Newsom declares victory over Big Oil as he signs new legislation

By RIA ROEBUCK JOSEPH

THE CENTER SQUARE CONTRIBUTOR

(The Center Square) - “With this legislation, we’re ending the oil industry’s days of operating in the shadows. California took on Big Oil and won.” Gov. Gavin Newsom announced at the signing of the latest legislation touted to rein in the oil and gas industry.

The law is the latest in a slew of new oversight for the oil industry following last year’s legislation on reporting requirements, and drilling restrictions in sensitive areas like neighborhoods and schools.

The approval of SBX12 created two new entities within the California Energy Commission (CEC). The yet to be formed Division of Petroleum Market Oversight which will gather data on pricing practices and other relevant industry information and then provide guidance to the governor and the CEC.

The Independent Consumer Fuels Advisory Committee whose members are also from the CEC, would give advice to the division and the CEC.

The strongest state-level oversight and accountability measures on Big Oil in the nation is intended to “bring transparency” to California’s oil and gas industry.

“We’re not only protecting families, we’re also loosening the vice grip Big Oil has had on our politics for the last 100 years,” Gov. Newsom said.

SBX1-2, known to Republicans as the “Gavin Gas Tax,” was authored by Sen. Nancy Skinner and passed by a super majority in both the Senate and the Assembly. It is expected to cost between $7 million and $10 million to administer.

“I am proud of my colleagues for passing this first-in-thenation protection against price gouging by Big Oil,” Sen. Skinner said in a statement released by the Governor’s office. “This landmark law will allow us to hold oil companies accountable if they pad their profits at the expense of hard-working families. With SBX 1-2, California has sent a clear message to the oil industry: Open your books and prove you’re not price gouging, otherwise Big Oil will pay the price — not consumers.” law enforcement having fewer tools to help victims left out on the street. A no vote means this law has a chance to be repealed which will help victims of sex trafficking end pimps’ free rein on sex trafficking, and give law enforcement all the tools they need to protect women, young girls and all victims of sex trafficking. The truth is students, residents, business owners, tourists and the very sex workers engaging in this activity are victims of this bad and dangerous piece of legislation.” SB357, authored by Sen. Scott Weiner ,was passed last year with 29 Democrats voting for the bill. It had no Republican support.

Gov. Newsom had initially proposed a windfall tax on oil companies which would go back to California taxpayers, in September, but any such plan is still unclear and has not yet been disclosed.

Experts warned California officials against policies increasing gas prices and the need for caution in crafting legislation. The number of refineries operating in California have been steadily in decline with just 9 refineries remaining who can create the special-blend gasoline the state demands.

The law will go into effect on June 26, the 91st day after the end of the special session.

“It’s time as a legislative body that we correct and fix a bill that is wreaking havoc in our communities across California. I’m referring to SB357 from last session that legalized loitering for prostitution and took away a critical tool that law enforcement officers used to help sex trafficking victims,” Sen. Jones said. According to Sen. Jones, the bill was so controversial when it was passed, that it took Gov. Gavin Newsom nine months to sign the bill and in doing so he issued a formal letter. Part of that letter stated “..we must be cautious about its implementation. My administration will monitor crime and prosecution trends for any possible unintended consequences and will act to mitigate any such impacts.”

Sen. Jones went on to emphasize, “We now know what those unintended consequences are, as communities throughout California are asking for a repeal of SB 357 for putting their families at risk and worsening sex trafficking rings, many of the victims of which are … underage. Last month local television stations (revealed) video of sex workers soliciting right outside a Catholic School in East Oakland. Parents and residents were asked if this was a regular occurrence outside of the school, they said ‘It’s everyday, during all periods of the day.’ The situation is so bad in San Francisco that officials there have put up barricades on Mission Street because of the increase of sex work and traffic. An aide to the county supervisors office went on a ride-along with police and described the scene like this, ‘It was shocking. It was something we have never seen before. That intensity. That many sex workers. Pimps standing there.’”

The amendment was tabled in a vote along party lines from a motion brought by Sen. McGuire, meaning that its consideration has been postponed indefinitely.