Merced Times

Following the announcements of Phillips 66's decision to close its California refinery and Valero's consideration of shutting down its facilities, Assemblyman Joe Patterson and Assembly Republican Leader James Gallagher are urging Governor Gavin Newsom to take action to prevent further increases in gas prices due to disruptions in the state's fuel market.

Patterson and Gallagher have addressed a letter to the governor, calling for a special legislative session to reconsider the newly passed refinery storage mandate. They also requested that Newsom delay his administration’s proposed update to California’s Low Carbon Fuel Standard (LCFS), which is expected to increase gas prices by up to 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.”

Phillips 66 attributed its refinery closure, accounting for 8% of California's refining capacity, to "long-term uncertainty" regarding its ability to operate within the state. Shortly after, Valero's CEO stated that "all options are on the table," including potentially closing its two California refineries due to "the California regulatory environment."

“California families are paying a high price for Newsom’s political stunts,” commented Gallagher. “We need to undo the damage caused by Newsom’s extreme energy policies and act quickly to prevent things from getting even worse.”

Industry experts, along with the California Energy Commission and governors of Arizona and Nevada, suggest that Democrats' gas storage mandate could lead to higher average gas prices and fuel shortages as refineries may be compelled to withhold supplies from the market.

The LCFS update is scheduled for a vote by the Air Resources Board on November 8, just three days after an upcoming election. Although the Air Resources Board has not disclosed how they expect new regulations will impact gas prices, they acknowledged it will incur costs for consumers. An independent study estimated that this update might raise prices by as much as 65 cents per gallon.

Currently, Californian drivers face the highest gas taxes nationwide at an additional cost of 88 cents per gallon. Environmental mandates contribute another 45 cents per gallon, resulting in a total added cost of $1.33 per gallon over national averages.

Patterson represents California's 5th Assembly District, encompassing communities such as Roseville, Rocklin, Lincoln, Granite Bay, Auburn among others.