California’s 4th State Senate district is massive. Comprised of 13 counties, it spans the rugged Sierra Nevada and juts out into the Central Valley. As the state senator representing the district, I hear every day from families struggling with our state’s high cost of living.
California consistently has the highest gas prices in the nation. I’ve seen hardworking parents skip family outings or delay medical visits because filling the tank meant cutting back elsewhere. And with the possibility of $8 gas prices, it’s time we address this head-on. Not with finger-pointing, but with practical solutions that put Californians first.
First of all, why are our gas prices nearly 50% higher than the rest of the nation? Setting aside world events that increase the cost of crude oil, the baseline for gas prices, California’s energy policies amplify national increases. For instance, our state requires special winter and summer gasoline blends which makes production more expensive. Tack on state environmental programs like Cap-and-Invest (formerly called Cap-and-Trade), the Low Carbon Fuel Standard, and a 61.2 cent per gallon excise tax, we pay well over $1 extra.
On top of that, legislation like Senate Bill X1-2 (2023) and Assembly Bill X2-1 (2023) gave agencies like the California Energy Commission the authority to impose price capping on oil companies.
Over the years these taxes and policies created a chilling effect, making it even harder and more expensive for refineries to operate in California. Now we’re seeing the consequences.
Most recently, the looming closures of both Phillips 66’s Los Angeles refinery and Valero’s Benicia refinery, which account for nearly 20% of the state’s refining capacity. It was also reported at the end of January that the Valero refinery had already begun shutting down, four months earlier than planned.
Additionally, this month, the California Public Utilities Commission approved a 60% hike on oil producers to use the only pipeline that carries crude oil from the state’s oil fields to the Bay. It’s also in danger of running dry.
These factors have isolated our state, giving us the “fuel island” status. Because of this, price increases hit California harder than the other states.
It’s especially punishing for low and middle-income families in rural areas. Rural drivers spend about 9% of their household income on gas, nearly double the non-rural average, since they travel farther for basics like work or seeing a doctor.
In our region where public transit is scarce, and electric vehicles are more costly and impractical, what we really need is common sense. My Republican colleagues and I recently sent a letter urging the governor to convene an emergency special session focused on these refinery closures and their impacts.
With a special session, we could do the following:
- Repeal the arbitrary deadlines imposed on producers, refiners, importers, and consumers.
- Repeal Senate Bill X1-2 and Assembly Bill X2-1, both of which were pure political theater bills and sped up the process of refineries leaving the state.
- Repeal the state’s requirement for special blends of gasoline, which increases the cost of production.
These are very simple actions we could take today that would provide immediate solutions.
Governor, my message is clear. Call this special session so we can lower costs and build a more affordable future. California families, especially our rural and low-income ones, deserve no less.
Marie Alvarado-Gil represents the 4th Senate District including the Counties of Alpine, Amador, Calaveras, El Dorado, Inyo, Madera, Mariposa, Merced, Mono, Nevada, Placer, Stanislaus, and Tuolumne.