California Governor Gavin Newsom is facing criticism for not implementing a 2023 law designed to curb gas price gouging as fuel prices surge above $4.50 per gallon. The legislation, authored by former state Sen. Nancy Skinner and co-sponsored by Attorney General Rob Bonta, allows the California Energy Commission (CEC) to impose penalties on oil companies and cap refinery profits during global commodity spikes.
Key Takeaways
Gavin Newsom is facing criticism for not using a 2023 law aimed at curbing gas price gouging as prices surge above $4.50 per gallon. The law allows penalties on oil companies and caps refinery profits but has been delayed by the California Energy Commission until 2029.
- Law signed in 2023 remains unused amid rising gas prices
- CEC delayed implementation to boost investor confidence and prevent refinery exits
- Critics argue Newsom prioritized industry over consumers
- Some blame environmental regulations for high gas prices
Despite Newsom's declaration that the law would 'take on Big Oil,' it has remained unused for three years. The CEC voted to table the legislation until 2029, citing concerns about investor confidence and potential refinery exits from California. This decision came after Newsom directed Siva Gunda, vice chair of the CEC, to collaborate with oil refiners following industry pushback.
Critics argue that Newsom prioritized industry interests over consumer protection. Jamie Court, president of Consumer Watchdog, stated that the law is needed precisely when commodity prices surge to prevent outrageous profits. Meanwhile, some experts contend that California's strict environmental regulations are responsible for rising gas prices and refinery closures.
Energy Secretary Chris Wright branded Newsom 'ignorant' for blaming the spike in gas prices on Donald Trump and the conflict in Iran. Wright argued that California has strangled its own oil production, leading to higher energy prices. Newsom fired back, calling Wright a taxpayer-funded lobbyist for the oil industry.
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