The proposed price gouging penalty on excess profits made by oil companies was presented by Newsom and State Senator Nancy Skinner . The language of the "California's price gouging penalty is simple – either Big Oil reins in the profits and prices, or they'll pay a penalty," said Newsom said in a press release."Big Oil has been lying and gouging Californians to line their own pockets long enough.
It could be a popular proposal with voters, who have been paying more than $6 per gallon of gasoline for much of the year. But the big question is how the measure will be received by California lawmakers, especially because the oil industry is one of the state's top lobbyists and campaign donors. Adding to the uncertainty is an unusually high number of new members who will take seats in the Legislature for the first time. Roughly a quarter of the Legislature's 120 members are new. Two close races have not been resolved.
Ashby said she hasn't been approached by lobbyists or others from the oil industry asking how she would vote on a potential penalty for oil companies. She noted the oil industry spent the money as"independent expenditures," meaning she had no control over that spending during the campaign. "The last thing that we need to do is increase the cost on Californians who are already paying far too much," Assembly Republican Leader James Gallagher said Monday morning.
Regulators had hoped to question the state's five big oil refineries: Marathon, Valero, Phillips 66, PBF Energy and Chevron. But no company officials attended the hearing, with most saying that sharing information could violate anti-trust laws.
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