SACRAMENTO, Calif.—The California state Assembly approved a bill Tuesday backed by Gov. Gavin Newsom aimed at preventing gas prices from spiking, particularly in late summer months when demand for gas goes up.
The legislation would authorize state energy regulators to set requirements for companies to maintain a certain level of fuel on hand—using existing storage to avoid gas prices from increasing suddenly when refineries go offline for maintenance. The state would have to determine first that the benefits of any minimum inventory rules outweigh the potential cost to consumers under the bill.
“This bill incentivizes fuel refineries to plan proactively, saving Californians—consumers—billions at the pump while maintaining profits,” said Assemblymember Gregg Hart, a Democrat representing Santa Barbara who authored the bill. “Let’s take action now to provide relief to Californians who need gasoline in their cars to get to work, drive their children to school, vote and visit loved ones.”…