California’s fossil fuel phaseout has left it vulnerable to the Iran oil shock

March 31, 2026

California has managed a remarkable feat over the past 20 years. Even as its economy has grown to overtake Germany’s as the fourth-largest in the world, the state’s consumption of gasoline has declined by almost 15%, and consumption of petroleum diesel has fallen by around two-thirds. This has happened due to some of the world’s most aggressive climate policies, including a tax on carbon emissions and a strict requirement to adopt clean-burning fuels such as “renewable diesel” made from fats and oils.

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