GOP lawmaker warns that likely move in blue state will make gas prices skyrocket: 'Affordability issue'
Rep. Vince Fong, R-Calif., is one of the many voices sounding the alarm about a recent oil refinery closure announcement having a greater impact on American wallets.
Valero Energy Corp. announced that it will likely close its Benicia refinery near San Francisco in April 2026, putting more than 400 jobs in jeopardy.
"We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, board chair, CEO and president of Valero, said in a news release on April 16.
Fong said the state's energy policies are making it tough for the industry to survive.
California Career Politician Barbara Lee Wins Mayor Race In Embattled Oakland
"This is in addition to other refinery closures that have been announced. So, in totality, what we're looking at is 20% of California's refining capacity disappearing. And that's significant," Fong told Fox News Digital in an interview.
Read On The Fox News App
Valero also operates a refinery in Los Angeles, but the move regarding the Benicia location is seen as a major hit.
"It's a warning that California's fuel supply is in jeopardy, and it's all caused because of [Democrat Gov.] Gavin Newsom's poor energy policies. That's the root cause, and the rigid regulatory environment, all the mandates, all the new regulations that have been put on these refineries, and now it's putting our fuel supply in jeopardy. And this isn't just an energy issue. This is an affordability issue. This is a jobs issue. This is a reliability issue," he continued.
Alaska Senator Literally Shreds Biden's Energy Orders, Boosts Wh Efforts To Leverage Arctic Gas Pipeline
The Golden State's policies are major contributors to higher gas prices in the state, according to a recent study by University of Southern California professor Michael Mische.
"California's energy policy is at a breaking point," Fong said. "This is not a market failure. This is because of regulations and mandates that are pushing refineries to close. They can't survive in this and make it economically feasible to function in California. And those who are going to suffer are everyday Californians."
As the state is a major energy supplier, the congressman said its regulations have occasionally gained bipartisan scrutiny from neighboring Arizona and Nevada.
"This is going to impact California drivers significantly," Fong said. "When there's gasoline shortages, what you're going to see is the price of gasoline go up. And in California, you know, we pay the highest price of gas compared to the other states."
Us, Saudi Arabia Could Cement 'Long-term Partnership' On Nuclear Energy
As of Sunday, Californians are paying an average of $4.83 per gallon, which is significantly higher than the $3.15 national average, according to AAA.
Fox News Digital reached out to Newsom's office for comment, but it referred the inquiry to the California Energy Commission, which said Valero's legally required advance notice will help the state better prepare for its next steps.
"The California Energy Commission (CEC) is committed to its efforts to collaborate with the industry and stakeholders so that the state continues to have a safe, reliable and affordable supply while transitioning away from fossil fuels," CEC Vice Chair Siva Sunda stated. "As required under Senate Bill X1-2, Valero Refining Company notified the CEC of its intent to idle, restructure or cease operations at its Benicia Refinery by the end of April 2026. This advance notification helps the state to continue to closely monitor the evolving conditions in the fuel supply market and proactively plan and take steps to support the transition in the state's fuel supply."
"The CEC will continue to work in partnership with the industry and stakeholders to protect consumers during this transition," he continued.
Valero faces $82 million in fines from different governmental bodies in California over environmental regulations, according to Kxjz.Original article source: GOP lawmaker warns that likely move in blue state will make gas prices skyrocket: 'Affordability issue'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UPI
an hour ago
- UPI
Trump cancels U.S.-Canadian trade talks over tech taxes
Canadian Prime Minister Mark Carney meets with President Donald Trump in the Oval Office at the White House on May 6. Trump on Friday suspended trade talks due to Canada's new Digital Services Tax. File Photo by Francis Chung/UPI | License Photo June 28 (UPI) -- President Donald Trump cited potential Canadian taxes on U.S. tech companies as his reason for ending trade talks with Canada on Friday. The tech taxes on Amazon, Google, Meta and other U.S. tech firms are due on Monday, and Trump said it is a deal-breaker. "We have just been informed that Canada ... has just announced that they are putting a Digital Services Tax on our American technology companies," Trump said in a Truth Social post on Friday. He called the tax a "direct and blatant attack on our country" and accused Canada of "copying the European Union, which has done the same thing." "We are hereby terminating all discussions on trade with Canada, effective immediately," Trump said. His administration in the coming week will notify Canadian officials of the tariff that it will have to pay to do business in the United States, Trump added. Trump last week attended the G7 economic trade summit hosted by Canada and Canadian Prime Minister Mark Carney and sought common ground on trade talks, The Washington Post reported. Officials at U.S. tech firms oppose the Canadian tax, the amount of which is based on the revenues generated by Canadians' use of e-commerce sites, social media and the sales of data. All tech companies that generate more than $14.59 million from such services would be subject to the new 3% Digital Services Tax. The tax is retroactive to 2022 and could cost U.S.-based tech firms up to $3 billion, NBC News reported. Upon learning of Trump halting trade talks, Canadian officials on Friday limited U.S. steel imports and placed a 50% surcharge on steel imports that surpass the quota. Canadian Finance Minister Francois-Philippe Champagne said the surcharge will help to protect Canadian steel against what he called "unjust U.S. tariffs." He said the Canadian government is prepared to take additional actions, if necessary.
The Hill
an hour ago
- The Hill
Updated Senate bill slashes wind and solar incentives – and adds a new tax
An updated draft of the Senate's megabill text slashes tax incentives for wind and solar energy – and adds a new tax on future wind and solar projects. The initial draft released by Senate Republicans earlier this month cut the credit for any wind and solar projects that did not 'begin construction' by certain dates, while the latest version bases incentives on when projects actually begin producing electricity — a much higher bar to clear. The first draft gave any project that began construction this year full credit, any project that began construction next year 60 percent credit and any project that began construction in 2027 20 percent of the credit, before they were phased out thereafter. The new legislation instead says that the credits will only apply to facilities that begin producing electricity before the end of 2027. In addition, it imposes a new tax on some wind and solar projects that are placed in service after 2027. The projects that will be taxed if a certain percentage of the value of their components come from China. The Democrats' 2022 Inflation Reduction Act included hundreds of billions of dollars in tax credits for low-carbon energy sources, including renewable energy. These subsidies were expected to massively reduce the U.S.' planet warming emissions. The GOP's cuts to the credits are expected to severely curtail those gains. If they pass, the cuts represent a win for the party's right flank, which has pushed for major cuts to the credits, and a loss for it's more moderate wing which has called for a slower phaseout. The renewables lobby slammed the changes as hampering the sector. 'In what can only be described as 'midnight dumping,' the Senate has proposed a punitive tax hike targeting the fastest-growing sectors of our energy industry. It is astounding that the Senate would intentionally raise prices on consumers rather than encouraging economic growth and addressing the affordability crisis facing American households,' Jason Grumet, CEO of the American Clean Power Association, said in a written statement. 'These new taxes will strand hundreds of billions of dollars in current investments, threaten energy security, and undermine growth in domestic manufacturing and land hardest on rural communities who would have been the greatest beneficiaries of clean energy investment,' he added.
The Hill
2 hours ago
- The Hill
John Bolton writes off US strikes in Iran as Trump ‘campaigning‘ for Nobel Peace Prize
Former U.S. national security adviser John Bolton sharply criticized President Trump's Iran strategy and expressed broad skepticism about the prospect of making peace with Tehran in a Friday appearance on the Financial Times podcast Swamp Notes. Bolton made clear that he supported the American airstrikes last week that targeted three Iranian nuclear facilities but also suggested that Trump had personal motivations. 'I think what he's doing is campaigning for the Nobel Peace Prize, and he thought he'd get it in the Ukraine-Russia war. That didn't happen,' Bolton said in a response to a question about Trump's claims of victory in the aftermath of the strikes. 'But I think he's looking at the possibility that maybe he can get it here.' Several GOP lawmakers have made moves in recent days to nominate Trump for the Nobel Peace Prize. The government of Pakistan also nominated him last week. Trump griped last week before the strikes that he would never get a Nobel Peace Prize, arguing that he deserved one for American peace efforts in Ukraine, Rwanda and a number of other conflicts. Bolton, a noted Iran hawk, was sharply critical of Trump's proposed tactics toward achieving peace in the country, referencing a CNN report that the United States was exploring helping Tehran access as much as $30 billion in funding for a civilian nuclear program. Trump has denied such reports. 'This is madness,' the former national security advisor said. 'I don't expect this to go anywhere, because to be truly satisfied that a country the size of Iran was really only engaged in peaceful nuclear activity requires an intrusive presence, whether it's the IAEA or foreign intelligence services, that the ayatollahs simply will never permit.' After first maintaining that the strikes were a one-time, targeted measure to disable key Iranian nuclear sites and help negotiate a ceasefire between Iran and Israel, Trump's rhetoric on Iran has heated up in recent days. He said Friday that he would consider bombing the country again if concerns about its nuclear program mounted. Bolton, a longtime skeptic of peace efforts with Iran, including the Obama-era nuclear deal, questioned whether Trump could effectively negotiate with the regime. 'When you're dealing with that kind of ideology, it's not like a Manhattan real estate deal,' he said. Even prior to the onset of strikes between Israel and Iran earlier this month, Bolton insisted that planned nuclear talks with the United States were 'fruitless.' He repeated similar lines on the FT podcast Friday, calling the Iranian government 'a group of medieval religious fanatics.'
