The closure will affect approximately 600 employees and 300 contractors that currently work at the Los Angeles-area refinery. Politico reported that this closure would also impact 8% of the state’s already tight gasoline production.

Although Phillips 66 spokesperson Al Ortiz denied in an email to Politico that the closure was a response to Newsom’s signing the new law, California’s treatment of its oil industry has undoubtedly been a factor.

The news follows an announcement in August 2024 that Chevron, the second-largest U.S. oil company, will relocate from its California headquarters to Texas. The company, with roots in California dating back to 1879, will transition its headquarters to Houston over the next five years.

Chevron’s move comes as a response to California’s stringent regulations and aggressive climate policies. Chevron’s CEO, Mike Wirth, expressed concerns about the state’s business environment in an interview with The Wall Street Journal.

Wirth argued that California’s policies are detrimental to consumers, discourage investment, and ultimately harm the state’s economy. The relocation of such a prominent company highlights the growing tension between traditional energy firms and states pursuing ambitious climate goals.

California’s Environmental Regulations

Over the years, California has adopted the nation’s most stringent fuel standards. The state requires the production and sale of a unique blend of gasoline, known as California Reformulated Gasoline (CaRFG), which has stricter environmental standards than the federal blends used in most other states. This special formulation reduces emissions of pollutants like volatile organic compounds (VOCs) and sulfur, but it is more expensive to refine, adding to the overall cost of gasoline.

California’s gasoline also contains lower sulfur levels than the national average. Reducing sulfur is costly for refineries because it requires additional processing steps, leading to higher production costs that are passed on to consumers at the pump.

California’s Low Carbon Fuel Standard (LCFS) requires gasoline producers to reduce the carbon intensity of the fuels they sell. This can involve blending more expensive biofuels, investing in cleaner production technologies, or purchasing credits from other companies to meet the carbon intensity reduction targets. The added costs of complying with the LCFS are reflected in the price of gasoline.

Under California’s Cap-and-Trade program, refineries and other large greenhouse gas emitters must buy carbon credits to offset their emissions. These credits increase operational costs for refineries, which in turn raise the price of gasoline. Since this program is unique to California, it adds a cost that refineries in other states don’t have to bear.

Unintended Consequences

California energy producers must also comply with additional regulations, which are primarily designed to lower pollution. However, there are costs associated with these strict regulations, and there have been unintended consequences.

Because of its unique gasoline blend, the state cannot easily import gasoline from other regions in the event of supply disruptions. If a refinery goes offline due to maintenance or an accident, it is difficult to quickly source replacement fuel from outside the state because other regions don’t produce the same gasoline blends. This limited supply flexibility can cause price spikes when there are disruptions, leading to volatility in gasoline prices.

Those prices spikes, in turn, can lead to higher profits for some refiners in the state. If one refinery goes offline for unplanned maintenance, the supply of fuel is suddenly reduced. That will either result in a price spike or outages. Therefore, some refiners may see profits surge as fuel prices spike.

Although these prices spikes have been self-inflicted, California has tried to remedy the situation by suing oil companies and passing additional laws that have tried to prevent these price spikes. At the same time, California has vilified its oil industry for years. This creates a hostile environment for these companies.

California’s Future

Ultimately, California can pass whatever laws it wants with respect to its oil industry, but these companies can also respond. That’s what Chevron, and now Phillips 66, have done.

California’s aggressive environmental policies and stringent regulations on the oil industry have created a complex and challenging landscape for energy companies operating in the state. While these measures aim to reduce emissions and combat climate change, they have also led to unintended consequences such as higher fuel prices, supply vulnerabilities, and a strained relationship with the oil industry.

The recent decisions by major players like Chevron and Phillips 66 to relocate or cease operations in California highlight the delicate balance between environmental goals and economic realities. As the state continues to pursue its ambitious climate agenda, it may need to reassess its approach to ensure a stable energy supply and mitigate the economic impact on consumers.

The ongoing exodus of oil companies from California serves as a cautionary tale for other states considering similar regulatory paths, underscoring the need for a carefully calibrated approach that addresses both environmental concerns and economic stability.

These moves potentially further restrict California’s fuel supply, and will likely lead to even higher prices for California consumers.

The post Why Oil Companies Are Leaving California appeared first on The Hemet & San Jacinto Chronicle.

In 2020, the California Department of Justice sued Vitol, Inc., SK Energy Americas, Inc. and its parent company SK Trading International, alleging that the companies worked together in secret to manipulate prices after an explosion at a Torrance gasoline refinery in 2015.

The companies engaged “in a scheme to drive up gas prices for their own profit,” that limited competition and caused Californians to pay more at the pump, according to the attorney general’s office.

In July 2024, California Attorney General Rob Bonta announced that the state had reached a $50 million settlement with the companies.

Of that, $37.5 million will be distributed as gas rebates to impacted consumers in California.

Peoplewho purchased fuel in select parts of the statecan now apply to get money back, Bonta said in an Oct. 2 news release.

Who is eligible to get gas rebates?

Anyone who filled up their tank in parts of Central or Southern California between Feb. 20, 2015, and Nov. 10, 2015, can submit a claim.

If you bought gas in Los Angeles, San Diego, Orange, Riverside, San Bernardino, Kern, Ventura, Santa Barbara, San Luis Obispo or Imperial counties during this time period, you are eligible for a gas rebate.

Call 877-725-7523 or email peoplesinfo@calgaslitigation.com to learn if you were affected by the settlement.

Who is eligible to get gas rebates?

Anyone who filled up their tank in parts of Central or Southern California between Feb. 20, 2015, and Nov. 10, 2015, can submit a claim.

If you bought gas in Los Angeles, San Diego, Orange, Riverside, San Bernardino, Kern, Ventura, Santa Barbara, San Luis Obispo or Imperial counties during this time period, you are eligible for a gas rebate.

Call 877-725-7523 or email peoplesinfo@calgaslitigation.com to learn if you were affected by the settlement.

How to submit a claim

Eligible consumers can submit a claim online at CalGasLitigation.com or mail in a claim form.

Applicants are asked to provide their name, address, driver’s license number and answer questions verifying they bought gas in 2015.

You must apply by Jan. 8, 2025, to receive money from the settlement.

How much money will California drivers get?

According to the settlement website, the amount of payment people receive will depend on how many valid claims are submitted..

When will gas rebate be distributed?

There is no set date on when settlement checks will be delivered.

On Feb. 28, 2025, the San Francisco County Superior Court of California will hold a hearing on whether to approve the settlement. The approval and appeals process could take more than a year, the settlement website said.

Gas rebates will be sent to Californians once the case is resolved.

Claimants can receive settlement funds through an electronic payment account, such as PayPal, Venmo or Zelle, or as a paper check.

The post Gas rebates are coming to California drivers thanks to $50 million settlement. How to apply appeared first on The Hemet & San Jacinto Chronicle.

Greetings from the Hemet Car Guy,

Have you ever thought you purchased the wrong car or just had buyer’s remorse?

You can buy a 2-day recession that cost $250 and then pay the $500 restocking fee or make sure you are purchasing the right car. 

People come to me every day asking for vehicle suggestions, but too often their requests have a very narrow focus – “I need a car with good gas mileage…I want something fast…I need four-wheel-drive.” These may be very legitimate, but it is important for car buyers to take a broader look at their vehicle needs.

For example, a client was quite clear in the beginning that he wanted a convertible they thought for sure he was going to pick the Mustang GT drop-top, but he didn’t. He went with the Challenger, which is coupe only. The reason he went with the Dodge is because of how the car sounded and felt tough.

This scenario is similar to many others that I have encountered when someone says they really want one thing, when in fact, there are other factors they may not have considered. More often than not, when buyers have a specific request, there is a bigger picture that should be addressed. If this larger issue is not taken into consideration, someone could end up with a vehicle they aren’t really happy with. 

The first thing is, you must determine how much car you can afford. You don’t want to get in over their head and risk having to roll negative equity into your next loan.

Once that budget is established, here are a few questions that can help you avoid buyer’s remorse.

How much do you drive? 

Even with fuel prices at reasonable levels, most buyers are concerned with their gas mileage. However, far too often, they get hung up on the difference of a few MPG and in their quest for maximum efficiency end up making unnecessary sacrifices. This is why it is important to examine how much you drive and do the math. 

You are probably going to be happier with a car that gets only 30 MPG but has a few more features than the smaller, more basic vehicle that gets 35MPG.

What do you need your car to do? 

If you are transporting several people around regularly, figure out which vehicle will serve this purpose best while balancing out the other factors. Others have argued that minivans are probably the best choice for a people mover, but you may have other requirements as well. For example, if you have to tow something or move a lot of gear, a truck or SUV may work better. On the flip side, if you pretty much drive solo with passengers occasionally, you can save money by getting a smaller vehicle.

Do you find yourself often driving to the river off-road? If so, and AWD/4WD vehicle may be necessary. If most of your driving is on paved roads, then a two-wheel-drive vehicle is probably fine. 

Knowing how this vehicle needs to function in your environment with your practical considerations is crucial. Do not sacrifice function for features or fuel economy.

(Hemet Car Guy)

What are your must-have features? 

The number of gadgets and gizmos available on modern cars is amazing but can also be overwhelming. You can get telematics systems that read your email to you and even give you traffic and weather alerts. Every ad touts the latest technology as “must-have.” This is especially true when it comes to some advanced safety features such as blind-spot monitoring and collision avoidance systems. While all these features are great, what do you really need? 

Again this comes back to how much and how far you drive. If the majority of your commute is from home to work and around town, chances are you don’t need an expensive navigation unit. If you consider yourself a vigilant driver, you can probably save money and pass on those expensive electronics that pay attention to you. 

What you should do is make a list of things you absolutely must-have. Personally, I could care less about heated seats, but a sunroof would be nice to have. Think about your day to day drive and what features would make that travel better.

What kind of driving/ownership experience do you want? 

This one is tricky because it is incredibly personal. But it is important that you be really honest with yourself. Do you really want a street-legal go-kart on your 50-mile commute or would do you really need something that is relatively comfortable yet can still devour and exit ramp? Are you prepared for the inevitable maintenance costs of that bargain luxury car you got for the price of a Corolla or are you the type that really can’t be bothered with issues beyond basic maintenance? Are you concerned about your status and/or the assumptions that others may or may not have of you based on what you drive? Does the vehicle match with your personality?

Remember, purchasing a car is not a logical process. We would like to think we bought something based on safety ratings, fuel economy, and practicality. But we want something that looks nice, something that makes us feel good when we drive it, and there is nothing wrong with that.

 Test drive the car!!!

I hear people say, “I don’t need to test drive it.”

I don’t know about you, but I wouldn’t buy shoes without trying them on first

A great car on paper still can be the wrong car. A good test drive will allow you to nit-pick and find the little things that may hamper your enjoyment.

If you want to avoid buying the wrong car, you have to be honest about your practical needs, your usage, the psychological baggage you impose on your vehicle, and above all your budget.

Hope this helps

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The post What Is The Right Car for you? appeared first on The Hemet & San Jacinto Chronicle.