Governor Edmund G. Brown Jr. today directed the California Air Resources
Board (CARB) to take emergency steps to increase the state's gasoline
supply and bring down fuel prices.
The Governor directed the board to immediately allow oil refineries to
make an early transition to winter-blend gasoline. Winter-blend gasoline
typically isn't sold until after October 31.
"Gas prices in California have risen to their highest levels ever, with
unacceptable cost impacts on consumers and small businesses," said
Governor Brown. "I am directing the Air Resources Board to immediately
take whatever steps are necessary to allow an early transition to
winter-blend gasoline."
Winter-blend gasoline is a mixture that evaporates more quickly than the
gasoline sold in summer months, which takes longer to evaporate and is
better for air quality during the smog season. Allowing an early
transition to winter-blend gasoline could increase California's fuel
supply by up to an estimated 8-10 percent with only negligible air
quality impacts.
Gas prices in California have skyrocketed over the past week due to a
tightening of fuel supplies caused by shutdowns at Tesoro and Exxon
refineries. The Exxon refinery came back online Friday and Tesoro is
scheduled to resume production early next week. Combined, these actions
are expected to stabilize and reduce fuel prices.
The text of the Governor's letter to the California Air Resources Board (CARB) is below:
October 7, 2012
Mary Nichols, Chairman
California Air Resources Board
1001 I Street
Sacramento, CA 95812
Chairman Nichols:
California is temporarily experiencing tight gasoline supplies that are
causing dramatic spikes in the price consumers must pay to fuel their
vehicles. Gas prices in the State have set new record highs, and gas is
completely unavailable at some stations in southern California. If this
situation continues, it may cause unacceptable price impacts for
consumers and small businesses, significant economic disruption, and
serious harm to public safety and welfare.
California refiners are required to produce a summer-blend gasoline
through October in most areas of the State. After October 31, a
winter-blend gasoline is allowed. Due to the composition of the
gasoline, refiners can produce more of the winter-blend than the
summer-blend.
In light of the tight gasoline supplies and resulting price spikes, we
should not wait until the end of the month to start production of our
winter-blend gasoline. Allowing refiners to make an early transition to
winter-blend gasoline could quickly increase fuel supply and provide a
much needed safety valve with negligible air quality impacts.
Accordingly, I am directing that the Air Resources Board immediately
take whatever steps are necessary to allow for an early transition to
winter-blend gasoline to be manufactured, imported, distributed, and
sold in California.
Edmund G. Brown Jr.
Governor
