Gov. Gavin Newsom is giving up its high-profile call for the California legislature to place a cap on oil company profits and will instead ask lawmakers to increase transparency and oversight of the industry.

The governor’s amended proposal, announced Wednesday afternoon, would give the California Energy Commission more authority to investigate price hikes for gasoline and the ability to cap profits and penalize oil companies through a public hearing, aides said. from Newsom.

“What we asked for is simple: transparency and accountability to drive the oil industry out of the shadows,” Newsom said in a statement. “Now is the time to choose whether to stand with California families or Big Oil in our fight to get them to play by the rules.

Newsom called for the swift implementation of a fine for oil companies in October when he announced his intention to convene state lawmakers for a special session to

rule

purely in the excessive profits of the oil industry. Hey accused oil

businesses

price increase at the pump

anus

Gasoline price was $6 a gallon.

But determining the level at which refinery profits should be penalized became a politically hot issue in Sacramento. Democrats were concerned that the plan could potentially backfire due to the complicated nature of oil markets, the industry’s lack of transparency, and concerns that it could have unintended consequences for gasoline prices.

Newsom’s office gave lawmakers an outline of its plan to cap the industry’s profits in December when the special session convened, but let lawmakers set the limits on those profits.

About

the continuing of

over three months, the legislature held only one hearing on the proposal.

Stands

Senators seemed concerned about the plan, and experts encouraged the state to take more time to research and understand the problem before proposing a solution.

Newsom’s new proposal would shift that responsibility to the Energy Committee, but his aides acknowledged that

over there

regulators are not required to limit profits or penalize the industry. All five members of the committee have been appointed or reappointed by Newsom.

The Republican leader of the assembly, James Gallagher of Yuba City, criticized Newsom’s choice to put the decision in the hands of the committee.

No matter how many sham investigations he calls for, no matter what kind of fine he comes up with, there is one indisputable fact that California drivers are paying more than they should because of the taxes, fees, and regulations imposed by the government. Newsom and his ultra-liberal allies,” Gallagher said in a statement. If the Democrats empower unelected bureaucrats to impose this new tax, they will be responsible for the shortages, rationing, gas pipelines and price spikes that come with it.

The governor’s office said that with more regulatory authority, the commission will be empowered to prevent this sort of thing

petrol

consumer price spikes

S

seen last year.

The bill would create an independent watchdog within the committee with subpoena powers to monitor gas prices and investigate spikes. Oil companies would also be required to provide more data to the state to help regulators understand prices.

Dana Williamson, Newsom’s chief of staff, said the governor’s office “worked very closely with experts and the legislature to get this right.”

“It’s the only one of its kind in the country and it’s really going to establish a watchdog that watches the industry every day,” Williamson said. “The Energy Committee will then be able to act on the findings seen in the division’s work.”

Consumer Watchdog president Jamie Court applauded the governor’s plan to increase state oversight of the industry.

Newsom deal with lawmakers includes a requirement for oil refiners to report maintenance to the state in hopes of avoiding rapid and unexpected drops in gasoline production

in California.

California depends on only a handful of oil refineries

currently

not required to report scheduled maintenance to the state. When multiple refiners simultaneously reduce production due to routine equipment work or unexpected problems, supply decreases and prices rise.

The oil industry has blamed maintenance problems for California’s historic summer and fall gas price spikes.

The court said shifting the sentence to the Energy Commission to decide puts more responsibility on the governor to proceed.

“This gives the governor and his commission the power to do the right thing, and it will be reflected on them whether it is done or not,” the court said.