Author Topic: California regulators could decide oil profits penalty  (Read 301 times)

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Offline SZonian

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California regulators could decide oil profits penalty
« on: March 16, 2023, 12:16:00 pm »
SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom said Wednesday he wants state regulators to decide whether to impose the nation’s first penalty on oil companies for price gouging, pivoting after months of negotiations with legislative leaders failed to reach an agreement on a bill aimed at reining in the state’s notoriously high gas prices.

Newsom, a Democrat, responded by asking state lawmakers to pass a law that would impose hefty fines on oil companies if their profits surpassed a certain threshold — with all of the money generated from the fines going back to drivers. The bill was so important to Newsom that he took the rare step of calling lawmakers into a special session to pass it, a maneuver that allows them to focus on just one issue instead of being distracted by hundreds of other bills in a regular session.

Wednesday, the governor announced he will ask lawmakers to empower the California Energy Commission to decide whether such a penalty is necessary and, if it is, how much it would be. The commission would be aided by a new, independent agency made up of experts, economists and lawyers that would have subpoena power to monitor the gasoline market and make recommendations.

If the commission imposed any fines, it would be up to the Legislature to decide what to do with the money.

“What we’re asking for is simple: transparency and accountability to drive the oil industry out of the shadows,” Newsom said. “Now it’s time to choose whether to stand with California families or with Big Oil in our fight to make them play by the rules.”

Republicans, who don’t control enough seats to influence votes in the Legislature, decried the proposal as a tax that would inevitably be passed on to drivers.

https://apnews.com/article/california-gas-price-gouging-newsom-oil-companies-1291a86fc9654e5c8c38e4e910c63eb7

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What could possibly go wrong with this scenario?  No gasoline for CA...that'll show those evil "Big Oil" capitalists.
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Offline Kamaji

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Re: California regulators could decide oil profits penalty
« Reply #1 on: March 16, 2023, 12:25:44 pm »
:facepalm2:


Basically, this is California trying to fleece the rest of the country by using the oil industry as a conduit to funnel cash from drivers in the other 49 states to California’s coffers. 

As such, it should be a violation of the dormant commerce clause.

Offline sneakypete

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Re: California regulators could decide oil profits penalty
« Reply #2 on: March 16, 2023, 05:52:40 pm »
:facepalm2:


Basically, this is California trying to fleece the rest of the country by using the oil industry as a conduit to funnel cash from drivers in the other 49 states to California’s coffers. 

As such, it should be a violation of the dormant commerce clause.

@Kamaji

Not to mention give him some cash to keep buying votes from all the illegal aliens and people from other states who are living in his sidewalks.
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