Part 7/12:
Legislatively, California is countering the trend of refinery closures by expanding oil production in specific regions like the San Joaquin Valley, aiming to bolster fuel resilience. This reflects an acknowledgment that an orderly transition requires maintaining some level of in-state refining capacity to avoid economic fallout, job losses, and supply gaps.
The Economics of Transition and Its Challenges
Converting refineries to produce renewable fuels has proven possible but extremely costly. The Rodeo and Martinez projects showcase how transitioning requires navigating environmental regulations, lawsuits, and environmental approvals—processes that can take years and increase expenses substantially.