California Senate Passes Gasoline Supply Bill

The California State Senate has passed Governor Gavin Newsom's Assembly Bill X2-1, which mandates that oil refiners maintain minimum fuel inventory levels to prevent sudden price spikes at the pump. The bill, which received a 23-9 vote in the Senate and was previously approved by the Assembly, aims to protect consumers from the financial impacts of rising gas prices, which cost Californians over $2 billion last year. However, the legislation has faced criticism from some Democrats and Republicans who argue that it could inadvertently raise overall gas prices and affect refinery operations. Additionally, neighboring states like Nevada and Arizona have expressed concerns that the bill could lead to higher gas prices in their regions as it could limit supply flexibility from California refineries. Despite the pushback, Newsom emphasized the necessity of the bill to combat Big Oil's price manipulation. The bill will undergo a final vote in the Assembly before being sent to Newsom for signature.