CA Senate approves Newsom’s proposal to scrutinize, possibly penalize oil refiners

Gov. Gavin Newsom’s proposal to allow state regulators to consider a penalty on oil refiners when they make too much money off of California drivers cleared a major legislative hurdle on Thursday when it passed through the State Senate. In a 30-8 vote, state senators agreed to send the measure to the Assembly, where it’s expected to be heard as soon as next week.

| PREVIOUS COVERAGE | California lawmakers advance measure to scrutinize, penalize oil refiners The vote: pic. twitter. com/OI4oQdmnxo Newsom’s proposal would create a new group within the California Energy Commission to gather private business information and data from refiners to consider setting a cap on company profits and potential penalty when the cap is exceeded.

The funds from the penalty would go into a fund, which the legislature would then determine how to spend. That could include rebates back to taxpayers. “For decades, oil companies have gotten away with ripping off California families while making record profits and hiding their books from public view,” Newsom said in a statement.

“With this proposal, California leaders are ending the era of oil’s outsized influence and holding them accountable. Thanks to the Senate’s quick action, we’re getting this done for California families. ” The bill requires the state auditor to investigate the measure before 2033, and if found ineffective, the program would end.

Newsom’s administration told lawmakers on Thursday the program would cost up to $10 million, mostly for staffing. | PREVIOUS COVERAGE | California eyes penalties for oil companies’ big profits “It ensures the state can get the data we need to determine if Californians are experiencing unfair price,” said Senator Nancy Skinner, D-Berkeley. “It could expose if they’re participating in unfair business practices.

” “The legislature should not rush this bill to the Governor and give it the proper process and vetting that a monumental change in energy policy like this deserves,” Kevin Slagle, a spokesman with the Western States Petroleum Association said in a statement. “This bill misguidedly focuses on profits, rather than the root cause of price spikes — shortages and lack of an available supply due to California’s unique fuel specifications and geographic isolation. Price caps, taxes and tax-like penalties do not increase supply or reduce prices, but instead could have the opposite effect.

Our fuels market is too complex and constrained by public policy to not take the time to get this right,” Slagle said. Multiple lawmakers on both sides of the aisle raised concerns about the pace at which the legislature was moving the bill, which was put into print on Monday, and voted on its first committee on Wednesday. “There’s no reason we have to rush this process,” said Senator Shannon Grove, R-Bakersfield.

As lawmakers in the Senate debated the measure, Governor Newsom spent part of Thursday morning meeting with progressive democrats in the Assembly. Lawmakers in that house could hold the first committee vote on the measure as soon as Monday. During Thursday’s special legislative session, Republican Senator Brian Jones, R-Santee, attempted to force a vote on a measure that would have suspended the state’s gas tax.

The democratic supermajority rejected the move. .