would also empower the California Energy Commission to limit those profit margins and penalize refiners from exceeding them.
Newsom amid spiking gas prices in California, particularly after several oil companies reported record profits.
The governor told reporters he plans to sign the legislation Tuesday. He called it 鈥渁 big day for consumers, for Mother Nature.鈥�
鈥淲hen you take on big oil, they usually roll you 鈥� exactly what they鈥檝e been doing to consumers for years and years and years,鈥� he said in the state Capitol after the bill passed. 鈥淲e sent a big and very powerful message to them today.鈥�
The bill passed the Assembly by a vote of 52-19, with some moderate Democrats not voting or joining Republicans in voting against it.
Democrats including Assembly member Phil Ting argued California鈥檚 isolated fuel market is an 鈥渙ligopoly鈥� held by just five large oil refiners who drove prices up in 2022 while blaming low supply and refinery maintenance.
鈥淯nless we 鈥� are going to do something to rein in this industry, guess what鈥檚 going to happen? They鈥檙e going to charge whatever price they want to all 40 million of us, and we鈥檙e going to have to pay whatever price they want,鈥� Ting said.
Democrats also noted the legislation will sunset after a decade unless the state auditor finds it has worked to prevent price spikes.
Oil companies opposed the legislation, arguing it would place new burdens on a shrinking and heavily regulated industry.
Republicans decried a rushed process, noting the bill was up for its final vote only one week after undergoing extensive amendments.
GOP leader James Gallagher accused Newsom of driving the legislative process, and asked lawmakers to 鈥渟tand up鈥� for themselves.
鈥淲e鈥檝e heard exactly one idea鈥� during the special session, Gallagher said. 鈥淗is. We鈥檝e had several bills that have been introduced,鈥� but none got a hearing.
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