By: Donna Duperron
The Torrance Chamber has joined several coalitions and sent letters of opposition to ABX2-1. Policy experts have closely studied Governor Gavin Newsom’s proposal to impose a minimum supply mandate on refineries. The proposal, introduced as ABX2- 1, would create artificial fuel shortages in California, Arizona, and Nevada by forcing refiners to withhold fuels from the market, driving up costs for consumers.
Industry experts, the California Energy Commission, and economists agree that ABX2- 1 would cause harm. ABX2-1 will prioritize gasoline supply over the safety of refinery workers and surrounding communities by delaying necessary regulatory required maintenance, refineries will face penalties of up to $1 million per day which makes it uneconomical for them to continue operating in California and ABX2-1 fails to address key regulations, like an upcoming tanker rule, that could further limit the supply of crude and gasoline.
Additionally, the California Energy Commission will have the power to create gasoline shortages, which will lead to higher prices at the pump and a politically appointed advisory committee with no industry expertise will dictate policies that affect the gas market.
Legislators will have their first formal opportunity to vote on ABX2-1 during a committee hearing this Thursday, September 26, 2024.