Latest news with #CaliforniaEnergy
Yahoo
12 hours ago
- Business
- Yahoo
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna
The Independent
17 hours ago
- Business
- The Independent
California energy regulator recommends pause on plan to penalize excess oil profits
California should pause Gov. Gavin Newsom 's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___
Yahoo
17 hours ago
- Business
- Yahoo
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna Sophie Austin, The Associated Press Sign in to access your portfolio
Associated Press
18 hours ago
- Business
- Associated Press
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes . Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna
Yahoo
19 hours ago
- Business
- Yahoo
50+ Environmental and Public Interest Groups Oppose CA Oil Refiner Bailout, Urge State to Stand Strong on Accountability, Says Consumer Watchdog
SACRAMENTO, Calif., June 27, 2025 /PRNewswire/ -- As the California Energy Commission (CEC) proposed a list of oil refinery strategies to Governor Newsom, including key regulatory rollbacks, 51 public interest and environmental groups are urging the state to stand strong on refinery accountability and consumer protection in a letter to Governor Newsom, Senate Pro Tem Mike McGuire and Assembly Speaker Robert Rivas. Among the rollbacks proposed are a pause on developing the price gouging penalty rule enacted by the legislature in 2023 and increased oil well permitting in Kern County. The groups pointed to new state data showing oil refiners making a killing off California consumers – with a combined gross refining margin and distribution margin of $1.71 in April, twice the national and historical averages. "California oil refiners do not need a bailout. New data posted by the California Energy Commission shows oil refiners made a retail gross refining profit margin of $1.02 per gallon in April," the groups wrote in the letter. "In addition, the data shows that the distribution margin, which includes the Mystery Gasoline Surcharge, was .69 cents per gallon in April. Combined these extraordinary profit and overhead costs add more to a gallon of gasoline than the cost of crude oil, as CEC created graphic below shows." "California's oil refining and distribution sector are charging Californians more than double what they take in elsewhere. It would be perverse to give this industry more subsidies." The groups include: Alliance of Nurses for Healthy Environments Biofuelwatch California Nurses for Environmental Health and Justice Center for Biological Diversity Center for Environmental Health CERBAT Clean Water Action Climate Hawks Vote Climate Health Now Climate Reality Project Orange County Chapter Climate Reality Project, San Fernando Valley Chapter Consumer Watchdog ContraCosta MoveOn Courage California Elected Officials to Protect America Climate Justice Action, First UU of SD Food & Water Watch Friends Committee on Legislation of California Glendale Environmental Coalition Greenpeace Indivisible Marin Local Clean Energy Alliance Long Beach Alliance for Clean Energy Ocean Conservations Research Oil and Gas Action Network Pacifica Climate Committee Pelican Media PowerCA Action Resource Renewal Institute Rise Economy Rodeo Citizens Association RootsAction San Francisco Bay Physicians for Social Responsibility SanDiego350 Santa Cruz Climate Action Network SEE (Social Eco Education) Sierra Club California Sunflower Alliance Sustainable Mill The Climate Reality Project San Diego Transition Sebastopol Voting 4 Climate & Health West Berkeley Alliance for Clean Air and Safe Jobs Working Families Party 350 Bay Area Action 350 Humboldt 350 Sacramento 350 Santa Barbara "We urge you, instead, to insist that the Administration finish the job it started and that the legislature directed it to do in special sessions in 2023 and 2024: propound rules for a price gouging penalty, finalize and enforce the ABX2-1 re-supply inventory rule and begin the minimum inventory rule-making. In addition, we call on you to reject rollbacks to refinery process safety management (PSM) rules which protect refinery workers and communities while preventing sudden outages that trigger price shocks." The gross margins are what the refiners keep after the cost of crude oil, environmental fees, and taxes are deducted. The only refiner cost included in the gross margin is the operating costs for the refinery, which are reported by the refiners to the SEC at about 20 cents per gallon. View original content to download multimedia: SOURCE Consumer Watchdog Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
