CA Windfall Profits Penalty: Have your voice heard

The California Senate proposed Senate Bill X1-2, which called for an undisclosed maximum gross gasoline refining margin on California refiners. The bill could result in further strains on the supply chain that could ultimately trigger gasoline price spikes and give regulators control over refinery turnaround times.

A few examples of potential unintended consequences of the proposed legislation include safety risks, loss of unionized labor jobs, supply reduction resulting in higher costs, and reduced funding for schools and local governments.Chevron is solutions-focused on this issue, and we encouraged state lawmakers to allow markets to work as intended so California consumers can access affordable, reliable, and lower-carbon energy over time. The Chevron Advocacy Network campaign opposing SBX1-2 resulted in more than 500 CAN members taking action to deliver 1,000 emails to 90 legislators. A remarkable effort in only four business days.

Despite these efforts, Governor Newsom officially signed SBX1-2 into law on March 28. The bill creates authorization for a penalty on gross gasoline refining margin, gives the state input into refinery turnarounds, and includes substantial reporting requirements. While the legislation is not ideal, it is far better than the initial draft. We are proud of Chevron’s efforts to get the legislation to a much better point.