California is at a turning point in its energy future as Phillips 66 and Valero prepare to close refineries that together supply about 20% of the state’s gasoline. At Green Policy Initiative, we recognize these closures signal a dramatic shift driven by ambitious climate policies, stricter regulations, and falling gasoline demand. While the move promises cleaner air and reduced emissions, it also raises serious concerns about fuel reliability, rising prices, job losses, and increased dependence on imports. With only seven refineries left to serve nearly 40 million residents, California faces urgent challenges in upgrading its grid, expanding clean energy, and supporting workers and communities through this transition. We believe a just and thoughtful approach is essential to ensure that all Californians benefit from a cleaner, more resilient energy future.

As California navigates a challenging budget environment, we acknowledge the difficult fiscal decisions facing the state. At the same time, we are deeply concerned that the proposed reductions to climate and sustainability funding in the 2025-26 May Revision could undermine years of progress and jeopardize the health and resilience of our communities. With climate impacts intensifying and vulnerable Californians facing mounting risks, we believe it is essential to protect investments in clean transportation, affordable housing, climate adaptation, and public health. Now is the moment to reaffirm California’s leadership and commitment to a sustainable and equitable future.