REPORT: California Bill To Cap Oil Profits Approved By State Senate Committee

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As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by DAILYCALLER.COM:

A bill is advancing through the California state legislature that would impose a limit on the profits of oil companies in the state, passing through the state’s Senate Committee on Energy, Utilities and Communications Wednesday.

The bill — a deal between Democratic Governor Gavin Newsom and state legislators — would create a government watchdog that would establish limits on profit margins for oil refiners and implement penalties for surpassing those limits, according to a Monday announcement by the governor’s office. Newsom had previously sought to impose a windfall tax — a tax imposed when market conditions help a company generate profits that are significantly above the norm — which would have required a super majority of the state legislature to be implemented, as opposed to the current proposal which would only require a simple majority of the Democrat-controlled governing body to pass, Bloomberg reported. (RELATED: California Could Use ‘Backdoor’ To Kickstart The End Of Diesel Trucks In The US, Experts Say)

The proposed legislation would also mandate stricter reporting on financial data and give the state the ability to more clearly investigate the “unexplained” higher gas prices in the state of California compared to the rest of the nation, the governor’s office said in a press release. Gas prices surged in California, to $6.42 per gallon, roughly $2.61 higher than the national average, despite a drop in crude prices, according to the governor’s office.

Newsom’s proposal was initially met with concern by both Democratic and Republican members of the state Senate, who last month questioned whether such a rule might potentially have “unintended consequences” that further harm California residents or lead to higher costs, according to Politico. The bill passed through the Senate Committee on Energy, Utilities and Communications with a 13-2 vote, the two no votes from a pair of Republicans, and was referred to the state’s appropriations committee, according to the state government’s website.

To get more information about this article, please visit DAILYCALLER.COM.

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