ICYMI: Republican calls for special session go unanswered, crisis builds as governor refuses action

According to reporting by the San Francisco Chronicle, Valero has officially filed a notice announcing layoffs beginning March 15 of 237 employees.

The move is only the latest in the saga of the shuttering oil and gas industry - one which lays squarely at the feet of the governor and legislative Democrats and ultimately impacts the budget of drivers across the state.

"This is basic supply and demand at work - you can't spend decades suffocating the oil and gas industry, run it out of town and expect the price of gas not to skyrocket," said Senator Suzette Valladares (R-Santa Clarita). "I've been sounding the alarm since I got to Sacramento and it's time for this threat to be taken seriously. We need real solutions; we need to have the hard conversations, and we need to do what's right for California jobs and the pocketbooks of working families. We need to do it now with a special session."

ICYMI: Just last week, California Senate Republicans sent a letter to the governor urging he call an emergency special session of the legislature immediately to deal with the fallout to Californians and the state's economy of the impending closure of Valero's Benicia refinery in April. This will be the second refinery to shut down operations in California within the past six months.

As reported by KCRA 3's California Politics 360 this weekend, this crisis is a result of failed state policies and negotiations.

"Democrat lawmakers and Governor Newsom created this crisis," said Senate Minority Leader Brian W. Jones (R-San Diego). "They broke it, and they own it, but it is drivers across California who will pay the price. Refineries are closing, jobs are disappearing, and families are suffering. We are at an inflection point. The pressure is on, governor. Will you take action and work on bi-partisan solutions to fix this mess, or will you stand idly by, ignore the experts and let California families pay the price?"

Valero's Benicia refinery is one of the largest in Northern California, providing almost 10% of the state's total refining capacity. Combined, the shuttered Phillips 66 refinery in Los Angeles and Valero's in-the-process-of-shuttering refinery in Benicia produced about 20% of California's gasoline supply. Their closures will tighten fuel markets, threaten supply lines, and increase prices at the pump, as California will have to rely more heavily on imports and alternative sources to meet demand.

Phillips 66 stated the reason for closing its Los Angeles refinery was that its long-term sustainability was "uncertain and affected by market dynamics." Valero has cited regulatory pressures and a challenging operational environment as the underlying reasons for closing its refinery. The translation of both: It's impossible to continue doing business in California.

Related Topics

• Affordability
• Energy
• Government Oversight