The state legislature is giving the green light to Governor Newsom’s plan to limit the profits of oil companies in California. After languishing for months, the governor’s compromise plan has zipped through the State Senate, and today, the State Assembly took it up for a vote. After lengthy debate today on the Assembly floor, the legislature gave its final approval in rather speedy fashion, to the Governor’s proposal.
Originally Governor Newsom wanted to limit the profits of oil companies, whom he’s accused repeatedly of gouging consumers, blaming them for California’s record high gasoline prices last fall. He called for a windfall profits tax, then adjusted that to a cap on profits with a penalty that would be refunded to taxpayers, and now in its final version, the California Energy Commission, not the state legislature, will have the authority to investigate the oil market, gather information, set a cap on profits if it deems that necessary, and then perhaps levy penalties. That’s a far cry from his original bill, but it’s still been fought tooth and nail by the oil industry.
For more, Doug Sovern, Brett Burkhart, and Pattie Reising spoke with State Assemblymember Alex Lee of Milpitas, who represents the 24th Assembly District.
