Overview

• Gov. Gavin Newsom's proposal to mandate fuel reserves has cleared the Assembly petroleum committee and heads to a floor vote next week.
• Economists support the plan, citing potential savings of up to $2 billion for California drivers, while refiners argue it could increase costs and require new storage infrastructure.
• The plan aims to smooth out price spikes caused by seasonal refinery maintenance, which has historically led to significant price increases at the pump.
• A second bill to study increasing ethanol in fuel blends was also advanced, while a GOP proposal to exempt gasoline from the cap-and-trade program was rejected.
• Experts warn that while the fuel reserve mandate could reduce price spikes, it won't address the broader issue of California's higher gas prices compared to the national average.