Latest news with #TaiMilder
Yahoo
5 days ago
- Business
- Yahoo
California scrambles to find solutions for rising gas prices as departing refineries could cut supply by 20%
As of June 6, the average gas price in California for regular fuel was $4.72 per gallon, according to AAA, making it the most expensive place to fuel up in the country. However, Golden State drivers could be in for even more pain in the near future when it comes to paying for fuel. That's because some experts believe gas prices in the state could rise significantly following the impending wind-down of two major refineries if lawmakers don't intervene soon. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) In October, Phillips 66 announced plans to shut down its Los Angeles-area refinery in late 2025. Valero, meanwhile, said in April it intends to 'idle, restructure, or cease refining operations' at its Benicia, California, refinery by April 2026. Phillips 66 says its decision was due to uncertainty about the refinery's 'long-term sustainability.' Valero cited 'the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations' as a diver of its decision. The company was also hit with a record $82 million fine by the Bay Area Air Quality Management District last year after regulators uncovered a long history of unreported toxic emissions. On May 28, Petroleum Market Oversight Director Tai Milder, California Energy Commission Vice Chairman Siva Gunda and California Air Resources Board Chair Liane Randolph testified before state lawmakers. The regulators were put on the hot seat, as lawmakers wondered if they were plunging California into a gas crisis. 'We have a crisis on our hands that may have been self-created by the actions that have been taken, perhaps by the state, by regulators,' assemblymember David Alvarez said during the meeting. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it According to CBS News, closures of these refineries could lead to a 20% reduction in California's gas supply. Experts say this could have a major impact at the pumps. 'I think if we are not prepared for the closure of these two refineries, we could see a very abrupt increase in prices,' Severin Borenstein, UC Berkeley professor and director of the Energy Institute at Haas, told the broadcaster. 'That is a real threat right now. California needs to get out ahead of it. This is a fire drill, this is not a long-term planning problem.' A report by USC professor Michael Mische warned that California gas prices could rise to an estimated average of $7.348 to $8.435 by the end of 2026 if both refineries shut down. Upon their closure, the state would have to import more gas, and in the absence of inbound pipelines to California, it would cost even more to bring gas to residents, fueling higher prices. Additionally, the report stated that California retail gas prices are routinely 40% to 50% higher than the national average. State regulatory fees and taxes add a significant amount to the price of gas per gallon. Even without the closures of the two refineries, the report estimates the price could potentially increase by $1.18 per gallon. Similar to the sentiments of Alvarez, the report calls the state's gas crisis largely "self-created." Despite more cars being on the road, the number of refineries in the state has dropped over the last 30 to 50 years. Meanwhile, the report says regulatory costs affecting refiners, distributors and local operators have had a compounding effect on retail prices. The report included a number of suggestions, such as incentivizing Phillips 66 and Valero to remain in the state and relaxing regulations. For example, Executive Order N79-20, which is set to take effect in 2035, bans the sale of new gas-powered vehicles. Bill Abx2-1 allows regulators in California to set minimum petroleum inventory levels for refineries located in the state. And so on. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
CBS News
29-05-2025
- Business
- CBS News
California lawmakers pounce on energy board amid departing oil refineries: "We have a crisis on our hands"
Concern over rising gas prices and fleeing gas refineries has California lawmakers wondering if the state's gas crisis is getting worse because of them. It comes on the heels of two more refineries announcing they will end production. As Tai Milder, the director of the Division of Petroleum Market Oversight, testified with statistics explaining California gas price spikes, Democratic Assemblymember Connie Petrie-Norris, also the chair of the Assembly Utilities and Energy Committee, interrupted him. "Sorry to interrupt you, director," Petrie-Norris said. "I guess I'm just a little confused. So if California companies were raking it in, why did we just have two refineries announce their intent to close?" These lawmakers, Republicans and Democrats, pounced on this California Energy Commission and Air Resources Board panel, asking if they were sending California into a greater gas crisis. "We have a crisis on our hands that may have been self-created by the actions that have been taken, perhaps by the state, by regulators," Democratic Assemblymember David Alvarez said. "I'm still having a hard time, in terms of price manipulation, so can you help me with that?" Democratic Assemblymember Mike Gipson said. "I know what leadership does not look like and that is $10 gas," Democratic Assemblymember Petrie-Norris said. The energy committee is turning its attention from gas companies to regulators as two more refineries announced closures in the past year, leading to a looming 20% reduction in the state's gas supply. Severin Borenstein is a UC Berkeley professor and director of the Energy Institute at Haas. He said prices could go up in dollars per gallon. "I think if we are not prepared for the closure of these two refineries, we could see a very abrupt increase in prices," Borenstein said. "That is a real threat right now. California needs to get out ahead of it. This is a fire drill, this is not a long-term planning problem." The gas supply problem comes as California regulators have designed policies to remove gas-powered cars from the roads to reduce pollution. The Senate voted last week to revoke three vehicle emissions waivers in California.
