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Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State | | | | |  | | By Lara Korte , Jeremy B. White , Sakura Cannestra and Owen Tucker-Smith | THE BUZZ: AGREE TO DISAGREE? — For years, California officials have blamed the state’s high gas prices on oil refiners. Oil industry leaders blamed it on California policies. After a six hour meeting yesterday, it’s clear neither side is willing to budge. The meeting, hosted by the California Energy Commission, was convened in the wake of a bafflingly-high spike in gas prices earlier this year. The goal was to figure out just why the state saw such a drastic spike in gas prices in September (topping out at $6.43/gallon) and discuss ways to prevent that from happening in the future. Things kicked off on a bit of a sour note — with commissioners and lawmakers expressing their disappointment at the fact that none of the five oil refiners who were invited to the meeting were actually in attendance. In letters to the commission, Phillips 66, Valero, Chevron and Marathon declined to attend, citing concerns about violating antitrust laws. They deferred, instead, to testimony from the Western States Petroleum Association, which was in attendance. PBF Energy was a little more blunt in declining the invite, saying they opted not to attend because of Gov. Gavin Newsom’s “hostile rhetoric” and “baseless” attacks on refiners regarding high gas prices, which they argued are due, in large part, to state regulations and “lack of a transition plan” related to the clean energy mandates. The company isn’t entirely off-base — the governor has spent much of the fall railing against oil companies, accusing them of “fleecing” customers and going so far as to call a special session to pass a new tax against them, which would claw back some of what he sees as excess profits. Newsom even took to Twitter on Tuesday to chastise the companies for their absence.
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The logo for Chevron Corp. appears above a trading post on the floor of the New York Stock Exchange. | AP Photo/Richard Drew | It was against that contentious backdrop that the hearing proceeded, with testimony from CEC staff, economists, academics and industry experts. There’s no easy answer to the question of high gas prices, which are determined by a multitude of factors. Some pointed to the fact that the global supply of crude was disrupted this year after the Russian invasion of Ukraine and several West Coast refineries went down in the summer. There’s also just certain details we don’t know about how oil companies operate because of antitrust laws — though some have suggested a state subpoena could shed some light on the matter. But those like Consumer Watchdog President Jamie Court argued that there’s no justification for oil companies bringing in record-high profits in a year when consumers saw record-high costs. The best solution, he said, is the kind of windfall profits cap that Newsom has proposed, otherwise, “we’re going to be an ATM for these oil refineries in perpetuity.” WSPA President and CEO Catherine Reheis-Boyd, unsurprisingly, did not agree. “You cannot tax your way out of this problem,” she said. “The only result of a windfall profit tax will make the problem worse.” Newsom has called a special session on Dec. 5 to take up the windfall profits tax, but legislators have yet to see an actual bill. Newsom’s office said they expect details to be available by Monday, but it’s sounding more and more unlikely that we’ll see any action this month. Speaker Anthony Rendon’s office has said they don’t anticipate any actual meetings on the tax until the normal session in January. Following the hearing, Newsom released a statement criticizing the companies for “stonewalling,” and vowed to enact a price-gouging penalty. “...They have no explanation – big polluters are lining their pockets while they cause financial pain for millions of California families and threaten the very future of our planet,” the governor said. In the meantime you can expect opposition from the oil industry and anti-tax groups to be fierce and frequent. The California Taxpayers Association on Tuesday said the meeting made it clear that the state’s policies are to blame for the prices, and that a tax won’t do any good: “it makes every trip to the grocery store, soccer practice, and grandma’s house more expensive,” President Robert Gutierrez said in a statement. And Californians Against Higher Taxes has already spent a few thousand dollars on Facebook ads opposing the tax, telling Californians to urge their legislator to vote “no on Gavin’s new gas tax.” BUENOS DÍAS, good Wednesday morning. Yesterday we got concessions in three closely-watched legislative races— with former state insurance commissioner Dave Jones conceding to Sacramento City Council member Angelique Ashby in Senate District 8, and Democratic Assemblymember Ken Cooley conceding Assembly District 7 to GOP staffer Josh Hoover. GOP Assemblywoman Suzette Martinez Valladares also conceded to Democrat Pilar Schiavo in AD-40. Quick temperature check on the remaining legislative races —
- SD-16: Democratic Sen. Melissa Hurtado trails Republican David Shepard by 377 votes.
- AD-47: Democrat Christy Holstege leads Republican Greg Wallis by just 12 votes.
- AD-71: In this Republican-on-Republican race Kate Sanchez leads Matt Rahn by 3,764 votes.
Got a tip or story idea for California Playbook? Hit us up: jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte . QUOTE OF THE DAY: “These agreements represent a new, best-in-class model that will improve quality of life — and the quality of research — for scientists across the U.S.” Neal Sweeney, president of UAW Local 5810 after UC postdoctoral scholars and researchers came to a tentative agreement Tuesday that includes what is said to be their highest-ever salary increase. TWEET OF THE DAY:
|  Today's Tweet of the Day | Twitter | WHERE’S GAVIN? Nothing official announced
| | | | POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP . | | | | | |  | Top Talkers | | PERSONNEL NEWS — “ Faced with tight transition, Mayor-elect Bass invites Garcetti staff to stay on through April ,” by the Los Angeles Times’ Julia Wick and Benjamin Oreskes: “Los Angeles Mayor-elect Karen Bass has invited all staffers in Mayor Eric Garcetti’s office to remain in their jobs through April, according to a letter sent last week — an atypical move intended to steady the ship amid an unusually short transition period.” WELCOME TO THE FUTURE — “ San Francisco will allow police to deploy robots that kill ,” by AP’s Janie Har: “Supervisors in San Francisco voted Tuesday to give city police the ability to use potentially lethal, remote-controlled robots in emergency situations -- following an emotionally charged debate that reflected divisions on the politically liberal board over support for law enforcement.” — “ Is Brooke Jenkins doing anything differently than Chesa Boudin? Here’s what the numbers say ,” by the San Francisco Chronicle’s Susie Neilson: “After Brooke Jenkins replaced Chesa Boudin as San Francisco’s district attorney, police ramped up the number of arrests they brought to the District Attorney’s Office for possible prosecution by nearly 20%, according to an analysis of data.”
| | CAMPAIGN MODE | | PORTRAIT OF CONFIDENCE — “ Republican John Duarte says he thinks he will win uncalled California House race ,” by the Sacramento Bee’s Gillian Brassil: “Republican John Duarte, a farmer from Modesto, told The Bee on Monday that he thinks that he will win California’s 13th Congressional District.” — “ San Jose mayor-elect seeks special election to fill vacant council seats, despite multimillion-dollar cost ,” by the Mercury News’ Gabriel Greschler: “In his first major political maneuver, San Jose Mayor-Elect Matt Mahan is calling for a special election — at a potential taxpayer cost of up to $11 million — to fill two city council seats up for grabs after this month’s election.” “PUT ME IN COACH” — “ Is Newsom’s presidential boomlet a bust? ” Opines Dan Walters for CalMatters: “If Newsom does stick around for four more years, he’d best do something about his tattered relationship with California’s political media, which he has stiffed while promoting himself in the national media.” STILL ON BOARD — “ Despite losing school board races, California conservatives confident in new playbook ,” by the Los Angeles Times’ Mackenzie Mays: “Even some unsuccessful campaigns garnered enough votes to feed into an already acute sense of political polarization that was once missing from local school board races. And conservative groups feel they’ve found a playbook for winning more.” BALLOT WATCH — “ These propositions are already attempting to make the California ballot in 2024 ,” by FOX 40’s Jacque Porter: “Votes for the 2022 general election are still being counted but efforts are already underway to get certain measures and constitutional amendments on the 2024 California ballot. There are currently eight proposals at various stages in the submission process.”
| | CALIFORNIA AND THE CAPITOL CORRIDOR | | TAPELAND — “ LAPD serves search warrants in investigation of who recorded racist City Hall leak ,” by the Los Angeles Times’ Richard Winton: “Los Angeles police detectives have served several search warrants as they attempt to find out who recorded a meeting among three L.A. City Council members and a powerful labor leader filled with racist and offensive comments, law enforcement sources told The Times on Tuesday.” — “ Hundreds of striking UC student educators, researchers march to UC president’s office ,” by the San Francisco Chronicle’s Michael Cabanatuan: “With final exams nearing for University of California students whose graduate instructors are on strike — and rent due for many of the strikers — this third week of the academic workers’ walkout is hitting a critical stage for everyone involved in the labor dispute.” FREE SPEECH FRENZY — “ Is Spreading Medical Misinformation a Doctor’s Free Speech Right? ” by the New York Times’ Steven Lee Myers: “When Gov. Gavin Newsom signed into law a bill that would punish California doctors for spreading false information about Covid-19 vaccines and treatments, he pledged that it would apply only in the most ‘egregious instances’ of misleading patients. It may never have the chance.” — “ Tech layoffs wallop H-1B visa holders: ‘It’s not just dollars and a job. It’s our entire life ,’” by the San Francisco Chronicle’s Carolyn Said: “The software engineer from San Jose was dismayed when she learned that she was part of Twitter’s massive layoffs. A native of India, she’s in the U.S. on an H-1B visa, a special permit for skilled workers. Now the clock is ticking for her to find a new job to keep her visa status.” — “ ‘I was in shock’: Woman describes sexual abuse by warden at Dublin federal prison ,” by the Mercury News’ Nate Gartrell: “Ray J. Garcia, the retired warden of the women’s prison known as FCI Dublin, is charged with sexually abusing three incarcerated women, then lying to federal investigators to obscure his guilt.” REFERENDUM INFINITY — “ Big tobacco tries to stop California flavored tobacco ban ,” by AP’s Julie Watson: “R.J. Reynolds and other tobacco companies filed a request Tuesday asking the U.S. Supreme Court to impose an emergency order to stop California from enforcing a ban on flavored tobacco products that was overwhelmingly approved by voters earlier this month.” — “ Karen Bass Pledges To Tackle Homelessness Immediately; Experts Weigh In ,” by LAist’s Aaricka Washington: “Approach almost anyone who lives in Los Angeles to talk about the state of the city and it's pretty much guaranteed they’ll tell you homelessness is where they want to see change. So let’s talk about that, shall we?” CHECKING CHECKS — “ California has paid out more than 10 million payments — more than half of the state’s inflation relief money ,” by the Los Angeles Times’ Nathan Solis: “California has paid over $5 billion to 19 million eligible residents and their families as part of an inflation relief program meant to help soften the blow of rising costs. The latest figures represent more than half of the total payouts expected under the program, with the balance of the payments expected to reach eligible residents throughout the start of next year.” MEMO FROM THE MAYOR — “ Mayor-elect Bass names LA28 executive Chris Thompson as chief of staff ,” by the Los Angeles times’ Julia Wick: “Mayor-elect Karen Bass announced one of the central roles in her administration Tuesday, naming LA28 senior vice president Christopher Thompson as her chief of staff. Thompson, who will also guide Bass’ transition, will start Monday. He is the first major hire announced by the new administration.” — “ This California city needs housing. But is a new development destined to burn? ” by Grist’s Jake Bittle: “Chico, California, needs housing. The booming city of just over 100,000 issues just a few hundred building permits every year, and it’s rare to see more than a few dozen homes on the market at any given time. Housing costs have risen by double digits since 2018, and homelessness has spiked.”
| | | | GO INSIDE THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO is featuring a special edition of our “Future Pulse” newsletter at the 2022 Milken Institute Future of Health Summit from Dec. 6 to 8. The newsletter takes readers inside one of the most influential gatherings of health industry leaders and innovators solving the biggest global health issues to ensure a healthier, more resilient future for all. SUBSCRIBE TODAY TO RECEIVE EXCLUSIVE COVERAGE . | | | | | | | BIDEN, HARRIS AND THE HILL | | SLOW BURN — The GOP's same-sex marriage evolution: A slow, choppy tidal shift , by POLITICO’s Burgess Everett: Some political evolutions develop over decades, then accelerate in an instant. That’s how it happened for Democrats, who were divided over same-sex marriage during former President Barack Obama’s first term until then-Vice President Joe Biden announced his support 10 years ago. Obama followed, and the rest of the party was not far behind.
| | SILICON VALLEYLAND | | BRUTAL HONESTY — Crisis managers warn Bankman-Fried: Shut up , by POLITICO’s Sam Sutton: The 30-year-old former executive has kept tweeting and talking to reporters since his digital asset exchange, FTX, collapsed under financial mismanagement in early November. He’ll be in the spotlight again Wednesday as the main attraction at the New York Times DealBook conference, where he’s already overshadowing interviews planned with Treasury Secretary Janet Yellen and Ben Affleck. — Twitter stops enforcing Covid-19 misinformation policy , by POLITICO’s Rebecca Kern: Twitter will no longer stop users from spreading false information about the Covid-19 virus or vaccines, according to an update on its content moderation policies.
| | MEDIA MATTERS | | — Sacramento Bee investigative reporter Ryan Sabalow, longtime chronicler of California’s wetlands, announced he will leave the paper this week, taking on a job as communications coordinator for Ducks Unlimited’s Western Division.
| | MIXTAPE | | ON THE HORIZON — “ ‘Collapse’ in home prices is coming, experts say ,” by Axios’ Matt Phillips. — “ California's most recent volcanic eruption rained ash for 300 miles ,” by SFGate’s Katie Dowd. — “ What’s at Stake in the University of California Graduate-Worker Strike ,” Opines Jay Caspian Kang for the New Yorker. — “ Scott Wiener calls out far-right activist’s homophobic misinformation as dangerous ,” by the San Francisco Chronicle’s Jordan Parker and Dustin Gardiner. — “ A Snapshot of Homelessness Policies Around the U.S. and the World ,” by the New York Times.
| | Transitions | | — Samuel Garrett and Madison Lynch are joining J&Z Strategies as a vice president and campaign associate, respectively. Garrett comes over from Equality California and Lynch most recently managed Faisal Gill’s LA city attorney campaign.
| | BIRTHDAYS | | Steve Haro … Jocelyn Quinn … Erica Orden CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this -only service offers, click here . Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |  |
