Home California Governor Newsom to Call for Special Legislation Session for Windfall Tax on Oil Companies

Governor Newsom to Call for Special Legislation Session for Windfall Tax on Oil Companies

by ECT

On Friday, Governor Gavin Newsom said he would call a special legislative session to push for a windfall profit tax on oil companies. This is in response to high prices of gas in California.

As of Friday, the average cost of a gallon of regular gas in California was $6.35 while the national average sits at $3.90.

Senate President pro Tempore Toni G. Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) issued the following statement following Governor Newsom calling for a special Legislative session in December to examine gas price gouging:

“The gas rebates that are beginning to roll out today to Californians were a huge step in helping ease the brunt of rising fuel costs, and we will continue to examine all other options to help consumers. As stated last week, a solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers deserves strong consideration by the Legislature. We look forward to examining the Governor’s detailed proposal when we receive it.”

Newsom first proposed a windfall tax back on Sept. 30:

Meanwhile, Republicans continue to call for the suspension of the gas tax while oil companies have blamed the high costs on maintenance and upgrades at refineries while also citing California regulation and environmental laws.

Senator Brian Dahle, who is running for Governor, tweeted out a response:  After pushing fuel prices to the highest in the nation, what’s Newsom’s solution? Call a special session (after the election) to raise taxes. More taxes aren’t the solution. Californians need relief now—suspend the gas tax

Kevin Slagle, Vice President of the Western States Petroleum Association, explained how California’s environmental laws and regulations have led to higher gas prices.

“It was just over a month ago that the Governor and the legislature got together and imposed a series of mandates and regulations that will cost Californians a record $54 billion dollars. These are the types of actions that can drive consumer costs way up. A better use of the special session would be to take a hard look at decades of California energy policy and what they mean to consumers and our economy,” said Kevin Slagle.

He added.

“If this was anything other than a political stunt, the Governor wouldn’t wait two months and would call the special session now, before the election. This industry is ready right now to work on real solutions to energy costs and reliability if that is what the Governor is truly interested in.”

According to AAA:

California average gas prices

Current Avg.$6.355$6.583$6.723$6.467
Yesterday Avg.$6.392$6.607$6.744$6.405
Week Ago Avg.$6.358$6.499$6.655$6.328
Month Ago Avg.$5.306$5.504$5.649$6.319
Year Ago Avg.$4.433$4.620$4.746$4.478

National average gas prices

Current Avg.$3.904$4.351$4.666$4.985$3.222
Yesterday Avg.$3.891$4.335$4.647$4.916$3.211
Week Ago Avg.$3.800$4.258$4.572$4.873$3.102
Month Ago Avg.$3.751$4.196$4.503$5.040$3.073
Year Ago Avg.$3.260$3.596$3.866$3.436$2.791

Republican Leaders Urge Rejection of Special Session for New Taxes

Say California Policy Decisions are to Blame for High Gas Prices

SACRAMENTO- Today, Assembly Republican Leader James Gallagher (Yuba City) and Assembly Budget Vice Chair Vince Fong (R-Bakersfield) called on the Governor and Democrat leaders to take immediate action to lower gas prices in California. In a letter sent Friday, the Republican leaders urged the following immediate actions:

  1. Suspend the state’s gas tax, which is adding 54 cents a gallon to the cost of fuel. 
  2. Retract the proposed Special Legislative Session to increase taxes.
  3. Conduct a full and immediate audit of gas tax expenditures.

“The tax increase Democrats are proposing is insulting,” said Assembly Republican Leader James Gallagher. “They need to face reality…it’s their policy decisions that are driving up the cost of fuel in California. With record high inflation and $7 a gallon gas prices, the last thing struggling families need right now is another tax. Policymakers should be solely focused on ways to lower gas prices. More taxes are not the answer.”

“Californians are hit hard by soaring gas prices,” said Assemblymember Vince Fong. “The only reason to call a special legislative session would be to suspend the gas tax, reduce the fees and regulations that make California gas so expensive, and allow permits to increase production to lower gas prices.”

Read a copy of the letter sent to Governor Newsom, Speaker of the Assembly Anthony Rendon, and Senate President Pro Tempore Toni Atkins here.

Assemblyman Kiley Denounces Newsom’s Special Session to Raise Taxes

SACRAMENTO, CA – Assemblyman Kevin Kiley (R-Rocklin) released the following statement in response to Governor Gavin Newsom’s decision to call a Special Session of the Legislature on December 5, 2022 to raise taxes on oil producers:

“The Governor had an opportunity to call a special session to suspend the gas tax and give California drivers immediate relief at the pump,” Kiley said. “Instead he chose to bring the Legislature back this December to raise taxes and increase costs on consumers who are already paying the highest gas prices in the nation. Parody and reality have become indistinguishable.”

California’s average gas price hit $6.39 per gallon today, $2.50 more than the national average. This is just 5 cents below the state’s record high of $6.44 set in June of this year and an increase of $1.11 in the past month.

In January, Kiley introduced AB 1638, an urgency measure that would have immediately suspended the gas tax and saved Californian’s over 50 cents per gallon at the pump. That bill was rejected in the Assembly on multiple occasions. Instead of providing relief, the Speaker of the Assembly created the Select Committee on Gasoline Supply and Pricing to study the issue. To date, the committee has held two hearings and has yet to produce anything actionable.

Middle Class Tax Refunds Start Hitting Bank Accounts


Up to 23 million Californians will benefit from $9.5 billion in direct relief, regardless of immigration status

SACRAMENTO – Starting tomorrow, $9.5 billion in Middle Class Tax Refund payments will begin going out to Californians, with refunds of up to $1,050 that will benefit millions of eligible Californians under the largest such program in state history.

Governor Newsom on Middle Class Tax Refunds Going Out Tomorrow

This unprecedented refund program to get money back in the pockets of Californians builds upon last year’s Golden State Stimulus, which distributed $9 billion to California families, and the billions that went to help folks pay their rent, cover overdue utility bills and support small businesses.

“We know it’s expensive right now, and California is putting money back into your pockets to help. We’re sending out refunds worth over a thousand dollars to help families pay for everything from groceries to gas,” said Governor Newsom.

Visit taxrefund.ca.gov to estimate your payment

Payments will range from $400 to $1,050 for couples filing jointly and $200 to $700 for all other individuals depending on their income and whether they claimed a dependent. Refunds are available for ITIN filers, in addition to those who file tax returns with a SSN.

A total of 18 million payments will be distributed, benefitting up to 23 million Californians. An estimated 8 million direct deposits will start arriving in bank accounts from October 7 through November 14, and an estimated 10 million debit cards will be delivered from October 25 through January 15. — Full Story

Senate Democrats Reject Republican Effort to Fund Gas Tax Holiday

June 30, 2022

SACRAMENTO – Senator Brian Jones (R-Santee) gave Senate Democrats another opportunity to provide gas price relief with an amendment to fund a gas tax holiday. Democrats rejected the Republican effort, even as California drivers are paying $6.27 for a gallon of unleaded gas – nearly two dollars more than the national average.

Democrats refused to consider the amendment during the final days of budget discussions, even though the gas tax is scheduled to increase on July 1.

“Gas is too damn high! This evening, I introduced a very simple amendment that would help suspend the state gas tax beginning Friday,” said Senator Jones. “That’d be almost 54 cents cut from the cost of every gallon of gasoline immediately and we could use money from the State’s $100 billion budget surplus to backfill funding for state transportation projects. This is not a partisan issue, even President Biden endorses a gas tax suspension. Yet, Capitol Democrats once again rejected a solution to immediately lower gas prices and keep transportation projects on track. Californians know who to thank for these record high prices.”

Earlier this month, Senate Republicans released a roadmap of Democrats’ broken promises and failures on gas taxes.

“Democrats slammed on the brakes yet again on relief at the pump. Republicans have given them every opportunity to do the right thing for drivers, and at every turn in the road, they do nothing but talk. Thank a Democrat when you are paying a higher gas tax on Friday,” said Senate Republican Leader Scott Wilk (R-Santa Clarita).

To illustrate the failures of Democrats on gas taxes, Senate Republicans created a Roadmap of Democrat Failures on Gas Taxes. Click here to view the website.

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