Transportation

Southwest Airlines To End Free Checked Bags Policy For First Time in Its 54-Year History (cbsnews.com) 86

Southwest Airlines boasts that its passengers' "bags fly free" -- but not for long. From a report: Starting May 28 -- just in time for the busy summer travel season -- only Southwest's most elite Rapid Rewards A-List Preferred members and passengers who book their top-tier Business Select fares will receive two free checked bags. Frequent flyer A-List Members, Southwest-branded credit card holders and other select customers will be allowed one checked bag.

Everyone else will be charged for their first and second checked bags on flights booked on or after May 28, the carrier says. It's a break with Southwest's 54 year history -- one that could undermine customer loyalty to the carrier, according to experts. "This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin," airline industry analyst Henry Harteveldt, of Atmosphere Research Group, told CBS News senior transportation correspondent Kris Van Cleave. "Southwest, with these changes, becomes just another airline."

Transportation

Volkswagen Bringing Back Physical Buttons, Says Removing Them Was a Mistake (pcmag.com) 128

smooth wombat writes: In what can only be described as a no-brainer, Volkswagen has announced it will have once again have physical buttons in all its vehicles. As Andreas Mindt, design chief at the company said, removing buttons was "a mistake".

"From the ID 2all onwards, we will have physical buttons for the five most important functions -- the volume, the heating on each side of the car, the fans and the hazard light -- below the screen," he explained, adding: "It's not a phone: it's a car."

This doesn't mean touch screens are set to disappear on new Volkswagens, just that drivers will now have the option of physical controls for their most used day-to-day tasks. The new controls are set to make their debut in the ID.2all, a small, budget EV set to debut in Europe.

Transportation

Can Ants Teach Us How to Program Self-Driving Cars? (scientificamerican.com) 63

gdm (Slashdot reader #97,336) writes: A study published in Transportation Research Interdisciplinary Perspectives investigates how ants avoid traffic jams.... Quoting the abstract: "The results show that ants adopt specific traffic strategies (platoon formation, quasi-constant speed and no overtaking maneuvers) that help avoid jam phenomena, even at high density." "Researchers are now studying these insects' cooperative tactics to learn how to program self-driving cars that don't jam up," writes Scientific American: "We're maximizing the interests of individuals, [which] is why, at a given point, you start to have a traffic jam," says study co-author Nicola Pugno, who studies sustainable engineering at the University of Trento in Italy. But self-driving cars, if they one day become ubiquitous, could have more cooperative programming. In one vision of this future, autonomous vehicles would share information with nearby cars to optimize traffic flow — perhaps, the researchers suggest, by prioritizing constant speeds and headways or by not passing others on the road...

Today's drivers can learn at least one thing from ants to avoid causing a traffic jam, says Katsuhiro Nishinari [a mathematical physicist at the University of Tokyo, who studies traffic]: don't tailgate. By leaving room between their car and the one ahead of them, drivers can absorb a wave of braking in dense traffic conditions that would otherwise be amplified into a full-blown "phantom" traffic jam with no obvious cause. "Just keeping away," he says, can help traffic flow smoothly.

In the article the researchers admit there are differences between humans stuck in traffic and ants. "Unlike cars, ants don't crash; they can literally walk over one another." And if they're backed up in a tunnel, "they'll find a way to walk on the ceiling!"

Biotech

Gene-Edited Non-Browning Banana Could Cut Food Waste, Scientists Say (theguardian.com) 67

An anonymous reader quotes a report from The Guardian: Many of us have been guilty of binning a mushy, overripe banana -- but now scientists say they have a solution with the launch of a genetically engineered non-browning banana. The product is the latest in a series of gene-edited fruits and vegetables designed to have a longer shelf life. Scientists say the technology is emerging as a powerful new weapon against food waste, which occurs globally on an epic scale. The banana, developed by Tropic, a biotech company based in Norwich, is said to remain fresh and yellow for 12 hours after being peeled and is less susceptible to turning brown when bumped during harvesting and transportation.

The company has also developed a slow-ripening banana that has been approved in several countries, which it plans to launch later in the year. Other research teams are working on lettuce that wilts more slowly, bruise-resistant apples and potatoes and identifying the genes that determine how quickly grapes and blueberries shrivel. [...] The company worked out how to disable a gene responsible for the production of an enzyme called polyphenol oxidase, which causes browning. The same gene is silenced in Arctic apples, a genetically modified variety, which has been sold in the US since 2017, and blocking the production of polyphenol oxidase has been shown to work in tomatoes, melon, kiwifruits and mushrooms. In the bananas, Tropic made precise changes to existing genes without introducing foreign genetic material.
The report notes that an estimated 33% of the produce that is harvested worldwide is never consumed due to the short shelf-life of many fruit and vegetable products. Bananas are among the most thrown-away foods, with some 5 billion bananas tossed in the U.S. each year.
Piracy

Feds Arrest Man For Sharing DVD Rip of Spider-Man Movie With Millions Online (arstechnica.com) 30

An anonymous reader quotes a report from Ars Technica: A 37-year-old Tennessee man was arrested Thursday, accused of stealing Blu-rays and DVDs from a manufacturing and distribution company used by major movie studios and sharing them online before the movies' scheduled release dates. According to a US Department of Justice press release, Steven Hale worked at the DVD company and allegedly stole "numerous 'pre-release' DVDs and Blu-rays" between February 2021 and March 2022. He then allegedly "ripped" the movies, "bypassing encryption that prevents unauthorized copying" and shared copies widely online. He also supposedly sold the actual stolen discs on e-commerce sites, the DOJ alleged.

Hale has been charged with "two counts of criminal copyright infringement and one count of interstate transportation of stolen goods," the DOJ said. He faces a maximum sentence of five years for the former, and 10 years for the latter. Among blockbuster movies that Hale is accused of stealing are Dune, F9: The Fast Saga, Venom: Let There Be Carnage, Godzilla v. Kong, and, perhaps most notably, Spider-Man: No Way Home. The DOJ claimed that "copies of Spider-Man: No Way Home were downloaded tens of millions of times, with an estimated loss to the copyright owner of tens of millions of dollars."

Australia

Australia, With No Auto Industry To Protect, is Awash With Chinese EVs (msn.com) 275

Chinese electric vehicle maker BYD is rapidly gaining market share in Australia, with sales rising 65% last year as nearly one in four EVs sold in the country was a BYD, according to EVDirect CEO David Smitherman. Chinese EVs now comprise roughly one-third of electric vehicles sold in Australia, which has no domestic auto industry to protect with tariffs, unlike the United States where both Trump and Biden administrations have effectively blocked Chinese EV imports.

The Biden administration imposed a 100% tariff on Chinese EVs to shield U.S. automakers from what it termed unfair competition. U.S. officials also blocked Chinese vehicle software over security concerns that Beijing could use internet-connected cars for surveillance. Australian authorities are monitoring U.S. developments but remain noncommittal despite security experts urging restrictions on Chinese connected car technology.
Transportation

Driverless Race Car Sets a New Autonomous Speed Record (theverge.com) 23

A fully driverless Maserati MC20 Coupe set a new autonomous land speed record, reaching 197.7 mph at the Kennedy Space Center. The Verge reports: The Maserati was running self-driving software developed by Politecnico di Milano, Italy's largest scientific and technological university. The team also worked with the Indy Autonomous Challenge, which most recently ran at the Las Vegas Motor Speedway during CES 2025. In the shadow of NASA's iconic Space Shuttles, the race car flew down the 2.8-mile runway at record-breaking speeds, surpassing the 192.2mph record that was also held by Indy Autonomous Challenge and PoliMOVE, set by an IAC AV-21 race car in April 2022.

The Maserati MC20 is a stylish -- and expensive -- choice for the autonomous run. Retailing for at least $239,000, the race car sports a mid-mounted, twin-turbocharged 3.0-liter V-6 that Maserati calls the Nettuno. The engine makes serious power: 621 horsepower and 538 pound-feet of torque, which is sent through an eight-speed dual-clutch automatic transmission to the rear wheels.

Transportation

Tesla Moves Towards Launching an Uber Competitor (axios.com) 245

"Tesla is taking steps to launch a ride-sharing service that could compete directly with Uber, Lyft and Waymo," reports Axios, noting that Tesla "has filed for a transportation charter-party carrier permit from the California Public Utilities Commission, Bloomberg reported Thursday." "That classification means Tesla would own and control the fleet of vehicles," Bloomberg reported... "In its communications with California officials, Tesla discussed driver's license information and drug-testing coordination, suggesting the company intends to use human drivers, at least initially," Bloomberg reported. The company is seeking the same type of permit that Waymo uses to run its robotaxi business.Uber is gearing up to begin offering autonomous vehicle services in partnership with Waymo in Austin and Atlanta later this year.
The article also adds that Musk "told investors in January that 'I'm confident that we will release unsupervised FSD in California this year,' referring to the company's Full Self-Driving system." But "Tesla has yet to apply for a permit to operate driverless vehicles..." notes the EV blog Electrek, adding "This is just a step for Tesla to test ride-hailing services ahead of autonomy."

Reuters also points out that "Earlier in October, Tesla revealed the Cybercab, a robotaxi concept that had no steering wheel or control pedals... He has said the Cybercab will go into production in 2026 and will also be available for customers to buy for less than $30,000."
The Courts

Apple Accused of Misleading Consumers With Apple Watch 'Carbon Neutral' Claims (theverge.com) 11

Apple is facing a class action lawsuit alleging it misled consumers by falsely claiming certain Apple Watches were carbon neutral, as the carbon offset projects it relied on did not effectively reduce greenhouse gas emissions. The Verge reports: Apple said in 2023 that "select case and band combinations" of its Apple Watch Series 9, Apple Watch Ultra 2, and Apple Watch SE would be the company's first carbon neutral devices. The suit was filed on behalf of anyone who bought those watches. It alleges that the products were not really carbon neutral because they relied on faulty offset projects that didn't actually reduce the company's greenhouse gas pollution. [...]

The company's carbon neutral claims were false, and the seven plaintiffs would not have purchased the Apple Watches or paid as much for them had they known that, the lawsuit alleges. "Apple's false advertising may lead [consumers] to choose its products over genuinely sustainable alternatives," the complaint (PDF) filed in a California federal court on Wednesday says.

Apple is standing by its assertions. "We are proud of our carbon neutral products, which are the result of industry-leading innovation in clean energy and low-carbon design," Apple spokesperson Sean Redding said in an email. Redding says the company reduced Apple Watch emissions by more than 75 percent. The company focused on cutting pollution from materials, electricity, and transportation used to make the watches, in part by getting more of its suppliers to switch to clean energy. To deal with the remaining pollution, Redding says Apple invests in "nature-based projects to remove hundreds of thousands of metric tons of carbon from the air." That's where the new lawsuit finds problems.

To offset their emissions, many companies buy carbon credits from forestry projects that represent tons of planet-heating carbon dioxide that trees and soil naturally trap. Apple primarily purchased credits from the Chyulu Hills project in Kenya and the Guinan Project in China, the suit says. It alleges that neither of the projects met a basic standard for carbon offsets, which is that they capture additional CO2 that would not otherwise have been sequestered had Apple not paid to support the project.

Google

The New York City Subway Is Using Google Pixels To Listen for Track Defects (wired.com) 23

New York City's Metropolitan Transportation Authority and Google have successfully tested technology that uses smartphone sensors to detect subway track defects, the MTA said Thursday. The four-month experiment, dubbed TrackInspect, mounted six Google Pixel phones on four A train subway cars traversing Manhattan and Queens. The phones' accelerometers, magnetometers, gyroscopes and external microphones collected 335 million sensor readings and 1,200 hours of audio data, which were processed through 200 prediction models.

The system identified 92% of defects later confirmed by human inspectors, including broken rails and loose bolts. "The goal with this [project] is to find issues before they become a major issue in terms of service," said Demetrius Crichlow, the agency's president. Following the successful trial, the MTA plans to expand to a full pilot where Google will build a production version for track inspectors.
United Kingdom

Electronic Devices Used For Car Thefts Set To Be Banned in England (bbc.com) 99

Sophisticated electronic devices used by criminals to steal cars are set to be banned under new laws in England and Wales. From a report: More than 700,000 vehicles were broken into last year -- often with the help of high-tech electronic devices, including so-called signal jammers, which are thought to play a part in four out of 10 vehicle thefts nationwide.

Until now, police could only bring a prosecution if they could prove a device had been used to commit a specific offence, but under new laws in the Crime and Policing Bill the onus will be on someone in possession of a device to show they had it for a legitimate purpose. Making or selling a signal jammer could lead to up to five years in prison or an unlimited fine.

Transportation

Lucid CEO Steps Down As EV Maker Plans To Double Production (cnbc.com) 18

Lucid CEO Peter Rawlinson has stepped down, with COO Marc Winterhoff taking over as interim CEO. The company also announced its fourth-quarter financial results and revealed plans to more than double vehicle production to 20,000 units in 2025. CNBC reports: Winterhoff told CNBC on Tuesday that it was Rawlinson's decision to resign as of Friday, however he declined to elaborate on any additional details. "It was Peter's decision after 12 years of, let's say, daily grind or daily activities and bringing the company where it is today ... that it is time to step aside and pass the baton," said Winterhoff, who joined Lucid from Roland Berger in December 2023. In a statement posted Tuesday on LinkedIn, Rawlinson said he decided it was "finally the right time" to step down after "successfully" launching the company's second product, a three-row SUV called the Gravity. He did not elaborate further on the decision in the lengthy post.

The CEO change and production target were announced in conjunction with the automaker's fourth-quarter financial results. For the period ended Dec. 31, the company reported a net loss attributable to common stockholders of $636.9 million, or a loss of 22 cents per share, on revenue of $234.5 million. Analysts surveyed by LSEG expected a loss of 25 cents per share on revenue of $214 million. During the same period last year, Lucid reported a net loss attributable to common stockholders of $653.8 million, or a loss of 29 cents per share, on revenue of $157.2 million. The production target for 2025 announced Tuesday is compared with production of 9,029 vehicles and deliveries of 10,241 reported for 2024. Winterhoff said production of the Gravity SUV will gradually build during the year. He declined to speculate on what percentage of the 20,000-unit production target the vehicle would represent.

Power

A Major Blackout Hits Chile, Leaving Millions Without Power (apnews.com) 27

A massive blackout has hit Chile, leaving millions without power and disrupting transportation, businesses, and essential services across 14 of the country's 16 regions. The Associated Press reports: The National Electrical Coordinator, Chile's grid operator, said a disruption had occurred in a high-voltage transmission line that carries power from the Atacama Desert of northern Chile to the capital of Santiago in the country's central valley. It did not say what actually caused the disruption that pushed much of the country's power grid into shutdown, from the northernmost Chilean port of Arica to the southern Los Lagos agricultural region.

Interior Minister Carolina Toha said hospitals, prisons and government buildings were switching on backup generators to keep essential equipment operating. In a press conference, Toha urged the public to stay calm and said officials were racing to put the grid back in operation and restore electric service across the country of some 19 million people. "It's affecting the entire electrical system of the country," she said of the breakdown in the 500-kV backbone transmission line. Toha said if all areas didn't return to normal by sunset the government would take emergency measures to avert a crisis. [...]

Videos on social media from all over Chile, a long ribbon of a country stretching 4,300 kilometers (over 2,600 miles) along the southern Pacific coast, showed chaos at intersections with no functioning traffic lights, people having to use their mobile phones as torches in the underground metro and police dispatched to help evacuate office buildings.

Transportation

Global Sales of Combustion Engine Cars Have Peaked (ourworldindata.org) 247

Our World in Data: To decarbonize road transport, the world must move away from petrol and diesel cars and towards electric vehicles and other forms of low-carbon transport.

This transition has already started. In fact, global sales of combustion engine cars are well past the peak and are now falling.

As you can see in the chart, global sales peaked in 2018. This is calculated based on data from the International Energy Agency. Bloomberg New Energy Finance estimates this peak occurred one year earlier, in 2017.

Sales of electric cars, on the other hand, are growing quickly.

Power

New EV Batteries are Making Electric Cars Cheaper and Safer (msn.com) 92

The Washington Post looks at a new kind of battery that "could make American EVs cheaper and safer, experts say." If you bought an EV with a lithium iron phosphate (LFP) battery, you could expect lower car payments, less fire risk and more years of use out of your car — but you wouldn't be able to go as far on a single charge as you could with the nickel manganese cobalt (NMC) batteries commonly found in American and European electric cars. That trade-off has made LFP batteries the go-to choice for standard-range EVs in China, helping to make electric cars more affordable and limit pollution. Now, American companies are starting to build their own LFP batteries to catch up to their Chinese rivals... But there are plenty of barriers for U.S. companies that want to adopt a technology dominated by Chinese firms. Tariffs and tax credit restrictions have made it too expensive for most American automakers to import LFP batteries from China, and national security concerns have made it hard for American companies to partner with Chinese battery makers to build factories in the United States...

Although American scientists invented LFP batteries in 1997, U.S. automakers didn't invest in the technology. Instead, they bet on NMC batteries because they have longer range, a big concern for American EV buyers. "Everyone in the West thought LFP was a nonstarter five or six years ago," said Adrian Yao, who founded STEER, a technology research group within Stanford University. "We really did have a myopic focus on" range, he added. That left the door open for Chinese companies to perfect LFP batteries, which have a few advantages. Instead of pricey nickel and cobalt, they use iron, which makes them 20 percent cheaper than NMC batteries, according to the International Energy Agency. While NMC batteries can be recharged up to about 1,000 times before they go kaput — which is enough to put 200,000 miles on most EVs — LFP batteries can last two or three times as long, according to Moura. Plus, LFP batteries' chemistry makes them less likely to catch fire and easier to extinguish. An NMC battery, on the other hand, is so flammable that "you could put it underwater or in space, and it'll keep burning because the oxygen it needs to keep the flame going is embedded within itself," Moura said.

That safety advantage is key, because Chinese firms figured out they could pack LFP cells closer together inside a battery pack without risking a fire. That meant they could cram more energy into LFP batteries and nearly catch up to the range of NMC batteries. Last year, the Chinese battery giant CATL made the first LFP battery with more than 600 miles of range. Since LFP batteries are made from common materials and last longer, they also have a smaller environmental footprint than NMC batteries.

Ford used LFP batteries in its Mach-E sedan (2023) and F-150 Lightning pickup trucks (2024), according to the article, "while Rivian began using them in the basic trims of its R1S SUV and R1T pickup truck this year... American LFP factories are slated to open this year in St. Louis and next year in Arizona." And an environmental engineering professor at the University of California at Berkeley predicts LFP battery factories in the U.S. will "grow quite rapidly over the next five to 10 years."
Businesses

Rivian Reports First Quarter of 'Positive Gross Profit' (theverge.com) 30

Rivian reported its first-ever positive gross profit of $170 million in Q4 2024, driven by cost reductions and increased regulatory credit sales, despite a $4.7 billion net loss for the year. The company said it expects to sell 46,000-51,000 vehicles this year and achieve "modest gross profit." The Verge reports: Rivian reported $170 million in positive gross profits, which includes production and sales but does not factor in other expenses, for the three-month period that ended December 31, 2024. That was based on $1.7 billion in revenues. The company said its net loss for the fourth quarter was $743 million, as compared to $1.5 billion in net losses in the same period in 2023.

Rivian earned $4.5 billion in revenue for the full year 2024, based on the delivery of 51,579 vehicles. It record a net loss of $4.7 billion, compared to $5.4 billion in 2023. Rivian cited increased revenue from the sale of regulatory credits to other automakers, which is also a primary revenue driver for Tesla. The company said it saw a $260 million increase in regulatory credit sales in the fourth quarter year over year.

Transportation

Canada Announces First High-Speed Rail Between Toronto and Quebec City (www.cbc.ca) 222

The Canadian government has launched a six-year, $3.9 billion design phase for a high-speed rail project connecting Toronto and Quebec City, with electric trains reaching up to 300 km/h. Construction is expected to begin after the design phase, potentially in four to five years, but future governments could modify or cancel the project. CBC News reports: "Today I'm announcing the launch of Alto, the largest infrastructure project in Canadian history," Trudeau said from Montreal. "A reliable, efficient, high-speed rail network will be a game-changer for Canadians." Trudeau said the new rail network will run all-electric trains along 1,000 kilometers of track, reaching speeds of up to 300 km/hour, with stops in Toronto, Peterborough, Ottawa, Montreal, Laval, Trois-Rivieres and Quebec City. A government statement said the project will stimulate the economy, "boosting GDP by up to $35 billion annually, creating over 51,000 good-paying jobs during construction."

Trudeau said that once built, the new high-speed rail network will take passengers from Montreal to Toronto in three hours -- about half the time it takes to drive and at double the speed of Via Rail's current trains. [...] Trudeau said the consortium Cadence -- made up of CDPQ Infra, Atkins Realis, Keolis, SYSTRA, SNCF Voyageurs and Air Canada -- was selected to build the line. The group was only informed in the last 24 hours that their bid was the best of the three submitted, according to sources that spoke to Radio-Canada. Transport Minister Anita Anand said that Alto, the Crown corporation created to oversee the project, and Cadence will be signing a contract "in the coming weeks" that will outline the first-phase design work, such as where track will be laid and where stations will be built.

Robotics

China's Electric-Vehicle-To-Humanoid-Robot Pivot (technologyreview.com) 37

"[O]ur intrepid China reporter, Caiwei Chen, has identified a new trend unfolding within China's tech scene: Companies that were dominant in electric vehicles are betting big on translating that success into developing humanoid robots," writes MIT Technology Review's James O'Donnell. "I spoke with her about what she found out and what it might mean for Trump's policies and the rest of the globe..." An anonymous reader quotes an excerpt from the report: Your story looks at electric-vehicle makers in China that are starting to work on humanoid robots, but I want to ask about a crazy stat. In China, 53% of vehicles sold are either electric or hybrid, compared with 8% in the US. What explains that?

Price is a huge factor -- there are countless EV brands competing at different price points, making them both affordable and high-quality. Government incentives also play a big role. In Beijing, for example, trading in an old car for an EV gets you 10,000 RMB (about $1,500), and that subsidy was recently doubled. Plus, finding public charging and battery-swapping infrastructure is much less of a hassle than in the US.

You open your story noting that China's recent New Year Gala, watched by billions of people, featured a cast of humanoid robots, dancing and twirling handkerchiefs. We've covered how sometimes humanoid videos can be misleading. What did you think?

I would say I was relatively impressed -- the robots showed good agility and synchronization with the music, though their movements were simpler than human dancers'. The one trick that is supposed to impress the most is the part where they twirl the handkerchief with one finger, toss it into the air, and then catch it perfectly. This is the signature of the Yangko dance, and having performed it once as a child, I can attest to how difficult the trick is even for a human! There was some skepticism on the Chinese internet about how this was achieved and whether they used additional reinforcement like a magnet or a string to secure the handkerchief, and after watching the clip too many times, I tend to agree.

President Trump has already imposed tariffs on China and is planning even more. What could the implications be for China's humanoid sector?

Unitree's H1 and G1 models are already available for purchase and were showcased at CES this year. Large-scale US deployment isn't happening yet, but China's lower production costs make these robots highly competitive. Given that 65% of the humanoid supply chain is in China, I wouldn't be surprised if robotics becomes the next target in the US-China tech war.

In the US, humanoid robots are getting lots of investment, but there are plenty of skeptics who say they're too clunky, finicky, and expensive to serve much use in factory settings. Are attitudes different in China?

Skepticism exists in China too, but I think there's more confidence in deployment, especially in factories. With an aging population and a labor shortage on the horizon, there's also growing interest in medical and caregiving applications for humanoid robots.

DeepSeek revived the conversation about chips and the way the US seeks to control where the best chips end up. How do the chip wars affect humanoid-robot development in China?

Training humanoid robots currently doesn't demand as much computing power as training large language models, since there isn't enough physical movement data to feed into models at scale. But as robots improve, they'll need high-performance chips, and US sanctions will be a limiting factor. Chinese chipmakers are trying to catch up, but it's a challenge.

Businesses

Nikola Files for Bankruptcy With Plans To Sell Assets, Wind Down (msn.com) 61

Nikola, the hydrogen-truck maker that briefly sported a market value comparable to Ford Motor, has filed for bankruptcy with plans to wind down its business. From a report: Nikola on Wednesday said that it made the chapter 11 filing with the U.S. Bankruptcy Court in Delaware and that it plans to conduct a court-supervised auction of its assets.

The Phoenix company said it worked for months with its financial and legal advisers to find a way to sustain its operations before determining that a structured sale process was the best way to maximize the value of its assets.

Transportation

California Considers Taking Over Some Oil Refineries (yahoo.com) 163

California is "considering state ownership of one or more oil refineries," reports the Los Angeles Times.

They call the idea "one item on a list of options presented by the California Energy Commission to ensure steady gas supplies as oil companies pull back from the refinery business in the state." "The state recognizes that they're on a pathway to more refinery closures," said Skip York, chief energy strategist at energy consultant Turner Mason & Co. The risk to consumers and the state's economy, he said, is gasoline supply disappearing faster than consumer demand, resulting in fuel shortages, higher prices and severe logistical challenges.

Gasoline demand is falling in California, albeit slowly, for two reasons: more efficient gasoline engines, and the increasing number of electric vehicles on the road. Gasoline consumption in California peaked in 2005 and fell 15% through 2023, according to the Union of Concerned Scientists. Electric vehicles, including plug-in hybrids, now represent about 25% of annual new car sales... The drop in demand is causing fundamental strategic shifts among the state's major oil refiners: Chevron, Marathon, Phillips 66, PBF Energy and Valero.

Already, two California refineries have ceased producing gasoline to make biodiesel fuel for use in heavy-duty trucks, a cleaner-fuel alternative that enjoys rich state subsidies. More worrisome, the Phillips 66 refinery complex in Wilmington, just outside Los Angeles, plans to close down permanently by year's end. That leaves eight major refineries in California capable of producing gasoline. The closure of any one would create serious gasoline supply issues, industry analysts say. But both Chevron and Valero are contemplating permanent refinery closures. The implications? "Demand will decline gradually," York said, "but supply will fall out in chunks." What's unknown is how many refineries will close, and how soon, and how that will affect supply and demand...

A state refinery takeover seems like a radical idea, but the fact that it's being considered demonstrates the seriousness of the supply issue. It's one of several option laid out by the California Energy Commission, which is fulfilling a legislative order to find ways to ensure "a reliable supply of affordable and safe transportation fuels in California." The options list is disparate: Ship in more gasoline from Asia; regulate refineries on the order of electric utilities; cap profit margins; and many more.

92% of California's gas is produced in refineries, the Times reports. But the special gasoline blends required to reduce air pollution "also drive up gasoline prices and raise the risk of shortages, because little such gasoline is produced outside California."

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