California Governor Wants to Investigate High Gas Prices

California Gov. Gavin Newsom has asked the state attorney general to investigate whether gas companies in the state are involved in price-fixing or other illegal practices.

California Gov. Gavin Newsom has asked the state attorney general to investigate whether gas companies in the state are involved in price-fixing or other illegal practices. Shutterstock

 

Connecting state and local government leaders

STATE AND LOCAL ROUNDUP | Massachusetts considers banning judges from jailing people on probation who fail drug tests … Pennsylvania considers six week abortion ban … St. Paul Mayor gets threatening messages over trash collection plan. 

California Gov. Gavin Newsom has asked the state attorney general to investigate whether gas companies in the state are involved in price-fixing or other illegal practices. Newsom, a Democrat, pointed to a new report that found that large oil companies may be overcharging customers by as much as $1 per gallon. In that report, the California Energy Commission noted that large gas retailers like Chevron and Shell often charge more for their fuel because they say it is of higher quality; the Commission found, however, that “there is no apparent difference in the quality of gasoline at retail outlets in the state … The name-brand stations, therefore, are charging higher prices for what appears to be the same product.” The report also found that California drivers collectively spent $1.5 billion more for gas than drivers in other states in 2018. “There is no identifiable evidence to justify these premium prices. If oil companies are engaging in false advertising or price fixing, then legal action should be taken to protect the public,” Newsom wrote in a letter to Attorney General Xavier Becerra. Some residents and researchers, including Severin Borenstein, a professor at UC Berkeley, have applauded Newsom’s decision to investigate the surcharges. “It’s really time to find out the reason. Consumers have spent many billions of dollars over the years,” he said. Jamie Court, president of Consumer Watchdog, called Newsom’s decision historic. “This is the first time a governor has requested an investigation and prosecution by the Attorney General in modern history into the oil industry. I think it’s a pretty big step,” Court said. Catherine Reheis-Boyd, president of the Western States Petroleum Association, said that high gas prices may be due more to California’s fuel taxes, which are some of the highest in the country. “It’s important to note that (the Energy Commission’s) own numbers show our state’s regulatory environment plays a big role in the ever-increasing affordability challenges Californians face. In fact, the first $1.07 per gallon at the pump is a result of taxes and California’s regulatory programs, such as the low carbon fuel standard,” she said. [Associated Press; San Francisco Chronicle; Los Angeles Times

DRUG FREE | State legislators in Massachusetts are considering a bill that would bar judges from requiring people on probation to remain drug-free. Currently, judges in the state can send someone to jail if they test positive for drugs during their probation, a system that critics say is unfair. Julie Eldred, who was sentenced to probation and drug treatment for minor theft before being sent to jail for failing a drug test, testified before the legislature that the bill hurt the recovery efforts of people addicted to drugs. “The beginning of recovery is such a sensitive part for people, emotions and everything. And to be ripped out and thrown into prison … I’m now actually around more drugs than I was when I was outside,” she said. State Rep. Ruth Balser, who sponsored the bill, said that the system is inefficient. “The overwhelming evidence is that treatment is more effective than imprisonment. Putting people into the criminal justice system can be traumatizing at a time when we want people to get more support in their recovery,” she said. Last year, the state Supreme Court rejected an argument that Eldred’s substance abuse disorder made it impossible for her to stay sober during her probation, and therefore her jail sentence was unfair. “Judges cannot ignore the fact that relapse is dangerous for the person who may be in the throes of addiction and, often times, for the community in which that person lives,” the court wrote. [Boston Globe]

ABORTION BAN | The Pennsylvania legislature is considering a “heartbeat bill” to ban abortion about six weeks into pregnancy. The bill was introduced by Republicans, who control both the House and Senate in the state. State Rep. Stephanie Borowicz, one of the bill’s sponsors, said that “everything changes” when you hear a fetal heartbeat. “Enough is enough. It’s time to turn the table. I believe we have the upper hand in Pennsylvania and across the nation. We will not be silent any longer,” she said. Reproductive rights advocates, including Ashley Lenker White, executive director of Planned Parenthood PA Advocates, said that six weeks is too early for most people to know that they’re pregnant. “This bill is nothing but another unconstitutional attempt to ban abortion in Pennsylvania,” she said. All other six-week bans that have been passed by state legislatures this year are currently halted by judges, who are considering challenges about whether they are constitutional. Gov. Tom Wolf, a Democrat, has said he will veto any abortion ban that is sent to him. “The latest bill, a six-week abortion ban, defies all practical understanding of modern women’s health care. These policies run counter to the notion of individual freedom and lack a sound scientific basis,” he said. [PennLive; Vox]

TRASH THREATS | Police in St. Paul, Minnesota, are investigating threatening and racist messages sent to Melvin Carter, the city’s first black mayor. The threats relate to the city’s year-old trash collection system, which converted the city from one where residents could choose their own collection service (or none at all) to one where all residents pay a trash fee and are assigned a service. Opponents say that the new system is more expensive, while proponents say that the system has reduced illegal dumping and truck traffic. St. Paul residents will decide the fate of the system in a referendum next month. In several voicemails and letters, an anonymous caller or callers using racial slurs have told Carter that he will have to “pay for” his plan for the city’s trash and be forced to install bulletproof windows at his home. Peter Leggett, Carter’s communications director, said that it is not uncommon for the mayor’s office to receive threats. “While we don’t publicize our office’s security measures, we take all threats seriously, and are diligent in our steps to ensure the safety of the mayor and our staff,” he said. [Minneapolis Star Tribune; Twin Cities Pioneer Press]

FILM COUNCIL | North Carolina Gov. Roy Cooper signed an executive order creating a new state agency, the Advisory Council on Film, Television and Digital Streaming, to advocate for more projects to film in the state. The film industry faltered in the state after the state legislature passed a bill prohibiting transgender people from using the bathroom that matches their gender identity, a move that was protested by many actors and directors (parts of the controversial law were later overturned by the legislature). The state also scrapped its film tax incentives in 2014, replacing them with a grant program. “We got [the bathroom bill] repealed … and we’re seeing [the film industry] come back. North Carolina’s natural beauty, welcoming communities, and local talent make it a perfect home for the film industry. This advisory council will play a critical role in helping the industry flourish, which creates good-paying jobs right here in North Carolina,” Cooper said. [WECT; Grey Area News]

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