The real story...

"In a statement, Phillips 66 said the decision was "not related" to the bill signing, but rather "on consideration of multiple factors, including future options for the site as part of Phillips 66's ongoing review of its portfolio of assets."

It also said it is not pulling out of the California market. Among its other operations are its network of 76-branded gas stations. The company said it has has engaged Catellus Development Corp. and Deca Cos. to examine future uses for the 650-acre site.

"The company has committed to minimizing impacts on Californians while they continue to meet fuel demands, maintain reliable supplies, and ensure they take necessary steps to fulfill both commercial and customer needs," California Energy Commission Vice Chair Siva Gunda said in a statement.

David Hackett, chairman of Stillwater Associates, an Irvine oil consultancy, said he was contacted by Phillips just prior to the announcement, and was told the closure was a business decision.

He said while the timing was somewhat surprising, the closure wasn't " given the age of the refineries, their relatively small size and an inefficient layout that connected them by a pipeline.

"That plant has been for sale for years. It hasn't found any buyers and I think is that this has been an economic decision on their part. They looked at the profitability of the place and compared with the other other businesses that they have, and it didn't make the cut," he said."