The Car and Truck Fleet and Leasing Management Magazine

California's Climate Change Deal May Increase Fuel Prices

July 18, 2017

Photo by Vince Taroc.
Photo by Vince Taroc.

California's Legislature has voted to extend the state's cap-and-trade program through 2030, which could result in an increase to the gasoline tax and would codify the Low Carbon Fuel Standard (LCFS) into law.

Legislators approved the signature legislation from Gov. Jerry Brown, who hopes to roll back greenhouse gas emissions to 40% below 1990 levels by 2030. AB 398 received the neccessary two-thirds in each house. The bill was sponsored by Assemblyman Eduardo Garcia (D-Coachella), while companion bill AB 617 was sponsored by Assemblywoman Cristina Garcia (D-Bell Gardens).

Under the state's current system, emissions are capped and pulluers must obtain permits for the greenhouse gases they emit. Companies can trade for more capacity on the private market or at a state-run auction.

The passage of the bill was greeted enthusiastically by groups representing alternative fuels, including the Coalition for Renewable Natural Gas.

"In addition to extending cap-and-trade, state law will now also recognize low-carbon transportation alternatives for purposes of allocating future Greenhouse Gas Reduction Funds (GGRF) from related auction revenues — funds that are needed to realize increased in-state development, deployment and utilization of RNG." said Nina Kapoor, the coalition's manager of legislative and regulatory affairs.

The Low Carbon Transportation Fund hasn't provided money for in-state biofuels production and cap-and-trade-related Greenhouse Gas Reduction Fund (GGRF) in the past, and hasn't focused enough attention on reducing air contaminants and Short-Lived Climate Pollutants (SLCP) other than methane from the dairy sector, accordiong to the coalition.

The codification of the Low Carbon Fuel Standard provides "additional market certainty that the industry needs to continue developing RNG for transportation fuel use both in California and across the country," said Johannes Escudero, the coalition's CEO.

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  1. 1. Craig Fine [ July 24, 2017 @ 08:46AM ]

    Why is it that when an environmentally sound project or initiative comes to fruition, costs for it's implementation are pushed/burdened on the shoulders of the public?!

    Why aren't the corporate polluters held accountable and given this financial burden?! People are having a hard enough time making it paycheck to paycheck without taking on the financial responsibilities of corporations.

  2. 2. Steve [ July 25, 2017 @ 01:44PM ]

    Actually one category of the main polluters are the only refineries which are producing the fuel which are used by the general public therefore it's built right back in to the cost of gasoline and diesel


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