SACRAMENTO, California — California energy officials Thursday proposed delaying for five years their authority to impose a profit cap on gasoline refiners, taking off the table one of the centerpiece achievements of Gov. Gavin Newsom’s 2023 push to rein in oil companies.
What happened: The California Energy Commission’s draft resolution, published Thursday afternoon, would shelve the gross gasoline refining margin and penalty, a key element of SB X1-2, the 2023 law that Newsom (D) signed during a special session aimed at curtailing gasoline price spikes in California.
It differs from the oil industry recommendation of a 10-year pause, which they argued would send a stronger market signal to encourage refinery investment.
Details: Even if the CEC passes the resolution, it will retain its authority to set a gross gasoline refining margin and penalty and its ability to revise or rescind the resolution.
