CARB's WCI Inc. (Photo: https://wci-inc.org)
Chevron Will Shut Down Remaining 2 Refineries if CARB Amendments Pass
CARB’s cap and trade program Western Climate Initiative Inc. was registered in Delaware
By Katy Grimes, March 8, 2026 6:00 am
Wednesday the Globe reported on Chevron’s letter to California Governor Gavin Newsom and the California Air Resources Board warning them of deep concerns and strong opposition to the CARB- proposed amendments to the Cap-and-Invest (formerly cap and trade) regulation, that the state’s few remaining refineries can’t survive, and the California economy could be crippled.
In the letter, Chevron President Andy Walz cautions that the price of gasoline will increase by more than a dollar a gallon by 2030 as a result of this regulatory change, as well as 536,770 petroleum industry jobs could be lost in the state if CARB’s proposal is authorized.
That is because “The proposed regulation will cripple the survivability of the state’s remaining refineries, which will result in California losing the entire industry to this misguided program. This regulation will increase transportation and aviation fuel prices for consumers. It will risk significant job losses, including many high-paying union jobs, while reducing funding for essential public services. It will upend California’s fuels market and threaten critical energy and national security assets.”
The CARB claims they can’t budge on the proposed additional regulations because they are statutorily mandated climate goals. But the California Legislature can, as can the governor if the CARB is going to play chicken with Chevron.
But, the political ploy here is that the professional politicians don’t want their fingerprints on any of this come election season, which is why they allow CARB to operate as a rogue agency. And it is why they allow the California Public Utilities Commission, the State Water Resources Control Board, the Coastal Commission, the California Energy Commission and Cal EPA to operate without legislative oversight.
Republicans have attempted legislation to reassert legislative oversight over CARB. But despite legislative and public outrage over the shroud of secrecy at CARB, in 2012 then-Assembly Speaker John Perez was said to have crafted the language for SB 1018, which specifically exempted CARB from open meeting rules in cap-and-trade auctions, allowing CARB’s Western Climate Initiative Inc., WCI Inc., to manage carbon trading auctions without any public scrutiny.
The corporation was created by California Air Resources Board to manage the cap and trade auctions. The problem is that Western Climate Initiative Inc. was formed in Delaware. However, Delaware is not subject to California state open meeting or sunshine laws, leaving many questioning why CARB opted for such secrecy. The only reason to register the corporation in Delaware is the lack public or legislative scrutiny on any of their meetings or actions they take.
The CARB “CERTIFICATE OF INCORPORATION OF WESTERN CLIMATE INITIATIVE, INC”
is indeed filed in Delaware.
and:
This is feeling like the perfect storm – a rogue state agency accountable to no one, registered to a Delaware Corporation holding the funding extorted from California businesses, a state-regulated and diminished oil industry, reliance on foreign imports for a majority of California’s petroleum supply, the conflict in Iran, the potential for conflict between China and Taiwan, 7 refineries left in California with Chevron sincerely warning Governor Newsom that they will close their 2 remaining refineries if CARB passes more climate amendments, and because the state of California only taxes in-state oil production and not foreign imports…
And, China is supplying California with fuel, not just shipping it from other countries, according to petroleum industry expert Mike Ariza. He said given the fact that 40% of China’s crude oil supply has been shut off, he would not be surprised to see them shut down exports.
Houston, we have a problem.
A California native and Navy mom, Katy lives in Sacramento, CA.
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- Chevron Will Shut Down Remaining 2 Refineries if CARB Amendments Pass - March 8, 2026
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California democrats have gone full gangsta! They are watching too much TV. This is a power play you would expect from some backwater NGO no one has heard of.
These two paragraphs elegantly summarize exactly what’s one of the BIGGEST problems in California governance…. political abdication of responsibility for actions by unelected bureaucrats who do the Democrat politicians’ bidding, effectively shielding them from political blowback…
“The CARB claims they can’t budge on the proposed additional regulations because they are statutorily mandated climate goals. But the California Legislature can, as can the governor if the CARB is going to play chicken with Chevron.
But, the political ploy here is that the professional politicians don’t want their fingerprints on any of this come election season, which is why they allow CARB to operate as a rogue agency. And it is why they allow the California Public Utilities Commission, the State Water Resources Control Board, the Coastal Commission, the California Energy Commission and Cal EPA to operate without legislative oversight.”
Chevron’s refineries in California—located in Richmond and El Segundo—primarily produce transportation fuels, including:
Gasoline: The El Segundo refinery produces about 110,000 barrels per day (BPD), supplying ~20% of Southern California’s gasoline. The Richmond refinery supplies about 20% of Northern California’s gasoline.
Jet fuel: El Segundo supplies 40% of the jet fuel for Los Angeles International Airport (LAX), with combined jet and diesel output at 100,000 BPD.
Diesel
Fuel oils and coke
Liquefied petroleum gas (LPG)
Lubricating base oils
These refineries together produce 30% of California’s refined petroleum products, with the El Segundo facility being the largest on the West Coast at a rated capacity of 290,000 BPD.
Democrats’ decarbonization has only led to deindustrialization and poverty. It has accomplished nothing in terms of reducing global C02 emissions. With China and India expanding coal fired power plant installations, this is like swimming upstream.
First of all this has been made complicated on purpose, that way Newsom and the Democrats can point the finger of blame elsewhere. Secondly I believe this explains why in this Deep Blue State two Republicans are the front runners currently in the upcoming governors race. Once gas prices explode to $7, $8 a gallon or more Democrats will only temporarily be able to use the excuse of the war in Iran, once that subsides and the rest of the nation enjoys gas prices at roughly $3 while will be paying the fore mentioned $8 later this year even Democrat voters will rebel. And lastly this whole fiasco was caused by the false and phony science called Global Warming/Climate Change which the Left and the UN claim is caused by man. This has been disproven countless times by Actual Scientists who are not beholden to the government. The complete failure from Republicans to fight this insanity over the decades has brought us to where we are today. President Trump is the only one who has had the courage to speak and act out against it, where is the rest of the GOP?
Gas at my local Chevron station in Los Angeles already $5.65 this morning.
I saw $6.09 for Premium.
Trump must do something about this Now! And why did the CA Republicans Let GAVIN and CARB get away with this? This a NATIONAL SECURITY Issue which must be urgently addressed right now! And that dammed rat GAVIN manages to FLY all over the WORLD to a UN meeting COP 30 whose subject was CLIMATE CHANGE and GLOBAL WARMING. He also flew to DAVOS for a WEF meeting of which he was a former member and flew to GERMANY and other places too! This is out of control and downright Dangerous!
Hmm, Global Warming and Climate Change, well GLOBALISTS and USA traitors, stop YOUR dammed GEOENGINEERING and CHEM TRAILING! And it’s all YOU Hypocrites who must get rid of all YOUR PRIVATE JETS and all your MEGA MANSION compounds. I’m sure ALL of YOU probably guzzle a lot more energy alone than most people on the earth COMBINED!
Well, maybe $8 dollars a gallon of gas is what it’s going to take to wake up the Progressive morons that vote Democrat regardless…it happens time and time again, hit them in the wallet/purse and it gets people moving. It’s usually too late tho. Unfortunately, the people who don’t vote Democrat, it hits us too. I guess it’s going to take a complete and utter failure of this state to make the morons that vote for these clowns, realize that Democrats do NOT have the best interest of Californians or the everyday American citizen on their minds when they pass these asinine laws. They have already destroyed the American dream of purchasing a house in this state. “Statutorily mandated climate goals”. What a load of crock. Someone made the rules, someone can change the rules, but they won’t, and we are ALL going to PAY, big time. Man, do I hate Progressive / Liberal Democrats. I really do.
Preach! Until a majority in the CA voting majority changes who they vote for nothing will change.
In a right-wing publication, what more could you possibly expect than this one-sided point of view with no real attention whatsoever to climate issues or enforcement of climate regulations which the voters have mandated. Californians like clean air though others may not. The separation of state agencies from legislative interference prevents exactly what is happening today in Washington where important federal agencies are gutted or abandoned to the detriment of the American people. As for one commenter’s ranting about the fake “chemtrails” and another suggesting the war against Iran (oops! It’s now a “war,” is it? It’s some other imaginary thing) will be used as an “excuse” for high gasoline prices, that’s a bit of a joke since the Iran War is already a cause of high gasoline prices. No “excuse” needed. And a final thought — the repeated silliness here suggesting Democrats must change their ways is about as far-fetched as Republicans punishing child molesters instead of supporting them. Also, for those who insist on being petty, it’s “Democratic” Party, not “Democrat” Party.
Hey Drew,
Members of the “Democratic Party” are indeed Democrats not “Democratic” and really between the “Super Delegates” and “Managed Elections” the party in not really democratic either.
Hillary sidelining Bernie Sanders was not Democratic, nor was Biden being upstaged by Kamala Harris.
The Democrat Party abandoned American citizens as evidenced by their contempt for heroes and victims at the SOTU and support for criminal illegal aliens.
Climate Change is nothing but a damn GRIFT!!!!
Fed Up In NORCAL beat me to it. There is nothing Democratic about that party.
If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.
~ Dwight D. Eisenhower
CA needs a proposition that allows Federally compliant gasoline year around and outlaws all cap and trade.
First and foremost the question is begged, why hasn’t the LA Times and other newspapers report on this?
Wow, CARB’s move against Chevron and Trump’s trumped up presidential war and resulting gas price increases makes one wonder if these people aren’t all working together: Should These two issues converge gasoline could be north of $10/ gallon in California.