Sacramento, CA – Earlier this week, Gov. Gavin Newsom and his administration amended Senate Bill 950 last-minute to create new requirements for oil refineries to maintain contingency reserves of gasoline fuel, with provisions for the temporary release of these reserves during supply shocks.

“We acknowledge the commitment to safeguarding the state’s fuel supply against potential disruptions,” said Elizabeth Graham, CEO of CFCA. “We believe its implementation could lead to significant unintended consequences that would destabilize the fuel market, impose undue financial burdens on consumers, exacerbate existing infrastructure and regulatory challenges, and jeopardize drivers in our neighboring states.”

The Governor’s office issued a statement on Wednesday that unless lawmakers act on SB 950 before the end of the week, a special legislative session will be held in September to discuss the proposed oil and gas regulations presented in the bill among other energy and utility-related proposals.

“The administration could have introduced this policy at any point this year, why wait until the very last minute to jam it through the legislature,” stated Alessandra Magnasco, Government Affairs & Regulatory Director of CFCA. “These proposed regulations do not address the root cause of the issue. State leaders need to incentivize in-state production if you want a healthy supply of fuel in the market, and lower prices at the pumps of our family-and minority-owned businesses.”

Currently, SB 950 is on the California State Assembly Floor for discussion and votes. There will not be any opportunity for public comment or discourse.

No date has been set for the special session in September. The last date for the State Legislature to vote on SB 950 is Saturday, August 31, 2024.