Newsom picks oil czar to watch for price gouging

[Auggie]

Sacramento Bee / August 4, 2023

California has appointed its first watchdog for gas price gouging.

Gov. Gavin Newsom appointed Tai Milder on Wednesday to lead the state's effort to hold oil companies accountable amid spiking fuel prices. Pending Senate confirmation, Milder will direct the newly created independent Division of Petroleum Market Oversight, housed within the California Energy Commission.

Milder is a former antitrust prosecutor at the U.S. Department of Justice.

The division was created as part of Newsom's plan to penalize Big Oil for California's high gas prices. As part of a special legislative session, lawmakers pushed through Senate Bill X1-2 this year following months of high gas prices in the summer and fall of 2022. The bill empowered the California Energy Commission to penalize oil companies for making too much money.

LINK: https://napavalleyregister.com/eedition/page-a2/page_e294b9e8-231f-54e3-94b1-a69fe6db346c.html

Highlights (from the link):

• Newsom originally wanted to establish a profit tax on oil companies and return proceeds to California residents.

• Instead, the Legislature landed on the creation of the new regulatory agency, which will set the acceptable profit margin and decide how to penalize companies that exceed it.

• An average price for a gallon of regular gas in California peaked last June at $6.44. That same year oil companies made record-breaking profits.

• The state has yet to punish any oil company.

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I think the Legislature copped-out -- their plan sounds a bit ambiguous (and more expensive).

Have to see how this plays out.