New California bill sets penalties for price gouging at the pump
A new bill was approved on Monday by California lawmakers that would give regulators the power to punish oil companies for price gouging.
What the bill will do is allow the California Energy Commission to decide when oil companies will be penalized for price gouging. The bill is expected to have the oil companies provide new information to state regulators about their pricing.
A new state agency is being set up to monitor and investigate oil companies.
Assemblymember Eduardo Garcia is the chair of the Assembly Committee on Utilities and Energy which played a part in the bill's passing.
Assemblymember Garcia released this statement about the passage:
“Our constituents have suffered at the pump for far too long and we are taking action to protect their lives and well-being. High gasoline prices place an undue financial burden on Californians amid tough economic times. As Chair of the Assembly Utilities and Energy Committee, we’ve seen high prices for energy across the board – from high natural gas bills this winter, to high gasoline prices last summer, to consistently high electricity rates. Something has got to give. With the passage of SBX1-2 today, we have taken a step forward to ensuring greater transparency into the oil and gasoline market, and to provide the state with the necessary tools to hold oil companies accountable for the high prices at the pump. This measure could not come soon enough, and I am proud to have been a part of the negotiations to shape it to where it is today.”
This bill has been highly opposed by the oil industry which argues gas is higher in California because of the state's taxes and regulations.
California is taxing 54 cents per gallon, which is the second-highest in the country.
Last month, Assemblymember Greg Wallis addressed the president about the rapidly increasing cost of gas. Wallis called on Newsom to stop the gas tax hike, extend the diesel tax holiday, and delay the fuel blend transition.
News Channel 3 reached out to Assemblymember Wallis' office for his response to the new bill. He sent us this statement:
“While I share the Governor’s concern about high gas prices in our state, this measure fails to take any meaningful action that will result in lower prices for California drivers. Bipartisan opposition in both the Senate and the Assembly pointed out the many flaws in this approach and I could not support the measure as drafted. To see real relief at the pump, we need to suspend the gas tax, delay the switch to summer blend and ultimately take measures to increase our domestic energy production.”
- Assemblymember Greg Wallis, 47th District
Governor Gavin Newsom signed the bill into law Tuesday afternoon.
