Gas bills jumped by hundreds of dollars over the past few months for many Californians - and on Tuesday, the California Public Utilities Commission held a hearing to find out why.

Some of the reasons cited - high demand during cold weather, and the failure of utilities to store enough gas for the winter or hedge against problems with interstate pipelines.

Heidi Harmon, former mayor of San Luis Obispo, applauds Gov. Gavin Newsom's call for a federal investigation into possible market manipulation.

"Why did gas prices go up so much, in such a short period of time?" asked Harmon. "What's really going on there? And what is the remedy, and who needs to be held accountable?"

Prices are now coming down, but the CPUC said the price of natural gas on the West coast peaked in December - at eight times what people in the Southeastern U.S. were paying.

The agency voted to accelerate a tax credit for millions of Californians that will take $90 to $120 off their gas bills in March.

Dominic Frongillo, executive director and co-founder of the group Elected Officials to Protect America, said he is convinced that the best way to protect people's pocketbooks and the climate - is to transition away from oil and natural gas.

"The fossil fuel industry's volatility - and collusion, in many cases - is causing prices to spike," said Frongillo. "And the only way to end this is to accelerate our transition to 100% clean energy."

More than 440 California elected officials have signed an open letter to the governor, asking for a plan to phase out oil-and-gas production in the state.

Environmental groups are seeking greater input as California puts the finishing touches on its application to become a hub for hydrogen fuel production. This is billed as a big step toward a zero-carbon emission future. The project is being managed by a public-private partnership called the Alliance for Renewable Clean Hydrogen Energy Systems, known as ARCHES.

Monica Embrey, energy director for the California Sierra Club, called this a good opportunity to advance climate progress but only if certain guardrails are put in place.

"If they use existing pipelines, they would have to really upgrade them quite a lot. And we want to make sure that those have safety mechanisms in place so that communities get to say whether or not a pipeline near them actually gets used for hydrogen. We want leakage monitoring, we want really strict standards," she said.

Hydrogen is extremely explosive and is a major greenhouse-gas pollutant if it leaks or is burned and will not be used for homes or commercial buildings, but instead will be targeted to medium and heavy-duty vehicles, ports and power plants, which are especially difficult to decarbonize, ARCHES said.

In addition, ARCHES said hydrogen will be produced using renewable power and will not be blended with natural gas within pipelines.

SoCal Gas and Chevron have been consulting on the application. The ARCHES website calls for meaningful engagement with community groups and environmental justice advocates.

Bahram Fazeli, director of research and policy with the nonprofit Communities for a Better Environment, said the planning process has been vague to date.

"They have done a very poor job of prioritizing environmental justice or public health in their process. They're not open to California's open-meeting laws and public participation. They only have one environmental-justice representative on the 11-member board, " Fazeli said.

The application to the Department of Energy is due April 7th. New hydrogen hubs could bring more than a$1-billion in federal investment to California, supporters said.

A bill designed to fight price-gouging at the gas pump is expected to pass the California State Assembly today and be signed by Gov. Gavin Newsom soon after.

Senate Bill X1-2 would create a watchdog at the California Energy Commission empowered to set a "reasonable" profit margin for gasoline and assess penalties for price-gouging.

Meghan Sahli-Wells, former mayor of Culver City and California director of the group Elected Officials to Protect America, said oil companies must be held accountable.

"What we've seen is behind these price hikes aren't the external forces that the big oil companies have blamed for the humongous price spikes," Sahli-Wells asserted. "What we've seen are refineries that have doubled their profits."

The Western States Petroleum Association has slammed the bill, blaming high gas prices on a supply shortage linked to a lack of investment in refining capacity and necessary infrastructure.

Gas prices last summer and fall hit an average of $6.42 per gallon in California, more than $2.50 higher than the national average.

The oil and gas industry is behind a ballot measure to roll back a California law passed last year requiring new drilling permits to include setbacks from homes and schools. Sahli-Wells argued the state needs to cut air pollution from burning fossil fuels, adding she does not like recent mailers blaming higher gas prices on state regulation.

"The industry itself is going hot and heavy on propaganda to scare people into dialing back environmental protection," Sahli-Wells contended. "It does feel somewhat like an 'oil war' is happening in California. But we know that if we are to win, that oil must lose."

The new watchdog would also have the power to subpoena business records in order to root out price manipulation.

California lawmakers hold a hearing in Sacramento today on a bill to hold oil companies and gasoline refiners accountable for alleged price gouging.

According to the Office of Gov. Gavin Newsom, gas prices in California hit an average of $6.42 per gallon last fall, which was $2.61 more than the national average. And it happened even as crude oil prices dropped and state taxes and fees remained unchanged.

Farrah Khan, mayor of Irvine, said she supports Senate Bill 2, which would establish an independent watchdog within the California Energy Commission.

"It's going to establish a new division to provide independent oversight and analysis of the market," Khan explained. "This new division would have the power to subpoena information deemed necessary to root out and address any of the abuses of market power."

The Western States Petroleum Association said in a statement, "This new windfall penalty in this proposal is actually worse than the original bill. The Legislature would be giving away all its authority to a group of unelected bureaucrats who will have the power to set gasoline prices and impact fuels markets. [This] will likely lead to the same unintended consequences as his initial proposal - less investment, less supply, and higher gasoline prices for Californians."

Steven Hernandez, mayor of Coachella, said it is a matter of fairness to the families who live paycheck to paycheck.

"People struggle to afford gas and rent, and to pay medical expenses," Hernandez pointed out. "When we're mindful of the working class, I think we're better off as a society."

The California Energy Commission watchdog would analyze data to look for patterns of misconduct or price manipulation. The bill would also start a rule-making process at the Commission, to set a reasonable profit margin and impose a penalty for price-gouging above the margin. Any fines would be returned to taxpayers.


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