The governor's plan would also authorize the California Energy Commission to require refineries to plan to resupply fuel during scheduled maintenance.
Newsom believes a lack of reserves is the reason for price spikes at the pump.
The proposal is opposed by Assemblyman Joe Patterson, who has served as vice chair of the state's Utility and Energy Committee for the past 12 years, and other Republicans.
Critics of the plan say it would create gas shortages and force refineries to hold on to fuel that would typically meet market demand.
"Let's be clear: It's not price gouging that's driving up gas prices," Patterson said at a news conference. "It's policy choices made here in Sacramento that adds to the cost. The difference between us and the national average is just about the same amount of our taxes and fees that we have here in California."
At a hearing at the state capitol on Wednesday, lawmakers, economists and other witnesses discussed whether the oil and gas industry wields too much power in California, as well as the state's efforts to move toward renewable energy.
Before the hearing, Republican lawmakers introduced their own package of bills that they say will reduce gas prices -- including suspending the California gas tax for a year and issuing $100 rebates for car owners who use gas.
Gas prices tumble in LA and Orange counties
Meanwhile, the average price of a gallon of self-serve regular gasoline in Los Angeles County dropped 1.2 cents Thursday to $4.595, a day after dropping a half-cent.
The average price is 2.1 cents less than one week ago, 2.9 cents more than one month ago, but $1.432 less than one year ago, according to figures from the AAA and Oil Price Information Service. It has dropped $1.899 since rising to a record $6.494 on Oct. 5, 2022.
The Orange County average price dropped 1.5 cents to $4.518, a day after rising eight-tenths of a cent.
It is 2.6 cents less than one week ago, 2.6 cents more than one month ago, but $1.504 less than one year ago. The Orange County average price has dropped $1.945 since rising to a record $6.459 on Oct. 5, 2022.
The national average price rose nine-tenths of a cent to $3.224, a day after rising 1.2 cents.
It is 1.8 cents less than one week ago, 18.7 cents less than one month ago and 65.6 cents less than one year ago. The national average price has dropped $1.792 since rising to a record $5.016 on June 14, 2022.
KFSN-TV and City News Service contributed to this report.