Governor Newsom's plan is to create a watchdog group to monitor gas prices in California and force penalties on refiners for overcharging.California lawmakers on Thursday will vote on whether to allow penalties on oil companies for price gouging at the pump, a first-in-the-country proposal aimed at stopping the kind of spikes last summer that caused some drivers pay up to $8 per gallon as the industry reaped super-sized profits.
The bill highlights the challenges of balancing the competing pressures of protecting consumers at the pump while at the same time pushing policies to end the state's reliance on fossil fuels. California's climate strategy - which includes banning the sale of most new gas-powered cars by 2035 - would reduce demand for gasoline by 94% by 2045.
In response, Newsom asked lawmakers to limit how much money oil companies could make from selling gasoline in the state, with hefty fines imposed on anyone who went over that threshold. The idea was to incentivize companies to keep the price of oil within a certain range and prevent price spikes like last year.
The bill represents an agreement between Newsom and the Democratic lawmakers who control a majority of seats in the state Legislature. Republicans, who don't have enough members to block bills from passing, blasted the proposal on Thursday.
When do we get to fine GavinNewsom for gouging at the pump?
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