California oil refinery to shut down to comply with Gavin Newsom’s anti-fossil fuel regulations

"With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles," CEO Mark Lashier said in a statement, according to the AP. "Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands."

The refinery, built more than 100 years ago, consists of two facilities operated by more than 600 employees and 300 contractors, all of whom will be impacted by the closure.

"We understand this decision has an impact on our employees, contractors and the broader community," Lashier said. "We will work to help and support them through this transition."

On Monday, Newsom signed legislation at the California State Capitol that his office claims would "help prevent gas spikes and save consumers money at the pump." The law permits the state to mandate that oil refineries maintain a minimum inventory of fuel and authorizes the California Energy Commission (CEC) to mandate that refineries prepare for resupply during refiner maintenance interruptions, as reported by Fox Business.

The governor's office stated that the legislation will "prevent spikes that cost Californians upwards of $2 billion last year, giving the state more tools to require that petroleum refiners backfill supplies and plan ahead for maintenance."

"Price spikes have cost Californians billions of dollars over the years, and we're not waiting around for the industry to do the right thing - we're taking action to prevent these price spikes and save consumers money at the pump," Newsom said in a statement. "Now, the state has the tools to make sure they backfill supplies and plan ahead for maintenance so there aren't shortages that drive up prices. I'm grateful to our partners in the Senate and Assembly for acting quickly to push this forward and help deliver relief for Californians."

Phillips 66 explained that it would not cease all of its operations in the state and promised to work with California to "supply fuel markets and meet ongoing customer demand." The company also said its decision to shutter the refinery was not due to the new law, but rather future market concerns.