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Gov. Newsom considers special legislative session in response to rising gas prices

Gov. Newsom considers special legislative session in response to rising gas prices
NEW GAS POWERED CARS BY 20-35. >> AFTER DAYS OF RISING GAS PRICES IN CALIFORNIA, WE FINALLY SAW A CHANGE OVERNIGHT. WITH THE AVERAGE PRICES DROPPING SLIGHTLY. BUT THEY ARE STILL NEAR RECORD HIGHS. REGULAR UNLEADED IN CALIFORNIA IS 6.42 PER GALLON. LAST MONTH, IT WAS A DOLLAR-15 LESS. AND WE ARE PAYING TWO DOLLARS A GALLON MORE THAN WE WERE LAST YEAR. GOVERNOR NEWSOM IS DECIDING WHETHER TO CALL LAWMAKERS BACK TO SACRAMENTO IN RESPONSE TO THE RISING GAS PRICES. AND MAJOR OIL COMPANIES IN THE STATE ARE NOW RESPONDING TO THE STATE’S DEMAND FOR ANSWERS ABOUT WHY PRICES ARE SO HIGH. ASHLEY ZAVALA WAS IN SAN FRANCISCO, WHERE THE GOVERNOR TALKED ABOUT THIS TODAY. >> WE’RE HOPING TO DO MORE WITH THIS WINDFALL PROFITS TAX TO GO AFTER BIG OIL >> GOVERNOR GAVIN NEWSOM, CONSIDERING CALLING STATE LAWMAKERS BACK TO THE CAPITOL. NEWSOM IS REQUESTING THE LEGISLATURE PASS A MEASURE THAT WOULD REQUIRE OIL COMPANIES PAY ITS EXCESSIVE PROFITS BACK TO CUSTOMERS THROUGH A NEW TAX, BUT AS OF RIGHT NOW, WITHOUT A SPECIAL SESSION, THE EARLIEST ACTION COULD BEGIN IS IN JANUARY. >> WE’RE MAKING THAT DETERMINATION IN REAL TIME AND WE’LL LET YOU KNOW WHEN THAT’S MADE >> SOME REPUBLICANS SAID THEY WOULD AGREE TO -- >> IT IS A FOOLHARDY PROPOSAL. IF THE DEMOCRATS WANT TO GET BEHIND THAT, BY ALL MEANS, THAT EVERYBODY KNOW THAT IS WHAT THEY WANT TO DO. INCREASE YOUR TAXES. INCREASE YOUR COSTS IN THE STATE. >> IT IS SO EXCITING. >> LIVES AMID THE REMARKS IN SAN FRANCISCO AFTER HE AND THE GOVERNOR’S SIDE AN AGREEMENT TO CONTINUE WORKING TOGETHER TOWARD A LOW CARBON FUTURE AND IN PART, REDUCE THEIR USE OF OIL AND GAS. THE GOVERNOR EVENT HERE IN SAN FRANCISCO COMES AS MAJOR OIL COMPANIES BEGIN RESPONDING TO CALIFORNIA’S DEMAND FOR ANSWERS ON THE RECENT SPIKE IN GAS PRICES. THE COMPANY’S SENIOR VICE PRESIDENT POINTED TO THE STATE RESTRICTIONS THAT HAVE MADE IT HARDER TO REFINE OIL AND IMPORT GASOLINE. HE ALSO WROTE THE BECAUSE OF STATE AND FEDERAL ANTITRUST LAWS, THE COMPANY COULD NOT RESPOND TO THE DEMAND FOR ANSWERS. THEY PROHIBIT REFINERIES. THE PRICES STILL DON’T ADD UP WITH THE PRICE OF CRUDE OIL FALLING. NOW, IT IS UP TO NEWSOM TO DECIDE HOW QUICKLY THE STATE RESPONDS. IN SAN FRANCISCO, KCRA3 NEWS. QUICK STARTING TOMORROW, MILLIONS OF CALIFORNIANS WILL GET UP TO $150,000. ABOUT 23 MILLION PEOPLE QUALITY FOR A PAYMENT. GOVERNOR NEWSOM SAYS THE TAX REFUNDS THAT WERE APPROVED IN JUNE WILL HELP ADDRESS THE RISING COSTS OF GAS AND GROCERIES. >> I COULDN’T BE MORE PROUD THAT WE WERE ABLE TO TURN AROUND THOSE CHECKS. WE PROMOTED SOMETHING, WE DELIVERED 9.5 BILLION REASONS I THINK WHY I THINK PEOPLE SHOULD BE APPRECIATIVE THAT THE STATE IS RECOGNIZING THE STRESS AND STRAIN THAT FAMILIES ARE GOING THOUGH AND WE ARE GETTING THAT MONEY OUT IN A VERY TIMELY MANNER. >> IF YOU ARE ELIGIBLE FOR A TAX REBATE, THERE IS NO ACTION YOU NEED TO TAKE. THE PROCESSING OF THE PAYMENTS WILL HAPPEN OVER THE NEXT SEVERAL WEEKS. WHEN YOUR PAYMENT ARRIVES, HOW IT ARRIVES AND HOW MUCH YOU GET DEPENDS ON HOW YOU FILE YOUR TAXES, AND HOW MUCH YOU MAKE. WE HAVE MORE ON THE CALIFORNIA TAX REFUNDS ON THE KCRA 3 MOBI
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Gov. Newsom considers special legislative session in response to rising gas prices
Update: Gov. Newsom said Friday he will call state lawmakers back to Sacramento for a special session to impose a windfall tax on oil companies. Click here for the latest. Earlier story below: Gov. Gavin Newsom is considering calling state lawmakers back to Sacramento for a special session in response to rising gas prices. "We’re hoping to do more with this windfall profits tax to go after big oil," he said Thursday at a climate-related event in San Francisco. The governor has requested the legislature 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 a special legislative session. "We’re making that determination in real time," Newsom said. "We’re working with legislative leaders and working on a strategy to get it done, I’m quite confident we’ll achieve the result intended."The governor has yet to provide specific details and a proposed timeline for the measure that 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. 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.He also wrote that because of state and federal antitrust laws, the company could not respond fully to the state’s demand for answers because those laws prohibit refineries from coordinating planned maintenance and does not allow them to discuss existing or planned supply. “Antitrust doesn’t prevent them from answering questions to the entity that regulates them,” said Alex Stack, a spokesman for Newsom’s office. Newsom’s office and the CEC have said California’s gas prices have been climbing while the price of crude oil has fallen. At the end of August, crude oil prices were about $100 per barrel, and the average gas price in California was $5.06. The price of oil has dropped to $90 per barrel while California gas prices near a record high at $6.43 cents per gallon. As of Thursday afternoon, California regulators were still waiting for answers from three other gas retailers. | Related | California inflation relief payments to start going out Friday"Californians deserve to know why savings haven’t been passed down to the pump," Stack said. "The truth will come out in third quarter investor reports released at the end of the month," said Jamie Court, president of Consumer Watchdog, who said a windfall tax could help rein in surging gas prices. "Historically, every gas price spike in California shows up as a profit spike as well."Republicans said they would reject the tax proposal because it would further increase costs for consumers."It's a foolhardy approach, it’s a foolhardy proposal," said Assembly Republican Leader, James Gallagher (R-Yuba City). "If the Democrats want to get behind that, by all means, let everybody know that’s what they want to do." A special session to impose a tax could be politically challenging for some state lawmakers hoping to retain their seats in the legislature this upcoming election. On the other hand, support in January may not be guaranteed for Newsom, with significant turnover expected in the Assembly and Senate because of vacancies related to term limits, redistricting and resignations. The leader of the Assembly may also change if lawmakers in that house choose to elect Robert Rivas as Speaker instead of Anthony Rendon. Video below: Gov. Newsom signs climate-related agreement with other West Coast governorsNewsom made the special session remarks at an event in San Francisco where he joined the governors of Washington, Oregon and the British Columbia premier to sign a climate-related agreement to continue working together toward a low carbon future and, in part, reduce the use of oil and gas. Shortly after the event Thursday afternoon, Newsom began campaigning off of the windfall tax proposal."Oil companies are ripping you off," his campaign email read. "And they are laughing all the way to the bank while making the planet uninhabitable for future generations. That ends now." | Interactive Data Below | County-by-county look at gas prices in the greater Sacramento region

Update: Gov. Newsom said Friday he will call state lawmakers back to Sacramento for a special session to impose a windfall tax on oil companies. Click here for the latest.

Earlier story below:

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Gov. Gavin Newsom is considering calling state lawmakers back to Sacramento for a special session in response to rising gas prices.

"We’re hoping to do more with this windfall profits tax to go after big oil," he said Thursday at a climate-related event in San Francisco.

The governor has requested the legislature 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 a special legislative session.

"We’re making that determination in real time," Newsom said. "We’re working with legislative leaders and working on a strategy to get it done, I’m quite confident we’ll achieve the result intended."

The governor has yet to provide specific details and a proposed timeline for the measure that 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.

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.

He also wrote that because of state and federal antitrust laws, the company could not respond fully to the state’s demand for answers because those laws prohibit refineries from coordinating planned maintenance and does not allow them to discuss existing or planned supply.

“Antitrust doesn’t prevent them from answering questions to the entity that regulates them,” said Alex Stack, a spokesman for Newsom’s office.

Newsom’s office and the CEC have said California’s gas prices have been climbing while the price of crude oil has fallen. At the end of August, crude oil prices were about $100 per barrel, and the average gas price in California was $5.06. The price of oil has dropped to $90 per barrel while California gas prices near a record high at $6.43 cents per gallon. As of Thursday afternoon, California regulators were still waiting for answers from three other gas retailers.

| Related | California inflation relief payments to start going out Friday

"Californians deserve to know why savings haven’t been passed down to the pump," Stack said.

"The truth will come out in third quarter investor reports released at the end of the month," said Jamie Court, president of Consumer Watchdog, who said a windfall tax could help rein in surging gas prices. "Historically, every gas price spike in California shows up as a profit spike as well."

Republicans said they would reject the tax proposal because it would further increase costs for consumers.

"It's a foolhardy approach, it’s a foolhardy proposal," said Assembly Republican Leader, James Gallagher (R-Yuba City). "If the Democrats want to get behind that, by all means, let everybody know that’s what they want to do."

A special session to impose a tax could be politically challenging for some state lawmakers hoping to retain their seats in the legislature this upcoming election. On the other hand, support in January may not be guaranteed for Newsom, with significant turnover expected in the Assembly and Senate because of vacancies related to term limits, redistricting and resignations. The leader of the Assembly may also change if lawmakers in that house choose to elect Robert Rivas as Speaker instead of Anthony Rendon.

Video below: Gov. Newsom signs climate-related agreement with other West Coast governors

Newsom made the special session remarks at an event in San Francisco where he joined the governors of Washington, Oregon and the British Columbia premier to sign a climate-related agreement to continue working together toward a low carbon future and, in part, reduce the use of oil and gas.

Shortly after the event Thursday afternoon, Newsom began campaigning off of the windfall tax proposal.

"Oil companies are ripping you off," his campaign email read. "And they are laughing all the way to the bank while making the planet uninhabitable for future generations. That ends now."

| Interactive Data Below | County-by-county look at gas prices in the greater Sacramento region