Fong Slams Newsom on CARB’s Cap-and-Invest Proposal

BAKERSFIELD, Calif. - Today, Congressman Vince Fong (CA-20) urgently called on Governor Gavin Newsom, California Air Resources Board (CARB) Chair Lauren Sanchez, and California Energy Commission Vice Chair Siva Gunda to reconsider the implementation of CARB's Cap-and-Invest proposal. Calling the proposal "nothing short of an existential threat to our refineries," Congressman Fong highlighted serious concerns regarding projections that it could add an additional $1.21 a gallon to California's already exorbitantly high gas prices.

"This will be the nail in the coffin of California's fuel network, which is already being suffocated by a patchwork of underutilized pipelines and overburdened refineries without enough energy supply to operate," said Congressman Fong. "The writing is already on the wall. If California continues to push policies aimed at further constricting our energy supply chain, it will result in skyrocketing costs for working families and weaken the fuel supply chain supporting our West Coast military capabilities. I urge Governor Newsom to reverse course and support our domestic, in-state refining capacity instead of forcing even more costly regulations on producers."

You can read the Congressman's full letter hereand below:

Dear Governor Newsom, Chair Sanchez, and Vice Chair Gunda:

I write to you today with significant concern regarding the California Air Resources Board's (CARB) Cap-and-Invest proposal and urgently call on you to reconsider its implementation for the sake of our national security and energy affordability.

Since 2018, California's misguided energy policies have forced more than 360 energy companies to flee the state, creating an unstable market on the brink of collapse. This ill-advised proposal will only further destabilize our fuel production capacity by gutting our remaining energy producers, resulting in skyrocketing costs for working families and weakening the fuel supply chain supporting the West Coast's military operational capabilities.

California consistently reports the highest gasoline prices in the nation. Due mainly to state laws, regulations, and taxes that have created a manmade shortage of fuel, California is purchasing an ever-increasing amount of imported fuel, artificially increasing costs for drivers. Yet, instead of focusing on policies that will tackle the looming affordability issue in our state, your Administration continues to pursue policies that restrict refining capacity and impose additional compliance costs on our domestic, in-state energy producers. It is projected that this Cap-and-Invest proposal could add an additional $1.21 a gallon to California's already exorbitantly high gas prices.

While our energy producers struggle for survival in this regulatory climate, CARB continues to push policies aimed at further constricting the energy supply chain. Your policies risk creating an even more hostile investment climate for a domestic industry already under immense regulatory pressure. Analysts project that this policy will lead to annual compliance costs reaching $1.5 billion within the next decade. This is nothing short of an existential threat to our refineries.

The writing is already on the wall. In just the past two years, our state has lost nearly 20% of its refining capacity, forcing California to turn towards foreign sources of oil and gas to augment our dwindling domestic supply. That choice is not only far more expensive, it also unnecessarily introduces new supply chain vulnerabilities, decimates our energy independence, and makes our state susceptible to geopolitical instability. It is basic economics; when supply shrinks but demand remains, consumers inevitably bear the cost through higher prices and greater volatility at the pump.

Relying on distant foreign suppliers for essential transportation fuels is a risky proposition for any state, but particularly one that serves as a major economic hub and home to critical military installations. Domestic refining capacity along the West Coast provides an important layer of resilience during emergencies, natural disasters, or international crises. Weakening that infrastructure undermines both our nation's economic security and military readiness.

Thankfully, the solution is simple: allow for more robust, safe, and responsible fuel production in our own backyard. If your Administration focuses on enhancing affordability through supporting domestic, in-state refining capacity instead of forcing even more costly regulations on producers, not only will the Golden State be insulated from global demand and supply shocks, but California will be able to benefit from affordable and reliable energy sources.

This Cap-and-Invest proposal would be the nail in the coffin of California's fuel network, which is already being suffocated by a patchwork of underutilized pipelines and overburdened refineries without enough energy supply to operate. I encourage you to meet with our remaining California refiners, who are eager to find a solution to our energy supply crisis.