California's War on American Energy Impoverishes Residents and Harms National Security

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FACT SHEET: California’s War on American Energy Impoverishes Residents and Harms National Security

President Trump is reducing California’s dependence on foreign oil, after state policies left Californian residents and more than 30 U.S. military installations vulnerable.

Energy.gov

April 8, 2026

California’s War on American Energy Impoverishes Residents and Harms National Security

CALIFORNIA CONSISTENTLY HAS THE HIGHEST ENERGY PRICES IN THE COUNTRY

• California’s sky-high prices are the result of years of bad policy decisions that have hindered the state’s energy production, impoverished its residents, and harmed national security.
• Californians pay the highest gasoline prices in the U.S., including the highest taxes and fees on gasoline.
• California households have some of the highest electricity prices in the U.S.—30.29 cents/kWh, compared to the 17.45-cent national average.
  • Since 2014, California’s average electricity price has increased by 96%.
• A 2026 U.C. Berkeley study revealed California has the highest adjusted poverty rate in the nation due to the state’s policies which have created an exceptionally high cost of living.

HIGH ENERGY PRICES IN CALIFORNIA ARE A CHOICE

• California leaders have made policy decisions that directly raise energy costs across the state.
  • In 2026, a CBS News investigation found that state-specific costs make up 55% of every gallon of gasoline sold in California.
  • Drivers pay a “ California premium,” including extremely high gas taxes, fees, and green new scam surcharges. Californians pay the highest taxes and fees on motor gasoline in the country at 70.9 cents per gallon—over twice the national average.
  • California also requires a special fuel blend, produced in limited refineries, which further inflates prices.
• California’s anti-energy restrictions have forced refineries to close and leave the state.
  • The number of operating refineries has dropped from 23 in 2000 to just 12 today and 11 by May 2026.
  • Two refineries responsible for nearly 20% of the state’s gasoline supply have shutdown or are about to after the state imposed new restrictions on refineries. For instance, Phillips 66 announced its closure last year, and Valero’s Oil refinery in Benicia announced it will be closing its doors by the end of this April.
• A January 2025 report from the California Legislative Analyst’s Office shows California’s aggressive climate policies have driven rapid residential electricity rate increases.
• Across the nation, states with anti-American energy policies have 50 percent higher electricity prices on average.

CALIFORNIA DEPENDS ON FOREIGN OIL, UNLIKE MOST OF AMERICA

• California’s foreign oil imports tripled in the last 20 years, unlike most states which have decreased.
  • California was once one of America’s top oil producers, accounting for 40% of U.S. oil output, today it produces less than two percent.
  • 60% of California’s crude supplied to refineries is imported from foreign countries, which puts U.S. national security at risk.

THANKS TO PRESIDENT TRUMP, CALIFORNIA IS PRODUCING MORE OIL AGAIN

• President Trump is reducing California’s dependence on foreign oil, after state policies left Californian residents and more than 30 U.S. military installations vulnerable.
• On March 13, U.S. Secretary of Energy Chris Wright directed Sable Offshore Corp. to restore operations of the Santa Ynez Unit and Santa Ynez Pipeline System to address supply disruption risks.
• Sable Offshore is already pumping large amounts of oil to Chevron from Santa Barbara. The pipeline was successfully filled from Las Flores Canyon to Pentland Station at a rate exceeding 50,00 barrels per day — marking a 15 percent increase in California’s in-state oil production which will replace almost 1.5 million barrels of foreign crude oil each month. Download Fact Sheet

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