This browser does not support the Video element.
Gov. Newsom champions bill to lower gas prices
A bill working its way through a special session of the California legislature would, if passes and according to Gov. Gavin Newsom, lower the price of gasoline at the pump for tens of millions of drivers in the state.
SAN JOSE, Calif. - Californians may be one step closer to seeing relief at the pump as gas prices climb.
The state assembly is set to vote, in special session, on AB X2-1 which could bring relief to the pain at the pump many say is driving them to the poorhouse.
"I fill up once a week. Every six or seven days. So it’s getting up there. It’s getting pretty pricey," said motorist Javier Jimenez, on Friday afternoon, as he filled up his pick-up truck at a gas station on Barack Obama Boulevard in San Jose.
Californians have long suffered the added burden of higher-than-average national gas prices. Now, Gov. Gavin Newsom is poised to make political hay by trying to help ease that burden.
"When an industry or entity is manipulating the market and hurting our consumers, then yes, we legislators, we California government have a responsibility to take action to protect our consumers," said East Bay State Sen. Nancy Skinner, (D) Dist. 9.
She is one of several politicians backing Newsom’s bill that will require oil refineries to carry added amounts of product in reserve.
"If y’all wouldn’t allow these spikes to happen, you probably wouldn’t be having this conversation right now," said one unidentified witness, on Thursday, as he gave testimony at the State Capitol.
Proponents have argued increasing summer storage, similar to what’s done in winter, would lessen the impact of price spikes during times of peak demand.
"During the pandemic, the refineries kept on hand about 30%-40% more than they do now," said Skinner.
In response, San Jose State University professor Dr. Robert Chapman Wood said, "Boy, it looks like a political move to me."
He and other experts countered that having higher levels of reserves would generate higher storage costs for the nine California refineries. Those added costs will be passed on to consumers.
A better strategy, they say, is lessening the overall demand for gas, which could pay financial and environmental dividends down the road.
"I think we’d all be much better off with the state putting its energy into supporting a transition so that people don’t have to buy as much gasoline," said Dr. Asha Weinstein Agrawal, the finance center director at the Mineta Transportation Institute.
"It’s very unlikely that the California government is going to do any better of a job predicting how much reserves we need than existing futures markets and many other mechanisms," added Wood.
The bill has serious opposition from the oil and gas industry.
Still, it’s headed to the Assembly floor for a vote Tuesday. If it passes, it will then go to the State Senate for debate.
Jesse Gary is a reporter based in the station's South Bay bureau. Follow him on Instagram, @jessegontv and on Facebook, @JesseKTVU