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Newsom cuts through oil companies and trade groups as bill is signed

California Gov. Gavin Newsom prioritized politics over policy as he repeatedly lashed out at opponents of a bill he signed into law Monday to fight rising gas prices, the leader of an energy trade group said.

Shortly after lawmakers passed the gas price stabilization law, which gives regulators the authority to require refineries to store a certain amount of fuel in an effort to lower prices when factories go online for repairs, Newsom blasted oil companies and Western. States Petroleum Association (WSPA), a trade association, for allegedly spreading “truths” and engaging in “deception.”

“Especially the WSPA and their rhetoric and big oil continue to deliberately lie to the people,” Newsom said while flanked by lawmakers in Sacramento, highlighting the struggle many Californians are feeling. “They are the dirty part of this climate crisis. They continue to lie and they continue to deceive.”

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California Gov. Gavin Newsom speaks as he signs legislation at the state Capitol on Monday, October 14, 2024, aimed at preventing gas prices from going through the pump. (AP Photo/Sophie Austin / AP Photos)

WSPA President and CEO Catherine Reheis-Boyd called Newsom’s remarks political theater filled with personal insults.

“This is really politics more than policy,” Reheis-Boyd told FOX Business. “His attack, which was full of personal insults, only serves to divide, not to address the real problems we are trying to deal with.”

“Calling the men and women who work hard in this industry … dirty hearts is beneath the leadership that California deserves,” he added. “He chose to demonize an industry that powers California’s economy and fuels the daily lives of everyone. I was surprised by his aggressiveness and inflammatory nature.”

Mobile gas station

A customer uses a credit card to pump gas as a sign shows gas prices are above seven and close to eight dollars a gallon at a Mobil gas station in Los Angeles, California, on October 5, 2023. (Photo by Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images) / Getty Images)

This new law was inspired by the findings of the Division of Petroleum Market Oversight of the province which revealed that the increase in gas prices is mainly caused by the increase in crude oil prices worldwide and unscheduled shutdowns of refineries. As of Monday, the average price of a gallon of unrefined gas in California was about $4.68, compared to a national average of $3.20, according to AAA.

Rising gas prices have cost California billions of dollars a year, Newsom said, noting that he doesn’t want to wait for the industry to “do the right thing.”

Opponents of the legislation say it could inadvertently raise gas prices and threaten worker safety by giving the state more oversight of refinery maintenance programs.

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Gavin Newsom signs the bill

California Gov. Gavin Newsom signs legislation at the state Capitol on Monday, October 14, 2024, aimed at preventing gas prices from entering the tap. (AP Photo/Sophie Austin) (AP Photo/Sophie Austin / AP Photos)

Newsom he revealed the law in August, during the last week of the regular legislative session. Lawmakers in the State Legislature said they needed more time to consider the bill and Newsom called the Legislature into a special session to pass it.

Reheis-Boyd said the cost of crude oil can be reduced in a number of ways, including reopening closed pipelines and encouraging better business conditions to keep refineries in the state.

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“We’re sitting on one of the biggest oil reserves in Kern County,” he said. “So when people say we need a strategic petroleum reserve, I say ‘We have it. It’s in Kern County. We can’t extract oil from the ground because this governor won’t allow permits to be issued for producers to produce it.'”

Newsom’s office declined to comment on Newsom’s speech, saying his comments “speak for themselves.”


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