Buried deep in the California Energy Commission’s August 2024 Transportation Fuels Assessment is a modest proposal: that the state government “purchase and own refineries … to manage the supply and price of gasoline.”

That’s right: since Sacramento’s hostile, high-cost policy environment is forcing refinery operators to exit the California market, citing a lack of profitability, the state government should consider taking over the industry it is effectively suffocating.

A recent Los Angeles Times report, which confirms the idea is under consideration by the Newsom administration, put it this way:

“Russia. China. Venezuela. Iran. More than a dozen countries make gasoline at state-owned refineries. Could California be next on the list?”

Given Sacramento’s long history of costly blunders and recent record of ineptitude – and the fact that the world’s fifth largest economy will remain heavily reliant on refined products for decades to come – the question should give Californians serious pause. 

Think about it: The state government that couldn’t manage a COVID test lab without “significant deficiencies” posing “immediate jeopardy to patient health and safety” may now decide to run multiple, highly technical refinery operations.

A CBS News investigation on the COVID lab found problems like “unlicensed lab techs, sleeping on the job … incidents of contamination, swapped samples, and wrong results ….” Imagine those issues – only in an industrial facility designed to heat crude oil to 1,000 degrees Fahrenheit.

Indeed, the government that gave away $20 billion in fraudulent unemployment benefits, couldn’t reduce homelessness despite spending $24 billion, and is still working to get a single reservoir built after 40 years of trying – yes, that same state government – is considering taking control of California’s fuel supply operations.

Industry experts warn that refineries are difficult businesses to run, pointing to a need for deep technical expertise. And, to their credit, the Energy Commission concedes that the state has “no experience in managing” the “complex industrial processes” involved.  

As the Times reports: 

“In a statement, the energy commission acknowledged that ‘there are many challenges to overcome’ with a state-owned refinery, ‘including the high cost to purchase and operate, the skilled labor and expertise necessary to manage refinery operations, and how the refinery would fit into the state’s transition away from petroleum fuels.’”

Meanwhile, the governor’s office made no mention of potential challenges in its statement to the reporter. 

After all, what could possibly go wrong?