California Energy Journal: Gasoline and Fuels

California Faces Growing Fuel Supply Crisis, New Report Warns

Wed, 10 Dec 2025 21:13:00 GMT

A new policy study warns that California is on the brink of a significant gasoline supply disruption, with refinery closures and pipeline failures threatening fuel availability and driving prices even higher for motorists. In Blueprint to Address California’s Gasoline Insecurity, Michael A. Mische, James W. Rector, and Joseph B. Silvi argue that state e…

Phillips 66 and Kinder Morgan Propose New Pipeline into California

Wed, 22 Oct 2025 21:32:00 GMT

Phillips 66 and Kinder Morgan proposed a new pipeline system to ship refined products from Midwest refiners to Arizona and California. Phillips 66 began soliciting shipper commitments for the proposed pipeline.

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The proposed pipeline system would require the construction of a new Western Gateway Pipeline, which would flow from Borger, Texas, to Phoenix, a…

Newsom Signs Bill to Allow Sale of E15 Gasoline

Sat, 04 Oct 2025 21:30:00 GMT

On October 2, 2025, Governor Newsom signed AB 30, which allows E15 fuel, an additional blend of gasoline, to be sold in California while the California Air Resources Board (CARB) studies its impact on clean air requirements. E15 is widely accepted as a way to reduce gasoline prices without adding environmental harm.

The bill authorizes gasoline containin…

CEC Pauses Refinery Profit Cap for Five Years

Sat, 30 Aug 2025 00:28:00 GMT

The California Energy Commission (CEC) paused implementation of the state’s profits cap on refineries, known as the maximum gross gasoline refining margin (GGRM), and the related penalty until 2030. The delay is part of the state’s recent efforts to improve the operating and investment environment for the oil industry in California.

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The five-year delay c…

State Officials Brokering Refinery Sale

Mon, 28 Jul 2025 23:05:00 GMT

In an unusual move, the California Energy Commission (CEC) is trying to find a buyer for Valero Energy’s Benicia refinery ahead of its planned closure in April 2026, Reuters reported. The state government is trying to broker the sale of privately-owned infrastructure amid concerns that refinery closures could lead to fuel shortages and price spikes in C…

State Senate Bill Would Loosen California Gasoline Standards

Mon, 30 Jun 2025 23:31:08 GMT

Democratic senators introduced a bill to reform California’s gasoline market amid concerns over rising fuel prices. SB 237, introduced as a “gut and amend” on June 23, 2025, would require regulators to explore alternative gasoline specifications, streamline permitting for refiners, and set a cap on biofuel credit prices.

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The bill aims to stabilize the oi…

CEC Recommends Maintaining Refinery Capacity, Increasing In-State Oil Production

Mon, 30 Jun 2025 22:11:00 GMT

California Energy Commission Vice Chair Siva Gunda outlined a series of policy recommendations to help stabilize California’s gasoline and petroleum markets. The recommendations came in response to a letter from Governor Gavin Newsom directing the CEC to “redouble the state's efforts to work closely with refiners…to help ensure that Californians continu…

Report Projects California Gasoline Prices to Hit $8/Gallon by End of 2026

Fri, 09 May 2025 19:20:00 GMT

California gasoline prices could reach more than $8 per gallon by the end of 2026, an increase of more than 75%, according to a new study led by Michael A. Mische of USC's Marshall School of Business. A key factor in this price increase is the potential loss of 21% of the state’s refining capacity from 2023 to April 2026 with the closure of the Phillips…

Valero to Close Benicia Refinery in 2026; Wilmington's Future Uncertain

Fri, 25 Apr 2025 19:23:54 GMT

Valero Energy announced April 16, 2025 that it would cease operations at its 170,000-barrel-per-day Benicia refinery by the end of April 2026. The company has also indicated that it could close its 135,000-barrel-per-day Wilmington refinery in Los Angeles.

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The developments come amid concerns about California's high gasoline prices and declining fuel supp…

Bill Would Regulate Oil Pipeline Supply

Thu, 27 Mar 2025 17:56:22 GMT

A new bill in the state Senate would increase oversight over pipelines in order to monitor potential disruptions in gasoline supplies. SB 767 would create new requirements for operators to report how much oil is flowing through their pipelines so officials can determine the impact of a potential pipeline shutdown on the supply of gasoline.

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The bill would…

CARB Approves New Low-Carbon Fuel Regulations

Mon, 25 Nov 2024 20:53:33 GMT

The California Air Resources Board (CARB) approved changes to the state’s low carbon fuel standard (LCFS) that include accelerated targets to reduce the carbon intensity of transportation fuels used in the state.

The amendments, approved in a 12-2 vote on November 8, include accelerated targets to reduce the carbon intensity of California’s transportatio…

Valero Fined $82 Million for Releasing Toxic Air Contaminants at Benicia Refinery

Fri, 01 Nov 2024 17:26:00 GMT

California regulators fined Valero Refining Company $82 for air quality violations at its Benicia refinery. The Bay Area Air Quality Management District and the California Air Resources Board (CARB) assessed the record fine for toxic chemical releases and other violations dating back to at least 2003.

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The penalty is the result of a 2019 inspection that f…

Phillips 66 Says Decision to Close Wilmington Refinery Part of Long-Term Analysis

Wed, 30 Oct 2024 21:49:22 GMT

Phillips 66’s decision to close its Wilmington Refinery, also known as its Los Angeles Refinery, in the fourth quarter of 2025 came after a long-term analysis and not in reaction to policy changes. “The uncertainty of the long-term sustainability of the refinery and market dynamics were key factors in this decision,” said CEO Mark Lashier on the company…

Newsom Signs Bill to Regulate Oil Refinery Supply

Tue, 15 Oct 2024 20:07:19 GMT

Governor Gavin Newsom signed into law ABX2-1, which authorizes the California Energy Commission (CEC) to require oil refineries to maintain minimum inventories of refined fuels, feedstocks, and blending components and to have resupply plans to cover production loss during maintenance. The bill was introduced after Newsom called for a special session of …

Newsom Calls Special Session for Bill on Increased Refinery Regulation

Wed, 04 Sep 2024 18:56:46 GMT

On August 31, 2024, Governor Gavin Newsom called for a special session of the legislature to pass legislation on the governor’s plan for gasoline prices. The plan, introduced in the Senate as SB 950 and in the Assembly as AB 1, would expand the California Energy Commission’s (CEC) authority to regulate oil refineries by requiring resupply plans during m…

Newsom Vetoes Bill to Impose Stricter Emissions Reporting on Refineries

Wed, 21 Aug 2024 19:20:50 GMT

Governor Gavin Newsom vetoed a bill to require oil refiners to monitor air quality and track pollutants from their facilities. The legislature passed SB 674, known as the Refinery Air Pollution Transparency and Reduction Act, on August 8, 2024.

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SB 674 would have made several changes to the fence-line monitoring program for oil refineries established unde…

Richmond Settles with Chevron and Drops Oil Refining Tax from Ballot

Thu, 15 Aug 2024 18:40:58 GMT

The Richmond City Council accepted a $550 million settlement with Chevron in exchange for dropping from the November ballot the $1-per-barrel excise tax on oil processing. Chevron will pay the settlement, approved August 14, over 10 years to the city’s general fund.

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Chevron offered to pay the city $300 million over 10 years but increased the amount to $5…

Chevron Refinery Tax Makes Richmond Ballot

Thu, 18 Jul 2024 17:16:48 GMT

The Richmond City Council voted unanimously on June 18 to include a ballot measure to tax Chevron on its refinery production. The Oil Refining Business License Tax would impose a $1-per-barrel excise tax on oil refined within the City of Richmond for 50 years, from July 1, 2025 to July 1, 2075. Voters will decide on the measure, known as the “Polluters …

DPMO Recommends Gasoline Market Transparency and Minimum Inventories

Mon, 05 Feb 2024 18:08:55 GMT

California’s gasoline market monitor provided near-term policy options “to address spot market dysfunction and the recurring supply conditions that lead to price spikes.” Tai Milder, the director of the Division of Petroleum Market Oversight (DPMO), shared the results of his months-long investigation in a letter to Governor Gavin Newsom, recommending in…

CARB Proposes Amendments to Strengthen LCFS Rules

Sat, 23 Dec 2023 15:47:00 GMT

The California Air Resources Board (CARB) proposed new regulations to “update and strengthen” the Low Carbon Fuel Standard (LCFS) regulation. CARB will vote on the amendments on March 21, 2024.

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The LCFS program is California’s main program to reduce emissions from transportation fuels. The program requires fuel producers to reduce the carbon intensity of…