Chevron warns Governor Newsom’s radical Cap-and-Invest amendments threaten over 500,000 California jobs and national energy security, exposing the devastating cost of climate alarmism.
Story Snapshot
- Chevron’s letter details 536,770 jobs at risk from crippling refinery regulations.
- California faces $64 billion annual tax revenue loss and gas prices surging over $1 per gallon by 2030.
- Newsom extended the program to 2045, accelerating refinery closures like Valero’s Benicia shutdown.
- Industry leaders call the policy a “shakedown” that undermines energy independence and worker livelihoods.
Chevron’s Dire Warning to Newsom
On March 4, 2026, Chevron President Andy Walz sent a letter to Governor Gavin Newsom and the California Air Resources Board (CARB). The letter warns that proposed amendments to the Cap-and-Invest program will destroy the state’s seven remaining refineries. These changes impose stricter carbon allowance costs on refiners, making operations unsustainable. Chevron highlights immediate threats to 536,770 petroleum industry jobs and $64 billion in annual tax revenue that funds public services. This policy overreach prioritizes climate mandates over economic reality, hitting working families hardest.
Historical Roots of Cap-and-Invest Overreach
California’s Cap-and-Invest program originated from AB 32, the Global Warming Solutions Act of 2006. CARB launched cap-and-trade in 2012, rebranded it Cap-and-Invest, forcing businesses to buy carbon allowances in quarterly auctions. Newsom extended the program through 2045 in September 2026 despite warnings. Critics label it a tax shakedown, as companies purchase credits without reducing emissions. Nations like Spain and Australia abandoned similar systems due to economic harm. California’s aggressive push ignores these lessons, endangering energy reliability.
Real-World Refinery Closures Underway
PBF Energy warned CARB the weekend before March 4, 2026, about impacts on refineries. Valero’s Benicia refinery shutdown demonstrates the stark reality. These closures eliminate in-state refining capacity, forcing fuel imports and price spikes. Chevron’s Walz stated the amendments “will cripple refineries” and risk national security. Higher gasoline, transport, and aviation fuel costs burden consumers. Union workers in high-paying oil and gas roles face mass layoffs, eroding family stability and state budgets.
Short-term effects include hundreds of thousands of job losses and reduced public funding. Long-term, zero domestic refining disrupts markets and weakens U.S. energy independence amid global tensions.
Chevron Warns Newsom’s Climate Alarmism Will Cost 500,000 Jobshttps://t.co/qNeCk9IMPk
— PJ Media (@PJMedia_com) March 7, 2026
Economic and Security Threats Mount
Projections show gasoline prices rising over $1 per gallon by 2030 due to these regulations. California’s petroleum sector supports over 530,000 jobs, vital for economic health. CARB’s pending amendments drive refining to zero, accelerating industry exodus. This clashes with President Trump’s national energy dominance agenda, contrasting federal pushes for fossil fuel production. Newsom’s climate priorities threaten workers, taxpayers, and security, fueling backlash against Democratic overreach. Families paying more at the pump deserve better than virtue-signaling policies.
Sources:
Chevron warns Newsom’s cap-and-invest plan will destroy California’s refining industry
Chevron warns of irreversible harm to California’s economy and energy security in letter to Newsom
California’s gas prices could spike due to proposed state climate regulations, oil executives say
