Commentary
Gov. Gavin Newsom’s oil bill to reduce gas prices at the pump actually will increase them. It’s simple economics: Increase regulations, potential tax increases, and uncertainty into any market, and the price of its goods will go up.
That’s precisely what will be the result of Senate Bill 2, introduced by state Sen. Nancy Skinner (D-Berkeley), but advanced by Newsom. It passed both houses of the Legislature over the last week and was signed by the governor on March 28.
In the language of the Assembly Floor Analysis of March 27, it imposes three things:
1. “Mandates extensive data reporting to the California Energy Commission (CEC) from various specified entities along California’s oil and gasoline supply chain.” That will be an “extensive” new burden on oil companies, the cost passed on to consumers….