Key insights from POLITICO's California climate discussion:

The upcoming 12 days of the legislative session have been a hot topic of discussion, as it shapes up to be one of the most consequential in recent years. This was the focus of a summit moderated by Debra Kahn, the policy editor of POLITICO California.

The summit, which took place at POLITICO's Sacramento Summit, brought together state officials, oil industry representatives, and environmental justice leaders. Climate policy and energy affordability were among the wide range of topics covered during the discussion.

One significant aspect of the conversation revolved around the potential closure of two refineries, owned by Phillips 66 and Valero Energy. Phillips 66 is set to shut down its Los Angeles-area refinery starting September 2025, with full closure by the end of 2025. Valero Energy, on the other hand, announced the closure of its Benicia refinery, scheduled for 2026. Together, these closures will remove about 17–20% of California's gasoline refining capacity.

The potential impact of these refinery closures on gas prices was a significant topic of discussion. It was estimated that the closures, scheduled for the coming months, could increase average gas prices by more than $1.20 per gallon by next August.

The gasoline policy was also a major point of negotiation in discussions around energy affordability. Democratic Governor Gavin Newsom and state lawmakers are attempting to prevent the closure of these refineries in an effort to maintain affordable gas prices for Californians.

In addition to the refinery closures, climate policy was also a topic of discussion during the summit. The conversation about these issues will undoubtedly continue to be a crucial part of the upcoming legislative session.