Will Newsom gas rebate result in new tax?

Could a gas rebate end up costing taxpayers at the pump even more?

Newsom calls special session on gas rebate Gov. Gavin Newsom called a special legislative session on rebates to offset high gas prices funded by a windfall profits tax on oil companies.

The session will be Dec. 5, timed with the swearing-in of the new Legislature.

Gov. Gavin Newsom plans to call a special legislative session in December to push for a tax on oil industry profits, the latest escalation in a feud over soaring gasoline prices that Newsom calls greedy and manipulative.

Newsom said today that he would convene the special session on Dec. 5, the same day that a new class of lawmakers is sworn in.

"Gas prices in California have soared in recent weeks to an average of $6.39 per gallon, as of Friday, according to AAA, near the highest they've ever been.

Newsom, who originally unveiled his plans for a "windfall profits tax" on oil companies a week ago, had few additional details to share.

The plan could take the form of an excise tax, he said, with revenue being returned to taxpayers as rebates.

Despite his urgency, he said convening the special session in two months would give his team time to "get our ducks in a row" — developing a strategy that can get through the Legislature, where a two-thirds vote by both houses is required for any tax measure, and stand up to expected legal challenges by the oil industry.

"Republicans, who comprise a superminority of the Legislature, criticized the tax plan as insulting and said that it would drive up prices further because oil companies would pass on the cost.

Newsom once again rejected calls to suspend the state's 54-cent-per-gallon gas tax, because he said oil companies would simply pocket the savings.

New laws take aim at catalytic converter theft

Gov. Gavin Newsom said this week that he signed a bill that makes it illegal for recyclers to buy a valuable car part from anyone other than the legal owner or a licensed dealer. This is aimed at stopping the widespread theft of catalytic converters from cars.

Valuable metals like rhodium, platinum, and palladium are used in anti-pollution parts of cars. Parts that are hard to track down are easy to cut off a car, which makes them a good target for people who want to make money quickly at a scrap yard.

With the two new laws, buyers will have to pay more if they can't prove that a catalytic converter wasn't stolen. This should make it harder for thieves to sell stolen car parts.

Five of six climate bills signed into law

Five of the six climate and energy bills pushed by Gov. Gavin Newsom made it to his desk. AB 2133 — which would have ramped up goals for reducing greenhouse gases — failed at the last minute. 

The bills aim to set interim targets for 100% clean energy, regulate projects to remove carbon from the atmosphere and smokestacks. 

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Bill AB 1279 codifies the state's existing goal of carbon neutrality by 2045. But a more aggressive pace of cutting greenhouse gases failed in the Assembly.

The oil and gas industry also lobbied heavily against Newsom's climate initiatives. 

"It is a regressive mandate that will hit those at the lower end of the income spectrum the hardest." 

How Newsom wants to spend $100 million surplus

Californians will receive money.

The governor intends to send $400 to most car owners in the state. He also wants transit agencies to offer free bus and rail rides for three months. The suggestion is just for drivers whose automobiles are valued less than a yet-to-be-determined limit. Newsom's offer for assistance is still being criticized by anti-poverty activists, according to a report by CalMatters.org.

'Texas, eat your heart out.'

Governor Newsom proposes spending $57 million to expand abortion access and fund reproductive health research. Texas recently enacted legislation effectively prohibiting most abortions and classifying gender-confirming care for transgender children as child abuse. Arizona, Florida, and Texas, according to Newsom, have greater COVID death rates than California.

Where is retail thievery going?

Gov. Newsom requested an additional $350 million from the Legislature in January to address organized retail theft. The governor appears to have followed the advise of the Legislative Analyst now that voter anxiety has shifted to other matters.

Satellites that monitor cows, fires, and drought

Governor Newsom has proposed a $8 billion budget to improve the state's electricity grid's stability and speed up the development of sustainable energy projects. $100 million will go toward carbon capture and storage technologies, which include pumping carbon dioxide released by smokestacks into the ground for long-term storage. Cal Fire will receive $233 million over four years to add 270 new staff.

'That's a number you've never seen before in K-12 schooling.'

By changing the way school districts receive state funds, Gov. Newsom's budget proposal would alleviate some of the fiscal worries raised by education authorities. Districts will have the option of being financed based on a combination of enrolment and pre-pandemic attendance rates under the governor's plan. This approach also increases education funding overall.

Higher education funding has increased, yet many people are still unsatisfied.

Governor Newsom wants to spend $1.6 billion more on higher education than he proposed in January. Almost all of that money goes to community colleges to help them achieve new objectives. The administration at Cal State University was less enthusiastic.

Infusion of funds for health insurance

The COVID-era federal premium subsidies for Covered California will expire at the end of this year unless Congress acts. The governor also refused to change his mind about expanding Medi-Cal to include undocumented people aged 26 to 49. Newsom also proposed $304 million to help middle-income households offset the expense increases.

To address California's homelessness epidemic, Newsom added $700 million to his original $2 billion budget proposal. Local governments have been asking for a long-term renewal of the flexible grants contained in last year's budget. Newsom also suggested $65 million for the administration of CARE Court, his plan to compel people with profound disabilities to get treatment.