PPIC Energy Conference: Rising Concern Over California’s Energy Future

The Public Policy Institute of California (PPIC) hosted its high-profile “Powering California’s Future” conference last week at the Sacramento Convention Center. What surprised many attendees, including state policymakers, county officials, utility executives, and labor leaders, was how much of the conversation aligned with what CIPA members have been warning for years: California’s energy policy is headed for a crisis unless leaders embrace a balanced path that includes continued in-state oil and gas production.

A Shift in Tone

CalEPA Secretary Yana Garcia opened the first panel by admitting that the push for a 90% reduction in fossil fuels, particularly in transportation, is straining both the economy and California’s middle class. In her words, “Perhaps we could have done more to protect the middle-class community and ensure this transition went smoothly.”

PPIC’s own new survey reinforced that reality. Less than half of Californians are willing to pay higher costs to achieve clean energy goals, and focus groups continue to raise alarms about rising utility bills and the cost of living. As PPIC pollster Mark Baldassare bluntly put it: “Until we figure out how to do something about the cost of electricity, we have a problem. People are wavering in their support.”

Chevron: California is in Crisis

The most forceful voice at the conference was Andy Walz, Chevron’s downstream and chemicals CEO, who declared, “I am very worried about California’s energy – you are in a crisis. California is not open for business. It is not investible and you’re not ready for a world without fossil fuels. That’s 80% of your energy. Chevron left; our competitors are leaving. We can’t get to resources in the San Joaquin Valley. Reliability matters. We need action.”

Walz also reminded policymakers, “We don’t need more regulation; we don’t need more bureaucrats. We’re OK with a transition, but we’re not getting there in the right way. The Legislature has to act now and do more in the next term.”

His message echoes CIPA’s longstanding advocacy: California cannot maintain energy reliability or affordability while cutting off access to its own oil resources. Independent producers in the Central Valley and beyond must be part of the solution.

Counties, Utilities, and Labor Speak Out

Graham Knaus, CEO of the California State Association of Counties, linked the housing affordability crisis to energy costs, arguing that California must “learn from other states about getting out of our own way.”

PG&E Vice President Roderick Robinson called for a unified state energy transition plan, while CA Forward CEO Kate Gordon admitted that California is too focused on climate goals instead of economics.

Perhaps most significant, labor leader Lorena Gonzalez Fletcher underscored the stakes for workers: “We need oil and the Central Valley jobs… We’re not ready to kick fossil fuels out.”

Gonzalez and other panelists emphasized that manufacturing, refinery operations, and oilfield jobs remain the backbone of California’s economy. As Lance Hastings of the California Manufacturers & Technology Association put it: “Without the manufacturing sector, California doesn’t have an economy.”

A Call for Realism

The conference closed with PPIC CEO Tani Cantil-Sakauye, who summarized the new consensus:

“We’re not ready to kick fossil fuels out. We need a palette of energy solutions.”

That message, delivered at one of California’s most respected policy institutions, signals growing recognition that California’s “all renewables, all the time” agenda is unworkable.

For CIPA members, the implications are clear: California policymakers are finally starting to admit what we’ve known all along. A stable energy future requires oil. It requires keeping production in California, not outsourcing jobs and resources to foreign countries with weaker environmental protections.