California regulators fearing a dramatic drop in gasoline supply placed a five-year pause on Gov. Gavin Newsom’s penalty on oil industry profits Aug. 29.
The decision is a blow to Newsom’s legislation aimed at penalizing the oil industry for allegedly driving up the state’s gas prices in 2022.
California Energy Commission Vice Chair Siva Gunda said the state must shield motorists from price spikes at the pump even as it tries to transition to clean-energy fuel sources for transportation.
The commission says the pause on its penalty program was needed to further study the industry.
“We believe this additional time will increase industry confidence enough to secure investments in refinery maintenance and is therefore a prudent way to ensure employee safety and maintain a safe, reliable, affordable supply of fuel during this critical point in the transition to a carbon-free transportation system,” a spokesperson told The Epoch Times in an email Sept. 2….