A top official at Chevron is warning that an upcoming vote by California state regulators could be the final straw that collapses the oil and gas industry in the state.
When asked if Chevron is threatening to leave the state, Walz said the company has not yet made a decision. Walz said state leaders must get in front of the issue.
"I am extremely worried. I do think we have an emergency in the state of California. I think lawmakers need to take this seriously," Walz said.
The California Air Resources Board in May is expected to consider a proposal to update what's known as the state's "cap and invest" program. At the last-minute last summer, California lawmakers and Gov. Newsom extended the clean air program by another 20 years and directed the air board to update the regulation. The program specifically requires companies considered "polluters" to limit their carbon emissions, buy credits from the state in order to pollute or fund a variety of state projects like the High-Speed Rail.
State leaders rushed to renew the program that was set to expire in 2030, pointing to environmental threats from the Trump administration and concerns from investors with risks to the carbon credit market. That situation threatened funds for the state's energy and public transportation projects.
The updated proposal by the air board attempts to set more aggressive limits on emissions between now and 2030 and significantly reduce the number of credits companies can buy to pollute. The air board is accepting public comment on the proposal through Monday, March 9.
In an interview with KCRA 3 on Thursday, Chevron's President of Downstream, Midstream and Chemicals Division Andy Walz said the proposal ends up basically adding billions in costs to companies refining and producing fuel in-state. He said companies importing fuel from other countries would avoid the added costs.
He noted relying on foreign imports is problematic given the geopolitical situation right now in the Middle East and the war in Iran.
