SACRAMENTO – Following the announcements that Phillips 66 would close its California refinery and Valero was considering shutting down its facilities, Assemblyman Joe Patterson (R-Rocklin) and Assembly Republican Leader James Gallagher (Yuba City) are calling on Gov. Gavin Newsom to act to prevent more gas price increases due to disruptions in the state’s fuel market.
In a letter to the governor, Patterson and Gallagher called for a special session of the Legislature to reconsider the recently passed refinery storage mandate and requested Newsom delay his administration’s proposed update to California’s Low Carbon Fuel Standard that is projected to increase gas prices as much as 65 cents per gallon.
“The fallout from Gov. Newsom’s attacks on our energy industry has been swift and severe,” said Patterson. “California drivers are already paying some of the highest gas prices in the country – they can’t afford any more disruptions to our fuel supply. It’s time to make affordability a priority.”
In announcing the closure of its refinery, which accounts for 8% of California’s refining capacity, Phillips 66 cited “long-term uncertainty” regarding its ability to operate in the state as the reason for the shutdown. Days later, Valero’s CEO said “all options are on the table,” including the closure of its two California refineries, due to “the California regulatory environment.”
“California families are paying a high price for Newsom’s political stunts,” said Gallagher. “We need to undo the damage caused by Newsom’s extreme energy policies and act quickly to prevent things from getting even worse.”
According to industry experts, the California Energy Commission and the governors of Arizona and Nevada, Democrats’ gas storage mandate risks higher average gas prices and fuel shortages due to refineries being forced to withhold supplies from the market.
The Low Carbon Fuel Standard update is scheduled to be voted on by the Air Resources Board on November 8, just three days after the upcoming election. While the Air Resources Board refuses to disclose how they expect the new regulation to impact gas prices, they acknowledged it will have a cost to consumers. An independent study projected the update could raise prices as much as 65 cents per gallon.
California drivers pay the highest gas taxes in the nation, adding 88 cents per gallon to the cost of gas. Environmental mandates add an additional 45 cents per gallon, for a total added cost of $1.33. California gas prices are among the highest in the nation, and are currently $1.44 above the national average.
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