California Governor Gavin Newsom signed Senate Bill X1-2 on Tuesday, aimed at combating alleged price gouging by oil companies in the state. The bill authorizes the California Energy Commission to investigate and potentially cap oil industry profits. It passed the Assembly by a 52 to 19 vote on Monday, following Senate approval last week, during a special session of the Legislature.
Newsom, who championed the bill, claimed victory over the oil industry, saying, “There’s a new sheriff in town in California, where we brought Big Oil to their knees.” However, the bill does not directly penalize the industry, as new regulations and an inquiry by the energy commission would be required before imposing any fines.
Opposition came from Republicans who equated the measure to a potential increase in gasoline taxes and prices. Sen. Brian Jones, the minority leader in the state Senate, criticized the bill for allowing unelected bureaucrats to intervene in the free market and potentially increase gas prices for those who can least afford it.
Source: timesofsandiego.com
