The following comments were shared with the California Energy Commission’s Petroleum Market Advisory Committee for the Wednesday September 13, 2017meeting regarding the upcoming report to the Energy Commission on California’s vulnerabilities to petroleum price hikes:

California already has numerous reasons for their cost of fuels being higher the rest of the country, such as:

California’s emission crusade began back in 2006 with the passage of Arnold Schwarzenegger’s Global Warming Initiative AB32. The public has been very supportive of that emissions crusade regardless of cost, as AB32 has raised billions of dollars from the public for the government.

So, in 2016 SB32 was approved that set the emission reduction goals of 40% below 1990 levels by 2030. Also in 2016, a companion bill AB197 said CARB should move away from Cap and Trade and toward more local command and control.  Unfortunately the linked bills in 2016 of SB32 and AB197 would have been ultra-expensive as it placed much more emphasis on command and control through CARB’s regulatory authority.

Fortunately, in 2017 the passage of AB398 extended the cap and trade auctions to 2030 in the free market and took away most of the regulatory authority powers of CARB to meet those emission targets.

Even though AB398, that places the emissions crusade through the free market auctions is projected to be much more cost effective than the linked bills of SB32and AB197 command and control through CARB’s regulatory authority, the cap and trade “revenue generator” through 2030 provides the public with a dim forecast in the coming years as the burden of additional fuel costs will be falling completely on motorists and businesses.

More fuel cost increases that are coming are:

It’s our Legislators actions, not the oil companies, which are causing the price of California fuels to increase, and for everything based on fossil fuels. California’s top politicians will have immense effects on what consumers spend for gasoline, diesel and aviation fuels and a myriad of other products and services for many years to come.