Another special session on oil?

Aug 28, 2024

Presented by The Utility Reform Network

An overhead view of the California Assembly floor shows lawmakers working at their desks.

California lawmakers are considering a proposal from Gov. Gavin Newsom to hold a special session on a bill meant to stabilize gas prices | Rich Pedroncelli/AP

HOUSE DIVIDED: The question of whether to hold a special session this fall on Gov. Gavin Newsom's last-minute bill on gas prices has divided the Senate and the Assembly.

Newsom’s administration floated the special session proposal to Assembly and Senate leaders Tuesday after some Assembly Democrats pushed back on his attempt to fast-track the legislation, according to a person with knowledge of the talks who was granted anonymity to discuss confidential negotiations.

The Assembly appears to be on board with the extension. The Senate is not.

“We don’t need a special session, we should just do the work before recess,” state Sen. Scott Wiener said today.

Welcome to the end of session, a chaotic time of year that stokes conflict between the two houses, each of which has their own priorities and politics.

Every year, the game of inter-house chicken becomes a race to the final hours as the speaker and the pro tem hold bills to maximize their leverage — a tactic that blew up during the Covid-wrecked 2020 session when the Assembly sent back then-Senate President Pro Tem Toni Atkins' housing bill too late for a final vote.

The split over the gas legislation, and whether it needs more vetting, is shaping up to raise tensions to a peak. Senate emotions are still raw over Assembly Democrat Buffy Wicks' journalism deal with Google. McGuire last week publicly criticized the agreement to fund newsrooms and AI initiatives, suggesting it didn’t include enough funding for journalism; the agreement also led to the demise of a related Senate bill.

Some assemblymembers said they want more time to consider the governor’s proposal to give state regulators more authority to address gasoline price spikes — which was first unveiled Tuesday.

“The public deserves our going through the legislative process, especially with these types of topics,” Assemblymember Diane Papan told Playbook.

Senate Democrats, however, want to take up the gas-price legislation this week, seeing no reason for delay. "I hope we would get it done now," said state Sen. Nancy Skinner, who authored the gas price-gouging legislation that Newsom signed last year.

This wouldn’t be the first time that Assembly Speaker Robert Rivas and Senate President Pro Tem Mike McGuire — both still relatively new to their roles — weren’t on the same page.

Ahead of the summer deadline to finalize the November ballot, the two houses quarreled over whether to give money to public universities in the education bond. The Assembly's proposal to leave them out prevailed in June negotiations.

Newsom’s office confirmed to Playbook that the governor is indeed considering a special session. He previously called one in the fall of 2022, and it resulted in legislation to study California’s oil market and come up with ways to address gas price spikes, including a potential cap on refiners’ profits.

— With help from Lara Korte, Wes Venteicher, Blanca Begert, Blake Jones and Jeremy B. White

IT’S WEDNESDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to lholden@politico.com.

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GOV. NEWSOM AND LEGISLATURE - Don’t get burned again. California voters are demanding you tackle utility greed and prevent Wall Street from profiting at our expense. Reform wildfire mitigation spending, cut waste, securitize capital costs, and stop utilities from profiting off their failures. With 86% public support for safer, more cost-effective wildfire mitigation measures, it’s time to stand up for the safety and financial well-being of California voters. Learn more.

WHAT YOU NEED TO KNOW TODAY

State Sen. Scott Wiener watches a vote in the Senate.

State Sen. Scott Wiener's AI bill advanced from the California Assembly over the objections of House Democrats. | Rich Pendroncelli/AP

AI BILL GETS OUT: A California proposal to impose first-in-the-nation safety standards for powerful AI models passed a major hurdle by narrowly clearing the state Assembly today, overcoming fierce resistance from tech companies and leading California House Democrats.

Senate Bill 1047 by Wiener, a state senator from San Francisco, would require the largest AI models to certify safety testing before deployment with the aim of protecting people from potential dangers like the creation of bioweapons.

The bill has divided Silicon Valley. Top figures such as Elon Musk support the measure as a way to help mitigate potential risks to the public, while opponents such as OpenAI argue its requirements would unduly burden developers, especially small startups.

Wiener has also faced strong opposition from Democrats in Congress who represent areas around Silicon Valley. San Francisco Bay Area Reps. Zoe Lofgren and Ro Khanna have voiced their dissent, along with former Speaker Nancy Pelosi, marking a major blow to Wiener, who intends to run for her seat after she retires. One of his closest allies, San Francisco Mayor London Breed, warned the measure would undermine the city’s economy. — Lara Korte

Follow ongoing storylines on how the election will shape policy debates beyond 2024. Our nonpartisan insights prepared our subscribers to navigate a changed political landscape. Learn more about POLITICO Pro.

ON THE BEATS

Dave Min listens as lawmakers discuss a bill before the Senate at the California state Capitol.

State Sen. Dave Min authored a bill that would ban counties from enacting voter ID laws. | AP Photo/Rich Pedroncelli

ELECTION COPS REDUX: Democrats in Sacramento are on the cusp of quelling a rebellious push from conservative local government officials for additional voting restrictions in deep-red pockets of California.

Headlining Democrats’ efforts is Senate Bill 1174, a proposal from state Sen. Dave Min that would bar local governments from imposing voter ID laws. It’s aimed squarely at Huntington Beach, where voters in March approved a ballot measure that would require residents to show voter ID at the polls. Assemblymembers advanced Min’s legislation in a decisive 57-16 party line vote last night, sending it back to the Senate for final approval before it heads to Newsom’s desk.

But that didn’t stop Republicans, led by Assemblymember Bill Essayli, from making a last-ditch attempt to thwart Min’s legislation. The Republican from Corona attempted to introduce amendments, much to the dismay of a visibly exasperated Speaker Pro tem Jim Wood.

“Well, I’ll look into that,” Essayli snapped back after Wood ruled his amendments out of order.

Expect another kerfuffle this week if the Assembly votes on Senate Bill 1328, a proposal from state Sen. Steven Bradford that would clarify record-keeping procedures for elections data and increase the secretary of state’s regulatory power over local elections. Ultraconservative leaders in Shasta County say the bill is aimed squarely at their past efforts to dump electronic polling machines. — Tyler Katzenberger

PROP 36 PUNT: The board of supervisors in two big California counties, San Mateo and San Diego, aren’t quite ready to endorse Proposition 36.

Both boards postponed endorsement votes Tuesday on the tough-on-crime measure, citing fiscal concerns. They opted not to take a position until they had a chance to review reports detailing the impact Prop 36 would have on their respective counties’ finances.

The Legislative Analyst’s Office has said in its official fiscal impact statement for the measure that the local costs of implementing Prop 36 would be “likely in the tens of millions annually,” including increased county jail costs and higher workloads for county prosecutors, public defenders, and agencies like probation or public health departments.

Many arguments against Prop 36 have thus far focused on its impact on criminal justice reforms in the state, with opponents saying it will take California back to the era of mass incarceration. It’s notable that on the county level, fiscal concerns are playing a big role in the debate. — Emily Schultheis

A message from The Utility Reform Network:

FENTANYL CAMPAIGN: The California Department of Public Health is launching a public information campaign to combat the state’s fentanyl overdose epidemic. Through June 2025, ads will encourage people to carry naloxone, reassuring Californians that keep the overdose reversal medication on hand doesn’t make you a person who uses drugs. The campaign will also try to bust myths about fentanyl, like that someone can overdose just from touching or inhaling it.

The myths CDPH is trying to combat have been spread by law enforcement; reports of first responders “overdosing” after touching fentanyl have gone viral. While the new campaign is directed at the public, California has tried for the last few years to dispel these myths among first responders as well.

CDPH could not immediately provide information on how much the new information campaign will cost, but ads will air in four languages across the state online and on television. — Rachel Bluth

DON’T MISS OUR AI & TECH SUMMIT: Join POLITICO’s AI & Tech Summit for exclusive interviews and conversations with senior tech leaders, lawmakers, officials and stakeholders about where the rising energy around global competition — and the sense of potential around AI and restoring American tech knowhow — is driving tech policy and investment. REGISTER HERE.

WHAT WE'RE READING TODAY

— Is Kamala Harris a child of hippie Berkeley or blue-collar Oakland? It’s complicated. (Berkeleyside)

— Republicans and Democrats agree on one thing: Almost no one cares about Covid anymore. (POLITICO)

— Incoming UC Berkeley Chancellor Rich Lyons wants to “question the status quo” as he explores solutions to the university’s financial woes. (Los Angeles Times)

AROUND THE STATE

— Disney’s planned mega-neighborhood in the Coachella Valley has some locals on edge. (Los Angeles Times)

— San Francisco’s homelessness population is growing in a neighborhood historically home to the city’s largest Black community. (San Francisco Chronicle)

— Central Valley raisin growers are back on top after years of hardship. (Fresno Bee)

— compiled by Tyler Katzenberger

CLARIFICATION: Monday’s newsletter referred to Russo McGarty & Associates, which is managing the main Yes on 36 campaign, as a Republican firm. The firm is led by longtime business and Republican-aligned consultant Tony Russo, as well as Matt McGarty, but the firm itself does not have a partisan affiliation.

A message from The Utility Reform Network:

GOV. NEWSOM AND LEGISLATURE - Don’t get burned again. California voters are demanding you stand up to utility greed and prevent Wall Street from profiting at our expense. Adopt alternatives to utility capital spending that save billions for customers. Reform wildfire mitigation spending, cut wasteful expenditures, and hold utilities accountable for safe, affordable service. Ensure critical reforms aren't upended and stop utilities from writing their own rules or profiting from failures. With 86% public support for safer, more cost-effective wildfire mitigation measures, it’s time to stand up for the safety and financial well-being of California voters. Learn more.