California Governor Gavin Newsom signed legislation that claims to lower electricity costs for the state and stabilize its gasoline supply. The bills come as several major fossil fuel companies have left the state over its push for “green” initiatives.
“Millions of Californians will soon start saving billions on their energy costs, and the savings don’t stop there – we’re stabilizing the state’s gasoline supply to avert severe price spikes at the pump and we’re making it easier to build the abundant clean energy we need to keep bills lower,” Newsom said in a statement.
Under SB 237, gasoline price spikes will be mitigated through the stabilization of in-state petroleum production.
Western States Petroleum Association (WSPA) President and CEO Jodie Muller said in response to the legislation that the association looks forward “to continuing our relationship focused on realistic policies that balance environmental and economic goals to ensure California and the Western States have access to the affordable fuels they need.”
Newsom also signed bills that aim to double down on the state’s climate agenda. AB 1207 extends California’s climate program to cut pollution, while SB 352 increases air pollution reduction initiatives.
Earlier this year, Newsom sent a letter to California Energy Commission (CEC) Vice Chair Siva Gunda, urging him to take action to ensure that the oil business remains in the state.
Newsom called for the CEC to “redouble the State’s efforts to work closely with refiners on short- and long-term planning, including through high-level, immediate engagement, to help ensure that Californians continue to have access to a safe, affordable, and reliable supply of transportation fuels, and that refiners continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades.”
The letter came as Valero and Phillips 66 announced plans to leave California.
