Gov. Newsom will call special legislative session to impose windfall tax on oil companies

Gov. Newsom will call special legislative session to impose windfall tax on oil companies

Govt. Gavin Newsom will call state lawmakers back to Sacramento for a special session in response to gas prices. The session will take place on Dec. 5. “It’s time to get serious, I’m sick of this,” Newsom said rising on Friday. “This is one of the greatest fleecings for consumers in world history.”The governor has requested the Legislature to approve a measure that would require oil companies to pay back excessive profits to consumers through a new tax. The Legislature finished policymaking for the year on Aug. 31 and can’t begin action on proposals until January, unless the governor calls the special legislative session.(Earlier coverage in video above.)Newsom said Friday he chose Dec. 5 because that is when the Legislature was already scheduled to reconvene briefly to wear-in new state lawmakers after the election. He said his office wants time to make sure the proposal is on solid, legal ground in anticipation of lawsuits from the oil industry. The measure would require approval from two-thirds of the Legislature. Assemblymember Alex Lee, D-San Jose, proposed a similar measure in March that stalled soon after it was introduced. Although Newsom intervened in other, climate-related proposals toward the end of the legislative session, he did not get involved with Lee’s. Top Democratic lawmakers, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon, said in a statement that they looked forward to Newsom’s “detailed proposal” and referenced inflation relief payments that have begun to hit bank accounts.| MORE | California inflation relief payments start going out“The gas rebates that are beginning to roll out today to Californians were a huge step in helping ease the brunt of rising fuel costs, and we will continue to examine all other options to help consumers,” they said “As stated last week, a solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers deserves strong consideration by the Legislature.”California Assembly GOP leader James Gallagher and Vince Fong, the Assembly Budget Committee vice chair argued in a letter Friday for Newsom to not call the special session.They said that if Newsom does take that action, lawmakers should suspend the state’s gas tax instead.Newsom’s latest policy push comes after California’s Energy Commission demanded answers from the state’s major oil companies in response to spiking gas prices.Oil groups have said the latest spike in the state is the result of supply and demand issues.In a re sponse letter to the state, PBF Energy’s Senior Vice President Paul Davis pointed to California’s mounting restrictions that have made it harder to refine oil and import gasoline. Valero leaders noted in their letter, post-pandemic supply and demand has presented recent challenges. “California is the most challenging market to serve in the United States for several reasons,” wrote Scott Folwarkow, the company’s Vice President of State Government Affairs.The Western States Petroleum Association on Friday said that a “better use” of a special legislative session would be to “take a hard look at decades of California energy policy and what they mean to consumers and our economy.” now,” their statement said. “This industry is ready to work on real solutions to energy costs and reliability if that is what the governor is truly interested in.”The rise in gas prices comes weeks after the governor and state lawmakers passed a sweeping set of climate bills, some that will significantly reduce the state’s use of oil and gas over the next two decades. When asked if he thinks the spike in gas prices is pay back for the legislation he signed, Newsom noted the oil industry has launched a referendum against one of those proposals that establishes new set-backs for oil drilling away from communities. “I thought that was payback, that’s how these guys operate,” Newsom said. “These guys are playing us for fools, they have been for decades.”The Republican National Committee released the following statement: “Gavin Newsom calling a special session to create a new tax on gasoline is the epitome of what’s wrong with California Democrats. Newsom and his supermajority are trying to distract voters from the fact that their policies made gas prices so high, but creating a new tax that will inevitably be handed down to taxpayers in the midst historic inflation is a failing strategy.” | MORE | Here’s why gas prices vary from gas station to gas station–KCRA 3’s Daniel Macht contributed to this report.

Govt. Gavin Newsom will call state lawmakers back to Sacramento for a special session in response to rising gas prices.

The session will take place on Dec. 5.

“It’s time to get serious, I’m sick of this,” Newsom said on Friday. “This is one of the greatest fleecings for consumers in world history.”

This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their web site.

The governor has requested the Legislature to approve a measure that would require oil companies to pay back excessive profits to consumers through a new tax. The Legislature finished policymaking for the year on Aug. 31 and can’t begin action on proposals until January, unless the governor calls the special legislative session.

(Earlier coverage in video above.)

Newsom said Friday he thing Dec. 5 because that is when the Legislature was already scheduled to reconvene briefly to swear-in new state lawmakers after the election. He said his office wants time to make sure the proposal is on solid, legal ground in anticipation of lawsuits from the oil industry.

This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their web site.

The measure would require approval from two-thirds of the Legislature. Assemblymember Alex Lee, D-San Jose, proposed a similar measure in March that stalled soon after it was introduced. Although Newsom intervened in other, climate-related proposals toward the end of the legislative session, he did not get involved with Lee’s.

Top Democratic lawmakers, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon, said in a statement that they looked forward to Newsom’s “detailed proposal” and referenced inflation relief payments that have begun to hit bank accounts.

| MORE | California inflation relief payments start going out

“The gas rebates that are beginning to roll out today to Californians were a huge step in helping ease the brunt of rising fuel costs, and we will continue to examine all other options to help consumers,” they said. “As stated last week, a solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers deserves strong consideration by the Legislature.”

California Assembly GOP leader James Gallagher and Vince Fong, the Assembly Budget Committee vice chair argued in a letter Friday for Newsom to not call the special session.

This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their web site.

They said that if Newsom does take that action, lawmakers should suspend the state’s gas tax instead.

Newsom’s latest policy push comes after California’s Energy Commission demanded answers from the state’s major oil companies in response to spiking gas prices. Oil groups have said the latest spike in the state is the result of supply and demand issues.

In a response letter to the state, PBF Energy’s Senior Vice President Paul Davis pointed to California’s mounting restrictions that have made it harder to refine oil and import gasoline.

Valero leaders noted in their letter, post-pandemic supply and demand has presented recent challenges. “California is the most challenging market to serve in the United States for several reasons,” wrote Scott Folwarkow, the company’s Vice President of State Government Affairs.

The Western States Petroleum Association on Friday said that a “better use” of a special legislative session would be to “take a hard look at decades of California energy policy and what they mean to consumers and our economy.”

“If this was anything other than a political stunt, the governor wouldn’t wait two months, and would call the session now,” their statement said. “This industry is ready to work on real solutions to energy costs and reliability if that is what the governor is truly interested in.”

The rise in gas prices comes weeks after the governor and state lawmakers passed a sweeping set of climate bills, some that will significantly reduce the state’s use of oil and gas over the next two decades.

When asked if he thinks the spike in gas prices is pay back for the legislation he signed, Newsom noted the oil industry has launched a referendum against one of those proposals that establishes new set-backs for oil drilling away from communities.

“I thought that was payback, that’s how these guys operate,” Newsom said. “These guys are playing us for fools, they have been for decades.”

The Republican National Committee released the following statement: “Gavin Newsom calling a special session to create a new tax on gasoline is the epitome of what’s wrong with California Democrats. Newsom and his supermajority are trying to distract voters from the fact that their policies made gas prices so high, but creating a new tax that will inevitably be handed down to taxpayers in the midst of historic inflation is a failing strategy.”

| MORE | Here’s why gas prices vary from gas station to gas station

–KCRA 3’s Daniel Macht contributed to this report.

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