Has Sacramento prematurely resigned itself to a future of foreign fuel dependence? It sure sounds that way.

California Energy Commission (CEC) Vice Chair Siva Gunda put it plainly at a recent Senate committee hearing:

“I think it’s important for us to think about how do you pivot from a full in-state refining capacity to a storage capacity plus import structure.”  

UC Berkeley energy economist Severin Borenstein went further in a recent webinar, calling gasoline imports “the only viable strategy.”

But these perspectives ignore a crucial reality: imports are only inevitable in California because Sacramento made them so. Importing even more fuel is a policy choice – one that can be reversed.

After all, California refineries aren’t closing because Golden State drivers no longer need gas. They’re closing because the economics of refining in California have been made untenable by hostile policies. 

If Sacramento truly wants to stop sending good refinery jobs and revenues to foreign fuel suppliers, here’s what can be done:

• Provide greater regulatory certainty for refiners. In his June 2025 letter to Governor Newsom, Gunda warned that California’s regulatory environment could lead to additional refinery closures, creating “a very real risk” of severe price spikes at the pump. Without predictable rules, refiners cannot make the long-term investments necessary to keep their facilities operating. While some very near-term certainties have been provided, more must be done to make California an attractive place for continued refinery investments.

• Increase responsible in-state oil production. SB 237 addressed permitting backlogs in Kern County, but other parts of the state remain bottlenecked. Sacramento should expand streamlined permitting rules to other existing oil fields so that in-state refineries can access more local crude.

• Remove barriers to energy infrastructure investments. Refinery upgrades currently face years of permitting delays, local challenges, and regulatory hurdles. Giving the CEC central authority to review refinery projects would accelerate investment decisions that keep California’s remaining refineries competitive and help protect against price spikes at the pump.

State leaders shouldn’t resign California to a future of imported gasoline. California’s growing dependence on foreign fuel is the result of policy, and a new governor has the opportunity to choose a different path.