California
California tries to cap oil company profits. Figuring out how is challenge
Practically 5 months after Gavin Newsom initially known as for a penalty on extreme oil firm earnings, the governor and lawmakers in Sacramento seem no nearer to deciding methods to forestall the form of gasoline worth spikes that Californians skilled final 12 months.
On the first legislative listening to on the governor’s proposal on the state Capitol on Wednesday, lawmakers shared considerations about potential unintended penalties of his want to cap the trade’s earnings.
Some oil market consultants mentioned Newsom’s concept to restrict oil refinery earnings wouldn’t resolve the issue — and one known as it a “tax gimmick.” Different economists agreed with the Newsom administration about demanding extra transparency from oil refiners on pricing, upkeep, provide contracts and stock.
“I do know that legislators don’t need the reply, ‘We want extra investigation,’ however the truth is taking pictures first after which discovering out if it’s the correct resolution goes to possible be simply as detrimental as useful,” Severin Borenstein, director of the Power Institute at UC Berkeley’s Haas Faculty of Enterprise, advised lawmakers.
Lawmakers and plenty of consultants who testified Wednesday agreed with Newsom that one thing ought to be performed to stop oil corporations from charging Californians greater than drivers in different states, a differential that peaked in October when in-state costs have been $2.60 above the nationwide common, whereas the companies reap billions in earnings. Polls carried out by advocates for Newsom’s coverage discovered that 6 in 10 Californians assist a price-gouging penalty on oil refiners when fuel costs attain abnormally excessive ranges.
However the listening to underscored the problem Newsom has confronted since he started publicly speaking about penalizing the trade earlier than he had an in depth plan to execute it: Fixing the issue is much more sophisticated than it appears.
Newsom’s push for a cap on oil trade earnings comes because the governor engages in a high-profile battle with the trade, which he has accused of deliberately worth gouging Californians as retribution for the state’s effort to curb the usage of fossil fuels. The petroleum trade argues the results of these insurance policies and the state’s dependence on a small variety of oil refineries drives up gasoline prices.
Catherine Reheis-Boyd, president and chief govt of the Western States Petroleum Assn., described the governor’s plan as a misguided coverage that “focuses on earnings, moderately than the foundation reason for worth spikes, which is an absence of provide.”
“These provide constraints, coupled with demand pushed by the world’s fourth-largest financial system and 35 million inner combustion engine automobiles whilst we undertake extra [electric vehicles], are the first drivers of gas prices within the state,” Reheis-Boyd mentioned.
Newsom known as for swift passage of a penalty on oil firm earnings to alleviate monetary pressures on working households when he introduced the particular session in October. On the time, costs topped $6 per gallon. Now, costs have declined to $4.74 per gallon, whereas steep will increase in dwelling heating payments are a rising concern, displaying the difficulties the Legislature faces in shortly addressing top-of-mind points for Californians.
The governor didn’t attend the informational listening to Wednesday and as an alternative traveled to Palo Alto, the place he joined Elon Musk because the Tesla CEO introduced that his firm would open a brand new international engineering headquarters in California. Newsom made no point out of the listening to, particular session or his proposal for a penalty on oil corporations in a video of the event Musk shared on social media.
Newsom’s predecessor, Gov. Jerry Brown, on uncommon event testified earlier than the Legislature in assist of proposals he championed, akin to pension reform in 2011, and the fuel tax and the extension of the cap-and-trade program in 2017. Typically described as a coverage wonk, Newsom has not participated in a legislative listening to since taking workplace in 2019.
When requested final week, Newsom mentioned imposing a restrict on the earnings of oil refiners is difficult, partially, as a result of it’s largely uncharted territory in California and the remainder of the nation.
“No different state in historical past has performed it,” Newsom mentioned.
The Democratic governor additionally highlighted the shortage of transparency from oil refiners. The state’s largest oil refining corporations declined to take part in a previous listening to on fuel costs held by the California Power Fee. Newsom mentioned the state would “struggle like hell to see to it that info is offered to allow them to’t sport the system.”
“And as soon as we determine that out, and we’re within the technique of doing that, we’re going to have the ability to fill in these blanks on what apparently all people desires to see,” Newsom mentioned.
Officers from his administration shared the identical considerations to lawmakers Wednesday.
“We’re at a degree the place I feel we have to transfer past form of the voluntary sharing of data and begin utilizing the state’s authority to get the knowledge that you simply all have to make knowledgeable coverage choices,” Nicolas Maduros, director of the California Division of Tax and Payment Administration, mentioned on the listening to.
State Sen. Dave Min (D-Costa Mesa) mentioned he has considerations in regards to the governor’s proposal and didn’t see any “smoking weapons” on the listening to. However he additionally mentioned the state’s petroleum market is damaged if the trade is ready to earn file earnings whereas Californians pay “ridiculously excessive” fuel costs.
“Now we have to repair it and I do suppose we want solutions and accountability right here as a result of I don’t know the place the blame lies,” Min mentioned.
Jamie Court docket, president of Shopper Watchdog, agreed that extra investigation ought to be performed to element unexplained surcharges, largely on the retail finish of the provision chain, however argued that lawmakers mustn’t move up the chance to additionally cap the earnings of oil refiners.
“That is the primary time the Legislature has ever centered on why Californians are paying a lot more cash for our fuel and what tangibility could be performed about it with a penalty for doing it,” Court docket mentioned in an interview. “Any laws that doesn’t have a penalty and a windfall earnings cap could be a failure.”
California
California woman dies from Fresno County's first human case of rabies in more than 30 years
A California woman died of rabies after allegedly being bitten by a bat in her classroom, according to Fresno County health officials.
The woman, later identified as Leah Seneng, 60, marks the first human case of rabies in Fresno County since 1992.
“In general, rabies is a disease that affects the brain, and it is very rare. But when it develops, it can cause very serious consequences,” said Dr. Trnidad Solis, Fresno County Health Department’s deputy health officer. “It’s transmitted through saliva; it is not airborne.”
RABIES PATIENT BECOMES FIRST FATAL CASE IN US AFTER POST-EXPOSURE TREATMENT, REPORT SAYS
Seneng, who was an art teacher at Bryant Middle School in Dos Palos, was bitten by the bat when she was attempting to rescue it in her classroom, local outlet ABC30 reported.
She first came into contact with the bat in October, but did not display symptoms until approximately a month later, according to Fresno County health officials. She was admitted to the hospital and died four days later.
PEANUT THE SQUIRREL EARMARKED FOR EUTHANASIA BEFORE BEING CONFISCATED AND WAS RABIES-FREE: REPORT
“The most frequent route of transmission is through the bite of an animal that has rabies. With rabies, unfortunately, there is no cure. So, when symptoms develop, there is no treatment, and often when it develops, it is often fatal. So we want the public to know that prevention is key to preventing rabies infection,” Solis said.
Fresno County officials do not believe there is a threat to public health at this time, but are working with the Merced County Health Department to identify any other possible exposures and administer vaccines.
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Seneng’s coworkers have set up a GoFundMe account to assist her family during this time.
California
Another batch of raw milk from a trendy California brand just tested positive for bird flu
- Two batches of raw milk from a trendy California brand have tested positive for bird flu this week.
- Bird flu has been spreading rapidly among cattle in the US.
- Experts say drinking raw milk is dangerous, and can cause food poisoning.
Another batch of raw milk just tested positive for bird flu in California.
Last Sunday, Fresno-based Raw Farm voluntarily recalled a first batch of cream top whole raw milk with a “best by” date of November 27. By Wednesday, the California Department of Public Health announced that a second batch of Raw Farm cream top, with a “best by” date of December 7 had also tested positive for bird flu, based on retail sampling.
“We’re not making a big deal about it, because it’s not a big deal,” Kaleigh Stanziani, Raw Farm’s vice president of marketing, said in a short video posted on YouTube after the farm’s first voluntary recall was announced earlier this week.
She said there had only been an indication that there might be a “trace element of something possible,” emphasizing that there had been no reported illnesses of Raw Farms cows or positive tests from the cattle.
Raw Farm owner Mark McAfee later told the LA Times that the California Department of Food and Agriculture had requested that his company “hold delivery of further products” until Friday, after conducting thorough testing of two Raw Farms and one creamery on Wednesday. (McAfee could not immediately be reached for comment by Business Insider during the Thanksgiving holiday.)
Raw milk may be helping bird flu spread — but not in the way you might think
Scientists suspect that cross-contamination of raw milk between animals may be one reason the H5N1 virus is spreading rapidly among cows in the US — and could even contribute to the human spread of the virus. The Centers for Disease Control and Prevention cautions that dairy workers might be able to contract bird flu by infected raw milk splashed into their eyes.
There is no definitive evidence yet that humans can get bird flu from drinking contaminated raw milk. Instead, health authorities generally recommend avoiding raw milk because of other serious health risks, including food poisoning with bacteria like Salmonella, E.coli, or Listeria.
There are no known health benefits of drinking raw milk. Instead, all evidence suggests that pasteurized milk is just as nutritious, and is safer to consume.
Still, raw milk has become a trendy product among some influencers. Gwenyth Paltrow says she has it in her coffee in the morning.
Robert F. Kennedy Jr., President-elect Trump’s pick for Health and Human Services secretary, says he wants the US Food and Drug Administration to stop its “war” against raw milk.
Over the summer, “Carnivore MD” Paul Saladino released a raw milk smoothie in partnership with the elite Los Angeles health foods store Erewhon featuring unpasteurized (raw) kefir from Raw Farms, and powdered beef organs.
California has some of the loosest rules around raw milk in the country; it’s generally fine for California retailers like health foods stores and grocers to sell it, raw milk products just can’t be transported across state lines, per FDA rules.
Michael Payne, a researcher at the Western Institute of Food Safety and Security, told The Guardian that people consuming Dr. Paul’s $19 smoothie were “playing Russian roulette with their health,” and ignoring pasteurization, “the single most important food safety firewall in history.”
California dairy farms have been seeing an uptick in bird flu cases since August. The state has reported 29 confirmed human cases of bird flu, and all but one of those was sourced back to cows.
Last week, the Centers for Disease Control and Prevention reported the first confirmed case of bird flu in a California child from Alameda County. The child had no known contact with infected farm animals, but may have been exposed to wild birds, the California health department said in a statement.
The child had mild symptoms and is recovering well after receiving antiviral drugs.
California
10 of 15 Southern California industries slow their hiring pace
Southern California’s bosses added 80,700 workers in the past year to a record 8.06 million jobs – but that hiring pace is roughly half of the pre-pandemic job market’s gains.
My trusty spreadsheet – filled with state job figures for Los Angeles, Orange, Riverside, and San Bernardino counties – compared employment changes for the region and 15 industries in the year ended in October with the average yearly hiring pace before coronavirus upended the economy.
Yes, there have never been more Southern Californians employed. However, the recent hirings that created the all-time high staffing are far below the average job creation of 159,600 a year in 2015-19.
This is one of many signals of cooler business trends. It’s a chill significantly tied to the Federal Reserve’s attempts to slow what was once an overheated economy.
But Southern California bosses have another challenge – a shortage of workers. The region’s workforce, a measure of labor supply, is basically flat comparing 2024 to 2015-19. Fewer choices of workers have added difficulty for local businesses trying to meet their staffing needs.
Think of that when you learn that among the 15 Southern California business sectors tracked – hiring in 10 industries is below pre-pandemic years compared with five industries with improvements.
The downs
First, contemplate the 10 industries where the hiring pace has weakened, ranked by the size of the decline …
Professional-business services: 1.14 million workers in October – down 4,600 in a year vs. 24,100 annual gains in 2015-19. This net downturn of 28,700 jobs is unnerving because this white-collar work typically pays above-average salaries.
Construction: 378,700 workers – down 3,100 in a year vs. 16,200 annual gains in 2015-19. A building slowdown due to lofty mortgage rates created this 19,300 reversal.
Logistics-utilities: 820,800 workers – up 6,800 in a year vs. 25,800 annual gains in 2015-19. What’s at least a temporary oversupply of warehouses in the region may be behind this 19,000 slowdown.
Manufacturing: 558,400 workers – down 15,300 in a year vs. 4,100 annual cuts in 2015-19. This 11,200 drop is continued losses of local factory work tied to high cost of doing business in the region.
Fast-food restaurants: 359,400 workers – up 3,400 in a year vs. 12,400 annual gains in 2015-19. Weaker consumer spending and a hike in the industry’s minimum wage contribute to this 9,000 drop.
Hotels/entertainment/recreation: 268,300 workers – up 3,400 in a year vs. 9,600 annual gains in 2015-19. This 6,200 cooling reflects worker shortages.
Full-service eateries/food service: 339,100 workers – up 1,600 in a year vs. 6,600 annual gains in 2015-19. Inflation making shoppers pickier is part of this 5,000 cooling.
Information: 214,200 workers – down 100 in a year vs. 3,700 annual gains in 2015-19. Weakness in tech businesses and Hollywood productions created the 3,800 net downturn.
Personal services: 266,600 workers – up 500 in a year vs. 3,200 annual gains in 2015-19. Again, it is hard to find people to do this work. Thus, a 2,700 cooling.
Government: 1.03 million workers – up 11,600 in a year vs. 12,500 annual gains in 2015-19. This 900 dip is status quo.
The ups
Ponder the five industries where the hiring pace rose in the past year, ranked by the size of the gains …
Social assistance: 512,300 workers – up 28,200 in a year vs. 18,300 annual gains in 2015-19. The 9,900 addition comes as more folks need help at home for healthcare and child care.
Healthcare: 836,700 workers – up 30,100 in a year vs. 20,900 annual gains in 2015-19. The 9,200 growth parallels the region’s aging population and its need for medical services.
Retailing: 748,300 workers – up 8,300 in a year vs. 300 annual cuts in 2015-19. This somewhat surprising 8,600 improvement may be consumers tiring of online commerce and wanting to get out to shop.
Financial: 364,100 workers – up 4,400 in a year vs. 3,900 annual gains in 2015-19. The minor 500 improvement is a return to normalcy. Super-heated hiring came in the pandemic days thanks to a brief drop in mortgage rates to historic lows.
Private education: 215,700 workers – up 5,500 in a year vs. 5,100 annual gains in 2015-19. This 400 uptick reflects the growing interest in alternatives to public schooling.
Bottom line
While it’s rare for all industries to be growing at the same time – minus, say, just after an economic downturn – this 2024 edition of the winners vs. losers list raises an important issue.
It appears much of the past year’s job creation is coming from industries that historically pay meager wages. That’s an especially worrisome trend in high-cost Southern California.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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