California Regulators: Lack of Information and Accountability
California’s regulators have been in the spotlight lately, with the signing of ABX2-1 by Governor Gavin Newsom aiming to address gasoline price spikes during refinery maintenance. While on the surface it seems straightforward, the law actually leaves a lot up to the California Energy Commission (CEC) to figure out the specifics, like how much gasoline to store and when.
The CEC is the one-man show in charge, with new regulatory bodies like the Independent Consumer Fuels Advisory Committee (ICFAC) and Division of Petroleum Market Oversight (DPMO) assisting in enforcement. The ICFAC, made up of members appointed by the governor and legislature, will advise the CEC and oversee petroleum market activities. While their exact roles aren’t crystal clear, their alignment with the governor’s agenda isn’t hard to guess.
For example, ABX2-1 throws out some big numbers, claiming refiners made a whopping $63 billion in profits over a 90-day period in 2022. A bit exaggerated, considering the top players made closer to $55 billion on a global scale. The law also emphasizes preventing “exorbitant profits” and advocating for fair pricing, all while promoting the transition away from fossil fuels.
The DPMO, another creation from the same special legislative session, has been tasked with keeping an eye on the petroleum market. But details on how they plan to do that are still up in the air. Both the ICFAC and DPMO are meant to be a check on the industry, but critics argue that they add an extra layer of bureaucracy that’s not directly accountable to the public.
Ultimately, these regulatory bodies are meant to protect consumers and ensure a fair marketplace. But only time will tell how effective they are in achieving those goals and balancing the interests of all parties involved.
