Category Archives: Benicia CA

New gas industry watchdog’s suggested anti-price-gouging reforms generate some hope, but also skepticism and impatience

[Note from BenIndy: Remember the article alleging exactly why Valero commanded higher profits in California compared to other regions, and how Senate Bill X1-2 sought to shield Californians from gasoline price spikes? Tai Milder, director of the new Division of Petroleum Market Oversight, issued a letter with a few potential reforms that could decrease the volatility of CA’s gas market. The letter is an important read but if you don’t have the time this SacBee article offers a great, quick analysis of the contents – and notes the immediate frustration voiced by the Consumer Watchdog that the development of a penalty structure for price gouging has been delayed. The images in this post were added by BenIndy and are not original to the SacBee post.]

Consumer watchdogs seek to shield Californians from insane gas-price spikes. | Uncredited image from 2022.

SacBee, by Ari Plachta, February 1, 2024

California’s new gasoline industry watchdog wants to see mysterious price spikes at the pump come to an end. After months of investigation, he shared options for how energy regulators could stop them — penalties not yet included.

Gov. Gavin Newsom’s appointed director of the new Division of Petroleum Market Oversight said the California Energy Commission should impose additional transparency in the daily gasoline market and require oil refineries to store supplies in a Wednesday letter.

“In California we have unexplained price spikes,” said Tai Milder in a news briefing. “Our core goal is to protect consumers. That doesn’t mean the absolute level of prices but making sure prices are set in a fair manner.” Fuel prices have stabilized somewhat. A gallon of gasoline today costs $4.537 on average in California, 2 cents lower than last month and about the same as last year, according to the latest prices from AAA.

Image from the California Energy Commission’s November 28, 2023 “SBX1-2 Workshop on Maximum Gross Gasoline Refining Margin and Penalty” presentation. To learn more about this workshop, click this link. You will be redirected to the workshop page on the CEC’s website.

They are far lower than the summer of 2022 spike that sent lawmakers into a special legislative session to address oil price gouging. At that time, average fuel costs rose to a sky-high $5.52 a gallon.

The governor signed Senate Bill X1-2 last March, establishing the new watchdog division within the California Energy Commission. In September, the division highlighted a suspicious trade on the state’s real-time market for gasoline that quickly caused a 50-cent-per-gallon price spike.

At the time, Milder called the single transaction “unusual” and said it may be a result of the underlying structure of California’s gasoline market. He also criticized refiners for failing to maintain adequate inventories of refined gasoline.

In a new letter to the governor, Milder pointed to two reform options he said would reduce the risk of price spikes.

The first is to publish a daily report on trading information in the real-time spot market for gasoline, which he said would decrease volatility in that unregulated facet of the state’s gasoline economy with an outsized influence on prices.

 

“It appears that spot market volatility, illiquidity, and lack of transparency may all be contributing to and exacerbating price spikes during periods of under-supply and refinery maintenance,” Milder wrote in the letter.

He also recommended imposing minimum gasoline storage requirements for refiners. Milder said when refineries are undergoing maintenance, they often haven’t maintained adequate levels of inventory. This drives down supply during periods of high demand and contributes to price spikes.

Next up, the watchdog division will issue additional data transparency regulations this spring and determine whether to set a refining margin and penalty by the end of the year.

Advocates with the Consumer Watchdog group were quick to criticize a delay in the division’s timeline. Milder had initially set out to issue a penalty recommendation this summer, in time for peak travel season.

“Californians cannot wait an extra six months for the price gouging penalty promised them last year,” said the group’s president Jamie Court. “Governor Newsom needs to put his foot in the Energy Commission’s a– and get them moving quicker if he is going to deliver.”

But Severin Borenstein, director of the Energy Institute at UC Berkeley’s Haas School of Business, considered the delay a wise decision. Setting up the market oversight division is time consuming, and implementing a gasoline storage requirement will be extremely complicated.

“This was never going to be a quick fix,” Borenstein said. “Creating the penalty structure is going to be extremely challenging, too. The downside of getting it wrong is it could really create disruptions in the market.”

Steve Young & Mark Hughes: What is the future of Benicia? Voters will help decide 

Former Benicia City Council Member Mark Hughes. | City of Benicia.
Benicia Mayor Steve Young. | City of Benicia.

 

 

 

 

 

 

 

By Steve Young and Mark Hughes, January 22, 2024

[A note from the authors: Some may be surprised to see both of us as authors of this opinion piece. We served together on the Council from 2016–18, and while we did vote differently on a variety of issues, we respected each other’s point of view. We never ran against each other, but did support different candidates in various elections. But the one thing we never doubted was our mutual commitment to the betterment of the City. We both know that our financial situation is dire, and that these revenue measures will help keep Benicia financially stable moving forward.]

Slowly, Benicia residents are becoming aware of the extent of the fiscal challenge facing the City. There is an ongoing annual deficit of $6.5 million. Currently we are using reserves to cover the deficit, but those reserves will only last one more fiscal year.

Then what? There must be a combination of budget cuts and new revenue if we are to put off cuts to programs and services that Benicia residents have come to expect. Part of the reason for our rapidly increasing costs are the same as those affecting all of our residents, such as higher energy costs for fuel and heating/cooling, increasing health care costs, as well as the cost of virtually everything the City buys. In short, the City’s expenses have been increasing year over year, while revenue has been stagnant.

Some people point at recent raises given to City employees as the problem. The fact is that our employees were falling further and further behind other local area governments in compensation, and we were losing trained employees to other cities and counties, as well as finding it very difficult to recruit and hire new employees, especially those with specialized skills.

The simple fact is we cannot cut our way to a balanced budget; we also need additional revenue. The City’s two main sources of revenue are property taxes and sales taxes. Because our town is so attractive to families and others, there are relatively few houses for sale. This low turnover rate, combined with Prop. 13, has resulted in essentially flat property tax levels for several years. It’s also important to note that Benicia only receives approximately ¼ of the property tax collected, with the remaining money going to State, County, and School agencies. 

Sales taxes have also been relatively flat, with very little new development for more than a decade. And while a small town, no-growth attitude is what some people love about Benicia, it comes at a real cost.

In response to this situation, which has been brewing for more than a decade, the City Council is facing up to the challenge by proposing reductions in expenses, and two tax increase measures that will appear on the March 5 ballot. The first tax measure is Measure A, which will raise the local hotel tax paid by tourists and guests from 9% to 13%. The second tax measure is Measure B, which will ask voters to approve a 3/4 cent increase in the sales tax, from 8.375% to 9.125%. This increase represents 75¢ for every $100 spent. The increased tax would generate $5-5.5 million/year, and go a long way towards eliminating the deficit, and maintaining the programs and services the City currently provides. This sales tax increase, if approved will be overseen by a Citizens Review Committee, and will be in effect for 12 years, at which time it will sunset.

What will happen if the measure fails? This is where the conversation becomes much more difficult. While the City Council unanimously supports this measure, the only responsible thing to do is to hope for the best, but plan for the worst, in the event that it fails. The City has been, and will continue to ask citizens to share what services are most important to them, because if Measure B does fail, the City will need to consider budget cuts and service reductions in all areas of the city, including Public Safety, Parks, Library, Public Works, etc.  In addition, it is likely that most of the Boards and Commissions would be eliminated, as well as the Grants that the City provides to the Arts, Culture and Human Services organizations.

And please believe us when we say that these are definitely not intended to be scare tactics; it really comes down to basic math.

We love our town, and the quality of life that we enjoy here.  Please join us by supporting the City’s strategies to address our financial challenges.

We ask you to support Measures A and B on the March ballot, and encourage you to ask your friends and neighbors to do the same.


Visit BelieveInBenicia.org to learn more about Benicia’s Resiliency Plan, sign up for updates from Benicia City Manager Mario Giuliani, and join the effort to help shape Benicia’s future. While some workshops have already occurred, there is still time to add your voice! Look for the red, bolded text below to see upcoming workshops, and please fill out the community survey (also linked below).

UPCOMING MEETINGS

Community Survey
January 15-26 – Community Survey Link
In Person Workshops
January 18 • 6pm-8pm
City of Benicia Public Library
January 25 • 6pm-8pm
City of Benicia Community Center
Virtual Workshops via Zoom
January 17 • 6pm
January 24 • 6pm – Join the meeting

When refineries break the rules, they pay fines – but these fines rarely reach impacted communities. Time to speak up!

[Note from BenIndy: Take the $1.2 million penalty Valero must pay for major flaring incidents at the Benicia Refinery in 2017 and 2019, for example. These incidents directly impacted the health and safety of Benicia residents, and yet it’s possible that Benicia may never see a dime of that penalty. Why? What can be done to ensure that communities directly, immediately, and tangibly impacted by negative health and safety situations created by refineries are directly, immediately, and tangibly compensated? Frequent BenIndy Contributor Kathy Kerridge got in touch with the following.]

Photo Illustration by Kelly Caminero / The Daily Beast / Getty.

ATTENTION to everyone who would like to see refinery penalties go to the community

We’ve all been waiting for the time when we can have input about how penalty fines from refineries can get back to the local community.

On Thursday, January 18, at 6:00 pm, the Community Advisory Council of the Bay Area Air Quality Management District (Air District) will hear from the Air District staff about possibilities.

This is your chance to weigh in on what should happen to the fines the refineries pay when they pollute our air, and how much of the fines will be returned to the local community.

Here is the link to information about the meeting:

Advisory Council Meeting Re.: Penalty Funds

 There will be community input.

The meeting will be both in person in SF and on Zoom.  I hope that people who are concerned about this can go into the meeting in person. If not, please plan to attend by Zoom.

This is particularly important for all refinery communities.  These fines have been substantial, and we want to make sure that the communities that have been harmed at least benefit from some these penalties.

Please spread the word.  Contact kathykerridge@gmail.com if you have questions or if you would like to try to carpool or go together on BART.

Kathy Kerridge
BCAMP Board Member
Good Neighbor Steering Committee
Progressive Democrats of Benicia Chair


SEE ALSO:

La Migra: Another Parent’s Perspective

Sheri Leigh
Sheri Leigh, Benicia resident and educator.

By Sheri Leigh, January 11, 2024

A while ago, I spoke to a close friend who recently moved to the East Coast from the Benicia area.  As we were catching up, I mentioned my efforts to educate our community about the La Migra Games.  At first, she didn’t know what I was referring to, and as we discussed it further, she got it.  Not only was she aware of the game, three of her children, who are now adults, had participated as “undocumenteds” while in high school.  Despite our closeness, my friend and I sometimes have completely different perspectives. This was one of those times…

My good friend, whom I will refer to as Alice, was a long time Benicia/Vallejo resident but has since moved away.  Alice has several children, and like their mother, her children are smart and adventurous. They enjoy outdoor activities and extreme sports when the opportunity arises.  The younger ones attended Benicia public schools, including the high school, spanning from about 2010-2019.

As underclassmen at BHS, they were each challenged to participate in the “La Migra Games” by the seniors who were hosting, and three of them took it on. They loved the idea of a long distance (three-mile) chase game at night where they needed to use their skills and wits to get to the other end of town without being caught by students posing as ICE officers. However, since the chase was what appealed to them rather than the pursuit, they only participated as underclassmen running from their older peers.

Benicia High School staff, administrators, and students have taken steps to prevent students from participating in the game. | Uncredited image.

The eldest of the three, and the one who was at Benicia High School first, was probably the biggest thrill seeker of the family.  He apparently had an amazing experience playing the game and encouraged the younger ones to take advantage of this opportunity when it was their turn.  One younger brother and even younger sister followed suit a few years later.  All of them individually made it to the “safe” zone without being captured, and felt the same exhilaration as did their older brother by their accomplishment.  They each shared their experience with Alice, who appreciated that her children voluntarily participated in something that required ingenuity, bravery and physical endurance.

When I brought up my concerns about “La Migra,” it was clear that Alice did not connect the name of the game with the actual event. She really didn’t know what it was called until my clarification, although I’m sure the kids did.  This family is of white European heritage and their ancestors have been in the United States for several generations now. The kids don’t have the perspective of a modern immigrant family, so the name, “La Migra” didn’t trigger them the way it does some others. Once we discussed the impact of the name, Alice could definitely see how the title and the assertion could be offensive.  She suggested that changing the name and the premise  to something less racially charged and continuing the tradition would be the appropriate thing to do.

I need to mention here that this family has deep roots in the military.  Two of Alice’s three children who played the game continued on to serve our country, while the youngest is still contemplating service.  Being in the military includes participation in potentially dangerous games, in preparation for real life military missions.  Neither the kids nor Alice were concerned with the individual and public safety.  She dismissed my points that there is no roster, that no one is formally accounted for, that the parents don’t necessarily know where their children are during the game, and that the game is played on public streets and encroaches on private property.  She ascertained that if there were formal rules, it would require adult supervision – something that would definitely minimize or even eliminate the independent and thrilling nature of the game.

Some Benicia High School students have taken action against the game, posting warnings to discourage peers from participating. | This image is a still from a 2023 NBC Bay Area report.

As we discussed it more, Alice suggested that the City could let the community know that this game is happening and that we should all exercise more caution that evening rather than try to shut down the game.  She sees the game as a unique and important opportunity for teens to participate in an activity which requires them to use their emerging survival skills – something that could be valuable later in life.

One of the few things that did capture Alice’s attention from my extensive list of concerns was that some young people who aren’t voluntarily playing the game are being targeted, with severe trauma often being the result.  We agreed that some identifying and visible article of clothing or accessory could be worn so that everyone can unequivocally know who is playing and who is not.  She felt that, as in life,  there should be a code of ethics among the students. Only those who self-identify as a participant should be chased.

And finally, much to my personal relief, Alice was absolutely concerned about the alleged increasing violence, including the use of gel pellet guns, as part of the game.  For this, she put responsibility directly on the shoulders of the parents or guardians of the young people who opt to use verbal or physical assault as part of their chase tactics.  She feels that parents need to establish a strict moral code and that children should never be allowed to use weapons, whether real or “toys,” irresponsibly.

Use of gel pellet guns by teens is on the rise, with sometimes violent or even deadly consequences. Youth caught firing pellets at people or animals may be charged with assault and battery or animal cruelty. | NBC Boston.

I care very much about my friend and her family, and I want to hear her perspective and consider this into the equation.  From their point of view, there are good reasons for young people to have the opportunity to participate in a game that promotes excitement, fear, exhilaration, and wits, as long as it’s done voluntarily and with honor.  The question remains – how do we provide something like this for our young people without inciting racism, bullying, violence and, as I will continue to emphasize, unsafe conditions for those involved and for the public?


Share your story
If you would like Sheri to hear and share your perspective on the ‘La Migra Game,’ please contact her through the Benicia Independent. Remember that it is your story that is critical for others to hear, not your name, unless you would like to be identified.
Reach out to Sheri: benindy@beniciaindependent.com
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