On August 30, 2024, Congressman David G. Valadao (CA-22) joined Congressman Vince Fong (CA-20) in a letter to Governor Gavin Newsom urging him to reconsider his proposal to force refineries to withhold supply from the market. This proposal, according to the congressmen, threatens to shutter California refineries and put gasoline availability at risk for residents of California, Nevada, and Arizona.
“Governor Newsom’s misguided refinery supply mandate would once again raise gas prices for Central Valley families,” said Congressman Valadao. “From consistently raising the gas tax to restricting permits, this administration has repeatedly demonstrated that they care more about appeasing the environmental lobby than helping middle-class Californians struggling with rising energy prices. I will continue to urge the Governor to abandon his regulatory assault on oil and gas production in California.”
Congressman Fong echoed these sentiments: “Governor Newsom continues to show his lack of understanding in the area of energy production. This unworkable mandate will not only affect Californians but also our neighboring states like Arizona and Nevada who rely on our gasoline supply. Newsom is intentionally increasing gas prices when Californians are already struggling to afford to live and work in the state. For Californians and the rest of the country, Governor Newsom must stop this irresponsible refinery mandate.”
In their letter, Valadao and Fong highlighted that similar attempts in northeastern states had proven detrimental to markets and prices:
“A similar stockpile effort attempted in the northeastern states failed miserably, proving that your proposal will have detrimental effects on gasoline prices across the states that depend on California’s gasoline. While you claim that withholding supply will lower gas prices, your own Energy Commission recently stated that this will likely artificially constrict gasoline supply and increase prices,” wrote the lawmakers.
The full text of their letter can be read here.
