There is a 3-hour time difference between New York (Eastern Time) and California (Pacific Time). The phrasing "why is there not a 3-hour difference" is incorrect—the difference exists.
Reason: The continental U.S. spans four time zones. Eastern Time (UTC-5/-4) and Pacific Time (UTC-8/-7) are separated by three zones (Eastern → Central → Mountain → Pacific). When it's 12:00 PM in New York, it's 9:00 AM in California (standard time) or 9:00 AM/8:00 AM during daylight saving transitions.