California energy regulators laid out a wide range of options Thursday for state lawmakers to consider as they manage the price implications of the state’s long-term plans to wind down gasoline use, including expanding storage capacity, regulating refineries more tightly and operating state-owned refineries and tankers.
What happened: The California Energy Commission wrote the report as part of its responsibilities under last year’s SBX 1-2, a law aimed at managing gasoline prices and supplies as California winds down fossil fuels as part of its climate transition over the next two decades.
Why it matters: Gov. Gavin Newsom and the state Legislature are trying to wean the state off fossil fuels to eliminate greenhouse gas emissions while also preventing price spikes that could become more common as supplies decline. Their ability to manage gas prices will affect the viability of the state’s climate goals.
Gas demand is slowly declining as more residents buy electric vehicles, but refineries are dropping off too, according to the report. The report discusses the dynamics of the state’s gas market as it transitions to electric vehicles under policies to phase out sales of new gas-powered engines by 2035.
