Oil company Phillips 66 has announced that it plans to shut down a Los Angeles-area refinery that accounts for about 8% of California's refining capacity The company indicates it will remain operating in California.

Phillips 66 previously ceased operations at its Santa Maria refinery in 2023 as part of its plans to convert its San Francisco facility to a renewable diesel and sustainable aviation fuels plant. Ortiz pointed to the conversion as another example of the company positioning itself well in California.

Phillips 66 plans to close its refinery near the Port of Los Angeles in late 2025. The company’s announcement Wednesday follows Gov. Gavin Newsom’s signature of legislation implementing new oil controls.

Phillips 66 said it will shut its large Los Angeles-area oil refinery late next year, delivering a blow to California's fuel supply amid complaints about the state's high prices.

Phillips 66 announced plans to end operations at its Los Angeles oil refinery just days after California Gov. Gavin Newsom signed a new law mandating stringent requirements for oil refineries in the state.

The refinery accounts for about 8% of California's refining capacity, according to the state's Energy Commission. The company said it will remain operating in the state.