WSPA Statement on ABX2-1: A Smokescreen for Future Government Gas Price Hikes

Barchart · 10/14 14:13

The Western States Petroleum Association (WSPA) today released the following statement, and raised critical questions, from President and CEO Catherine Reheis-Boyd in advance of ABX2-1 final Assembly vote:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241014217871/en/

Advocating for policy that ensures everyone has access to safe, affordable, and reliable energy #PowerInEverybody (Graphic: Business Wire)

Advocating for policy that ensures everyone has access to safe, affordable, and reliable energy #PowerInEverybody (Graphic: Business Wire)

“Our government leaders spent significant time and money in a special legislative session and came up empty-handed. Even worse, they knew a 47-cent-per-gallon gas tax increase is coming in 2025, and this session served as a smokescreen to hide it from Californians. Legislators still fail to understand our industry or what drives high gas prices. Regulators remain fixated on controlling businesses with more taxes, fees, and costly demands.

“Most alarming, our leaders ignored the men and women in the oil and gas industry who stepped forward to offer real expertise and express grave concerns.

“California’s energy infrastructure remains under threat from government neglect and is on the brink of failure, which will send prices even higher. And all of this could have been avoided.

“For Californians hoping for lower energy prices, stable food costs, and answers about the approximate $1.30 per gallon in taxes and fees they already pay at the pump—they’ll have to wait for new leadership.

“We will continue to educate lawmakers and the public on the true factors driving California’s high costs of doing business. For those ready to stop playing politics, we welcome the opportunity to address the real issues driving fuel prices higher for Californians and their families.”

Meanwhile, critical questions remain unanswered—questions Californians and the media should be asking of the Governor and our state leaders, including:

  • If you’re truly concerned about price spikes, why aren’t you addressing the cost increases that will result from tightening LCFS and Cap-and-Trade regulations?
  • Workers have raised serious concerns about the safety risks this bill poses to both refineries and surrounding communities. Are you prepared to take accountability if incidents occur as a result?
  • Energy companies say “California is closed for business” while experts emphasize the need for more competition. How do you reconcile that with warnings from experts that tightening regulations could risk further refinery closures?
  • Aside from pushing legislation, what concrete efforts have you made to collaborate with the energy industry to stabilize price volatility?
  • Experts have warned that California’s fuel infrastructure is on the verge of catastrophic failure, and that this bill will only make things worse by increasing volatility. What’s your response to these serious concerns?
  • Why aren’t you taking the simplest step of allowing access to the abundant petroleum reserves in Kern County, instead of increasing reliance on imported crude through our ports—at a higher cost and with greater environmental impact?

About WSPA

Founded in 1907, the Western States Petroleum Association (WSPA) is the oldest petroleum trade association in the United States. WSPA represents a dynamic membership of companies at the forefront of petroleum exploration, production, refining, and transportation, as well as leaders in renewable energy and carbon management innovations. Serving Arizona, California, Nevada, Oregon, and Washington, WSPA is committed to providing reliable and affordable energy access for all Americans. We advocate for policies that balance social, economic, and environmental considerations. Our approach is inclusive and data-driven, as we educate government leaders, the media, and the public. WSPA strives to ensure informed policy decisions that will secure a vibrant and sustainable energy future for all.