SACRAMENTO, CA (AZFamily/AP) — California Democratic Gov. Gavin Newsom signed into law a controversial bill designed to prevent price spikes on gasoline. However, critics say it could create unintended consequences for neighboring states like Arizona that rely on fuel from the West Coast.

The California state Senate passed a measure Friday which was sendoff to the state Assembly, which gave the measure its final approval in a 41-16 vote on Monday.

The proposal, backed by Newsom, would give energy regulators the authority to require that refiners keep a certain amount of fuel on hand to prevent gas prices from spiking in a state where it is notoriously expensive to fill up at the pump.

The goal is to try to keep prices from increasing suddenly when refiners go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.

Arizona Gov. Katie Hobbs, a Democrat, alongside Nevada Gov. Joe Lombardo, a Republican, urged Newsom to halt the legislation in a letter last month.

“Arizonans are struggling with the high cost of living, we can’t afford yet another price hike,” said Gov. Hobbs. “I urge Gov. Newsom and the California legislature to reconsider this legislation that could slash Arizona’s gasoline supply, raise prices at the pump and threaten Arizona’s strong economic growth. I’m glad to work with Gov. Lombardo on this critical issue, and hope we can come together as a region to deliver lower fuel costs to all of our constituents.”

Lombardo echoed a similar sentiment, stating that Nevada and Arizona should not “foot the bill for California’s misguided policies — especially when it comes to higher gas prices.”

Arizona’s Family gas price tracker, powered by GasBuddy, shows that the average fuel price in metro Phoenix is around $3.37 as of Monday. In Tucson, it’s even lower at $3.23.

It’s a stark contrast to Californians, who pay the highest rates at the pump due to taxes and environmental regulations.

The average price for regular unleaded gas in California is about $4.67 per gallon, compared to the national average of $3.21, according to AAA data from Friday.

Who is behind this bill?

The bill was inspired by findings from the California Division of Petroleum Market Oversight, which demonstrated that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages.

California state Sen. Nancy Skinner, a Democrat representing Berkeley, said the proposal is about saving money for consumers.

“While global crude prices are not something we can control, a shortage of refined gasoline is something that we can prepare for,” she said.

Newsom unveiled the legislation in August, during the last week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to consider it. The governor called the Legislature into a special session to try to pass it.

It has received intense pushback from Republican lawmakers, labor groups and the oil industry. Some opponents say it could unintentionally raise overall gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules. They argued delaying necessary maintenance could lead to accidents.

The Western States Petroleum Association criticized Newsom and the Democratic lawmakers supporting the bill, saying it would not benefit consumers.

“If they were serious about affordability, they’d be working with our industry on real solutions,” Catherine Reheis-Boyd, the group’s president, said in a statement. “Instead, they’re forcing a system they don’t understand, and Californians will pay the price.”

Republican state Sen. Brian Dahle said there shouldn’t have been a special session to weigh the proposal, because the bill does not do anything urgent. The proposal fails to address the state taxes and regulations that contribute to higher gas prices, he said.

“So, who’s making the money?” Dahle said. “Who’s gouging Californians for every gallon of gas? It’s the government.”

What other energy policies has Newsom proposed?

It’s not the first time Newsom has tried to apply pressure on the Legislature to pass oil and gas regulations. He called a special session in 2022 to pass a tax on oil company profits.

The governor then said he wanted a penalty, not a tax. The law he ended up signing months later gave state regulators the power to penalize oil companies for making too much money.

McGuire, a Democrat representing the North Coast, said the bill lawmakers advanced would help address a problem that drastically impacts people’s lives.

“Putting mechanisms in place to help prevent costs from spiking and sending family budgets into a tailspin benefits us all, and working together, we’ve been able to do just that,” he said in a statement.

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