LOS ANGELES—California legislators on Wednesday considered a plan that would dramatically loosen restrictions on drilling and refining oil in the state, as it scrambles to reconcile ambitious climate goals with the sobering reality of continuing demand for conventional transport fuels.
The plan comes at the urging of Gov. Gavin Newsom—a major shift from his hardline decarbonization stance that would have seemed unlikely a year ago.
Citing rapid changes in the transportation fuels sector and the sudden exits of several refineries, the Democratic governor in April asked state agencies to work with refiners to stave off the impending crisis, as California faces mismatched supply and demand during a critical phase in its transition to carbon neutrality….