The State Legislature adÂjourned for the year August 31st, but a special session to deal with gas prices has been called. Several proposals are on the table.
One proposal would require refiners to withhold fuel from the market to build up reserves and serve as a cushion against price spikes. But there are deÂbates regarding this proposal. The California Energy CommisÂsion has reviewed the plan and warned that withholding gasoÂline to create the reserve may actually cause shortages and drive up costs.
California is the nation’s 7th largest oil producing state. The oil we use is either produced here, or it’s imported. In 1984, almost 60% of our oil was proÂduced in California. Today, 75% of our oil is imported and over 60% comes from foreign sources.
Importing vast amounts of oil should be unnecessary. We have some of the largest oil reÂserves in the nation, with most of our oil production centered in Kern County. Importing oil costs jobs and drives up the cost of virtually everything. As with any commodity, decreased supplies drive up costs. ReplacÂing California oil with foreign oil shipped thousands of miles on supertankers from countries with few if any environmental standards costs jobs, increases inflation, and degrades the enÂvironment – it is counterproducÂtive on all levels Other proposals for the speÂcial session include legislation that would suspend the gas tax (the nation’s highest at about 60 cents per gallon), exempt gasoÂline from Cap-and-Trade which adds about 30 cents per gallon, suspend a planned update that could add another 52 cents per gallon, increase oil production to decrease dependence on imÂported oil, increase storage caÂpacity, provide drivers with a small rebate to help offset costs, and increase transparency by creating a public dashboard that will compare California gas prices to national averages.
We’ll soon see what, if anyÂthing, is accomplished in the special session. As always, I’m hoping that common sense preÂvails.
Assembly member Marie Waldron, R- Valley Center, represents the 75th Assembly District in the CaliÂfornia Legislature, which includes the cities of Poway, Santee, porÂtions of the City of San Diego, and most of rural eastern and northern San Diego County.