California will face economic collapse under Gov. Gavin Newsom’s “misguided” climate policy — with crippling job losses and sky-high gas prices, Chevron warned in a doomsday letter to the lefty governor on Wednesday.
The oil giant’s bleak outlook in the letter to Newsom and the California Air Resources Board (CARB) came amid calls to block proposed amendments to the Cap-and-Invest program, which places a strict limit on greenhouse emissions that decreases each year.
Chevron argues that the carbon-cutting program will “cripple the survivability” of the state’s remaining refineries, with devastating effects on the Golden State and its residents.
“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,” read the letter from Chevron President Andy Walz, obtained by the California Globe.
“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 letter from Chevron continued.
Chevron said the oil and gas industry supports more than 530,000 jobs across the Golden State alone, and contributes approximately $64 billion each year in state, local, and federal tax revenues that help fund education, healthcare, and essential infrastructure.
California’s Cap-and-Invest program limits aggregate greenhouse gas emissions from major polluters, which account for roughly 80% of the Golden State’s pollution.
It requires the companies to buy allowances for each ton of carbon dioxide emitted. Each year, fewer allowances are created. Revenue from the program funds climate-friendly initiatives, such as public transport projects and public health projects, according to CARB.
Similar pilot schemes in Spain and Australia have faced stiff opposition, but Newsom and the CARB have continued the money-making operation.
The governor extended the program — which was set to expire after 2030 — through 2045 in September.
Coming after Valero began shutting down its Benicia refinery last month, Chevron has warned that the state cannot survive another refinery shutdown.
“Chevron urges policymakers and regulators to reconsider and revise the proposed regulation before it causes lasting and irreversible harm to California’s economy and energy security and broader vital American interests,” Walz said in the letter.
The Cap-and-Invest regulation currently contributes $0.24 to the cost of a gallon of gas for drivers in California, the oil leader noted, citing the California Energy Commission.
Californians already face the highest gas prices of any drivers in the country.
As of Wednesday, a gallon of regular gas averaged $4.736, compared to the national average of $3.198, according to the latest figures from AAA.
