State Sen. Suzette Valladares says California is in a “death spiral” on oil and gas | California Politics 360
State Senator Suzette Valaderas, thank you so much for making time for us. Thank you so much for having me today, Ashley. Well, I, I first want to start with your repeated calls for *** special emergency session on California’s oil and gas situation. Just what are you trying to accomplish with that exactly? So I am shouting at the mountaintops because California is truly in *** death spiral when it comes to our oil and gas industry. This is it. There is *** very short window of opportunity for the legislature and the governor to do the right thing to address this crisis, um, and it’s now, and we need *** special session. We need serious conversations and serious policies to address our energy crisis. And go ahead, sorry, that’s OK. I’ll elaborate on that *** little bit. So the reality is that here in California we are at *** breaking point and Chevron, uh, Western States Petroleum, uh, PBF all sent letters recently to the governor, to the legislature saying that the cap and invest program. is going to increase gas prices by almost $1 for consumers, and from my perspective that really is *** notice from industry that we need to focus on this now or the industry is gone. And let me just pull it back here for *** second. For decades, California’s climate goals and policies have really intended to eliminate oil and gas usage in the state of California, and in 1983 California had 43 refineries. Today we have 7. About 2 decades ago, California produced nearly 80% of the oil and gas that we consumed. Now we import nearly 70% of the oil and the gas that we consume. And so what we’ve done is we’ve outsourced our emissions, we’ve outsourced jobs, we’re importing oil and gas, and it is absolutely devastating the people in my district who are seeing its real impacts and effects every day at the pump when they go to the grocery store and the goods and services that are ever evolving in price because of the energy crisis. We’re at *** tipping point. We are in *** death spiral. If we do not address our oil and gas emergency now, we’re not going to just be looking at the floor of $8 gasoline. We’re going to be looking at shortages, at scarcity, at people waiting in line or having to use their license plate to go to the gas station to fill up on the day that coincides with their license plate number. I want to pick up where you mentioned that California brings in most of its oil from foreign countries and just taking *** step back with what. The big news of the week with what’s going on in Iran, the Hormuz Strait, just the concern about bringing in gas from other places which the governor has even acknowledged. I mean, has that just from your Democratic colleagues, from the governor, have you gotten any kind of response to the need to have these kinds of discussions that you’re talking about? I don’t think there’s been *** serious response. I mean, Iran produces nearly 20% of the global supply. California is 100% going to be impacted by that diminishing supply. And it didn’t have to be this way. We gave away our energy independence, as I mentioned earlier. We used to produce and we can still produce the vast majority of our oil and gas needs here in California, but we’ve outsourced it. And with that, you know, again, we made ourselves vulnerable to global market spikes, and it’s because of California policy, not because of global policy in terms of. Just your call for the special session. Did you ever get *** response from the governor? Unfortunately, no, I didn’t get *** response from the governor nor any of my other legislative colleagues on the other side of the aisle. I suppose it’s not that important to them. The governor has tapped Siva Gunda, the vice chairman of the California Energy Commission, who went before your committee in the state Senate just last month to talk about. *** lot of this. What were your takeaways from him and how do you, I mean, what’s your interpretation of how the Newsom administration is approaching this at this point? So I was actually very thankful that the vice chair of Aunda, you know, admitted what we’ve all seen and that this transition has not been smooth. It’s *** catastrophe for my constituents at the pump for businesses across California. Um, I was glad to see, you know, that shred of honesty. What I did take away though is that the, that the Energy Commission’s plan and the governor’s plan through the Energy Commission is to import more gas, and that is not sustainable for California given even the current geopolitical climate with Iran. That’s very clear. For me it’s saying is we’re not serious about our climate goals. We need to move our climate goals timelines back. We need to focus on affordability. The policies of, I think now the governor and the Energy commission and even are all around climate goals that are not attainable. It’s ambition and zero affordability. And it’s frustrating because while it is the California Energy Commission and CAR who are trying to meet our climate goals, it truly is the legislature’s responsibility and the governor’s responsibility to pass the policy for *** real transition because we haven’t had one. I know you mentioned earlier the cap and invest program and just for folks at home, I mean that’s *** program that essentially allows the industry to either. Cut their emissions, buy credits, or fund state projects. Chevron, as you mentioned, is, I mean not only threatening the possibility that gas could raise $1 per gallon by 2030, they’re also saying they might leave the state. Are there any discussions in the legislature right now to direct carb to maybe pump the brakes on voting on that? So I call it the cap and tax program because that’s really what it is, and we had *** long. You know, actually not even *** long, we had *** very short debate on cap and invest, last year. It was rammed through the legislature. My colleagues and I in our analysis of the bill, we knew that gas was going to increase at least 74 cents *** gallon. And now with the recent numbers from Chevron, that’s looking more like $1 *** gallon. And we also pushed for and asked for the Republican caucus as well as the Problem Solvers Caucus. Push for more allowances because when you reduce allowances that means you’re paying more for allowances which is just not sustainable for industry and so the current regulations that that CR put out last week are devastating to the industry and this is the warning sign. This is the signal from industry that this needs to be looked at or the industry will leave. This this this is the warning notice. And coupled with the geopolitical, the Iran aspect, Governor Gavin Newsom has said that his group of energy officials are gaming out the worst case scenario. You mentioned $8 gas. You mentioned the possibility of scarcity, but just do you have *** sense from who you’re talking to in the industry about what the worst case scenario could look like fairly soon, whether that’s in *** matter of *** month, 6 months? What are you hearing? So you know when we passed, when the legislature passed cap and invest last year, the industry and refineries um continued to believe that California wants them gone, right? That’s been the message for decades and they’re looking at, do we, you know, trying to pencil it out, do we stay for 5 years, do we stay for 10 years if the fixes, the policy fixes don’t happen now. They will leave and that’ll be catastrophic for California and not just California. There are global implications. Um, we have national defense to think about in California. I am home to Aerospace Valley, um, the Antelope Valley, our air bases. Um, we’re in the middle of, you know, global conflict right now. This has national security, global implications, as well as implications for. supply of other states around us Nevada, Arizona, *** Republican and *** Democrat governor reached out to California to say, Hey, this is serious. You’re impacting our constituencies as well. Um, I, you know, unfortunately think that the governor is still running for president, and he doesn’t want to take this issue on. He’s going to leave it to the next person. Industry wants needs this dealt with now, and I also have *** feeling that there’s *** legislature that either doesn’t understand. That we’re not even at the edge of the cliff. We’re falling and we need to take care of this now, and I don’t think that they know that they’re falling, and it’s going to be *** hard landing. You mentioned aerospace, also jet fuel. I know is *** concern. We have military bases obviously in the state. Do you see the federal government potentially stepping up here and doing something? Absolutely, you know, with the Venetia refinery closing, that refinery produced the fuel for Travis Air Force Base, so it’s *** national security and defense issue for Travis Air Force Base, for bases, the 43 bases across California. And 100%, you know, California, uh, our, our administration has not tried to work well with the president, and I think that not only is the president going to take what’s happening in California seriously and potentially step in through whatever executive orders he may be able to legally use. Because of national security reasons, but also because California is, is, it’s not just, we’re not just in an oil and gas energy crisis, it’s, it’s everything. It’s electricity, it is nuclear, the amount of energy that we need that we are not producing or planning for is on catastrophic lines, and I would wholly expect the president to step in. All right, Senator Suzette Valadero, we really appreciate your insight. Thank you.
State Sen. Suzette Valladares says California is in a “death spiral” on oil and gas | California Politics 360
Updated: 8:25 AM PDT Mar 8, 2026
California State Sen. Suzette Valladares has been repeatedly calling for a special, emergency session on the state’s oil and gas issues following the closure of two refineries. The closure of the Phillips 66 refinery in Southern California and Valero in the Bay Area will require the state to import even more fuel. The state is importing about 70% of its overall fuel supply, Valladares said. Gov. Newsom’s administration has acknowledged this won’t be a smooth transition as the state works to phase out its use of oil and gas. Valladares and other lawmakers have concerns that demand for the fuel isn’t dropping nearly as fast as the state’s supply. She noted the war in Iran will make the situation worse. “California is truly in a death spiral, this is it. There’s a very short window of opportunity for the governor and legislature to do the right thing,” Valladares said. She warned the state could not only be threatened with $8 per gallon gasoline prices but also possible shortages. Valladares said she never got a response from the governor or Democratic lawmakers on calls for a special session. “I suppose it’s not that important to them,” Valladares said. “Unfortunately, I think the governor is running for President and I don’t think he wants to take this issue on and he’s going to leave it to the next person.” Newsom said Monday his administration is monitoring the situation in Iran and how it could impact the state’s fuel supply that relies heavily on imports, something he said is concerning to him. When asked if she expects the federal government to potentially step in, Valladares said, “absolutely.” She pointed to national security concerns with dozens of military bases in the state and need for energy, coupled with concerns around the cost of goods and services. “I would totally expect the president to step in,” she said.Watch the full interview with State Sen. Valladares in the video above. KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4=
California State Sen. Suzette Valladares has been repeatedly calling for a special, emergency session on the state’s oil and gas issues following the closure of two refineries.
The closure of the Phillips 66 refinery in Southern California and Valero in the Bay Area will require the state to import even more fuel. The state is importing about 70% of its overall fuel supply, Valladares said.
Gov. Newsom’s administration has acknowledged this won’t be a smooth transition as the state works to phase out its use of oil and gas.
Valladares and other lawmakers have concerns that demand for the fuel isn’t dropping nearly as fast as the state’s supply. She noted the war in Iran will make the situation worse.
“California is truly in a death spiral, this is it. There’s a very short window of opportunity for the governor and legislature to do the right thing,” Valladares said. She warned the state could not only be threatened with $8 per gallon gasoline prices but also possible shortages.
Valladares said she never got a response from the governor or Democratic lawmakers on calls for a special session.
“I suppose it’s not that important to them,” Valladares said. “Unfortunately, I think the governor is running for President and I don’t think he wants to take this issue on and he’s going to leave it to the next person.”
Newsom said Monday his administration is monitoring the situation in Iran and how it could impact the state’s fuel supply that relies heavily on imports, something he said is concerning to him.
When asked if she expects the federal government to potentially step in, Valladares said, “absolutely.”
She pointed to national security concerns with dozens of military bases in the state and need for energy, coupled with concerns around the cost of goods and services.
“I would totally expect the president to step in,” she said.
Watch the full interview with State Sen. Valladares in the video above.
KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.