Op-Ed: Rep. Vince Fong: The Valero refinery closure serves as a stark wake-up call that California’s fuel supply is in jeopardy
California’s energy policy is at a breaking point.
Refineries and energy companies around the state are closing not because the market is failing, but because they’ve been regulated into retreat as an instrument of Gov. Gavin Newsom’s political ambition.
Recently, Valero announced its intent to close their Bay Area Benicia Refinery, which comes on the heels of Phillip’s 66 Los Angeles-area Refinery declaring its plans to shutter its doors by the end of this year. Coupled with thousands of permits allowing for more domestic energy production floundering in red tape, these calamities are a red-alert warning that California’s energy policies are pushing the state toward a full-blown fuel crisis.
The barrage of executive mandates and regulations aimed at destroying California’s remaining fuel industry show that Democrats are once again more interested in testing out a political exercise than solving real-world issues that impact the ability for Californians to drive their children to school, purchase groceries, and get to work.
Right now, California’s Geologic Energy Management Division (CalGEM) is sitting on more than 1,000 drilling permit applications. Paralyzed by inaction, they’ve approved a shockingly few permits all year. This level of dysfunction is unacceptable and exactly why Congress must demand the U.S. Environmental Protection Agency (EPA) reclaim oversight of CalGEM and enforce timely permitting before the state’s energy future is beyond repair.
California has the fifth largest petroleum reserve nationwide, and yet oil extraction has decreased by nearly 217 million barrels in the past five years. Most of California’s oil is imported from countries such as Ecuador, Iraq, and Saudi Arabia, creating a reliance on foreign nations that lack the same environmental, health, safety, and labor standards that our nation champions.
While California continues to artificially force fuel producers out of the market, House Republicans are working to restore American energy dominance by ending our nation’s dangerous reliance on foreign energy.
Valero’s latest shutdown, along with a wave of recent refinery closures, shows the devastating impact of Democrats’ costly Green New Deal agenda, which stifles innovation and kills American jobs. In contrast, Republicans are fighting to unleash our vast domestic energy resources to deliver a stronger, more affordable future for all Americans.
Californians on average pay $1.20 more per gallon than the rest of the nation. With refineries and producers both having their operations artificially restrained due to the state’s limitations on energy production, everyday Californians are suffering at the hands of leftist elites.
As a result, refinery shutdowns are set to slash California’s in-state gasoline supply by 20 percent leaving fewer options at the pump, more oil imports from overseas, and sharply rising gas prices for millions of drivers.
Most recently, ABX2-1, signed into law by Governor Newsom in 2024, was pushed through by liberal legislators to artificially limit gasoline supplies despite warning after warning that it would disrupt and harm the energy market.
This political gimmick has shackled California refineries, and its real-world consequences have reached beyond state lines, resulting in possible supply shortages for Arizonans and Nevadans as well, who rely on California refiners for gasoline.
Governor Newsom was clearly warned about the dangerous consequences of this policy — with both governors of Arizona and Nevada sounding the alarm. Even his own Energy Commission recently stated his disastrous charade has created a manmade shortage of fuel — increasing prices at the pump exponentially.
Now is the time for bold action, as California must overhaul its energy policies by eliminating mandates, restrictions, and barriers that hinder progress, and prioritizing incentives to expand infrastructure and production.
As I work alongside my House and Senate Republican colleagues to unlock America’s energy dominance, we must begin by confronting the national consequences of California’s reckless and ideologically driven energy agenda.
Our transportation, supply chains, and cost of living all depend on a stable, affordable fuel supply, and without urgent reform, our nation will keep paying the price.
Rep. Vince Fong represents California’s 20th District in Congress.