Gavin Newsom Begs Regulators to Keep Refineries in Biz After California Dems Ran Industry Out of Town
27th April 2025
Newsom wrote to California Energy Commission (CEC) Vice Chair Siva Gunda on Monday to urge that Gunda and the CEC “redouble” their efforts to keep fuel refiners in the state on the heels of Valero’s announcement that it will be taking at least one of its California refineries offline by April 2026. In the letter, Newsom attempts to characterize the state’s dwindling refining presence as part of a wider national trend, but analysts have warned for years that California’s hostile regulatory environment is what is truly driving the fossil fuel industry’s retreat from the state.
“I write to direct you to redouble the State’s efforts to work closely with refiners on short- and long-term planning, including through high-level, immediate engagement, to help ensure that Californians continue to have access to a safe, affordable and reliable supply of transportation fuels, and that refiners continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades,” the letter states. “Further, I am directing you, as my Administration’s lead representative on this issue, to reinforce the State’s openness to a collaborative relationship and our firm belief that Californians can be protected from price spikes and refiners can profitably operate in California — a market where demand for gasoline will still exist for years to come.”