Chevron Warns California Cap-and-Invest Plan Could Slash Refining Capacity 18% and Raise Gas $20/Gallon
Chevron warns that California’s 2026 Cap-and-Invest amendments—cutting emission allowances 2027–2030, extending the program to 2045 and capping offset credits—could close state refineries, slash refining capacity 18% and eliminate thousands of jobs. The company predicts fuel prices could rise $20/gallon by 2030 and warns of reduced public service funding.
1. Chevron’s Regulatory Concerns
Chevron has notified California policymakers that the proposed 2026 Cap-and-Invest amendments—reducing emission allowances between 2027 and 2030, extending the program to 2045 and limiting offset credits to about 6% of compliance—pose serious risks to the state’s energy stability and economic health.
2. Potential Refinery and Job Impacts
The company highlights that California’s refining capacity has already fallen nearly 18% and warns that further tightening could force additional refinery closures and eliminate thousands of jobs across its state operations.
3. Fuel Price Forecast and Consumer Impact
Chevron projects that gasoline costs in California—currently averaging $5.20 per gallon—could jump by another $20 per gallon by 2030, driving higher transportation and aviation fuel expenses, increasing import dependence and reducing funding for critical public services.