SAN FRANCISCO (KGO) — In a letter sent to Governor Gavin Newsom and other California officials this week, energy giant Chevron expressed its concerns over possible changes to state regulations.
“They’re setting us up to fail and making sure that imported products will be cheaper and more available to California consumers than in-state production,” said Chevron spokesperson Ross Allen.
Allen says the company is worried about proposed amendments to the state’s cap-and-invest regulations, which set a limit on pollution and force companies to invest some revenue into cleaner energy.
The regulations are created by the California Air Resources Board.
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“The new wrinkle, though, is that the state is making stationary sources like refineries or other manufacturers purchase permits to operate in the state,” said Allen.
Contra Costa County Supervisor John Gioia represents the people of Richmond, where a Chevron refinery is located.
“I hear from residents who say, why can’t we just electrify overnight and the answer is we can’t,” said Gioia.
Gioia was a member of the California Air Resources Board in the past, and believes it’s important for the state to stick to its climate goals.
But he also recognizes the need to find a balance between those ambitions and the reality of where we are currently with our need for oil.
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“I’m confident that the California Air Resources Board will work with the refinery industry to understand what it is that they are most concerned about to maintain competitiveness with refineries outside California,” said Gioia.
In recent years, several oil refineries have left California. The Valero refinery in Benicia is set to shut down in April.
Chevron warned the proposed climate rules could force the state’s remaining refineries to close – and drive up gas prices.
Allen says if the trend continues, the people who suffer most will be everyday Californians.
“We still consider California home. The problem is home needs to be comfortable. It needs to be safe. It needs to be welcoming. And California has been none of those things for producers,” he said.
A public comment period on the proposed changes wraps up on Monday.
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