California Governor Gavin Newsom faces backlash over soaring gas prices and climate fund overhaul

Governor Gavin Newsom’s energy policies have left California with some of the nation’s highest gasoline and electricity costs. The state’s refinery capacity fell from 20 to 11 plants in two decades, and recent closures at Phillips 66’s Los Angeles refinery and Valero’s Benicia refinery have cut roughly 17% of local refining capability. As a result, California now imports about 20% of its gasoline from Asian refineries, increasing dependence on volatile overseas markets.

At the same time, lawmakers are debating the future of the state’s cap‑and‑invest climate fund, which was created by extending the cap‑and‑trade program to 2045. New rules approved by the California Air Resources Board could halve the fund’s revenue by reducing the number of pollution permits auctioned, while giving more allowances to existing polluters to keep them in the state. Critics argue the changes threaten billions of dollars earmarked for projects such as high‑speed rail and affordable housing, and could undermine the state’s climate goals.