California Senate Passes Controversial Fuel Supply Bill

The California State Senate has passed a controversial bill, proposed by Governor Gavin Newsom, aimed at stabilizing gas prices by requiring oil refineries to maintain a minimum fuel reserve and plan for resupply during maintenance outages. This legislation grants the California Energy Commission enhanced authority to regulate refinery operations, which proponents argue will mitigate sudden price hikes caused by supply shortages and unplanned refinery outages, potentially saving Californians billions annually. Critics, including Republican lawmakers, labor groups, and the oil industry, contend the bill could inadvertently raise gas prices and compromise worker safety, as the commission is unelected and lacks refinery expertise. Despite these concerns, the bill passed by a 23-9 vote, with some Democrats abstaining, and will now move to the state Assembly for final approval. The bill's passage has sparked a broader debate, with neighboring states fearing potential impacts on regional gas prices. The legislation was partly inspired by findings from the state’s Division of Petroleum Market Oversight, highlighting the impact of global crude oil fluctuations on local prices.