SACRAMENTO, California — A new front is emerging in the ongoing debate over the future of California’s oil industry as state regulators consider whether to deploy a potent but so far unused tool to tamp down gas price spikes.
What happened: California Energy Commission staff on Wednesday kicked off a closely watched proceeding to determine whether officials will force gasoline refiners to keep extra supplies on hand when they go offline in an attempt to reduce price spikes.
The tug-of-war over the potential regulation promises to be a central focus of the oil industry and its critics in the coming months as the agency weighs its decision.
Environmental advocates are pushing for regulators to impose the new rules, while the industry is pushing back, warning that new requirements could backfire by sending prices up.
