Gov. Gavin Newsom wants to make sure oil refineries can continue to operate profitably in California, he wrote in a letter to a top energy regulator Monday.
What happened: Newsom asked California Energy Commission Vice Chair Siva Gunda to “redouble” his efforts to make sure refiners “continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades.”
“I am directing you … to reinforce the State’s openness to a collaborative relationship and our firm belief that Californians can be protected from price spikes and refiners can profitably operate in California — a market where demand for gasoline will still exist for years to come,” wrote Newsom.
Why it matters: The letter comes three days after Valero Energy, which provides 9 percent of the state’s refining capacity through its Benicia refinery, announced plans “to idle, restructure, or cease refining operations” at the site by the end of April 2026.
