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California enacts law targeting gas price stability

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Thursday, November 28, 2024

California enacts law targeting gas price stability

State AG
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Attorney General Rob Bonta | Official website

California has taken a significant step to protect consumers from volatile gas prices with the signing of ABX2-1 into law. Governor Gavin Newsom approved the legislation, which was authored by Assemblymember Gregg Hart, Assemblymember Cecilia Aguiar-Curry, and Senator Nancy Skinner. The bill is co-sponsored by Attorney General Rob Bonta and Governor Newsom.

Attorney General Bonta emphasized the impact of high gas prices on Californians: “Californians have been paying too much for gas, while year after year, oil companies report record profits at their expense. Let’s be clear – the price spikes consumers see at the pump are profit spikes for big oil.” He added that ABX2-1 aims to reduce opportunities for market manipulation by oil companies.

Governor Newsom highlighted the state's proactive approach: “Price spikes have cost Californians billions of dollars over the years, and we’re not waiting around for the industry to do the right thing — we’re taking action to prevent these price spikes and save consumers money at the pump.”

Assemblymember Hart called it a victory for consumers: “This landmark legislation is a win for consumers, and a win for accountability in the state’s gasoline market.” He stated that ABX2-1 will help working California families save money.

The bill mandates refineries to maintain adequate fuel reserves and plan effectively for maintenance shutdowns to prevent supply shortages. The California Energy Commission is authorized to adopt regulations requiring refiners to maintain minimum inventory levels. These measures aim to lower retail prices and increase fuel supply stability.

Assembly Majority Leader Aguiar-Curry praised her colleagues' efforts on this critical issue: “ABX2-1 was the subject of an extensive amount of scrutiny, testimony and participation by Members of the Legislature in over 18 hours of hearings.”

The legislation comes amid concerns about California's vulnerable oil market due to its isolated nature and reliance on a few refineries. A single refinery outage can significantly impact refining capacity and consumer prices.

Attorney General Bonta continues his commitment to consumer protection with initiatives like urging residents affected by past gas price manipulations to submit claims under a $50 million settlement. Last year, he co-sponsored SBX1-2 with Senator Skinner, which established an independent watchdog against market manipulation.

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