Governor Newsom ignores his energy agency in favor of unrealistic ideas. SB X1-2 directed the Energy Commission to study managing gasoline prices and ensure an affordable, reliable fuel supply during the transition to zero-emission vehicles (ZEVs). Extracting Facts provided a detailed analysis - The Energy Commission Found:
Gasoline will remain the primary transportation fuel for at least another decade, with a daily demand of 200,000 barrels until at least 2035. Even with a strong push towards electric vehicles, millions of gasoline-powered cars will still be on the roads long after 2035.
California's fuel market functions like an "island." It lacks pipeline inflows for refined fuels, and fuel imports take three to six weeks to arrive by ship. This differs from other states with pipelines, regular marine imports, and compatible fuel standards with their neighbors. These features help other states maintain stable fuel supplies and prices, but California’s isolation contributes to higher price volatility.
California often needs more gasoline than its limited refining capacity can produce. Even a temporary shutdown at one refinery can significantly impact supply in a region. While the state's refineries can technically meet current demand, actual production often falls short due to planned and unexpected outages. The recent Phillips 66 Rodeo refinery conversion has further reduced the state's refining capacity; it will only process renewable feedstocks.
The stability of gasoline prices in California is directly linked to the state's refining capacity, which is highly sensitive to refinery shutdowns. When a refinery unexpectedly shuts down, the options for quick resupply are limited. For example, with the conversion of the Phillips Rodeo refinery, the Bay Area will no longer have surplus gasoline to supply other regions.
As Governor Newsom continues to push unrealistic energy policies, families across California will face rising costs in fuel, food, housing, and other essentials. Ignoring the state’s own Energy Commission, which highlights the continued necessity of gasoline for at least another decade, will only worsen the burden on Californians. It’s time for the governor to acknowledge the realities of California’s isolated fuel market and take a new approach to energy policy that ensures affordability, reliability, and energy independence for all residents.