Overview

• The California Energy Commission voted to postpone enforcement of the SBX1-2 refinery profit cap until 2030.
• Two refineries set to shut down will remove roughly 17% to 18% of the state’s refining capacity, which commissioners said drove the decision.
• The commission plans to set minimum-inventory rules for refineries, and the Newsom administration is proposing temporary streamlining of permits for new wells in existing fields to stabilize supply.
• Officials retain the legal ability to activate a profit cap earlier, but it would require another vote and more than a year of additional analysis.
• Reaction split quickly: Consumer Watchdog called the pause a giveaway to industry, the Western States Petroleum Association praised the delay, and AAA pegged California’s average at $4.59 a gallon versus $3.20 nationally.