California Gov. Gavin Newsom signed a bill on Oct. 14 that grants authority to regulate oil refiners by mandating minimum reserves with a goal of mitigating high gas prices.

“Price spikes have cost Californians billions of dollars over the years, and we’re not waiting around for the industry to do the right thing—we’re taking action to prevent these price spikes and save consumers money at the pump,” Newsom said in a press release. “Now the state has the tools to make sure they backfill supplies and plan ahead for maintenance so there aren’t shortages that drive up prices.”
Newsom said during a press conference after signing the bill that the effects of the new law could be seen as soon as next summer.

Assembly Bill X2-1, introduced by Assemblyman Gregg Hart and Majority Leader Cecilia Aguiar-Curry, permits the California Energy Commission to order refiners to store more fuel and to regulate refinery maintenance schedules.


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