California is a state of contradictions, boasting strong environmental regulations while relying heavily on fossil fuels for its economy and daily life. Despite being a leader in clean energy, the state still accounts for 8% of its $3 trillion economy to oil and gas. This reliance on fossil fuels is critical for industries like construction, transportation, and goods delivery.
The closure of refineries, such as Phillips 66 and Valero, has reduced California’s refining capacity by 18%, forcing increased imports from countries with lax environmental standards and contributing to pollution in international waters. The new state excise tax and low-carbon fuel standard will further increase gasoline prices, disproportionately affecting working-class Californians who lack affordable alternatives.
Regulatory bodies like CARB admit to not calculating consumer impacts of their policies, risking economic shocks and outsourcing emissions and jobs overseas. This is an example of how well-intentioned environmental policies can have unintended consequences on the economy and vulnerable communities.
California’s energy transition is inevitable, but policymakers must acknowledge the reality of fossil fuel dependence and work towards a balanced approach that protects the environment while supporting economic growth and social equity. The state needs to prioritize common sense and transparency in policy-making to avoid an energy crisis and ensure a sustainable future for all Californians.
Source: https://www.latimes.com/opinion/story/2025-07-06