Newsom signs gas supply bill

FRESNO, Calif. (KFSN) -- With high gas prices continuing to frustrate California drivers, Governor Gavin Newsom signed a bill on Monday, the same day it passed the state legislature.

Assembly Bill X2-1 requires oil refineries to keep a minimum fuel inventory and authorizes the California Energy Commission to approve scheduled maintenance times to prevent price spikes.

Many Democratic state leaders said the leading cause of those increases is refineries' lack of adequate supplies when they shut down for maintenance or during times of high demand.

During Monday's press conference, the governor slammed the oil and gas industry.

"Big oil does not have your back period full stop," said Gov. Gavin Newsom, (D) California. "You're seeing gas prices drop across the rest of the country but spike in California, and they buy all these ads saying somehow it's California's fault. They've been manipulating you. They've been lying to you. They've been playing you."

Opponents said the legislation could lead to refinery closures and job losses by creating storage requirements that are unrealistic.

The California Republican Party released a statement condemning the bill.

Fresno Assemblyman Jim Patterson was not available Monday for an interview, but Action News spoke with him last month before the start of the special session and he strongly opposed the bill, raising concerns about the impact it would have on households.

"If that happens, political decision-making will literally start to deconstruct affordable, reliable gasoline for people in the state of California," said Assemblyman Jim Patterson, (R) Fresno.

Western States Petroleum Association, representing companies that produce, refine and transport the bulk of gas in Arizona, California, Nevada, Oregon and Washington, has also been vocal about its opposition to the bill.

"We should be looking at critical issues like production of crude oil in the San Joaquin Valley," said Catherine Reheis-Boyd, WSPA president and CEO. Why? Why that crude oil goes to refineries to make gasoline, diesel and jet fuel. We have a lot of it, but we can't get it because the state of California won't give us permits."

Newsom says the California Energy Commission will meet to assess the oil and gas market's supply and demand and health and safety concerns for refinery workers before drafting standards for refineries to follow.

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