Governor Newsom Signs Gas Price Gouging Law
March 30, 2023
HOW IT WORKS: SBx1-2 (Skinner) This bill requires companies involved in the petroleum industry (production, refining, sales, transportation) to report specific data to the California Energy Commission (CEC). Additionally, the CEC would be required to identify market irregularities in the price of petroleum products that indicate exorbitant prices are being charged for the product. Finally, the CEC will be authorized asses a penalty on companies that are found to be in violation of the statutes enacted by this bill. The bill will go into effect on June 26, 2023, as required by laws governing the enforcement days of bills passed in a special session of the legislature.
The Governor’s Office Indicated this bill is necessary because, “When the law’s new transparency and oversight requirements go into effect at the end of June, the state will begin receiving more information than ever before, including last year when it appeared that oil producers suppressed supply to drive up prices and rake in record profits. Industry knows that the new independent watchdog division will be closely monitoring them and will refer any violation of law – including industry misconduct or market manipulation – to the Attorney General for prosecution.”
You can find the Governor’s press release here.