California stands at a pivotal moment in its energy and economic trajectory. With two major refineries preparing to shut down, the state faces a significant drop in domestic refining capability. Analysts forecast that this reduction will drive gasoline prices upward by 15 to 30 cents per gallon in the near term, according to the California Energy Commission (CEC). For residents and enterprises across Orange County, this isn’t merely a fuel issue—it’s a cost-of-living emergency with far-reaching implications. n nThe Orange County Business Council has consistently promoted a diversified energy strategy to sustain regional economic expansion. It has also warned against policy decisions that inflate fuel expenses. The current situation reflects the consequences of regulatory frameworks that deter local crude extraction and undermine the financial viability of refining operations—now culminating in facility shutdowns. These developments are pushing the region toward greater dependence on imported fuel, often sourced from nations with weaker environmental standards, while simultaneously increasing transportation and consumer prices. n nRecently, there has been a shift in legislative awareness. Assemblymember Cottie Petrie-Norris earned recognition for convening a crucial oversight hearing that elevated transparency and urgency around the issue. This action, along with growing engagement from Orange County’s legislative representatives, signals a deeper appreciation in state government for the economic stakes involved. The thoughtful and serious nature of their inquiries demonstrates a willingness to confront the challenge head-on. n nCollaboration between business leaders and local lawmakers is showing promise. Elected officials are increasingly acknowledging the tangible effects of refinery closures and the policy barriers that led to this point. They recognize how rising energy costs disproportionately affect low-income households and small enterprises. Most encouragingly, they are exploring practical solutions, and the business community welcomes this cooperative approach. n nYet, decisive policy action is now essential. n nOrange County is more than a residential hub—it is a powerhouse of economic activity. Home to over 3.2 million people and generating a GDP surpassing $333 billion, its economy outpaces that of 25 U.S. states. The region thrives on innovation-driven sectors such as advanced manufacturing, biotechnology, digital services, and tourism—all of which rely on stable and reasonably priced fuel supplies for logistics, operations, and workforce mobility. Escalating pump prices threaten to erode the foundation of this prosperity, especially in a region already grappling with high living expenses. n nFor small businesses, increased fuel costs translate into reduced profit margins and higher prices for consumers. In a transportation system heavily reliant on personal vehicles, working families face tighter household budgets as fuel expenditures rise. n nThe Orange County Business Council urges state legislators to implement timely reforms that reflect both the severity of the crisis and the genuine concern expressed by policymakers. Specifically, it recommends: repealing the refinery margin cap, which discourages infrastructure investment; eliminating the minimum inventory mandate that complicates supply logistics; and permitting responsible in-state crude production to reduce dependence on high-emission imports and support local employment. n nThese measures are not extreme but grounded in economic necessity. While the transition to cleaner energy remains a priority, California can lead on climate without compromising energy affordability and reliability—key pillars of economic competitiveness. n nJeff Ball serves as president and CEO of the Orange County Business Council. n— news from Orange County Register n
— News Original —nCalifornia’s fuel crisis threatens Orange County’s economic enginenCalifornia’s economy is at a crossroads. With two major refinery closures looming, the entire state is bracing for a substantial reduction in critical refining capacity. Experts predict these closures will spike gas prices in the coming months. For businesses and working families alike, California’s fuel supply crisis is actually an affordability crisis. And the economic consequences for Orange County businesses and families are alarming. The California Energy Commission (CEC) projects a 15–30¢/gallon further increase in gasoline prices in the short-term following the shutdowns. n nOrange County Business Council has long advocated for multiple sources of energy to support further growth of our economy. And we have sounded the alarm about avoidable pressures which are driving up fuel costs in California. The results are all too predictable with a regulatory environment that discourages local oil production and hampers the economics of refining to the point of now facing refinery closures. Higher prices at the pump, higher costs for goods and services and a growing reliance on imported fuel from foreign countries many of whom are dismissive about environmental concerns. n nBut in recent months, we have seen a notable shift in tone from our state legislative delegation. Assemblymember Cottie Petrie-Norris deserves credit for hosting a critical oversight hearing that brought transparency and urgency to this issue. Her leadership, and that of others in the Orange County delegation, signals a growing understanding in Sacramento of the economic magnitude of this challenge. The seriousness behind the questions from the dais deserves recognition and reflects genuine engagement with the issue. n nWorking openly with our Orange County delegation, we are encouraged by their responsiveness. They are acknowledging the real-world impacts of refinery closures and the policy constraints that have led California to this point. They understand how these affordability issues harm our most vulnerable communities and businesses. Most importantly, they are beginning to chart a path forward and we are proud to work with them. n nHowever, words must now translate into urgent action because of what is at stake. n nOrange County is not just a beautiful place to live. It’s also one of the most economically dynamic regions in the country. With more than 3.2 million residents and a GDP exceeding $333 billion, our local economy is more robust than those of 25 other states —underscoring the county’s role as a global economic engine fueled by thriving industries like advanced manufacturing, life sciences, technology and tourism. n nThese sectors depend on reliable, affordable fuel to move goods, serve customers and support workers. Rising gas prices threaten to undermine the economic “fuel” driving growth and prosperity in one of the most desirable places to live and work in the world – a region that is already combating increased costs of living. n nFor small businesses, higher transportation costs mean tighter margins and higher prices for customers. For working families in a largely car-dependent region, elevated fuel prices strain already-stretched budgets. n nWe respectfully call on lawmakers to advance the policy reforms that match both the urgency of the moment and their authentic concerns. n nSpecifically, we call on the Legislature to: n nRepeal the refinery margin cap law, which discourages investment in refining infrastructure. n nRepeal the minimum inventory law, which adds unnecessary costs and complexity to fuel supply chains. n nEnable responsible local crude oil production, reducing our reliance on highly emitting imports and supporting California jobs. n nThese are not radical proposals. They are pragmatic steps that reflect the economic realities facing all Californians. n nWe understand the importance of moving toward a cleaner energy future. But we also believe California can be a climate leader without sacrificing energy affordability and reliability. Important elements in our ability to be economically competitive. n nJeff Ball is president & CEO of the Orange County Business Council.
