Summary
October 8, 2024
The Honorable Senate Pro Tempore Mike McGuire
Capitol Office, 1021 O Street, Suite 8518
Sacramento, CA 95814
Re: SUPPORT for AB X2-1: Energy: transportation fuels: inventories: turnaround and maintenance
Dear Pro Tempore McGuire,
On behalf of the Marin County Board of Supervisors, we write in support for AB X2-1, which will allow the California Energy Commission to establish resupply requirements and minimum inventories for refiners for greater gasoline price stability for consumers.
Marin supported last year’s gas price gouging law (SBX 1-2, Skinner) that helped provide increased oversight and transparency of California’s gasoline market by establishing the Division of Petroleum Market Oversight and allowing the California Energy Commission to uncover new information from the oil industry. What the oversight agency and CEC found since SBX1-2’s oversight provisions went into effect, is that when petroleum refineries run low on supplies or go offline for maintenance without a back-up supply, gasoline prices spike. Last year, these spikes cost Californians around $2 billion, while petroleum refinery profits simultaneously increased. Therefore, AB X2-1 builds upon the successful 2023 gas price gouging law to further protect consumers from these spikes.
Authorizing the California Energy Commission to require petroleum refiners to maintain a minimum inventory of refined fuel – as AB X2-1 proposes to do – will help avoid the supply shortages that result in higher prices at the pump for consumers. We also strongly support the Legislature’s continued work to ensure AB X2-1 prioritizes worker safety, including in the inevitable instances when emergency work is needed at refineries.
Due to the environmental and financial burdens that the oil and gas industry has imposed on Californians for decades, we thank you for taking steps real solutions that will support communities, consumers, labor, and businesses through greater oversight and accountability.
Sincerely,
Dennis Rodoni, President
Marin County Board of Supervisors
Cc: Marin County Board of Supervisors
Governor Gavin Newsom
Assemblymember Gregg Hart
Assemblymember Damon Connolly
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