California Gov. Gavin Newsom called lawmakers into a special session on Saturday after state Assembly Democrats rejected the governor's request to approve new requirements for oil refineries on the final day of the regular legislative session, which ends Saturday night.

The extraordinary move will effectively force Congress into overtime to address the complex and politically sensitive issue of rising energy prices as campaigns heat up ahead of the Nov. 5 election.

Lawmakers are set to officially convene a special session today, per Governor Newsom's order, but it's unclear when they plan to hold hearings to consider bills or how long the session will last. Lawmakers were scheduled to leave Sacramento this weekend for four months in their hometowns.

“When gas refineries shut down for maintenance, it should be common sense to plan ahead and replenish supplies to avoid price spikes. But these price spikes are actually boosting Big Oil's profits, and they're using the same old scare tactics to maintain the status quo,” Governor Newsom said in a statement.

“Convening this session will allow the Legislature to begin work immediately so the state can establish the rules needed to address this important issue now and prevent price hikes next year and beyond.”

It's the second time in two years that Governor Newsom has called a special session to focus on the economics of the oil industry, an issue that has divided the industry between its desire to fight climate change and its ambition to lower gasoline prices. Governor Newsom has blamed the industry for exploiting consumers for high gasoline prices. Oil companies point to the state's climate change and tax policies as the cause of the higher prices.

Two weeks ago, Governor Newsom announced a proposal to require oil refiners to maintain stable inventories to prevent fuel shortages and price spikes when refineries are shut down for maintenance.

As the oil industry lobbied hard against the proposal, House and Senate Democrats have been squabbling over how to proceed, voicing frustration at Newsom's last-minute efforts to force the plan through the Legislature.

Assembly Speaker Robert Rivas (D-Hollister) said in a statement Friday that his legislative delegation agrees with the governor that the problem of high housing prices needs to be addressed quickly and that they will get results when they convene a special session, but he refused to bring the bill to a full vote by Saturday's deadline.

“We are not going to push through a bill that hasn't been thoroughly vetted in a public hearing,” Rivas said, “which could have unintended consequences for Californians' wallets.”

Governor Newsom's office began discussions with the Assembly and Senate this summer on legislation that would allow his administration to require oil refiners to maintain stable inventories to prevent fuel shortages in California.

After gaining further insight into pricing from legislation passed during the last special oil session that ended last year, state regulators reported that rates at fueling stations would rise if oil companies don't have enough refined gasoline on hand to make up for production shortfalls or protect against the impacts of unplanned maintenance.

Executives of the Western States Petroleum Association said the governor's refinery proposal would drive up fuel prices in California and reduce supplies in Arizona and Nevada, raising strong political concerns that the state's policies could become a national headache for Vice President Kamala Harris and other Democrats in a crucial election year.

“It's remarkable that lawmakers are considering such a radical energy policy at a time when Americans are taking a hard look at how the California model would affect their families and their wallets,” said Katherine Lehis Boyd, CEO of the Western States Petroleum Association. In a statement this week,.

The warnings from WSPA, Chevron and other industry players surprised congressional Democrats, who also were upset by the proposal's delayed implementation.

The proposal was combined with other bills in the Senate and House of Representatives during negotiations with leaders in both chambers in an effort to reach a consensus with Democratic lawmakers. But environmentalists opposed some of those proposals, leaving Democrats with a package of bills that angered both ends of environmental policy.

One of the Assembly bills would cut energy and climate programs that fund HVAC improvements in schools, the installation of energy storage and generation technology in vulnerable communities, and solar power systems in affordable multifamily buildings in exchange for small, one-time customer credits on electric and gas bills, drawing roundabout opposition from a coalition of environmental, education, housing, and energy groups.Another bill supported by ratepayer advocates would require the Public Utilities Commission to develop a framework for analyzing a residential household's total annual energy costs.

That bill wasn't enough motivation for congressional Democrats to force the plan through a vote this week, and they also balked at efforts by Senate President pro tempore Mike McGuire (D-Healdsburg) to seize the opportunity to pass Senate bills that would speed up environmental reviews of clean-energy and hydrogen projects, save ratepayers money by relaxing requirements for utility companies' wildfire mitigation plans, and make it harder for companies to cut off utility service to customers.

The drama represents another last-minute attempt by the governor, edging into the final two years of his second term, to push legislation through a Legislature led by two new leaders. Lawmakers similarly balked this summer at putting the governor's bill targeting retail crime on the ballot.

Newsom's decision to call a special session marks the second time he has sought to strengthen California's oil laws outside of the normal two-year bill review process, which takes place from January to August or mid-September each year.

The governor called a special legislative session two years ago to impose penalties on oil companies after gasoline prices soared, but lawmakers ultimately were reluctant to impose penalties, prompting Newsom to reconsider his demands and instead press for more transparency from the industry.

Instead of capping refinery profits and imposing fines, Newsom and lawmakers gave state regulators the power to do so in the future. Consumer advocates and the governor hailed the legislation as a landmark step to stop gasoline price hikes.

But Nevada's Republican governor, Joe Lombard, joined the industry and party in sending a letter to Newsom in May warning that a cap “could lead to further increases in gas prices in both districts” because Nevada's gas is primarily sourced from California refineries.

Andy Waltz, Chevron's president of Americas products, wrote a letter to the California Energy Commission on Friday saying Gov. Newsom's new refinery proposals “endanger the safety of refinery operations, the orderly functioning of markets, and eliminate space for industry and labor experts to have a say on key policy issues.”

“The physical, operational and cost burden of maintaining unnecessary inventory is also a concern,” he wrote. “Constructing just one new storage tank would take 10 years and cost $35 million. These costs would likely be passed on to consumers. And under the current regulatory regime, which includes permitting restrictions and a ban on the sale of gasoline-powered vehicles, there is no opportunity to recoup the capital invested in building the additional tanks, which could be the 'final straw' for energy market investors in the state.”

The timing of a second special session on oil regulation could work in Gov. Newsom's favor if lawmakers get to work immediately.

Newsom is scheduled to finish signing bills on his desk by September 30, meaning that if the special session begins before that period ends, he could gain a political advantage. If the special session begins after the bills are signed, he may lose some of that leverage.

But the election could also be influenced by when and whether new restrictions on the oil industry and cuts to electricity rates are ultimately passed.

Legislation that saves consumers money could be a selling point to voters, while legislation that could raise gas prices could be used as a weapon in California and national elections.