California energy regulators pause efforts to penalize oil companies for high profits

"The postponement by the California Energy Commission until 2030 comes after two oil refineries accounting for roughly 18% of the state's refining capacity announced their plans to close in the coming months. The commission has the authority to pass a penalty, not a requirement to do so. The penalty was considered a landmark piece of Democratic Gov. Gavin Newsom's government and the state's ambitious goals to curb climate change."

"But the Western States Petroleum Association recommended that the state postpone a penalty for 20 years. "A margin cap and penalty would be a misguided policy that fails to address the root causes of California's elevated gas prices - high costs, expensive regulations, supply constraints, and the reality that gasoline is, and will remain, a critical driver of our state's economy," spokesperson Jim Stanley said in a statement earlier this month."

"Jamie Court, the president of Consumer Watchdog who supported the law, said the energy commission's vote is "basically a giveaway to the industry." "I'm really disheartened and disgusted by Newsom," he said. "I feel like this is just a total about-face. And in the end it's going to result in greater price spikes.""

The California Energy Commission postponed consideration of a profit-penalty on oil companies until 2030 after two refineries accounting for roughly 18% of state refining capacity announced closures. The commission holds authority to impose a penalty but is not required to do so. The penalty had been positioned as a major component of Governor Gavin Newsom's climate and accountability goals. State officials face tensions between holding the oil industry accountable and maintaining stable, affordable fuel supplies. The Newsom administration is proposing temporary streamlining of approvals for new wells in existing fields. Industry groups urged long delays and watchdogs criticized the postponement.

Read at ABC30 Fresno