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'Brutal indictment': Calif. Dems demanded energy companies explain why gas prices are so high and one company was HAPPY to help

Gas prices everywhere are back on the rise, and California drivers are paying the most in the nation. What’s Gov. Gavin Newsom’s solution to bring gas prices down? Raising taxes on energy companies. No, seriously:

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That would of course make energy prices go up because the extra taxes would be passed on to consumers, so Gov. Newsom is either a moron or he hopes everybody else is.

David Hochschild, the Newsom-appointed chair of the California Energy Commission, joined the California governor in demanding answers from energy companies:

Texas-based Valero Energy seemed more than happy to respond, and Gov. Newsom and others in California leadership will not like it:

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Ouch!

Here’s the section of the letter that’s a self-awareness check for California’s lefty politicians:

As to separation between California prices and the prices in the rest of the United States, we can offer the following information. For Valero, California is the most expensive operating environment in the country and a very hostile regulatory environment for refining. California policy makers have knowingly adopted policies with the expressed intent of eliminating the refinery sector. California requires refiners to payvery high carbon cap and trade fees and burdened gasoline with cost of the low carbon fuel standards. With the backdrop of these policies, not surprisingly, California has seen refineries completely close or shut down major units. When you shut down refinery operations, you limit the resilience of the supply chain.

From the perspective of a refiner and fuel supplier, California is the most challenging market to serve in the United States for several additional reasons. California regulators have mandated a unique blend of gasoline that is not readily available outside of the West Coast. California is largely isolated from fuel markets of the central and eastern United States. California has imposed some the most aggressive, and thus expensive and limiting, environmental regulatory requirements in the world. California polices have made it difficult to increase refining capacity and have prevented supply projects to lower operating costs of refineries.

We believe the Commission experts understand that California cannot mandate a unique fuel that is not readily unavailable outside of the West Coast and then burden or eliminate California refining capacity and expect to have robust fuel supplies. Adding further costs, in the form of new taxes or regulatory constraints, will only further strain the fuel market and adversely impact refiners and ultimately those costs will pass to California consumers.

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Paying attention, California progs? If you want to know why energy prices are so high go look in a mirror.

More of this in the future please!
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Related:

Calif. Gov. Newsom’s way of combatting inflation could hit some snags (not that he cares)

Gov. Gavin Newsom calls for new taxes on greedy oil companies in order to bring down gas prices, or something

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Editor’s Note:

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