Oil & Gas News

Republicans File Bills to Suspend California Gas Taxes

California, Fuel, Tax, Special Session

A small group of California Republicans has introduced several bills ahead of a special legislative session scheduled for October, despite the challenges they face in a Democrat-controlled Legislature.

On August 31, Governor Gavin Newsom called for this special session, with a focus on addressing oil and gas prices. Assembly Speaker Robert Rivas responded by appointing 19 members to a special committee, the Petroleum and Gasoline Supply Committee, which will begin hearings this month. The Assembly officially convenes on October 1, and one of the key bills to be discussed is Assembly Bill 1. This bill proposes new requirements for refineries, including mandates for maintenance protocols and minimum levels of refined transportation fuels, which are intended to stabilize fuel prices.

However, the governors of neighboring Nevada and Arizona have expressed concerns, warning that the proposed regulations could lead to fuel shortages and potential disruptions to economies and transportation across the West.

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The bill has broad Democratic support, with co-authors Assembly members Cecilia Aguiar-Curry and Gregg Hart, along with seven additional Democratic sponsors. Despite this, Republicans are introducing their own bills, seeking alternative solutions to the state’s high fuel costs.

Republican Assemblymember Tom Lackey of Palmdale has introduced three bills. The most notable is Assembly Bill 2, which would suspend the state’s motor vehicle fuel tax for a year, a move that Lackey claims could save Californians around 60 cents per gallon. Lackey argues that this tax suspension would especially benefit rural Californians who face high travel costs due to long commutes. He also criticized Governor Newsom’s stance that suspending the gas tax would not lower prices, pointing out that other states have successfully implemented such measures.

Another of Lackey’s proposals would divert $3 billion from California’s High-Speed Rail Authority to fund a $100 rebate for gasoline vehicle owners, while his final bill aims to exempt energy infrastructure projects from California’s stringent environmental regulations to boost fuel storage capacity.

Several other Republican lawmakers have also submitted bills. Assembly member James Gallagher introduced Assembly Bill 3, which seeks to remove transportation fuels from the state’s cap-and-trade program, potentially lowering fuel prices by 30 to 35 cents per gallon. Assembly member Joe Patterson is targeting a state proposal to update California’s low-carbon fuel standard, warning it could raise gas prices by 47 cents per gallon if implemented.

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Assembly member Diane Dixon proposed legislation requiring the state’s Energy Resources Conservation and Development Commission to regularly update and publicly display information on gas prices, including a breakdown of taxes and fees contributing to the cost.

While Republican lawmakers face an uphill battle in getting these bills passed, they are optimistic that their proposals will at least be heard. Gallagher emphasized the importance of debating these issues, reflecting on the democratic process, while Dixon reaffirmed her commitment to pushing for transparency in gas pricing, stating, “I don’t give up.”

As the special session approaches, these proposals highlight the ongoing debate about how to address California’s high fuel costs, with Republicans and Democrats offering starkly different solutions.

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