Working families pay the price for Newsom’s politically motivated energy agenda
California Governor Gavin Newsom’s entire agenda is driven by his relentless pursuit of the national political spotlight. While he chases headlines, his failed policies are harming families and job creators who are fleeing our state in droves. Nowhere is that more evident than in his politically motivated, economically disastrous, and logically incoherent attacks on California energy producers.
Californians are grappling with the highest gas prices and second-highest electricity costs in the nation, with some utility bills even exceeding monthly rent. Instead of addressing the cost-of-living challenges, Newsom is doubling down with his latest anti-fossil fuels crusade, which will drive prices for consumers, especially minority and low-income consumers, even higher.
In the final weeks of the regular legislative session, Newsom tried and failed to pass legislation that would allow state regulators to arbitrarily dictate how much inventory oil refiners must maintain. His proposal is premised on the false claim that maintenance at these facilities is responsible for gas price spikes. Now, he has called for a special session to feign urgency around a solution in search of a problem.
High gas prices in California are not caused by refinery shortages; they are the result of a slew of Democratic-led policies that have targeted fossil fuels. A hostile political and regulatory landscape has led to the idling or shutdown of 32 of our state’s refineries, reducing our state’s refining capacity by 30%. Despite this decline, refineries have managed to maintain sufficient storage to avoid shortages.
If Newsom’s proposal passes, refineries would be forced to restrict supply to meet excessive inventory requirements, risking artificial shortages and further driving up costs. That risk is even greater when you factor in the likelihood that refineries will be unable to secure the financing or permitting necessary to build the additional storage infrastructure that will be needed, given the state’s expressed intention to phase the industry out.
To uncover the political motivations behind Newsom’s proposal, consider his 2021 press release that explicitly stated his goal to shut down all oil extraction in California by 2045. While he aims to dismantle domestic energy production, he simultaneously attempts to shift blame onto refiners that have maintained supply stability despite the overwhelming regulatory obstacles stacked against them. It is no surprise that Chevron, after 145 years of calling California home, cited the state’s anti-energy policies for relocating its headquarters – and thousands of good-paying jobs – to Texas.
The real price gouging at the pump comes from California’s exorbitant gas taxes and fees, which add more than $1 to each gallon of gas, 70 cents higher than the national average. Californians were hit with another gas tax increase on July 1st and face an additional 47 cents per gallon increase next year due to Low Carbon Fuel Standard reforms.
High gas prices are a feature of Newsom’s energy agenda, not a bug. He has staked his national political ambitions on his reckless environmental activism, anchored by his electric vehicle (EV) mandate that will further strain low- and middle-income family budgets.
A recent report from Consumer Energy Alliance (CEA) found that “both new and used EVs are far more expensive than traditional vehicles, cost more to insure, and charging infrastructure inherently favors wealthier homeowners over working-class renters,” according to CEA’s Southwest Executive Director and Vice Chairman of the National Hispanic Energy Council, Matthew Gonzalez.
Newsom’s EV mandate will have a disproportionate impact on Black and Latino communities. Analysis by CalMatters found that, “California’s highest concentrations of electric cars — between 10.9% and 14.2% of all vehicles — are in ZIP codes where residents are at least 75% white and Asian. … In the 20 California ZIP codes where Latinos make up more than 95% of the population — including parts of Kings, Tulare, Fresno, Riverside and Imperial counties — between zero and 1% of cars are electric.”
Newsom’s misguided EV mandate forces Californians into vehicles they neither want nor can afford. Meanwhile, higher-income households with rooftop solar installations are reaping billions from selling energy back to the grid, subsidized by low- and middle-income customers.
The governor’s push for a special session is merely a ploy to deflect blame for policies that are, by design, driving up the cost of gas and electricity. California voters are smarter than Newsom gives them credit for; they know his political aspirations are taking precedence over their priorities and they deserve better. Newsom must change course and leverage our state’s abundant natural resources to make life more affordable for hardworking Californians.
Mario Rodriguez serves as the Chairman of the Hispanic 100 Foundation, a nationally recognized organization comprised of successful Latino business and civic leaders focused on developing and promoting leadership from within the Hispanic community through advocacy and education.