On Monday, California lawmakers approved Governor Gavin Newsom's proposal to increase transparency in the oil industry. The bill, SBX1-2, aims to prevent gas price spikes from draining consumers' wallets. It forces the industry to disclose pricing decisions and the basis of their maintenance decisions to state officials, making the market more transparent. It also provides the California Energy Commission powers to set a cap and impose penalties if oil company profits are deemed excessive. While the legislation does not impose a cap on oil refinery profits or penalize the industry, it prohibits regulators from imposing any limit that drives up gas prices. Assemblymember Jacqui Irwin, who argued that Californians often paid $2.60 more per gallon than residents of other states, described the situation as unacceptable. Some Democrats declined to vote, and Republicans reacted negatively, with Assemblymember Vince Fong calling it a "senseless attack on domestic energy production." Supporters believe the new law's transparency will deter price gouging and prevent spikes. Giving regulators the ability to set penalty costs may also encourage companies to keep prices low. The new division within the California Energy Commission will evaluate reams of new information the industry will send to it. The governor is scheduled to sign the bill on Tuesday.