Gavin Newsom receives doomsday letter from Marathon Petroleum Corporation

Marathon Petroleum Corporation sent an urgent letter to California Gov. Gavin Newsom, warning him of the consequences of backing the Cap-and-Invest program, adding it was “deeply concerned.”

“California refineries are already among the most expensive refineries to operate in the world,” the letter reads, next referring to the California Air Resources Board, or CARB.

“CARB’s proposal would further widen the cost disparity, forcing refineries to reconsider whether operations in California remain viable.”

It comes as gas prices spiked again overnight by nine cents, meaning on average it costs $5.29 per gallon to fill a car.

CARB’s 2026 proposals aim to tighten the state’s climate policies and boost corporate transparency.

Key measures include amendments to the Cap-and-Invest Program to accelerate greenhouse gas reductions and new rules requiring large companies to report emissions and climate-related financial risks.

Updates to the Low Carbon Fuel Standard would expand access to cleaner fuels and zero-emission infrastructure.

The package also addresses refinery emissions and allows first-year flexibility for reporting, all as part of California’s broader push for carbon neutrality by 2045.

According to the California Energy Commission, the Cap-and-Invest program currently adds about 24 cents per gallon to the cost of gasoline in the Golden State.

“This action will undermine the security of California’s fuel supply, directly affect consumers, and create significant economic, workforce, and national-security consequences,” Marathon’s Michael Henschen wrote in his letter.

Marathon, headquartered in Ohio, is the largest refinery in the United States and operates California’s largest refinery, a 365,000-barrel-per-day facility in Los Angeles.

The letter warned Newsom of the potentially severe consequences if the regulations pass.

“Proposal will negatively impact jobs, tax revenues, and the California economy,” Henschen said, adding that the refinery employs over 2,000 workers.

The company further warned Newsom that these measures threaten the country’s national security, particularly amid ongoing global conflicts.

“California refineries supply significant volumes of fuel to the U.S. military, supporting operations along the West Coast and at major defense installations,” the letter states.

“If additional in-state fuel production is displaced or curtailed, the military will be forced to rely on more imported jet and diesel fuel, creating unpredictable supply conditions during emergencies or heightened geopolitical risk.

“Maintaining reliable California production of military-grade fuel is essential to national defense readiness.”

This letter follows a similar warning from Nevada Governor Joe Lombardo, who urged Newsom to reconsider CARB regulations because Nevada relies on California for 88 percent of its oil.

Lombardo’s letter was followed by another plea from 15 Democratic lawmakers — members of Newsom’s own party — calling on regulators to revisit key parts of the Cap-and-Invest program, warning it could destabilize the state’s energy market and drive prices even higher.

The flurry of letters came into affect after Chevron sent one of the first appeals to Newsom’s office, saying the company was “deeply concerned and strongly opposes” CARB’s proposed amendments to the Cap-and-Invest regulation.

If CARB finalizes the proposed amendments as written, they could drive up fuel prices, cost jobs, reduce tax revenue, and increase reliance on imports, according to the letter.

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