Chevron issued a formal warning to California Governor Gavin Newsom and the state's Air Resources Board regarding proposed amendments to the Cap-and-Invest program. The company claims the regulations will cripple the survivability of remaining refineries and disrupt the state's fuel market.
The energy giant highlighted potential economic fallout, including the loss of high-paying union jobs. The industry currently contributes $64 billion in annual state tax revenue.
Chevron cautioned that the policy would increase prices for transportation and aviation fuels. The company also stated that shrinking domestic refining capacity threatens national energy security.
These warnings coincide with Valero's ongoing closure of its Benicia refinery. This move underscores the immediate pressures facing the state's energy infrastructure.