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The Chevron refinery in Richmond is located behind a nearby neighborhood on Feb. 21, 2024.

California is considering handing oil refineries and other major polluters billions of dollars in free emission allowances just as the state says carbon reductions need to come faster than ever.

In the last six months, two refineries have closed and gas prices have topped an average of $6 a gallon as the Iran-Israel war sent oil markets into turmoil. The oil and gas sector spent $10.3 million lobbying Sacramento in the first three months of the year, according to lobbying filings, with the Western States Petroleum Association and Chevron accounting for the bulk of it.