California's refinery landscape is poised for significant change over the next year, with major capacity reductions expected by 2026. This report examines the current refining capacity in California and analyzes the projected changes due to announced refinery closures, their causes, and potential implications for the state's fuel supply and prices.

California’s unique fuel blends, particularly California Reformulated Gasoline (CaRFG), are a direct response to the state’s longstanding air quality challenges and strict environmental regulations.

California, like the rest of the U.S., requires different gasoline formulations for summer and winter to address both environmental and engine performance needs. The differences are especially pronounced in California due to its stricter air quality standards.