(DCNF)—Amid increased gas prices nationwide since the U.S. attacked Iran, Newsom is weighing a bill that could drive out the few remaining refineries in California.
The California Air Resources Board proposed sweeping amendments expanding the state’s Cap-and-Invest program. Under Cap-and-Invest, refineries have set emissions limits and must buy allowances from the state to exceed said limits. If signed into law, the amendments would revoke 118 million metric tons in emissions allowances.
In response, Chevron and others operating the state’s few remaining refineries are threatening to close down if Newsom signs new energy regulations into law. California gas is the most expensive in the nation, routinely running $1-2 per gallon over the national average due to taxes and regulations.
Governor Newsom’s office did not immediately respond to a request for comment.
“The proposed regulation will cripple the survivability of the state’s remaining refineries, which will result in California losing the entire industry to this misguided program,” Chevron wrote Monday in a letter to the governor. When an X user pointed out that comparable regulations were driving up gasoline prices in California, Newsom’s press account called them a “ding dong” and attributed high costs to “Trump’s war with Iran.”
“California refineries are already among the most expensive refineries to operate in the world,” Marathon Petroleum Corporation noted in their letter to Newsom. Marathon noted the proposed regulations are “forcing refineries to reconsider whether operations in California remain viable.”
Valero, a major oil refinery, recently recorded a $1 billion write-down in order to shut down its Balencia Refinery in the state.
In response to rising gas prices, Gavin Newsom tweeted “Great work, @realDonaldTrump.”
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