California’s Newsom Scores Win in Bid to Curb Oil Profits

Governor Gavin Newsom struck a deal Monday with legislative leaders on a proposal to limit how much profit oil companies can make in California and establish a watchdog to monitor gasoline prices.

Under the proposal, authored by state Senator Nancy Skinner, the California Energy Commission would be allowed to impose a penalty on refiners that charge more than an allowable margin for the price of gasoline, Newsom’s press office said in a statement.

The proposal represents a shift from a Newsom’s earlier goal to impose a windfall tax on oil companies. It would have required a super majority ...