Assembly hearing reviews CEC stabilization plan as refinery closures threaten California fuel supply

A joint informational hearing of three California State Assembly committees in Sacramento focused Tuesday on near- and long-term steps to stabilize the state's transportation fuels market after recent refinery closure announcements and the recommendations in a June 27 letter from the California Energy Commission (CEC).

Why it matters: Lawmakers, state regulators, industry representatives, labor leaders and community groups warned that a string of refinery exits could force more imports, raise pump prices and shift pollution burdens — even as the state shifts toward cleaner vehicles and fuels. The CEC and CalGEM (the Department of Conservation's oil-and-gas regulator) presented a multi-part stabilization proposal; CARB reviewed air-quality tools such as the Low Carbon Fuel Standard and the ports "at-berth" rule; industry and labor pushed different fixes; and environmental justice advocates urged stricter protections for frontline communities.

The hearing opened with Assembly Chair Petri Norris reading from the CEC letter and urging the committees to focus on both urgent short-term fixes and long-term planning. "The recommendations in the June 27 letter from CEC vice chair Gunda sought, and I quote, to ensure that Californians continue to have access to a safe, affordable, and reliable supply of transportation fuels," Chair Petri Norris said, quoting the CEC document.

CARB chair Liane Randolph outlined the air- and climate-policy framework that shapes state fuel rules and defended the Low Carbon Fuel Standard (LCFS) as a central tool. Randolph said vehicle emissions remain the state's largest source of greenhouse gases and NOx, and described LCFS impacts: "LCFS has displaced over 31 billion gallons of petroleum fuels and is generating about $4 billion annually to support low-carbon investments," she told the committees. Randolph also noted litigation over federal actions and CARB's Clean Air Act waivers and said the agency is continuing work on complementary rules and incentives.

CEC Vice Chair Siva Gunda summarized the market picture the commission used to frame its recommendations: in recent years in-state gasoline demand has begun to decline while California refining capacity — and in-state crude production — have declined faster. Gunda said that mismatch…