Chevron Will Shut Down Remaining 2 Refineries if CARB Amendments Pass
Wednesday the Globe reported on Chevron’s letter to California Governor Gavin Newsom and the California Air Resources Board warning them of deep concerns and strong opposition to the CARB- proposed amendments to the Cap-and-Invest (formerly cap and trade) regulation, that the state’s few remaining refineries can’t survive, and the California economy could be crippled.
In the letter, Chevron President Andy Walz cautions that the price of gasoline will increase by more than a dollar a gallon by 2030 as a result of this regulatory change, as well as 536,770 petroleum industry jobs could be lost in the state if CARB’s proposal is authorized.
That is because “The proposed regulation will cripple the survivability of the state’s remaining refineries, which will result in California losing the entire industry to this misguided program. This regulation will increase transportation and aviation fuel prices for consumers. It will risk significant job losses, including many high-paying union jobs, while reducing funding for essential public services. It will upend California’s fuels market and threaten critical energy and national security assets.”
The CARB claims they can’t budge on the proposed additional regulations because they are statutorily mandated climate goals. But the California Legislature can, as can the governor if the CARB is going to play chicken with Chevron.
But, the political ploy here is that the professional politicians don’t want their fingerprints on any of this come election season, which is why they allow CARB to operate as a rogue agency. And it is why they allow the California Public Utilities Commission, the State Water Resources Control Board, the Coastal Commission, the California Energy Commission and Cal EPA to operate without legislative oversight.
Republicans have attempted legislation to reassert legislative oversight over CARB. But despite legislative and public outrage over the shroud of secrecy at CARB, in 2012 then-Assembly Speaker John Perez was said to have crafted the language for SB 1018, which specifically exempted CARB from open meeting rules in cap-and-trade auctions, allowing CARB’s Western Climate Initiative Inc., WCI Inc., to manage carbon trading auctions without any public scrutiny.
The corporation was created by California Air Resources Board to manage the cap and trade auctions. The problem is that Western Climate Initiative Inc. was formed in Delaware. However, Delaware is not subject to California state open meeting or sunshine laws, leaving many questioning why CARB opted for such secrecy. The only reason to register the corporation in Delaware is the lack public or legislative scrutiny on any of their meetings or actions they take.
The CARB “CERTIFICATE OF INCORPORATION OF WESTERN CLIMATE INITIATIVE, INC”
is indeed filed in Delaware.
and:
This is feeling like the perfect storm – a rogue state agency accountable to no one, registered to a Delaware Corporation holding the funding extorted from California businesses, a state-regulated and diminished oil industry, reliance on foreign imports for a majority of California’s petroleum supply, the conflict in Iran, the potential for conflict between China and Taiwan, 7 refineries left in California with Chevron sincerely warning Governor Newsom that they will close their 2 remaining refineries if CARB passes more climate amendments, and because the state of California only taxes in-state oil production and not foreign imports…
And, China is supplying California with fuel, not just shipping it from other countries, according to petroleum industry expert Mike Ariza. He said given the fact that 40% of China’s crude oil supply has been shut off, he would not be surprised to see them shut down exports.
Houston, we have a problem.