Gavin Newsom calls special session on gas prices

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Hours before the Legislature prepared to wrap up for the year, Gov. Gavin Newsom tonight called a special session to address gasoline prices — giving him more time to persuade lawmakers to act on a package of energy bills that he failed to jam through in the final weeks of the regular session.

But the special session may already be in jeopardy, after the leader of the state Senate immediately rejected the governor’s call for the Legislature to meet this fall, during what would normally be a crucial campaign period for lawmakers leading up to the Nov. 5 election.

In what has become a frequent move, Newsom earlier this month proposed sweeping plans to bring down energy costs for Californians just as the annual legislative session was drawing to a close, leaving lawmakers little time to react or negotiate with the governor. Increasingly frustrated with the strongarm tactics, the Legislature split this time in its response, sinking Newsom’s measures as the Assembly refused to take them up.

With his special session, Newsom has now extended the clock that ran out tonight until Nov. 30, when the two-year legislative term formally ends, and has injected a renewed sense of urgency into what has become an increasing focus of his political agenda — taking on the oil industry.

“Calling the session now allows the Legislature to begin that work immediately so that the state can resolve this important matter to establish the necessary rules to prevent price spikes next year and beyond,” he said in a press release.  

The governor’s order requires the special session to begin today, but it did not say when the actual hearings would begin. While the Assembly promptly gaveled into the special session, Senate President Pro Tem Mike McGuire, a Santa Rosa Democrat, threw cold water on the idea in a statement that seemed to reference bubbling inter-house tension over the legislative package.

“The Senate always had the votes and was ready to get these important measures across the finish line this legislative year,” McGuire said. “We won’t be convening a special session this fall, but we look forward to continuing conversations with the Governor and Speaker about this critical issue in the days and weeks to come.”

While the state constitution gives the governor authority to call a special session and lays out some scope of what can be discussed, there is no enforcement mechanism if the Legislature decides not to meet, according to longtime lobbyist Chris Micheli.

Newsom’s move followed Assembly Speaker Robert Rivas’ refusal earlier this week to “push through bills that haven’t been sufficiently vetted with public hearings.” 

But Rivas enthusiastically embraced the governor’s special session declaration, telling reporters that the Assembly was “excited to do this work.” He said he would meet with the Newsom administration next week to sort through the logistics and he expected hearings to begin by the week after that, despite McGuire’s insistence that the Senate would not participate.

“I believe when the governor issues a proclamation, it’s our constitutional obligation to get that work done,” Rivas said.

The governor’s office said Newsom and the Legislature had been working together on the proposal for months, noting that the first policy recommendation was shared with the Legislature in January, and that there were legislative committee hearings on the topic in May. 

McGuire told reporters after adjournment that he spoke with the governor earlier today, and that he and Rivas met with Newsom Friday night. And despite his rejection of the special session, McGuire insisted they were working collaboratively: “There is a difference of opinion of bringing the Legislature in for the session or not. That’s fine. But I firmly believe that we had the opportunity to be able to get the votes and provide Californians with the relief they need at the gas pump and on their utility bills.” 

Senate Republican leader Brian Jones of San Diego, however, thanked McGuire for pushing back against the governor: “It’s blatantly undemocratic for Newsom to finally show up to his day job and demand the Legislature instantly cave to his demands, all so that he can feel relevant again and get a splashy headline.”

The package of energy-related bills included Senate Bill 950, authored by Democratic Sen. Nancy Skinner, which would regulate refinery maintenance to prevent supply problems and price hikes.

Another bill in the package was Assembly Bill 3121 by Assemblymembers Cottie Petrie-Norris and Gregg Hart, which would have given households a one-time credit of between $30 and $70. Petrie-Norris, a Democrat from Irvine, pulled the bill from the Senate energy committee Friday afternoon. The governor called the session before the fate of the full package of bills was determined.

It’s the second time in two years that Newsom has called for a special session focused on gas prices: In 2022, he convened one in December to push for a tax on oil industry profits. That session, while initially aimed at taxing excessive oil profits, resulted in the creation of a watchdog division at the California Energy Commission to analyze and potentially regulate oil profits. 

Newsom referenced the ongoing work of that division in his new proclamation, but said California remained vulnerable to price spikes when refineries undergo maintenance.  

In his new proposal, the governor wants to give the energy commission more authority to impose minimum fuel inventories at refineries and require them to lay out plans during maintenance. 

The oil industry has already voiced opposition, calling it “regulatory malpractice” and warning that the additional rules would lead to price increases.

Gas prices today in California average $4.64 a gallon, according to the American Automobile Association, compared to the national average of $3.34.