SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices.
The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had “finally beat big oil.” More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit.
Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades.
“Together, we will evolve California’s strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry’s ability to operate safely, reliably, and successfully to meet demand through the transition,” Gunda wrote in a letter to Newsom.
Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices.
California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA.
The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes.
Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels.
Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and “advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.”
Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission.
A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits.
“California oil refiners do not need a bailout,” they wrote, adding that the state should “finish the job” it started to prevent prices at the pump from spiking.
Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna
FILE - The Salesforce Tower and skyline are shown behind the gasoline price board at a gas station in San Francisco, July 20, 2022. (AP Photo/Jeff Chiu, File)
KYIV, Ukraine (AP) — Russia launched a second major drone and missile bombardment of Ukraine in four days, officials said Tuesday, aiming again at the power grid amid freezing temperatures in an apparent snub to U.S.-led peace efforts as Moscow's invasion of its neighbor approaches the four-year mark.
Russia fired almost 300 drones, 18 ballistic missiles and seven cruise missiles at eight regions overnight, Ukrainian President Volodymyr Zelenskyy said on social media.
One strike in the northeastern Kharkiv region killed four people at a mail depot, and several hundred thousand households were without power in the Kyiv region, Zelenskyy said.
The daytime temperature in Kyiv, which has endured freezing temperatures for more than two weeks, was minus 12 degrees C (about 10 degrees F), with streets covered in ice and the rumble of generators heard throughout the capital.
Kyiv has grappled with severe power shortages for days, although Mayor Vitali Klitschko said Monday night's strikes caused the biggest electrical outage the city has faced so far.
More than 500 residential buildings remained without central heating Tuesday. Throughout the city, bare trees were weighed down with icicles and snow was piled up next to sidewalks.
To cope, friends and relatives gathered in those apartments that have power or hot water, at least temporarily. They charge their phones, take hot showers, or share a warm drink.
Klitschko ordered the city to provide one hot meal per day to needy residents. He also announced that workers in the city’s water, heating and road maintenance services would receive bonuses for working “day and night” to restore critical infrastructure.
Four days earlier, Russia also sent hundreds of drones and dozens of missiles in a large-scale overnight attack and, for only the second time in the war, it used a powerful new hypersonic missile that struck western Ukraine in what appeared to be a clear warning to Kyiv’s NATO allies that it won’t back down.
On Monday, the U.S. accused Russia of a “ dangerous and inexplicable escalation ” of the fighting at a time when the Trump administration is trying to advance peace negotiations.
Tammy Bruce, the U.S. deputy ambassador to the United Nations, told an emergency meeting of the U.N. Security Council that Washington deplores “the staggering number of casualties” in the conflict and condemns Russia’s intensifying attacks on energy and other infrastructure.
Russia has sought to deny Ukrainian civilians heat and running water in winter over the course of the war, hoping to wear down public resistance to Moscow’s full-scale invasion, which began on Feb. 24, 2022. Ukrainian officials describe the strategy as “weaponizing winter.”
The attack in Ukraine’s Kharkiv region also wounded 10 people, local authorities said.
In the southern city of Odesa, six people were wounded in the attack, said Oleh Kiper, the head of the regional military administration. The strikes damaged energy infrastructure, a hospital, a kindergarten, an educational facility and a number of residential buildings, he said.
Zelenskyy said Ukraine is counting on quicker deliveries of agreed upon air defense systems from the U.S. and Europe, as well as new pledges of aid to counter Russia’s latest onslaught.
Meanwhile, Russian air defenses shot down 11 Ukrainian drones overnight, Russia’s Defese Ministry said Tuesday. Seven were reportedly destroyed over Russia’s Rostov region, where Gov. Yuri Slyusar confirmed an attack on the coastal city of Taganrog, about 40 kilometers (about 24 miles) east of the Ukrainian border, in Kyiv's latest long-range attack on Russian war-related facilities.
Ukraine’s military said its drones hit a drone manufacturing facility in Taganrog. The Atlant Aero plant designs, manufactures and tests Molniya drones and components for Orion unmanned aerial vehicles, according to the General Staff of the Armed Forces of Ukraine. Explosions and a fire were reported at the site, with damage to production buildings confirmed, the General Staff said.
It wasn't possible to independently verify the reports.
Katie Marie Davies in Manchester, England, contributed.
Follow AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine
In this photo provided by the Ukrainian Emergency Service, emergency services personnel work to extinguish a fire following a Russian attack in Kharkiv, Ukraine, Tuesday, Jan. 13, 2026. (Ukrainian Emergency Service via AP)
In this photo provided by the Ukrainian Emergency Service, emergency services personnel work to extinguish a fire following a Russian attack in Kharkiv, Ukraine, Tuesday, Jan. 13, 2026. (Ukrainian Emergency Service via AP)
In this photo provided by the Ukrainian Emergency Service, emergency services personnel work to extinguish a fire following a Russian attack in Kharkiv, Ukraine, Tuesday, Jan. 13, 2026. (Ukrainian Emergency Service via AP)
In this photo provided by the Ukrainian Emergency Service, emergency services personnel work to extinguish a fire following a Russian attack in Kharkiv, Ukraine, Tuesday, Jan. 13, 2026. (Ukrainian Emergency Service via AP)
In this photo provided by the Ukrainian Emergency Service, emergency services personnel work to extinguish a fire following a Russian attack in Kyiv region, Ukraine, Tuesday, Jan. 13, 2026. (Ukrainian Emergency Service via AP)
