(DCNF)—California Democrats are reportedly rushing to find a buyer for a refinery scheduled to shut down in 2026 as a potential gas crisis looms over the state, according to Reuters.
The California Energy Commission (CEC) is reportedly actively seeking buyers to stop the upcoming closure of the Valero refinery in Benicia, California, according to three people familiar with the matter that spoke to Reuters. Democrat officials are now reportedly scrambling to keep the refinery operating in California after enforcing stringent regulations that have helped prompt refineries to close across the state for years.
“CEC is engaging with market players to explore pathways for the continued operation of in-state refineries,” the agency told Reuters.
CEC did not specifically confirm that it is looking for a buyer to Reuters, but did say that it is working to ensure that the refinery stays open. Valero announced its Benicia, California, refinery closure in April, and Phillips 66 refinery is also scheduled to shut down by the end of 2025.
A spokesperson for Democratic California Gov. Gavin Newsom pointed the DCNF to Newsom’s recent comments about working with oil refiners and producers to help keep fuel supplies steady, as well as his April letter to CEC urging them to “redouble” efforts to cooperate with refiners.
Golden State residents already pay some of the highest prices at the pump across the U.S., though two major refineries scheduled for closure and strict regulations may spike gas costs to as high as $8 per gallon as soon as next year, according to one study from the University of Southern California.
Oil refineries have been closing in California for years, and the state hasn’t seen a new major refinery built in decades, according to the CEC. Programs like California’s “cap-and-trade” program combined with strict low-carbon fuel standards are contributing to regulatory pressures that are driving refineries out of the state, industry experts have previously told the Daily Caller News Foundation.
Critics like Republican California Senate Minority Leader Brian Jones also note that stringent regulations imposed by Democrats have pressured refineries to leave the state. The refinery closures, in tandem with more regulations going into effect, have led some California officials to worry about a potential gas crisis in the state.
CEC and Valero did respond to the DCNF’s requests for comment.
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