California’s Clean Energy Deal Faces Criticism

Governor Gavin Newsom’s recent clean energy initiative is being criticized as part of a broader trend in California’s policies that many believe are pushing businesses out of the state.

This memorandum, signed with UK Energy Secretary Ed Miliband, aims to tackle climate change and promises nearly $1 billion in clean technology projects backed by British company Octopus.

Republican gubernatorial candidate Steve Hilton expressed skepticism, questioning the partnership between two regions known for their high electricity prices—California and the UK. He posted a video on social media, labeling the offshore wind projects as potentially harmful to California’s coast.

Hilton didn’t hold back on his thoughts about Democratic candidates, suggesting they criticize carbon emissions while promoting clean energy.

“I’m frustrated with Newsom jetting around the world, emitting carbon, while promoting policies that contribute to high gas and electricity prices here at home,” he told the California Post.

When asked for a response, Newsom’s communications director replied, “Who is Steve Hilton?”

Dr. Wayne Winegarden, a senior fellow at the Pacific Institute, acknowledged the goal of achieving near-zero emissions but stressed that it’s crucial to do so without increasing costs—something that seems unresolved in California.

“The situation has definitely worsened over the past few years,” he noted, pointing to regulations like low-carbon fuel standards that are affecting state refineries.

Refineries such as Valero’s in Benicia are set to close, with operations halting by early 2026. Phillips 66 plans to stop fuel production in 2025, leaving California with just eight refineries—ironically, a state that consumes a large amount of transportation fuel.

Following Valero’s announcement, Newsom highlighted legislative efforts aimed at combating rising fuel prices, which include increasing oil production in Kern County to help stabilize supply.

“While some accuse us of spreading panic, California is actively collaborating with industries, using data to support consumers, and addressing the energy needs of the future,” Newsom stated earlier this year.

However, reports indicate an uptick in oil shipments from the Bahamas due to rising gas prices in California, with November seeing over 40% of gasoline imports coming through Caribbean hubs, placing the state’s prices at an average of $4.58 per gallon—the highest nationwide.

While Winegarden stressed the importance of clean energy, he also pointed out that “instability” is a major issue, with alternative sources often fluctuating in reliability.

He further argued that California’s focus on achieving net-zero emissions may overlook the critical need for affordability and reliability, suggesting that using existing technologies like natural gas could be a more practical interim option.

Tom Manzo, from the California Business Federation, shared similar concerns, emphasizing that Newsom’s policies create an anti-business atmosphere which increases energy costs and pushes businesses away.

“The vision of clean energy is nice, but our skyrocketing prices are driving away refiners,” he lamented, referencing troubles with the largest solar farm in the Mojave Desert that has struggled to operate at full capacity.

Manzo also criticized Newsom for prioritizing international engagements over addressing domestic issues.

“Making flashy deals overseas isn’t going to solve California’s problems,” he stated.