Fuel, energy prices raise the pressure as California officials take next steps on climate
This is read by an automated voice.Please report any issues or inconsistencies here.
As California regulators prepare for a massive update of the state’s signature climate program, they face mounting pushback from lawmakers and oil industry groups who warn it could drive up already-high energy costs.Lawmakers voted last year to reauthorize the cap-and-invest program — formerly known as cap-and-trade — through 2045.
The program progressively lowers the amount of greenhouse gas emissions allowed in the state, and lets emitters buy and sell unused pollution credits, or allowances.It is key to California’s climate strategy and generates billions in revenue for the state each year.
Although the program was always designed to ratchet down on emitters, some legislators who supported the extension say the draft unveiled by the California Air Resources Board could hit consumers and the energy sector hard at the wrong time.Among the proposed updates, the plan would tighten the cap on carbon dioxide emissions by 118 million tons by 2030.
It would also adjust the state’s system of free allowances, which have historically been given to oil refineries and other industrial facilities in the hope of keeping them in California.It would shift more of those free allowances from natural gas utilities to electric utilities.
A wave of public comments from lawmakers, oil companies, environmental advocates and consumers flooded the state Air Resources Board in advance of this week’s deadline, and the agency will have until May to revise the plan and put it to a final vote.Among the most notable critics are Democratic lawmakers who voted to extend the program last year.
Some are concerned the plan would raise costs for refineries, driving more of them out of California and leaving the state more dependent on imported refined fuels.Others are worried the plan doesn’t do enough to address high electricity costs.
Climate & Environment The future of California’s cap...