Governor Gavin Newsom’s recently signed ABX2-1 bill, aimed at holding oil refineries accountable, raises more concerns than solutions. While framed as consumer protection, the bill grants the California Energy Commission broad authority to regulate refineries, including setting minimum fuel inventory levels and controlling maintenance schedules.
The bill enforces steep penalties — up to $1 million per day for refineries failing to meet these inventory levels. Proponents claim this will prevent gas price spikes, but critics argue it will only increase costs for refineries, which will inevitably be passed on to consumers. Worse yet, these burdensome regulations could drive refineries out of California, reducing supply and driving up prices even further.
With its provisions taking effect in January 2025, ABX2-1 risks creating the very price spikes it claims to prevent, while placing jobs and refinery operations in jeopardy.
Big Oil wants to scare you into voting for @realDonaldTrump.
California just passed a bill cracking down on a scheme oil companies use to jack up gas prices before the election.
Don't fall for their dirty lies. pic.twitter.com/XTvMlGI4fa
— Gavin Newsom (@GavinNewsom) October 14, 2024
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