Sacramento Report: State Leaders Are Scrambling to Lower Gas Prices

The Golden State is taking a new look at “black gold,” amid projections that oil and gas prices are about to spike. 

For decades, California has set stricter vehicle emissions standards than the rest of the country, and aimed to phase out sales of gas vehicles entirely by 2035. 

But plans to convert California cars to electric have stalled, and Congress revoked the state’s waivers that allowed the transition to electric vehicles. So the demand for gasoline hasn’t slowed as much as state leaders hoped.  

Meanwhile two oil refineries are closing over the next year, squeezing California’s supply. 

With that crunch taking a toll at the gas pump, state leaders are changing course and looking for ways to boost gas production to curb steep price hikes, CalMatters reported. Gov. Gavin Newsom and Democratic lawmakers are negotiating a plan with the industry to revive oil production in Kern County.  

What’s happening with gas prices? On Thursday San Diego gasoline averaged $4.55 per gallon, while the statewide average was $4.49 per gallon, according to AAA. That’s down almost $2 from the peak of $6.44 a gallon in June 2022.  

But that reprieve could be short-lived. Michael A. Mische, a business professor at the University of Southern California, predicted that prices could soar over $8 per gallon as two of its last refineries prepare to close. 

California is the second largest consumer of petroleum in the United States and has the fifth largest oil reserves in the country, Mische wrote. But it produces less than 3 percent of U.S. oil, and instead imports it from Iraq and South America, making it “highly vulnerable…to geopolitical situations that affect crude prices.” 

Californians pay about 40 percent more than the rest of the country for gas, the AAA figures show. California requires a low-sulfur gasoline blend that has helped cut toxic air pollution such as ozone and particulates, but also increases the cost of refining.  

The state’s cap-and-trade program, designed to fight climate change by limiting total greenhouse gas emissions while allowing polluters to buy credits, also added a fee to gas prices. And there’s something economists call the “mystery gas surcharge,” an unexplained 70 cents-per-gallon premium on California gas.  

What San Diego lawmakers’ want to do: Assemblymember David Alvarez introduced a bill he calls the “cleaner, cheaper fuel blend,” that would bump the ethanol content in California gas from 10 to 15 percent. 

Ethanol from corn starch or sugar is added to gasoline, which reduces pollution and cuts the cost to consumers, a fact sheet stated. 

The U.S. Environmental Protection Agency approved the 15 percent blend, and all other states use it. Alvarez’ bill would make that the standard for California as well, which could save up to 20 cents per gallon. The bill is awaiting votes in the state Senate. 

“California drivers cannot wait any longer, and I will continue to explore additional legislative actions that can lower the cost of living,” Alvarez said in an email to Voice of San Diego. 

Alvarez was also tapped to co-lead the Assembly Select Committee on the Low Carbon Fuel Standard, which examines the cost of California’s efforts to cut greenhouse gas emissions. 

Earlier this year Senate Minority Leader Brian Jones announced a suite of actions to tackle gas prices, but none of them have panned out. 

The first bill he introduced this year would have voided new “low-carbon fuel standards” rules that the California Air Resources Board adopted in November, arguing that could add 65 cents per gallon to gas prices. He tried to force a floor vote but Democrats rejected it. 

He also filed a California Public Records Act Request for internal records on the air board decision, but his spokesperson Nina Fisher said that went nowhere: “We did not receive any records from the PRA and were told everything was confidential.” 

Jones also requested a state audit of the new fuel standards. Fisher said that request is pending. 

Gerrymandering Arms Race Escalates 

California lawmakers approved a redistricting measure Thursday designed to temporarily create five Democrat-friendly Congressional districts and counter a Texas map that adds the same number of Republican seats. California’s measure will go to voters in a November special election. 

The 48th Congressional District would see major changes under California’s proposed maps. Represented by Republican Rep. Darrell Issa, it’s the sole red-leaning House seat in San Diego, encompassing most of North and East County. Under the new maps it would shift north to include parts of the Coachella Valley, making it slightly favorable to Democrats. 

I talked to Assemblymember Chris Ward about the plan. Now that Texas has passed new maps, Ward said California has to respond. “California can stand on our principles like we live in a vacuum, or we can go toe to toe.” 

The new maps heavily favor Democrats, but Ward pointed to nonpartisan issues that have landed in the crosshairs of the battle between California and the Trump administration. 

“We’ve had FEMA funding withered, wildfire funding withheld, had rural hospital funding cut, opening the floodgates and messing with our water system, threatening our education system,” Ward said. 

If voters approve the maps, Texas and California would cancel each other out. But the fight could escalate to other states. If that happens, Democrats might fall behind. Still, Ward said Democrats will try to wrestle seats away from Republicans in swing districts.  

“We would still be at a deficit, but less of a deficit,” Ward said. 

Ward and many of his colleagues said they wrestled with the ethics of setting aside the independently drawn maps. 

“After weeks of study and debate and philosophy, I very strongly support the proposal coming before us tomorrow,” Ward said. “I had a lot of questions about whether we should be doing this.” 

Rep. Scott Peters said on the VOSD podcast that he had reservations about redistricting too but thinks it’s necessary to provide a check on Trump. 

“I think it’s a terrible thing to do and we absolutely have to do it,” he said. 

He acknowledged that redrawing the seats “is not a slam dunk” for either Texas or California. 

“You don’t want to get into something called dummy-mandering where you water it down so much that you lose the seats.” 

Politicians’ Privacy Vs. Transparency 

A San Diego assemblymember wants to protect political officials and candidates by withholding their personal addresses, phone numbers and emails from the public. 

Under current law that information is collected by the Secretary of State and then provided to each county’s Registrar of Voters. A bill by Assemblymember LaShae Sharp-Collins would keep that information private. 

The bill wouldn’t affect politicians’ or candidates’ official contact information, or third-party search engines that provide personal information for a fee. 

Sharp-Collins said it would protect public officials from violent attacks like the murder of two Minnesota state lawmakers in June. Open government advocates argue it would limit journalists’ ability to confirm that politicians live where they say they do. 

Jeff McDonald of the San Diego Union Tribune wrote that it could inhibit investigations like the one that brought down former Rep. Randy “Duke” Cunningham, who went to prison after the UT uncovered corrupt real estate transactions 20 years ago.  

Sharp-Collins is negotiating changes to the bill that would let journalists access the information for reporting purposes, while protecting officials against attacks or harassment. The bill is awaiting votes in the state Senate. 

The Sacramento Report runs every Friday. Do you have tips, ideas or questions? Send them to me at deborah@voiceofsandiego.org. 

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