(KARAH RUCKER)
CALIFORNIA GOVERNOR GAVIN NEWSOM IS CALLING ON STATE LAWYERS TO PASS NEW REGULATIONS FOR OIL REFINERS JUST AS THE CALIFORNIA LEGISLATIVE SESSION NEARS ITS END.
The proposal aims to counteract high gas prices by requiring oil companies to keep additional fuel reserves –
BUT SOME OPPONENTS IN THE INDUSTRY ARE OPPONENTS TO THIS APPROACH.
NEWSOM ARGUES THAT THE GOVERNMENT CAN AVOID FUEL SHORTAGES AND SUDDEN RISES IN GAS PRICES BY REQUIRING REFINERS TO MAINTAIN OIL RESERVES.
Under the new plan, refineries that do not comply with the new rules face fines –
AND THE MONEY FROM THESE PENALTIES WOULD BE COLLECTED IN A FUND AND THEN “RETURNED TO CONSUMERS.”
NEWSOM SAYS –
“PRICE CUTS AT THE GAS STATION ARE PROFIT CUTS FOR THE OIL BIG POWERS. REFINERS SHOULD PLAN AHEAD AND KEEP SUPPLY STABLE INSTEAD OF JUST TRYING TO INCREASE THEIR PROFITS. THIS WILL HELP CALIFORNIANS SAVE MONEY ON GAS EACH YEAR.”
THIS ADVANCE FOLLOWS AN EARLIER ATTEMPT BY NEWSOM TO TAX OIL COMPANIES’ EXCESS PROFITS, WHICH WAS STILL SUCCESSFUL.
This also happened after a new law was passed last year that increased transparency in the oil industry.
STATE OFFICIALS SAY BASED ON THE DATA THEY HAVE, OIL REFINERS ARE SCHEDULING MAINTENANCE WORK THAT WILL REDUCE SUPPLY AND RAISE PRICES DURING THE DRIVING SEASON.
HOWEVER, THE WESTERN STATE PETROLEUM ASSOCIATION HAS HIT BACK, REJECTING THEIR CLAIMS AND BLADING STATE POLICIES FOR THE HIGH PRICES.
THE ASSOCIATION STATED IN A LETTER:
“Imposing new operating requirements on energy producers based on such falsehoods is a regulatory violation and ignores the logistical challenges and costs associated with such a plan.”
“If this government is ready to have a serious discussion about the facts and the policies this state has put in place that impact consumer costs, we will be there.”
WITH ONLY TWO WEEKS LEFT UNTIL THE LEGISLATIVE SESSION, IT REmains to be seen how this proposal will develop.
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