California Enacts Legislation to Monitor Gasoline Prices and Impose Penalties on Refiners
Reader note: For more in-depth coverage of California energy policy, see The California Energy Transition.
On March 28, 2023, Governor Gavin Newsom signed into law SBX1-2, which gives the California Energy Commission (CEC) new powers to monitor the gasoline market and impose penalties on refiners who charge more than a maximum margin for refining gasoline.
The bill also imposes new reporting requirements on pipelines, port operators, and refiners. (For additional details see: Legislation to Monitor Gasoline Prices and Impose Penalties on Refiners Passes Senate.)
The legislation, which was approved 58-19 in the Assembly and 30-8 in the Senate, takes effect on June 26, 2023. The legislation follows Newsom’s March 15, 2023 amended proposal for an oil profits penalty. (see Newsom Amends Oil Profits Penalty Proposal.)
The governor’s office described the legislation as the “strongest state-level oversight and accountability measures on Big Oil in the nation – bringing transparency to California’s oil and gas industry, shining new light on the corporations that have for decades operated in the shadows while ripping families off and raking in record profits.”