After years of enforcing stringent regulations that helped force major refineries to close, California Democrats are now reportedly considering paying Valero millions to keep a San Francisco-area fuel plant afloat. [emphasis, links added]
With two major refineries already scheduled to shut down and strict regulations in place, concerns about California’s already high gas prices have become a top issue for lawmakers.
According to a Bloomberg report on Tuesday, sources familiar with the private deliberations said that lawmakers have discussed paying Valero between $80 million and $200 million in state funds to keep its Benicia refinery operating.
The Benicia plant is slated to close by April 2026. The proposed payment would be earmarked for routine maintenance, one of the largest costs for refineries, Bloomberg reported.
When asked about the report and how the state has handled the refinery closures, Democratic California Gov. Gavin Newsom’s office told the Daily Caller News Foundation it had no information to share.
Concerns over higher gas prices have mounted due to the scheduled refinery closures, with Republican State Sen. Tony Strickland telling the DCNF that the potential $8-plus per gallon is the “direct result” of Newsom’s agenda.
“With both Valero and Phillip 6 planning to exit California next year, it is predicted by a USC study that drivers will pay $8 plus for a gallon of gas, hurting families that can least afford it and worsening the affordability crisis here. It’s a direct result of this governor’s anti-business agenda and failed leadership. California needs bold, pro-growth policies that make us competitive again—not political damage control,” Strickland told the DCNF.
“Even the California Energy Commission recently voted to quietly pause a resolution that would have imposed government-controlled price caps on our fuel supply for the next five years. That move alone shows they understand how damaging their policies have become,” Strickland added.
Energy expert Ted Cordova also warned during a press conference Monday that the closure of refineries like Phillips 66 and Valero could not only raise prices but also pose a national security risk.
“Let’s just say PBF in Los Angeles shuts down, P66 shuts down, Valero shuts down. Guess what we’re going to do? We’re going to start shipping gas at $5 to $8 a barrel to get it here,” Ellis said, according to The Sun. “So transportation costs, loading costs, all of those things raise the price. It’s all about logistics. If we can, in fact, get that volume of reformulated fuel. So it’s supply and demand. You can’t get it, you’re going to pay more for it.”
“We do not have a pipeline to bring our crude and our products from Texas,” Ellis added, according to the outlet. “We are bringing out products from other countries into our ports, and it’s a matter of national security. So you add those two things – national security and the cost of living – we are in a dangerous situation.”
Read rest at Daily Caller
The same story is being acted out in Australia, but with coal power stations. Governments have made it uneconomic for coal to operate, but today in two states, New South Wales and Victoria, those governments are paying to keep remaining stations operating.
The price of electricity is off the charts for consumers, while the current socialist government goes full speed ahead installing more windmills and shiney mirrors all connected via new 20,000 kilometres of new power lines. These power lines are to be run through private property without consent of owners who cannot object, or face massive fines.
The current government will not reveal the cost of the new renewables system they are installing.
California could match their specs to the clean burning gasoline in the rest of the country and then every refinery in the world could make gasoline for them. Problem solved. But they have such a boutique blend of gasoline required that very few refineries can produce it to spec.
Amazing how “Progressive” (read: Socialist/Communist) policies always fail. Add to that the environmentalists who don’t want internal combustion engines running in the state nor coal/gas fired electric plants you are set up for this failure. Just amazing that the CEC actually shelved a policy that would have control prices for gasoline–price controls always fail to achieve what those pushing them expect.