Chevron Warns of Dire Consequences from California's 'Cap-and-Invest' Program

Energy company says new regulations would drive up gas prices, threaten refineries, and endanger thousands of jobs

Published on Mar. 6, 2026

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Chevron, which is moving its headquarters from California to Texas, has warned the state's governor and air resources board that new 'Cap-and-Invest' regulations would push gas prices up by $1 per gallon, threaten the few remaining oil refineries, and endanger half a million jobs in the local oil and gas industry. The company says the regulations would cause 'lasting and irreversible harm to California's economy and energy security'.

Why it matters

California already has some of the highest gas prices in the nation, and the proposed regulations could further drive up costs for consumers and businesses. The potential loss of refining capacity and oil and gas jobs would also have significant economic impacts, especially in regions like the Central Valley that rely heavily on the industry.

The details

The 'Cap-and-Invest' program is an evolution of California's previous 'Cap-and-Trade' system, which aimed to reduce greenhouse gas emissions by capping overall emissions and allowing companies to trade emissions permits. The new regulations would further tighten the emissions cap, reducing the available fuel supply and driving up prices according to Chevron. The company warns this could threaten the viability of the few remaining oil refineries in the state.

  • In 2026, California's 'Cap-and-Invest' program is set to implement new, amended regulations.
  • Last year, Governor Newsom signed AB 2017 which renamed the program from 'Cap-and-Trade' to 'Cap-and-Invest'.

The players

Chevron

An American oil and gas company that is moving its headquarters from California to Texas.

Gavin Newsom

The current Governor of California.

California Air Resources Board (CARB)

The state agency responsible for regulating air pollution and greenhouse gas emissions in California.

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What they’re saying

“The new regulations would drive our costs even higher.”

— Chevron (nypost.com)

“The regulations would cause 'lasting and irreversible harm to California's economy and energy security and broader vital American interests.'”

— Chevron (nypost.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.