By Matthew Holloway |
The Phillips 66 Los Angeles Oil Refinery, in operation for 102 years, is set to shut down in October and will leave California with a dwindling network of just eight refineries remaining. The closure places the already fragile supply lines of gasoline and diesel fuel for California, Arizona, and Nevada in question.
All three states utilize California’s Low Carbon Fuel standard for fuel known as California Reformulated Gasoline (CaRFG), which is 90% petroleum-based gasoline and 10% ethanol, ostensibly designed to reduce air pollution and decrease emissions of smog-forming toxins. The closure is expected to have a wide impact across the region on prices for gasoline, diesel, and even aviation fuels.
The Phillips 66 refinery accounts for approximately 8.57% of California’s overall refinery capacity. The closure, announced last year, drew bipartisan pleas from Arizona and Nevada’s governors to California’s Governor Gavin Newsom who asked him not to authorize new legislation that allows California to demand more fuel be held in-state for California’s needs, regardless of outside demand.
Arizona’s Democrat Governor Katie Hobbs and Nevada’ Republican Governor Joe Lombardo said in a joint statement, “It is evident that increased regulatory burdens on refiners and forced supply shortages will result in higher costs for consumers in all of our states. With both of our states reliant on California pipelines for significant amounts of our fuel, these looming cost increases and supply shortages are of tremendous concern to Arizona and Nevada.”
According to OANN, a spokesman for Newsom told the outlet that the California law will “prevent price spikes that cost Californians upwards of $2 billion last year, giving the state more tools to require that petroleum refiners backfill supplies and plan ahead of maintenance.” Although he reassured Californians at the time that “the state has the tools to make sure they backfill supplies and plan ahead for maintenance,” he made no such reassurance to Arizona or Nevada.
California Republican Assemblywoman Kate Sanchez warned in a post to X, “Expect CA gas prices to skyrocket and more refineries to shut down as Sacramento Democrats double down on their agenda to exterminate affordability and make a middle-class life impossible to achieve for millions.”
Newsom accused Hobbs and Lombardo of repeating Big Oil talking points, saying their concerns reflected “the oil industry’s talking points rather than the facts.” He claimed that the California Energy Commission will be able to dampen price spikes and supply shortages with a spokesman calling their letter a “stunt” to appease “Big Oil Donors.”
Newsom signed the bill over the objections of both neighboring governors.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
