b"CEOs Message Association Information WESTERN STATES BRACEfor Fuel Price SurgeAmid California Refinery ClosuresTwo Major California Oil Refineriesare slated to shut down operations in the coming months, raising alarms across the Western United States about the impact on fuel prices WPMA Chief and supply chain reliability. The Phillips 66 Wilmington refinery Executive Officerin the Los Angeles area is expected to close by late 2025, with (CEO) the Valero Benicia refinery in Northern California following by Gene Inglesby early 2026. Together, these facilities represent roughly 1721% of Californias instate refining capacity.(Source: U.S. Energy Information Administration)The ripple effects are expected to be felt well beyondCalifornia. States across the Westincluding Arizona and Nevadaare heavily dependent on California refineries for a steady supply of gasoline, diesel, and jet fuel. With Californias isolated fuel market and limited pipeline infrastructure, anydecrease in production can cause price spikes and logisticalstrain throughout the region.The University of Southern California Marshall School of Business estimates prices could surge as high as $8.43 per gallon if the closures proceed without new capacity or supply alternatives (Sources: USC Marshall via SR40).Why These Closures Are HappeningThese planned refinery shutdownsare driven primarily by Californias stringent environmental regulations, especially under the Low Carbon Fuel Standard (LCFS), evolving emis-sions targets, and upgraded fuel storage rules. In 2024, SB 237 was introduced by a group of Democratic senators led by Bay Area moderate Sen. Tim Grayson, with seven co-sponsors. The bill aims to cap carbon prices and revise gasoline regula-tions, amending prior property-transfer legislation. Crucially, it mandates the California Energy Commission (CEC) and California Air Resources Board (CARB) to investigate a unified Western gasoline standard, potentially replacing Californias costlier Reformulated Gasoline (RFG) blend. This move recognizes the diverse fuel formulations already in use across Western states and the need for a common approach that balances environmental benefits with economic viability.In recent years, refineries in Utah have focused on producing cleaner-burning fuels, primarily Tier 3 gasoline, which features significantly lower sulfur content than older fuel formulations and helps reduce harmful emissions. As of January 2023, four of Utahs five refineries were producing Tier 3 gasoline, includ-ing Chevron and Marathon's Salt Lake Refineries (which both WPMA News / Summer 20257"