California Democrats trying to slow impact of cap and trade
July 14, 2014
Citing concern over rising gas prices, a group of Democratic California lawmakers are pushing a bill that would delay requiring oil refineries to buy carbon credits under the state’s cap and trade system. [LA Times]
California’s cap and trade system, created under AB 32, will require refineries to buy carbon credits in order to release greenhouse gases into the atmosphere. AB 69, currently in the legislature, would delay the implementation of that rule until Jan. 1, 2018.
Fresno Assemblyman Henry Perea, the sponsor of the bill, said that requiring refineries to buy carbon credits could add at least 15 cents to the price of a gallon of gas, which now tops $4 in many parts of the state.
“The cap and trade system should not be used to raise billions of dollars in new state funds at the expense of consumers who are struggling to get back on their feet after the recession,” Perea said. “In some areas of the state, like the Central Valley, constituents need to drive long distances and they will be disproportionately impacted by rising gas prices.”
Governor Jerry Brown, a proponent of cap and trade, has not yet taken a position on the bill. But, a spokesman for the California Air Resources Board, the agency tasked with implementing the system, spoke in opposition to the bill.
“Having transportation fuels under the cap is essential for California to achieve its AB 32 greenhouse gas emission reduction goals,” said CARB spokesman David Clegern.