Oil industry lawsuit asks to hit brakes on California data reporting law

By Wes Venteicher | 03/29/2024 06:35 AM EDT

The California Fuels and Convenience Alliance says the law threatens to raise prices.

A trade association representing independent gas stations and fuel suppliers sued the California Energy Commission on Tuesday seeking to slow down an oil oversight law championed by Gov. Gavin Newsom.

The California Fuels and Convenience Alliance lawsuit challenges the CEC’s use of emergency rulemaking authority to rapidly impose new oil market reporting data requirements on the industry and to bypass the California Environmental Quality Act.

Newsom signed SBX 1-2 last spring to try to bolster oversight after lambasting the oil industry for “gouging” consumers with gas prices of more than $6 per gallon. He has pressed the agency to quickly move to prevent future spikes even as the state tries to wind down fossil fuel use to meet its climate goals.

Advertisement

The CEC expanded the data it collects on oil market transactions last summer to inform its development of new regulations. The agency is tasked with deciding whether to impose a first-in-the-nation cap on oil refiners’ profits under the law.

GET FULL ACCESS