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At Newsom's urging, lawmakers consider more oil regulations in California

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At Newsom's urging, lawmakers consider more oil regulations in California

The California Assembly on Tuesday passed legislation aimed at reducing sudden gas price increases, action inspired by Gov. Gavin Newsom’s political battle with the oil industry over blame for the state’s nation-leading per-gallon costs at the pump.

The extended deliberations at the state Capitol over affordability underscore the challenges state Democratic leaders face carrying out their agenda to transition California away from a dependence on fossil fuels.

In the ongoing special legislative session called by Newsom, the Democratic-led Assembly approved bills that give the state the authority to place new requirements on California oil refiners to keep adequate reserves. The mandate could prevent price spikes in the future but offers no immediate relief at the pump.

It’s the second year in a row that lawmakers have targeted California’s gas price increases. The proposals must also be adopted by the Senate and signed by the governor to become law.

“The goal is simple: Guarantee that fuel reserves are readily available for consumers during maintenance events and supply constraints,” said Assemblymember Gregg Hart (D-Santa Barbara), who introduced one of the two bills approved Tuesday. “Let’s take action now to provide relief to Californians who need gasoline in their cars to get to work, drive their children to school, vote and visit loved ones.”

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As the November election fast approaches, lawmakers rejected Republican calls to change climate laws to potentially deliver larger and faster savings to consumers.

“If we didn’t come here to actually lower consumers’ gas prices, then why are we here?” asked Assembly Republican Leader James Gallagher (R-Yuba City) during the floor session. “And what I’m hearing is that all we’re really considering is this proposal from the governor that doesn’t lower gas prices. At best, in theory, it will stop gas price spikes. But the people that I hear from, and that I’m sure you hear from, your constituents, think that the price of gas is too damn high right now.”

The Assembly passed legislation Tuesday to authorize the California Energy Commission, through its rulemaking process, to mandate that oil refiners maintain a minimum inventory level to avoid shortages when equipment goes off line because of maintenance issues.

The lower house also approved a bill that sets a July 1 deadline for the energy commission and the California Air Resources Board to recommend ways to increase the state’s gasoline supply, such as adding more ethanol to fuel, limiting the use of the state’s summer blend or adopting other potential solutions.

The governor alleges that a handful of oil refineries, which produce the state’s special blend of more environmentally friendly fuel, are manipulating the market to maximize their profits at the expense of Californians.

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After gathering more insight about pricing from laws passed in the previous special session on oil prices last year, state regulators had reported that charges at the pump increase when the oil companies do not maintain enough refined gasoline to backfill production shortfalls or protect against the effect of unplanned maintenance.

“I’m grateful to the Assembly for joining with me in our efforts to prevent gas price spikes and save Californians money at the pump,” Newsom said in a statement. “Just last year, price spikes cost Californians more than $2 billion — forcing many families to make tough decisions like choosing between fueling up or putting food on the table. This has to end, and with the Legislature’s support, we’ll get this done for California families.”

Newsom was not present during the vote. He attended the inauguration of Mexican President Claudia Sheinbaum in Mexico City on Tuesday.

Oil companies say price spikes are a result of the state’s climate change policies, which increase the cost of bringing gasoline to the market and leave the state dependent on a small number of refineries. The Legislature’s repeated efforts to regulate a complex oil market, the industry says, could have the adverse consequence of raising the prices they seek to lower.

Assembly Speaker Robert Rivas (D-Hollister) declined to have the lower house vote on a very similar proposal that Newsom sought to push through the Legislature in the final weeks of the regular session in late August, citing the need for more time to hold hearings and consider the bill.

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Newsom’s office had begun talking with the Senate and Assembly earlier in the summer about legislation that would allow his administration to require that petroleum refiners maintain a stable inventory. Newsom and his aides hoped the bill would become part of a package of legislation supported by the Senate and Assembly, which failed to materialize.

After Rivas said the Assembly wanted more time, Newsom convened a special session on Aug. 31.

Through a series of hearings over the last month, Assembly members sorted through the contrasting narratives from the governor and the industry to understand the best path forward to regulate a complex oil market.

Gallagher introduced a proposal that would have exempted transportation fuels from California’s cap-and-trade program, which he said could save consumers 30 cents per gallon of gasoline. The bill also would have required regulators to waive requirements for California to use its summer blend of gasoline, which is more expensive, when prices raise or supply is low.

Assembly Democrats rejected the bill in a legislative hearing. Republicans voiced concerns that prices will continue to go up next year under changes to the cap-and-trade program and the state’s low carbon fuel standard.

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“This has got to be the biggest dog and pony show I’ve seen up here in 10 years,” said Assemblymember Devon Mathis (R-Visalia) during the floor vote. “We are blaming everything we can on the reason why gas is so expensive in our state, except for the fact that the governor and this body haven’t moved.”

After the vote, Rivas offered a reminder that the special session was convened specifically to tackle price spikes.

“It’s estimated by the state that this is going to result in around $2 billion to local residents,” he said about the potential savings to consumers. “But we have to do a lot more when it comes to this affordability crisis that the state faces, both at the gas pump and so many other areas.”

Democrats in the California Senate, who said they wanted to pass Newsom’s original proposal about supply mandates before the regular session ended, decided to wait for the Assembly to vote on the bills before reconvening the upper house in the special session.

The Senate pro tem’s office has said the house would be “ready to convene, establish our process and act swiftly to provide the relief all Californians deserve” after the Assembly took action. The Senate is expected to gather as early as next week to review the bills.

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Video: How the Supreme Court’s Transgender Ruling Reveals a Shift

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Video: How the Supreme Court’s Transgender Ruling Reveals a Shift

In its biggest ruling of the term, the Supreme Court on Wednesday upheld a Tennessee law that prohibits some medical treatments for transgender youths, shielding similar laws in more than 20 other states. Adam Liptak, who covers the Supreme Court for The New York Times, describes the three factions of justices in the 6-to-3 decision.

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'I don't see any other way': Republicans push for gun tax cut in Trump's 'big, beautiful bill'

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'I don't see any other way': Republicans push for gun tax cut in Trump's 'big, beautiful bill'

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Inside President Donald Trump’s “big, beautiful bill” are policy tweaks that would remove taxes and regulations on certain guns, but Senate Democrats aim to gut the changes from the bill.

Tucked into the Senate Finance Committee’s offering to the mammoth bill, which was unveiled earlier this week, are policy changes that would delist short-barrel rifles, shotguns and suppressors from the National Firearms Act (NFA).

That means those particular guns and accessories would no longer be subject to a $200 federal tax and would no longer need to be registered with the Bureau of Alcohol, Tobacco, Firearms and Explosives.

TOP TRUMP ALLY PREDICTS SENATE WILL BLOW PAST ‘BIG, BEAUTIFUL BILL’ DEADLINE

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Inside President Donald Trump’s “big, beautiful bill” are policy tweaks that would remove taxes and regulations on certain guns. (Tom Williams/CQ-Roll Call, Inc)

The changes come from the Stop Harassing Owners of Rifles Today (SHORT) Act, a bill pushed by Sen. Roger Marshall, R-Kan., in the upper chamber, and Rep. Andrew Clyde, R-Ga., in the House.

Marshall told Fox News Digital he believed the gun language would make Trump’s megabill “even more beautiful,” while Clyde said in a statement the changes would “restore our Second Amendment rights.”

‘IT JUST BAFFLES ME’: SENATE REPUBLICANS SOUND ALARM OVER MEDICAID CHANGES, SPENDING IN TRUMP MEGABILL

Roger Marshall

Kansas GOP Sen. Roger Marshall (Getty Images)

However, Democrats have vowed to inflict as much pain as possible on their Republican colleagues through the “Byrd Bath” process, which is when lawmakers and their staff work behind the scenes to ensure the litany of policy within the “big, beautiful bill” comports with the Byrd Rule that governs reconciliation.

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And the gun language is likely high on the chopping block for Senate Democrats.

“Taxation and registration of firearms under the draconian NFA are inseparably linked,” Clyde said in a statement to Fox News Digital. “I’m confident our pro-2A provision will survive the Byrd Rule, and I look forward to delivering this constitutional victory for the American people.”

Marshall, similarly, wasn’t too concerned the provision would be scrubbed by Democrats in their Byrd Bath pursuit and noted, “That’s what reconciliation bills are supposed to deal with, is taxes.”

SENATE PANEL NAVIGATES DELICATE COMPROMISES ON MEDICAID, TAXES IN LATEST CHUNK OF TRUMP’S MEGABILL

Wyden during Gabbard confirmation

Sen. Ron Wyden walks through the Senate Subway during a series of confirmation votes for President Donald Trump’s Cabinet nominees at the U.S. Capitol Building Feb. 12, 2025, in Washington. (Anna Moneymaker/Getty Images)

He argued the Supreme Court upheld the NFA, which, despite being primarily a regulatory framework, does include an excise tax. The court upheld the NFA and the excise taxes it imposed as constitutional in the 1930s. More recently, the regulatory framework was upheld by the court in the Bruen decision in 2022.

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Still, Marshall viewed the filibuster-proof budget reconciliation process, which allows Republicans to pass Trump’s mammoth bill with only 51 votes, as the only chance he and the GOP have to codify the changes to the NFA.

“I don’t see another way to do it,” he said. “I mean, obviously it would take 60 votes. And, you know, I don’t see any other way to make this actually happen.”

Meanwhile, the top Democrat on the Senate Finance Committee, Sen. Ron Wyden, D-Ore., declined to get into detail on the exact strategy he and other Democratic lawmakers would use to go after provisions buried in the broader reconciliation text.

But he noted that the point of reconciliation is to focus on spending and budgetary effects and that “a lot of times you see Republicans, very conservative Republicans, try to convince the parliamentarian that something really is spending when it’s really an ideological trophy.”

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“I can tell you this, the Byrd Bath is the legislative equivalent of prolonged root canal work,” Wyden told Fox News Digital. “It’s detailed, we’ve begun it, I’m practiced in it. I’ve worked in this area for some time, and my staff is expecting to spend the whole rest of next week digging into it.”

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Trump can command National Guard as California’s legal challenge moves forward, appeals court says

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Trump can command National Guard as California’s legal challenge moves forward, appeals court says

The 9th U.S. Circuit Court of Appeals decided Thursday to leave troops in Los Angeles in the hands of the Trump administration while California’s objections are litigated in federal court, finding the president had broad — though not “unreviewable” — authority to deploy the military in American cities.

“We disagree with Defendants’ primary argument that the President’s decision to federalize members of the California National Guard … is completely insulated from judicial review,” Judge Mark J. Bennett of Honolulu, a Trump appointee, wrote for the appellate panel. “Nonetheless, we are persuaded that, under long-standing precedent interpreting the statutory predecessor … our review of that decision must be highly deferential.”

California leaders vowed to fight back in federal court.

“This case is far from over,” Atty. Gen. Rob Bonta said in response to the ruling. “While the court did not provide immediate relief for Angelenos today, we remain confident in our arguments and will continue the fight.”

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“We will press forward with our challenge to President Trump’s authoritarian use of U.S. military soldiers against citizens,” Gov. Gavin Newsom said.

Legal scholars said the decision was expected — particularly as the 9th Circuit has moved from the country’s most liberal to one of its most “balanced” since the start of Trump’s first term.

“It’s critically important for the people to understand just how much power Congress has given the president through these statutes,” said Eric Merriam, a professor of legal studies at Central Florida University and an appellate military judge.

“Judges for hundreds of years now have given extreme deference to the president in national security decisions, [including] use of the military,” Merriam added. “There is no other area of law where the president or executive gets that level of deference.”

The appellate panel sharply questioned both sides during Tuesday’s hearing, appearing to reject the federal government’s assertion that courts had no right to review the president’s actions, while also undercutting California’s claim that Trump had overstepped his authority in sending troops to L.A. to quell a “rebellion against the authority of the United States.”

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“All three judges seemed skeptical of the arguments that each party was making in its most extreme form,” said Elizabeth Goitein, senior director of the Liberty and National Security Program at New York University’s Brennan Center for Justice.

“I was impressed with the questions,” she went on. “I think they were fair questions, I think they were hard questions. I think the judges were wrestling with the right issues.”

The ruling Thursday largely returns the issue to U.S. District Judge Charles R. Breyer.

Unlike Breyer, whose temporary restraining order on June 12 would have returned control of the National Guard to California, the appellate court largely avoided the question of whether the facts on the ground in Los Angeles amounted to a “rebellion.”

Instead, the ruling focused on the limits of presidential power.

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Bennett’s opinion directly refuted the argument — made by Assistant Atty. Gen. Brett Shumate in Tuesday’s hearing — that the decision to federalize National Guard troops was “unreviewable.”

“Defendants argue that this language precludes review,” the judge wrote. “[But Supreme Court precedent] does not compel us to accept the federal government’s position that the President could federalize the National Guard based on no evidence whatsoever, and that courts would be unable to review a decision that was obviously absurd or made in bad faith.”

He also quoted at length from the 1932 Supreme Court decision in Sterling vs. Constantin, writing “[t]he nature of the [president’s] power also necessarily implies that there is a permitted range of honest judgment as to the measures to be taken in meeting force with force, in suppressing violence and restoring order.”

Shumate told the judge he didn’t know the case when Bennett asked him about it early in Tuesday’s hearing.

“That is a key case in that line of cases, and the fact he was not aware of it is extraordinary,” Goitein said.

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Merriam agreed — to a point.

“That’s a nightmare we have in law school — it’s a nightmare I’ve had as an appellate judge,” the scholar said.

However, “it’s actually a good thing that the attorney representing the U.S. was not planning to talk about martial law in front of the 9th Circuit,” Merriam said.

One thing Thursday’s ruling did not touch is whether the administration violated the Posse Comitatus Act by deputizing the military to act as civilian law enforcement — an allegation California leveled in its original complaint but which Breyer effectively tabled last week.

“The Posse Comitatus Act claim has not been resolved because it was essentially not ripe last Thursday,” when troops had just arrived, Goitein said. “It is ripe now.

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“Even if the 9th Circuit agrees with the federal government on everything, we could see a ruling from the district court next week that could limit what troops can do on the ground,” she said.

In the meantime, residents of an increasingly quiet Los Angeles will have to live with the growing number of federal troops.

“[Congress] didn’t limit rebellion to specific types of facts,” Merriam said. “As much as [Angelenos] might say, ‘This is crazy! There’s not a rebellion going on in L.A. right now,’ this is where we are with the law.”

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