Newsom Appoints DOJ Prosecutor as ‘Oil Watchdog’ to Fight Big Oil

A gas pump is inserted inside a vehicle at a Mobil gas station in Beverly Boulevard in West Hollywood, Calif., on March 10, 2022. (Bing Guan/Reuters)

California Gov. Gavin Newsom has appointed Tai Milder, a federal antitrust prosecutor, to be the first to direct his new program to target the oil industry and refer violations to the state’s attorney general for prosecution.

Mr. Milder will be paid $199,740 a year to be the first director of the Division of Petroleum Market Oversight at the California Energy Commission. The position requires state Senate confirmation.

The Oakland Democrat is a former trial attorney for the U.S. Department of Justice and has served as counsel to the DOJ’s assistant attorney general for the antitrust division since 2022, according to an Aug. 1 announcement from the governor’s office.

He also served the DOJ as a trial attorney after a stint as a California’s deputy attorney general in the antitrust law section.

“I’m looking forward to leading the nation’s first independent oil and gas watchdog,” Mr. Milder said in a statement. “Transparency and accountability are essential to protecting California consumers and those principles will guide the work of this division every day.”

The governor launched an effort to punish oil companies and refineries in October 2022 a month after gas prices in the Golden State skyrocketed to record highs.

At the time, Mr. Newsom indicated confusion why prices had spiked and accused the industry of profiting from the situation.

California Gov. Gavin Newsom speaks during a press conference at the Unity Council in Oakland, Calif., on May 10, 2021. (Justin Sullivan/Getty Images)

According to industry experts, the record prices were caused by an unexpected refinery shortage and the state’s gas tax, which is the highest in the nation at nearly 58 cents per gallon, on top of federal and local taxes.

In March, Mr. Newsom signed into law a program that he said would “beat big oil.”

It created new regulations and put in place new oversight for oil companies operating in the state.

“California is serious about holding Big Oil accountable,” Mr. Newsom said in the Aug. 1 press release. “Tai Midler has an impressive record of going after companies that rip off consumers, and that’s exactly what he’ll be doing—serving as a watchdog over the oil and gas industry and protecting Californians.”

The agency created by the program can issue fines and penalties against oil companies that it finds have earned profits beyond state-imposed limits.

The governor’s bill was rushed through both chambers of the state Legislature within a week, despite opposition from Republicans and the oil industry. It took effect in June.

The energy commission also unveiled a new interactive dashboard to increase transparency within the oil and gas industry Aug. 1.

The dashboard includes data from January 1999 to present and has a detailed price breakdown of costs, taxes, and fees for a gallon of gasoline.