The oil industry fought back, saying the order would harm consumers.
from legal riots
Leslie Eastman
Readers of Legal Insurrection may remember my reporting on Chevron's California operations.
Chevron has been headquartered in California for more than 140 years and has deep roots in the state. Yet toxic policies from California lawmakers and regulators have killed those roots.
The fossil fuel giant is moving to Texas.
Sacramento sees gasoline companies and refineries as cash cows that will always agree to be milked despite being viewed as climate villains and accused of corporate greed.
So in an effort to address the state's dire energy challenges, California Gov. Gavin Newsom called a special session on Saturday after the House of Representatives rebuffed his efforts to pass an energy plan after a critical deadline.
Newsom's plan would require the state's oil companies to build gasoline inventories.
California Gov. Gavin Newsom plans to introduce legislation that would require oil companies in the nation's most populous state to build up inventories of gasoline and other fuels to prevent supply shortages and price spikes during refinery outages.
Tai Milder, a Newsom appointee to head California's oil market oversight agency, said the reserves would protect Californians already paying some of the highest prices in the nation from higher prices in 2022 and 2023. He said that if such measures were taken, consumers would have saved $650 million last year alone.
The governor's plan marks an intensification of Newsom's long-running battle against the fossil fuel industry and comes less than two weeks after Chevron announced plans to move its corporate headquarters to Texas after operating in the Golden State for 145 years. Year. Retail gasoline prices in the state have soared to $6 a gallon in recent years, something Newsom's administration blames on a shortage of backup supplies as refineries reduce operations for repairs.
“Higher oil prices mean higher profits for big oil companies,” Newsom said in an email. “Refiners should be required to plan ahead and replenish supply to keep prices stable, not to make more profits.” Play the game. By having refineries act responsibly and maintain natural gas reserves, Californians can save money at the pump every year.
Inflation is hurting ordinary Californians. However, gas is still good value for money, especially compared to food inflation.
Newsom's proposal may only push for the closure of more refineries and companies that support the fossil fuel industry. That may be his goal, but unless more Gen IV nuclear reactors start popping up or lithium battery fires stop breaking out, maintaining the California way of life touted by California Democrats will become increasingly difficult.
The oil industry fought back, saying the order would harm consumers.
The Western States Petroleum Association said the bill would penalize refineries for denying supply and harming consumers.
“Governor Newsom's Refinery Supply Directive will force refineries to stop supplying fuel to the market, creating artificial fuel shortages in California, Arizona and Nevada. Lawmakers who vote for this mandate will vote to increase the cost of natural gas for their constituents ,” said Katherine Ray Hayes-Boyd, executive director of the Western States Petroleum Association.
If Newsom and the state Legislature did anything to help consumers, it must have been purely coincidental.
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