Part 6/12:
In a notable policy shift, California delayed implementing a proposed excess profit penalty for refineries—initially intended to hold oil companies accountable for windfall profits—citing concerns over fuel reliability. This move signals a pragmatic approach: preventing financial penalties from forcing refineries to shut down prematurely could help keep supply steady amid the ongoing transition.
Governor Gavin Newsom's administration has also shifted its rhetoric toward industry engagement. Instead of outright opposition to fossil fuels, the focus has been on stabilizing supply and prices, which remain politically sensitive topics due to high gasoline costs and inflationary pressures.