California Lawmakers Introduce Package of Bills to Address Rising Gas Prices

A Chevron gas station in Los Angeles on May 22, 2023. Mario Tama/Getty Images

Republican members of the California Assembly introduced a package of seven bills on Sept. 11 aimed at lowering fuel prices in the state, during the ongoing extraordinary special session called by Gov. Gavin Newsom last month.

The proposals are intended to provide “immediate and long-term relief for drivers,” according to a press release.

Introduced by Assembly Republican Leader James Gallagher, Assembly Bill X2-3 seeks to allow out-of-state fuel imports, switch to cheaper winter blends earlier in the year, and exempt fuels from the state’s cap-and-trade program, which fines companies that exceed mandated emissions levels.

According to the Western States Petroleum Association, the program adds about 30 cents to the cost of each gallon of gasoline sold in the state.

“I do think this special session is a sham, but if we’re going to hold it, then we have serious, real policy measures that would actually lower people’s prices,” Gallagher told The Epoch Times. “Fuels staying in the cap-and-trade system is going to raise prices once again, and by significant amounts, so let’s just take them out of there.”

Assembly Bill X2-2, introduced by Assemblyman Tom Lackey, would suspend the gas tax for one year, which would lower prices by more than 68 cents per gallon.

Californians currently pay the highest gas tax in the nation, with Illinois placing second at 66.5 cents per gallon, while Alaskans pay the lowest taxes at about 9 cents per gallon, according to the Tax Foundation, a Washington-based nonprofit.

The authors said the bill is needed to help lower inflationary pressures across the state.

“It provides immediate relief for working families, with no transportation projects being cut or delayed—all will continue to be funded by existing state revenue,” the California Assembly Republican Caucus wrote in a Sept. 11 press release.

Newsom said suspending the tax would be detrimental to roads, bridges, and culverts.

“Investments in infrastructure that would be lost, you can’t have that conversation without having that secondary conversation: Where do the gas tax dollars go?” Newsom said in response to a question from The Epoch Times at a Sept. 4 press conference on a different topic. “I hope they will consider the impacts [on] those significant jobs, investments, and infrastructure.”

Lackey also introduced three other measures intended to reduce fuel costs for Californians, including Assembly Bill X2-5, which would provide a $100 rebate to drivers; Assembly Bill X2-6, which seeks to expand fuel reserve capacity in the state by reducing regulations on development; and a yet-to-be-numbered bill that would make it easier for companies to drill for oil in the state.

Assembly Bill X2-4, introduced by Assemblyman Joe Patterson, would freeze proposed fuel tax increases—including those related to the state’s low carbon fuel standard, which currently add 11 cents per gallon and could add another 52 cents to the price, according to the bill’s authors.

“Californians continue to identify the high cost of living as one of their biggest concerns with life in our state,” Patterson said in a Sept. 11 press release. “Working families can’t absorb yet another state regulation that drives up the price of gas.”

He said lawmakers need to weigh all options to lower gas prices.

“The Legislature should consider a variety of proposals to bring prices down during this special session,” Patterson said. “My proposal represents a simple way to prevent even more pain at the pump.”

Assemblywoman Diane Dixon introduced Assembly Bill X2-7 to help educate consumers about the impact of taxes and regulations on gas prices by requiring the California Energy Commission to update a public dashboard that shows how prices in California compare with national averages.

She said the bill is needed to improve transparency.

“It is concerning and unacceptable that we suffer from the highest gas prices and taxes in the nation,” Dixon said. “Californians should have easy access to as much information as possible, which is what this dashboard tool would provide.”

Gas prices in California average $4.76 per gallon compared with $3.24 nationwide as of Sept. 12, according to motoring organization AAA.

Dixon pointed to U.S. Bureau of Labor Statistics data that show households in the Golden State spend on average $2,300 on fuel every year. She said local governments need easily accessible figures in order to understand what factors contribute to the high prices.

“If Sacramento truly cannot understand how bad policies and high gas taxes have impacted what Californians spend on fuel, perhaps this dashboard tool will provide greater clarity,” Dixon said.

Governors in neighboring states representing both political parties, Republican Gov. Joe Lombardo of Nevada and Democratic Gov. Katie Hobbs of Arizona, sent a letter on Sept. 10 to Newsom asking him to rethink his approach during the special session.

The pair pointed to estimates from the California Energy Commission that suggested Assembly Bill X2-1—which would mandate fuel supply minimums—could “artificially create shortages” and “increase average prices.”

The bill’s authors said it will require companies to better manage refinery shutdowns and called the proposal a “common-sense solution.”

“When gas prices spike because of supply constraints, everyday Californians suffer and the oil industry profits,” Assemblyman Gregg Hart said in a Sept. 3 press release from the governor’s office. “This legislation will protect California consumers by ensuring refineries maintain a stable fuel supply.”

Newsom said the bill is needed to address oil company “greed” and to mitigate the impact of “planned and unplanned maintenance.”

“I’m glad to see the Assembly is moving this important proposal forward to save Californians hundreds of millions of dollars at the pump,” Newsom said in the press release. “Gas price spikes are profit spikes for Big Oil, and California won’t stand by as families get gouged.”

Robert Rivas, Democratic Assembly speaker, said the special session is a priority for some lawmakers.

“We must stop oil companies from raking in record profits at the expense of Californians,” Rivas was quoted as saying in the governor’s press release. “I’m committed to delivering solutions that rein in soaring gas costs and provide real savings at the pump.”

He vowed to hear from stakeholders on both sides of the gas price issue to better understand the needs of Californians.

“During this important special session, the Assembly will convene public hearings that thoroughly vet proposals,” Rivas said. “We’ll hear from experts and ensure that the public has a voice in the process.”