the final week of the legislative session, calling the Legislature into a special session to ensure its passage. He pointed out that California’s gas prices, which averaged around $4.68 per gallon as of Monday, significantly outpace the national average of $3.20. This discrepancy has resulted in billions of dollars in additional costs for residents each year.
Reheis-Boyd asserted that addressing crude oil prices could be achieved through various strategies, including the reopening of closed pipelines and fostering a more favorable business environment for refineries. She highlighted California’s significant oil reserves in Kern County, questioning the state’s decision not to issue permits for extraction. “We can’t get the oil out of the ground because this governor won’t allow permits to be issued,” she remarked.
Gov. Newsom’s office did not provide further commentary on the matter, stating that his remarks “speak for themselves.”
