SACRAMENTO, Calif. — What's striking about passage of Gov. Gavin Newsom's legislation to penalize Big Oil's alleged greed is the sea change it represents in California policy.
A century ago and well past World War II, the oil industry could do no wrong in California. It was encouraged to drill, baby, drill. And this burgeoning state reaped the economic benefits.
In fact, California is still the only major oil-producing state that doesn't impose an extraction tax for pumping the goo out of the ground. Oil companies do pay property taxes on underground reserves. But it's a much lighter hit than an extraction tax.
