Fabian Nunez and Bill Lockyer have proposed AB 457, a bill that introduces a price cap:

Frustrated by soaring gasoline prices, two of California’s top elected officials proposed legislation Thursday designed to crack down on consumer gouging by allowing a temporary price cap in times of “abnormal market disruption.”

Attorney General Bill Lockyer and Assembly Speaker Fabian Núñez jointly proposed the measure, Assembly Bill 457, in response to pump prices that have jumped by more than $1 per gallon since January.

“We need to make sure that California is not the victim of any type of market manipulation or Enron-type scheme to artificially inflate the price of gasoline at the pump,” Núñez said.
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“It’s a publicity stunt,” said Assemblyman Russ Bogh, R-Cherry Valley. “It will do nothing to solve the gas problem, because they’re not addressing the real issues.”

Rather than demonize oil companies, lawmakers ought to be pushing to fast-track refineries and increase oil supply, Bogh said.(SacBee 6/9/06)

Personally, I don’t think that the way to deal with this is to extend temporary price caps and interfere with the market.  The market has a way (Adam Smith’s invisible hand) of making sure that gas gets to the people who value it most highly. 

However, Bogh has it even more wrong than the bill.  The way to solve the problems is not to increase refinery capacity for many reasonsts.  Of course, the most glaring reason is that nobody really wants to build any more refinery capacity.  The other major reason is that there just isn’t the oil to keep building refineries and expect the oil just to keep rolling in. 

So, the obvious suggestions would be to increase public transport capacity and alternative fuel production.  But, those don’t sound as immediate as gas caps, so gas caps it is I suppose.