U.S. Rep. David Valadao (R-CA) last week condemned a proposed mandate by California Gov. Gavin Newsom that would force refineries to withhold gasoline supply from the market.
“Gov. Newsom’s misguided refinery supply mandate would once again raise gas prices for Central Valley families,” Rep. Valadao said. “From consistently raising the gas tax to restricting permits, this administration has repeatedly demonstrated that they care more about appeasing the environmental lobby than helping middle-class Californians struggling with rising energy prices.
“I will continue to urge the governor to abandon his regulatory assault on oil and gas production in California,” said the congressman, who joined U.S. Rep. Vince Fong (R-CA) in reiterating that stance in an Aug. 30 letter sent to Newsom.
In their letter, the lawmakers highlighted that other such attempts have been detrimental to markets and prices.
“A similar stockpile effort attempted in the northeastern states failed miserably, proving that your proposal will have detrimental effects on gasoline prices across the states that depend on California’s gasoline,” they wrote. “While you claim that withholding supply will lower gas prices, your own Energy Commission recently stated that this will likely artificially constrict gasoline supply and increase prices.”
Additionally, Rep. Valadao and his colleague pointed out that granting political appointees the power to force refineries to store an unknown amount of gasoline without sufficient additional capacity will likely result in insufficient supply for Californians, as well as Arizonans and Nevadans who rely on California refiners for gasoline.
“Refineries are not able to invest hundreds of millions of dollars into building the infrastructure required, especially when you have signaled that California plans to be fossil free by 2045,” they wrote.
The congressmen are also concerned with the course that has been set by “this irresponsible policy decision,” which would further pinch the pocketbooks of families across California, Nevada, and Arizona.
“This punitive mandate will have untold consequences on California’s energy availability and is yet another attempt at a thinly veiled gas tax,” according to their letter.