California Energy Commission Reports Delay of Refinery Profit Cap Enforcement

California is delaying the implementation of a profit cap on gasoline refiners, a key part of Governor Gavin Newsom's 2023 legislation aimed at curbing gasoline price spikes. The California Energy Commission (CEC) proposed a five-year postponement of its authority to impose this refiner margin cap and penalties, which has not yet been finalized. This move signals a shift towards supporting refiners, especially amid refinery closures and legislative efforts to boost crude oil extraction in the state. The Western States Petroleum Association, representing major oil companies, advocates for a longer delay of at least ten years to encourage refinery investments. Despite shelving the cap for now, the CEC retains the authority to reinstate or revise the policy in the future. This delay effectively softens the state's regulatory stance on the oil and gas industry, marking a retreat from Newsom's initial push to control fuel prices through tighter refinery profit regulations.