2023 Jan 20 Support letter SB X1-2 the Price Gouging Penalty bill

January 20, 2023 

The Honorable Senator Nancy Skinner
Capitol Office
1021 O Street, Suite 8630
Sacramento, CA 95814 

Re: SUPPORT for SB X1-2: Transportation fuels: maximum gross gasoline refining margin 

Dear Senator Skinner, 

On behalf of the Marin County Board of Supervisors, I write to express my support for Senate Bill X1-2, the Price Gouging Penalty bill. 

The steep and sudden price hikes in oil and gas in late 2022 had widespread impacts on the most socioeconomically vulnerable in communities throughout the state, including our own. As a necessity for transportation and heat, oil and gas are critical everyday commodities and large price increases disproportionately impact low-income consumers, labor and small businesses while oil and gas companies were also reaping record profits. 

Our Board supports the need for more consumer protection in the energy sector, including more transparency and fairness for consumers. The proposed Price Gouging Penalty bill would advance these priorities by providing much-needed oversight and transparency to oil and gas companies. The law would hold companies accountable and prevent future price hikes by creating new checks and balances. Specifically, if oil companies exceed the bill’s threshold for maximum refining margins, they will be charged a tiered penalty that would be deposited into a new Price Gouging Penalty Fund. The fund, in turn, would return these excessive profits back to Californians. 

Further, the bill would provide expanded authority to the California Energy Commission and California Department of Tax and Fee Administration to investigate and obtain information from these companies. With this increased oversight, the state will be able to better evaluate costs, profits, and pricing in the refining, distribution, and retail segments of the California oil and gasoline market to mitigate the likelihood of profit-motivated price hikes. 

Respectfully, 

Stephanie Moulton-Peters, President
Marin County Board of Supervisors 

Cc: Marin County Board of Supervisors
Senator Mike McGuire
Assemblymember Damon Connolly