New California Gas Price Law Another Defeat for Oil Industry

California Governor Gavin Newsom has signed a groundbreaking legislation that empowers state regulators to penalize oil companies for making excess profits. This legislation is the first of its kind in the United States and marks yet another significant blow to the oil industry in California, which has been gradually losing influence as the state works towards carbon neutrality. The state aims to reduce the demand for liquid petroleum by 94% by 2045 and has banned the sale of most new gas-powered cars in California by 2035. Last year, the state Legislature approved a bill limiting where new oil wells can be drilled.

The new law is a bold step towards holding the oil industry accountable for its impact on the environment and public health. It is a momentous day for California's efforts to combat climate change, said Kathryn Phillips, director of Sierra Club California. This legislation means that oil companies will no longer be allowed to earn massive profits at the cost of communities that bear the brunt of the damage they cause.

The bill's author, Assemblymember Phil Ting, a San Francisco Democrat, said the legislation was necessary to address an industry that prioritizes profit above everything else. The new law seeks to tackle the negative externalities of oil extraction, and the penalty is tied to the price of oil, which Ting insists is not onerous.

Governor Newsom acknowledged the role of the oil industry in the state's economy, but he also emphasized the damage it has caused to the environment. The state needs to do more, and this law is a significant step towards holding the industry accountable.

The new law will come into effect in January 2024, and it is expected to have a far-reaching impact on the oil industry in California. With this legislation, California has set an example for other states in the country and the world to follow. The state has taken a bold step towards addressing the negative externalities of oil extraction, and it is a step towards a greener, cleaner future.