On Tuesday, surrounded by legislators and community leaders in the rotunda of the California State Capitol, Gov. Gavin Newsom signed legislation to implement the strongest state-level oversight and accountability measures on Big Oil in the nation.

Newsom’s office said the move brings transparency to California’s oil and gas industry, shining new light on the corporations that have for decades operated in the shadows while ripping families off and raking in record profits.

It is the latest instance in which the Governor’s Office said he has successfully taken on the historically powerful industry for putting profits over people.

Last year, Gov. Newsom signed legislation adding new reporting requirements to oil refiners, as well as a law protecting neighborhoods and schools from oil drilling.

“With this legislation, we’re ending the oil industry’s days of operating in the shadows. California took on Big Oil and won. We’re not only protecting families, we’re also loosening the vice grip Big Oil has had on our politics for the last 100 years,” Newsom said.

Authored by Sen. Nancy Skinner (D-Berkeley), co-sponsored by Attorney General Rob Bonta and approved by a supermajority in both the Senate and Assembly, SBx1-2 creates a dedicated, day-in and day-out, independent watchdog to root out price gouging by oil companies and authorizes the California Energy Commission, or CEC, to create a penalty to hold the industry accountable.

The law will go into effect on June 26, the 91st day after the end of the special session.

“I am proud of my colleagues for passing this first-in-the-nation protection against price gouging by Big Oil,” said Skinner. “Californians faced outrageously high gas prices last year, prices that strained family budgets an extra $600 or more a month. In calling for immediate action, Governor Newsom responded decisively in proposing SBX 1-2, the strongest, most effective transparency and oversight measure in the nation. This landmark law will allow us to hold oil companies accountable if they pad their profits at the expense of hardworking families. With SBX 1-2, California has sent a clear message to the oil industry: Open your books and prove you’re not price gouging, otherwise Big Oil will pay the price — not consumers.”

When the law’s new transparency and oversight requirements go into effect at the end of June, the state will begin receiving more information than ever before, including last year when it appeared that oil producers suppressed supply to drive up prices and rake in record profits.

Industry knows that the new independent watchdog division will be closely monitoring them and will refer any violation of law — including industry misconduct or market manipulation — to the attorney general for prosecution.

“Record high retail gas prices — and record-breaking profits for Big Oil — hurt those who can least afford it most of all. For too long, Californians have been left in the dark when it comes to the practices of the gas industry. And while oil companies have been lining their pockets, many Californians are struggling to make ends meet. I proudly stand with the Governor as he signs into law our co-sponsored bill to bring accountability and transparency to the gas industry. Together, we are fighting to even the scales for California consumers and take this burden off their shoulders,” said Attorney General Rob Bonta.

“This bill provides important tools to help Californians get the answers we deserve about oil company profits and price gouging,” said Senate President pro Tempore Toni G. Atkins (D-San Diego). “Through the leadership of Senators Skinner, Bradford, Limón, and McGuire, and our colleagues in the Assembly and the Administration, these new reforms are strong on transparency and accountability. That’s a big part of what it will take to stop any wrongdoing and protect California consumers.”

“This landmark reform makes California the first state in the nation to authorize a windfall profits cap on oil refiners so that they can no longer gouge consumers at the pump,” said Jamie Court, president, Consumer Watchdog. “Combined with unprecedented transparency measures and a new watchdog bureau, this price gouging penalty will prevent Californians from enduring the price spikes and profits spikes that have plagued the gasoline market last year. Gov. Newsom has balanced the scales on behalf of millions of Californians who no longer will have to choose between $6 per gallon gas and putting food on their tables.”