Rep. Vince Fong (R–Bakersfield) is speaking out against a new mandate that Gov. Gavin Newsom wants to implement on the state’s struggling oil refiners.
Two weeks ago, Newsom urged California lawmakers to pass his proposal to require that oil refiners maintain a minimum fuel reserve to avoid supply shortages.
The backstory: When Newsom revealed his proposal, he said it was to prevent oil companies from causing price spikes.
- He said the rule would have saved Californians over $650 million in gas costs in 2023 due to price spikes.
- Oil refiners would need to show resupply plans and arrangements to the California Energy Commission that are adequate to address the loss in production from refinery maintenance.
- Oil refiners who do not meet the mandate would be hit with penalties.
Fong’s response: Fong released a statement on Wednesday saying Newsom’s mandate represents a lack of understanding of how energy supply works.
- “We cannot allow for the Newsom Administration to continue to interfere with the energy market and cost Californians at the pump,” Fong said. “It is clear from his unworkable mandates that he cares more about political headlines than actually implementing policies that will provide Californians with reliable and affordable energy.”
- Fong said Newsom would be intentionally disrupting needed energy production and raising costs with the mandate.
- He added that Arizona and Nevada would also see gas prices increase and limited availability in supply because of the mandate.
- “There are real world consequences to Governor Newsom’s poor energy policies and this impractical proposal will only intensify the affordability crisis in our state at a time when Californians are struggling to pay for essentials and create energy shortages across the western United States,” Fong said. “It’s clear that Governor Newsom is taking a playbook from Vice President Kamala Harris – pushing terrible policies that make no economic sense.”
Oil refiners speaks out: Western States Petroleum Association (WSPA), a nonprofit trade association that represents oil refiners across the western U.S., called the proposed mandate “detrimental.”
- “Governor Newsom’s refinery supply mandate will create artificial shortages of fuel in California, Arizona and Nevada by forcing refiners to withhold fuels from the market,” WSPA said. “Lawmakers who vote for this mandate will be voting to increase gas costs for their constituents.”
- WSPA said California already faces a de facto production ban, since over 75 percent of the crude oil the state uses is imported from overseas.
- “It’s noteworthy that legislators are considering such radical energy policies at a time when the nation is closely examining how the ‘California model’ will impact their families and pocketbooks,” WSPA said.
