California lawmakers diverge on how to provide gas price relief

California lawmakers still can't agree on a plan to give residents relief from elevated gas prices.

Gov. Gavin Newsom, Democratic leaders and Republicans have all released different plans. Newsom’s proposal tracks more closely to one pushed by Republicans.

Newsom first announced plans for a gas tax rebate during his State of the State speech earlier this month, but didn’t release details until last week.

The governor’s plan would give Californians a $400 debit card per vehicle, for up to two vehicles, at a cost of $9 billion. He also proposed spending another $2 billion to provide three months' free ridership on mass transit, pause a portion of the sales tax rate on diesel and suspend July’s impending 3-cent per gallon hike on gas taxes.

“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Newsom said. “But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation — providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects.”

California Gov. Gavin Newsom plans to offer taxpayers a $400 gas tax rebate per vehicle, but his own party's legislative leaders have other ideas.
California Governor's Office

California has the highest gas prices in the nation hitting an average $5.97 per gallon Monday, while the national average was $4.25 per gallon, according to the American Automobile Association.

Newsom's package also calls for $500 million for bike and walking paths, fast-tracks $1.75 billion of the governor’s $10 billion zero emission vehicle package to encourage the purchase of ZEV passenger vehicles and build more charging stations.

The state has a $45.7 billion surplus and is at risk of hitting a ceiling on revenue collection that triggers a requirement that it would return money to taxpayers.

Meanwhile, Senate President Pro Tem Toni Atkins, D-San Diego), and Assembly Speaker Anthony Rendon, D-Lakewood, have proposed a plan that would give payments of $200 to every taxpayer making less than $125,000 a year, $400 for couples making under $250,000 a year and $200 for every dependent.

This plan would help a “vast majority of Californians,” Atkins said in a statement.

Atkins and Rendon have also opposed suspending the 3-cent gas tax hike saying it would take needed money away from road projects.

Republicans have proposed a six-month vacation from California’s 51-cent-per-gallon gas tax.

Assembly Bill 1638 introduced in January by Assemblyman Kevin Kiley, R-Sacramento, proposes using part of the state’s estimated $46.5 billion surplus to cover the $4.4 billion in revenue that would be lost during a six-month suspension of the gas tax.

Assembly Republican Leader James Gallagher, R-Yuba City, supported Newsom’s gas tax rebate during a press conference held after the governor’s annual address.

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