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Another refinery shuts down in California. What happens to gas prices?

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Another refinery shuts down in California. What happens to gas prices?

California’s attempt to manage a smooth transition away from gasoline just got roughed up with this week’s decision by Phillips 66 to shutter its refinery in Wilmington next year, wiping out more than 8% of the state’s crude oil processing capacity.

The closure is likely to increase California’s already high prices at the gas pump, given that much of the replacement gasoline will be shipped in by ocean vessel, analysts say.

The price issue will be “most worrisome if we have some kind of disruption in the market” and the Phillips refinery’s not there to help with resupply, said Severin Borenstein, faculty director at UC Berkeley’s Energy Institute.

The planned shutdown, announced by Phillips 66 on Wednesday, came just days after Gov. Gavin Newsom signed a bill that could force the state’s refineries to store extra gasoline, a move intended to minimize price spikes, such as those that occurred in late 2022 and 2023.

A Phillips 66 spokesman said the decision is not related to that bill, but in a press release the company called “the long term sustainability” of the refinery “uncertain.” He told The Times that “the refinery had lower profitability compared to other assets in our portfolio.”

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State Sen. Steve Bradford (D-Gardena), who represents the Wilmington-area district where the refinery is located, sees the planned closure as the culmination of “a death of 1,000 cuts” from California energy policy “that led us to where Phillips saw no real future.”

Not only will gasoline prices rise, he said, “but now we’ll have ships docked at our ports spewing pollution while they’re unloading gasoline from countries that don’t have the same environmental standards that we have.”

He laments the loss of up to 600 direct jobs at the refinery, 300 contractors, and an unknown number of ancillary jobs. The Phillips refinery is split into two sites, one section in Wilmington and the other in nearby Carson, linked by pipeline.

“I feel for the men and women who live around that area who have depended on these jobs for decades. The refinery was there first, not the homes,” he said. “These people made a conscious decision to buy homes in these communities to be close to jobs.”

Environmentalists and community activists cheered the news, however, saying it will mean cleaner air for the thousands who live in the area and that the state must continue the transition away from its dependence on fossil fuels.

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Jamie Court, president of Consumer Watchdog, acknowledged that gasoline prices could rise after the refinery is shut down, but said that justifies California’s plans to assert more control over gasoline supplies.

“This is the reason for command and control over the refiners,” he said. “So when one changes their plan, the others must make sure they have supply liquidity.”

The loss of the Wilmington refinery will consolidate the state’s refining capacity in fewer hands, in what Court said would raise the potential for price-fixing.

The refinery closure is the latest development in the state’s attempt to rid itself of gasoline and diesel vehicles to reduce pollution and greenhouse gases, but at the same time keep a lid on pump prices.

The governor has not been shy about blaming the industry for what he calls price gouging, and his rhetoric is heated. Earlier this week he posted an Instagram video in which he declares that “Big oil big wigs are up to their oily shenanigans here in California.”

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Rather than go tit-for-tat with the governor, Phillips 66 is taking what might be considered a strategic retreat. The closure could indeed boost its bottom line. The company runs nine gasoline refineries in the United States and two in Europe. In an August presentation aimed at investors, the company said it planned to increase its capacity utilization. That can be accomplished by closing one or more refineries and increasing utilization at those that remain, cutting operating and capital costs and improving profit margins.

As to possible supply shortages, Phillips said it will “work with California to maintain current levels and potentially increase supplies.” No details were offered. Phillips has a strong incentive to keep supplies up: it runs about 1,000 service stations in California under the 76, Phillips 66 and Conoco brands.

But importing fuel by ship from its own refineries or buying it from other importers “adds costs,” Borenstein said.

State Sen. Steve Bradford (D-Gardena) represents the district where the Phillips 66 refinery is located. “I feel for the men and women who live around that area who have depended on those jobs for decades,” he said.

(Associated Press)

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Newsom declined to comment. Siva Gunda, vice chair of the California Energy Commission, issued a statement saying Phillips 66’s “plan to replace the production lost from the refinery closure is an example of the type of creative solutions that are needed as we transition away from fossil fuels.”

California had 11 gasoline refineries but that number was cut to nine recently when the Marathon refinery in Martinez and Phillips 66’s other California refinery in Rodeo, both in Northern California, converted their plants from fossil fuels to renewable diesel fuel. Those conversions earn carbon credit subsidies in the state’s carbon markets.

While providing lower-carbon fuel to California truckers, with consequent reductions in pollution and greenhouse gases, the shift increased concentration in the gasoline-refining market, leading to more pricing power. Next year, the number of California refineries will shrink to eight.

While Phillips 66 said its decision isn’t related to the gasoline storage bill, it warned in its most recent annual 10-K financial report that California legislation and rulemaking could have “potential adverse effects on our refining, marketing and midstream operations in California, which may be material to our results of operations, financial condition, profitability and cash flows.”

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The report cited the passage in 2023 of a bill that gives the state power to set limits on refinery profit margins, with heavy penalties for noncompliance. The state hasn’t yet exercised that option.

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Trump takes unusual step, lets bipartisan housing bill become law unsigned amid SAVE pressure campaign

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Trump takes unusual step, lets bipartisan housing bill become law unsigned amid SAVE pressure campaign

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A bipartisan housing bill became law Saturday at midnight after President Donald Trump declined to sign it, capping a weeks-long saga over whether the president would veto the measure amid frustrations with Congress over his stalled agenda.

Trump refused to sign the 21st Century ROAD to Housing Act — legislation aimed at expanding the nation’s housing stock and lowering costs — in an attempt to pressure Congress to pass the SAVE America Act, despite the housing bill clearing both chambers with overwhelming majorities.

“I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT, which is polling at 97% with the Republican Party, and very high with the non-politician Dumocrats,” he declared on Truth Social Friday morning. 

The Trump-backed election measure, which would require proof of citizenship to vote in federal elections and impose voter ID requirements, has struggled to overcome the Senate’s 60-vote threshold. 

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Meanwhile, the House has not passed a version of the bill that includes the president’s proposed crackdown on mail-in voting and banning men from women’s sports.

President Donald Trump speaks in the Oval Office of the White House, Wednesday, June 3, 2026, in Washington. (Alex Brandon/AP)

HOUSE CONSERVATIVES DERAIL GOP AGENDA IN SAVE AMERICA ACT SHOWDOWN

Under the U.S. Constitution, Trump had 10 days, not including Sundays, to sign or veto the housing measure after the House formally transmitted the legislation to the White House in late June. The president ultimately chose neither option, allowing the measure to become law without his signature.

Though Trump declined to veto the legislation, he sharply criticized elements of the bill and argued it should not have been a legislative priority in recent weeks.

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“It’s so unimportant … compared to the SAVE America Act,” Trump told reporters in the Oval Office in late June. “I think the SAVE America Act is exactly what it says. It’s saving America from crooked elections.”

Trump went on to call the housing bill “a yawn,” adding, “compared to the SAVE America Act, just about everything is a big yawn.”

It would have taken a two-thirds majority in both chambers to override a veto — a margin the House and Senate exceeded when they passed the legislation. However, it remains unclear whether so many Republicans would have defied the president had he vetoed the bill.

Trump also appeared to criticize the bill over a provision restricting Wall Street investors from purchasing single-family homes — a policy he first proposed during his January State of the Union address and later urged Congress to pass. Trump previously argued the investor ban would give individual homebuyers a leg up against private equity firms in the housing market.

“I don’t want to hurt people that own houses, too,” Trump later told reporters, appearing to reference the provision. “These people, for the first time in their lives, they have valuable houses. They’ve become rich. I don’t want to hurt them either. What you want to do is what’s good for everyone, get the interest rates down.”

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The law also aims to boost housing supply by streamlining federal environmental reviews, loosening rules around the construction of factory-built homes, and incentivizing local governments to modify their zoning laws to allow more housing, among roughly 60 provisions.

Trump’s souring on the legislation created headaches for Republicans, who touted the bill as an affordability win as voters grapple with high housing costs.

“It’s irresponsible to postpone signing the Housing bill due to the SAVE Act,” Sen. Bill Cassidy, R-La., a retiring lawmaker who lost re-election to a Trump-backed challenger, wrote on social media. “We need to start delivering relief to people for the high cost of housing ASAP!!”

Construction workers stand on the roof of homes under construction at a new housing development on June 24, 2026, in Valencia, Calif. (Justin Sullivan/Getty Images)

WARREN TELLS TRUMP TO ‘SIGN THE DAMN BILL’ AS BIPARTISAN HOUSING PACKAGE REMAINS STALLED IN WASHINGTON

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Trump abruptly canceled a signing ceremony for the legislation at the U.S. Capitol in June with GOP leaders. The stage had already been set, with at least one senior Republican arriving unaware the president had called off the event shortly before it was scheduled to begin.

The president then declared he would not sign the legislation until Congress passed the SAVE America Act, despite Senate GOP leaders insisting the votes do not exist to advance the measure.

Trump has also expressed frustration with the Republican-controlled Senate for declining to weaken the legislative filibuster, which requires 60 votes to advance most legislation in the upper chamber.

“GET SMART REPUBLICANS, IF YOU DON’T, YOU WON’T BE IN OFFICE FOR LONG!” Trump wrote in a Truth Social post on Sunday.

Before Trump came out against the bill, White House Press Secretary Karoline Leavitt called it “one of the most significant pieces of housing affordability legislation in American history” and said it included an array of policies “long championed” by Trump.

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House Speaker Mike Johnson, a Republican from Louisiana, speaks during a news conference at the U.S. Capitol in Washington, D.C., on Oct. 15, 2025. (Eric Lee/Bloomberg via Getty Images)

Meanwhile, Trump political operative James Blair touted the legislation for including the president’s Wall Street investor ban, which he referred to as a “signature commitment.”

House Speaker Mike Johnson, R-La., has argued that Republicans will still promote the landmark housing bill ahead of November.

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“We’ll still celebrate it, but he’s trying to make a point, and I think he’s making it very effectively,” the speaker recently told reporters, referring to Trump. “And the fact that you all ask me every three steps down the hallway illustrates that he has achieved the desired objective, and that is to make SAVE America the number one thing, because if we don’t get that right, everybody’s concerned about what happens next.”

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Trump administration clears path for controversial Mojave Desert water pipeline

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Trump administration clears path for controversial Mojave Desert water pipeline

The Trump administration has signed off on a company’s plan to convert an oil and gas pipeline to pump groundwater from the Mojave Desert to thirsty California cities for the first time, a lucrative venture that critics say threatens natural springs and wildlife.

The federal Bureau of Land Management released documents Thursday saying that Cadiz Inc.’s plan to repurpose 162 miles of the pipeline to transport water “will not significantly affect” the environment.

“We’re excited to achieve this pivotal milestone. After many years of planning and environmental review, the project has now reached the construction stage,” said Susan Kennedy, chair and chief executive of Cadiz.

Environmental advocates and leaders of Native tribes, who have been fighting the project, criticized the decision.

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“This groundwater mining proposal would drain the desert and rob the Mojave of its rare springs and wildlife habitat,” said Chance Wilcox, California desert associate director of the National Parks Conservation Assn. “It’s indefensible that the Trump administration would once again try to revive the pointless Cadiz project, by defying decades of scientific warnings and refusing to conduct an environmental review of the groundwater mining.”

The application for the federal authorization was filed by the Fenner Gap Mutual Water Co. The documents say the company plans to build seven pump stations, three of them located on federal land managed by the agency.

The 30-inch steel pipeline runs underground from Cadiz’s desert property, near the town of Amboy, northward to the town of Mojave.

The BLM said in its authorization that repurposing the pipeline for water “would comply with all applicable statutes and regulations.” The agency said it has “reasonably determined that the impacts of groundwater withdrawal associated with Cadiz’s groundwater extraction project are outside the scope of analysis.”

Cadiz’s attempts to export water from its property 200 miles east of Los Angeles have drawn controversy for decades.

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In 2019, Gov. Gavin Newsom signed legislation that requires the project to undergo scientific study and gain approval from the State Lands Commission before it can take water from the Mojave and sell it to California cities.

Activists opposing the company’s plans include civil rights leader Dolores Huerta.

“Cadiz spells destruction for water, sacred lands, and the desert economy,” Huerta said in a statement. “It is exactly this type of greed and injustice that I have dedicated my life to oppose.”

Leaders of nearby tribes have also objected to Cadiz’s plans to pump from the desert aquifer near the Mojave Trails National Monument and Mojave National Preserve.

“It is the living heart of the desert,” said Daniel Leivas, chairman of the Chemehuevi Indian Tribe. “To drain it would be to drain the life out of the entire desert. No profit is worth such desecration.”

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Chairman Timothy Williams of the Fort Mojave Indian Tribe said the company’s plan “to pump and sell 25 times more groundwater each year than the aquifer can replenish would desecrate our traditional territories.”

“Pumping more groundwater than is sustainably replenished is not only negligent, but dangerous to the American Desert Southwest,” he said in the joint statement with other opponents of the project.

For years, while pursuing its plan to sell water far away, the company has been using wells on its property to irrigate nearly 2,000 acres of farmland growing lemons, grapes and other crops. It has drilled more wells in anticipation of being able to export water once the government approved its pipeline.

The company intends to pipe water to communities in San Bernardino County and says it’s “expected to provide one of the lowest-cost sources of new water in the drought-plagued Southwest.” It says the federal permit “marks a key milestone as we finalize project financing with prospective investors.”

Cadiz bought the 220-mile pipeline from El Paso Natural Gas in 2020. Once construction is completed, the company says the pipeline will be able to transport up to 25,000 acre-feet of water per year — about 5% of what Los Angeles uses each year.

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The Los Angeles-based corporation is also seeking to build a new pipeline along a railroad right-of-way to transport water to the south.

Environmental groups have repeatedly filed lawsuits challenging the project.

Ileene Anderson, a senior scientist at the Center for Biological Diversity, called the Trump administration’s decision “a green light for environmental destruction.”

She said six of the proposed pumping stations slated to be built are in the habitat of desert tortoises, a species in decline.

“We’ve successfully fended off this project before and we’ll continue to fight to stop this zombie from coming back,” Anderson said.

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In 2021, the Biden administration reversed a Trump administration decision that had cleared the way for Cadiz to pipe water across public land. In 2022, a federal judge scrapped the pipeline permit that the Trump administration had issued.

But during President Trump’s second term, the company has again made headway on its plans. In February, Cadiz announced that the federal Environmental Protection Agency had invited it to submit an application for a $194-million low-interest loan for the northern pipeline project.

The company said in May that it reached an agreement with the federal Bureau of Reclamation to provide funding for a review of its potential role in “augmenting water supplies” along the shrinking Colorado River.

The company has also been lobbying the Trump administration. The group Public Citizen said in a recent report that Cadiz, through its nonprofit Fenner Gap Mutual Water Co., enlisted former Interior Secretary David Bernhardt’s new lobbying firm, the Bernhardt Group, and has spent at least $330,000 on lobbying in 2025 and 2026.

Records show lobbyist Luke Johnson has repeatedly accompanied Kennedy at meetings with Interior Department officials.

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“The extensive influence of David Bernhardt’s boutique lobbying firm on the agency he formerly led highlights how insider firms staffed with former Trump officials have grown in recent years,” said Alan Zibel, a research director with Public Citizen. He said Bernhardt and his lobbyists “have learned how to master influence-peddling in the anything-goes era of Trump 2.0.”

Earlier this month, an Arizona water agency announced it signed an initial “memorandum of understanding” agreement to buy up to 10,000 acre-feet of water per year from Cadiz’s Mojave Groundwater Bank. The Central Arizona Irrigation and Drainage District provides water to farmlands in Pinal County, where growers are dealing with water cutbacks.

The company said that for this to happen, it would need to build pipelines and reach deals to exchange water across state lines.

Members of California’s congressional delegation have raised concerns. In a recent letter to Interior Secretary Doug Burgum, California Sens. Adam Schiff and Alex Padilla called for a thorough environmental review, saying that federal agencies and peer-reviewed scientific analyses have “warned of the significant and irreversible impacts that Cadiz’s project could have on federal lands and surrounding communities.”

Rep. Raul Ruiz (D-Indio) said in a letter to Burgum that he is concerned about the company’s long-standing effort to extract and export groundwater.

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“The area I represent cannot afford to absorb the long-term costs of a commercially driven groundwater export scheme,” Ruiz said.

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Trump Promotes ‘Freedom Fuel’ Gas Stations as Gas Prices Rise Again

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President Trump has promoted a chain of newly rebranded gas stations across the Philadelphia area with lower gas prices. The New York Times has not been able to get detailed information about who is behind the stations. The Trump administration says it did not fund or subsidize the company.

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