Lawmakers Reject Oil/Gas Bill

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A last-minute standoff is unfolding in Sacramento between the Governor and state lawmakers, with critical stakes for Californians. Time is running out to pass key bills that could significantly affect utility costs, including gas and electricity.

The California Assembly has just called the Governor’s bluff on one of the issues: a key oil and gas storage proposal- Senate Bill 950.  

Why You Should Care: Governor Newsom had said would force him to call a special session if lawmakers did not pass. And ultimately, it could impact how much you pay for gas.

Quick Catch Up

📌Both houses of the legislature must approve several oil and energy bills by Saturday, or they risk being shelved as the session draws to a close.

📌Newsom and lawmakers are focusing on the measures that would give credits of around $30 to most electric ratepayers and prevent gasoline price spikes.

📌But critics are saying the proposals aren’t an effort to help Californians and it was met by backlash on several fronts, some even calling it another political stunt by the Governor.

Surging Prices and the Californian Burden

Utility bills have been climbing steadily for months driven by:

• Soaring demand from extreme heat

• Ongoing infrastructure upgrades

• Tightening state regulations

However, the strain on our wallets isn't new—it’s a burden we’ve been carrying for years, if not an entire decade.

In the past decade, rates at California’s three major utility companies—Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric—have surged by as much as 110%, according to a recent report from the California Public Utilities Commission’s Public Advocates Office.

The situation has become so dire that one in five customers is now struggling to keep up with their monthly bills.

Record Profits/State Approval

During this time, utility companies have been steadily raising rates while raking in record profits. The state has been justifying the hikes by citing the need to build new transmission lines and mitigate wildfire risks. Looking ahead, rates are expected to keep climbing, outpacing inflation through at least 2027.

Political Stunt

Others are warning the measures lawmakers are debating amount to a political stunt. And if they pass, they could divert crucial funds away from other vital state environmental programs, leaving some to wonder if this is more about headlines than real help.

Governor Showdown Over Oil Storage

Governor Newsom had been putting lawmakers on notice: either pass Senate Bill 950, which he feels targets California's sky-high gas prices, or prepare for a special session showdown.

The centerpiece of SB 950 aims to curb gas price spikes by imposing new regulations on oil storage.

But analysts and the big oil companies warn that instead of relief, this move could pump up costs even further—leaving cash-strapped Californians, and possibly their neighbors in Arizona and Nevada, feeling the pinch.

What’s Next

• The Governor has said he would call a special session if lawmakers do not pass Senate Bill 950.

• Assembly Speaker Robert Rivas said more time is needed to vet the bills with public hearings.

• CA Republicans and National leaders also released a unified statement against the proposal.

• In case you are wondering, the average price of gas in California has dropped recently, it’s $4.63 a gallon.

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