California's capital city of SACRAMENTO The governor said he would call a special session of the Legislature in December to impose a tax on oil company profits.
High inflation, Russia's invasion of Ukraine, and ongoing disruptions in the global supply chain caused gas prices to soar this summer.
Gas prices in California have continued to go up, hitting an average of $6.39 per gallon on Friday, which is more than the national average.
California has the second-highest gas tax in the country and other environmental rules that increase the cost of fuel. The price difference between California's gas and prices in other states is not justified, according to the governor.
It's time to take action. "I'm tired of this." We've been too cautious.
California's environmental laws and regulations have been pointed out by the oil industry as the reason for the state's high gas prices. The vice president of the Western States Petroleum Association said that the state should take a hard look at decades of California energy policy rather than propose a new tax.
The governor would call a special session before the election if this was a political stunt. If the Governor really wants to work on real solutions to energy costs and reliability, this industry is ready to work on it.
Several states have suspended their gas taxes this summer. The Democrats in control of the state Legislature decided to give the taxpayers $9.5 billion in tax refunds, which started showing up in bank accounts this week.
It is not clear how the tax is going to work. On Friday, he said he wants the money to be returned to taxpayers and possibly used to pay for more rebates.
When the price of a gallon of gasoline was high compared to the price of a barrel of oil, the state Legislature briefly considered a proposal that would have imposed awindfall profits tax on oil companies.
State regulators would have been required to determine the tax rate and recover any profit margins that exceeded 30 cents per gallon. Taxpayers would get money back from the tax.
Lawmakers quickly killed the proposal after it was introduced in March. It could be used as a starting point for the new proposal being negotiated.
Lawmakers will continue to examine all other options to help consumers, according to a joint statement by the Senate President and Assembly Speaker.
They said that a solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers should be considered by the Legislature. When we receive the governor's proposal, we will look at it.
California Republicans, who don't have enough seats in the Legislature, have called the tax foolish.
I don't think another tax will bring down your gas prices. Does this state have any costs that will be brought down? The Assembly Republican leader said that it was not going to happen.
The California Energy Commission wrote a letter to five oil companies asking for an explanation for why gas prices went up even as oil prices went down. The oil industry didn't provide an adequate and transparent explanation for the price spike, which is causing real economic hardship to millions of Californians.
The vice president for state government affairs at Valero said on Friday that California is the most expensive operating environment in the country. California requires refineries to produce a specific fuel blend in order to have a tight supply.
He wouldn't give details about the company's operations due to anti-trust concerns. When some refineries are down for maintenance, the company makes arrangements to source supply.
The $2.50 difference between California's gas prices and those in the rest of the country isn't accounted for.
They are playing us for fun. For a long time, they have.
During the winter and summer months, the California Legislature considers bills on a wide range of topics. A special legislative session can be called by the governor. Lawmakers can only consider the issues in the proclamation when they convene in a special session.
In 2015, a special legislative session was held. Lawmakers were asked by Jerry Brown to pass bills.
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