Signed in October 2024, this law mandated minimum fuel storage levels, driving up operating costs to unsustainable levels. The Marathon Martinez refinery & Phillips 66 Rodeo refinery Conversions (2023):Marathon and Phillips 66 converted facilities to renewable diesel, taking another 260,000 barrels per day of crude processing capacity offline. Military Reserves Drained: Despite Gulf Coast refineries running at a grueling 98% capacity , California still required substantial emergency draws from the nation's military fuel storage reserves to prevent a systemic collapse and fuel rationing. Despite Gulf Coast refineries running at a grueling , California still required substantial emergency draws from the to prevent a systemic collapse and fuel rationing. Port vulnerability:The three busiest ports in America, located at Long Beach, Los Angeles, and Oakland are unable to support the supply chain for the humongous daily transportation fuel demand volumes within CA.