I’ve been sounding the alarm on high gas prices and needless taxes for eight years in the state Legislature and seen some really bad bills. But nothing more ridiculous than what we’ve endured this week during a special session of the Senate.
With a crushing economy, Sacramento should be finding ways to lighten the burden on taxpayers. We already have among the nation’s priciest groceries, utilities, housing, and gas.
So what does Gov. Gavin Newsom do instead? He rams through another oil regulation that will raise the price of gas by 30 cents a gallon – or $4 billion a year, an analysis by Western States Petroleum Association shows. This is on top of the 47-cent carbon tax the Air Resources Board is imposing next year to force people into electric cars.
The Legislature was in a special session because Newsom wanted oil companies to create reserves of an unknown amount to prevent “price spikes” during refinery maintenance. The theory is that these reserves could be released to stabilize prices.
I don’t understand this obsession to blame oil companies on big price increases when it isn’t happening in any other state but here. We have gas taxes pushing $1.50 a gallon, expensive special blends used in summer and a myriad of expensive regulations. All of it is so micro managerial.
Would you rather pay higher prices for a month during a temporary maintenance shutdown or 30 cents or more for the rest of your life?
I voted no on this bill but it passed anyway along party lines. My colleague Sen. Rosilicie Ochoa Bogh introduced a bill placing a moratorium on gas taxes until we can review this issue further. I would’ve voted yes on this, but the bill was not given a hearing.
But wait – there’s more. Your electric bill will go up too. This is because 10 people will be hired to police refiners that don’t comply with this new edict. Violators can be charged with crimes or civil penalties up to $1 million a day.
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The agency in charge of this is the California Energy Commission, which oversees the Division of Petroleum Market Oversight. The latter is funded by a surcharge on electric bills. An estimated $10 million will be needed to hire staff and implement this program.
It’s ludicrous to believe that it’s in the best interest of Californians to allow unelected bureaucrats in Sacramento to dictate refinery operations that affect the entire oil industry.
This regulatory bill will create an ongoing artificial shortage because refiners must now use a portion of their storage tanks to hold reserves. It will destabilize the fuel market, according to the California Fuels and Convenience Alliance.
Governors from Arizona and Nevada asked Newsom not to do this because their states buy our gasoline and it will create increased prices and wreak havoc on their economies.
The last thing we need is a state agency seizing control over the oil industry.
Many Californians view Sacramento as “us versus them.” I am in the “us” category and will side with common sense and our communities every time. I urge taxpayers to do the same when they vote in November.
Janet Nguyen represents California’s 36th Senate District.
