FACT SHEET A Petroleum Phase-Out Plan for California

California's transportation sector is transitioning toward renewable electricity, with gasoline demand peaking and zero-emissions vehicle market share exceeding 20 percent in 2023. However, the state faces significant risks due to its 'fuel island' status, lack of pipeline connections to other regions, and a highly concentrated market where five companies control 98 percent of gasoline production capacity. The document emphasizes the need for a managed phase-out to prevent oil companies from evading cleanup responsibilities or exploiting reduced competition to cause price spikes. It advocates for the use of the California Energy Commission's new oversight authorities to ensure an equitable transition that prioritizes public health and community revitalization over industry profits.

• The state's petroleum infrastructure is highly concentrated and vulnerable; five companies control 98 percent of gasoline production capacity. In Northern California, the largest refinery accounts for 45 percent of capacity, while in Southern California, the largest accounts for 35 percent.
• California operates as a "fuel island" because it uses a unique cleaner-burning gasoline formulation and lacks pipeline connections to other regions, meaning it cannot easily import fuel to compensate for the closure of in-state refineries.
• The transition to clean energy is already underway, with the market share for zero-emissions vehicles in California surpassing 20 percent in 2023 and gasoline demand now declining.
• There is a significant risk that oil companies will use bankruptcy or other tactics to avoid their obligations to workers and communities during the phase-out, as seen in the 2019 closure of the largest refinery on the East Coast.

APA

Martin, J. (2024). FACT SHEET A Petroleum Phase-Out Plan for California. Union of Concerned Scientists. https://ucs-documents.s3.amazonaws.com/clean-vehicles/ucs-petroleum-phaseout-factsheet.pdf

Chicago

Martin, Jeremy. FACT SHEET A Petroleum Phase-Out Plan for California. Union of Concerned Scientists, 2024. https://ucs-documents.s3.amazonaws.com/clean-vehicles/ucs-petroleum-phaseout-factsheet.pdf.

Wikipedia

{{cite report |last1=Martin |first1=Jeremy |title=FACT SHEET A Petroleum Phase-Out Plan for California |publisher=Union of Concerned Scientists |date=October 2024 |url=https://ucs-documents.s3.amazonaws.com/clean-vehicles/ucs-petroleum-phaseout-factsheet.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{martin2024fact, author = {Martin, Jeremy}, title = {{FACT SHEET A Petroleum Phase-Out Plan for California}}, institution = {Union of Concerned Scientists}, year = {2024}, month = oct, url = {https://ucs-documents.s3.amazonaws.com/clean-vehicles/ucs-petroleum-phaseout-factsheet.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }