Democratic California Gov. Gavin Newsom on Monday enacted a law empowering state bureaucrats to monitor and regulate refinery inventory levels to prevent rising gas prices. [emphasis, links added]
Newsom signs ABX2-1, which will Enables regulators to require oil companies to maintain minimum levels of existing fuel and allows the California Energy Commission (CEC) Refiners asked to develop plans to provide supplies during maintenance outages.
While supporters say the bill is a critical step in preventing big companies from defrauding consumers by artificially raising gas prices during periods of low supply, Industry interests blasted the bill as politically hostile to the oil and gas industry.
“Passing this new law, Big oil companies are now responsible for stabilizing oil prices. This is a key achievement But our work isn't done yet” California Assembly Speaker Robert Rivas, a Democrat, said of the new law.
“I will continue working to lower the cost of living because housing, groceries and everyday necessities must be more affordable for all Californians.”
Top Chevron executive Andy Walz blasted the new bill in a letter to state lawmakers on Tuesday.
Chevron chose to move its headquarters out of California in August, a decision Walz said was driven in part by the state's tough business environment.
“Chevron is concerned about the recent committee and Assembly passage of ABX2-1 and seeks to address some of the inaccurate and flawed arguments advanced by its proponents. As the Senate prepares to vote, it is critical to make fact-based decisions. The political posturing that characterizes these proceedings, including baseless and frankly ridiculous claims that the industry is price-gouging, must stop. Walz wrote in the letter.
Walz added that “it is misleading to argue that regulation is justified because 'higher prices mean higher profits'” and “these statements about rising prices also ignore this point.” The supply shortage is the result of California regulatory policies that fail to reflect the cyclical nature of the energy industry.
The Western States Petroleum Association, an industry association, also tore into the new law, saying “Regulators remain focused on reining in businesses through more taxes, fees and costly requirements.” in a statement on Monday.
Read the break from The Daily Caller
