State Regulator Prepares For Tax Hike In California Says Report
California is known for its progressive policies and forward-thinking initiatives, particularly in the area of environmental regulation. However, a recent report from the California Air Resources Board (CARB) has revealed a potentially significant impact on the wallets of California drivers in the near future.
According to the report, gas prices in the state could increase by as much as 50 cents per gallon within the next two years, and continue to rise thereafter. This increase does not include the existing gas tax in the state and could have a significant impact on the cost of living for many Californians.
The report points to the Low Carbon Fuel Standard (LCFS), an emissions reduction program created in 2007, as the primary reason for the potential increase in gas prices. Under this program, the cost of gasoline is expected to rise by 47 cents per gallon next year, and by as much as 52 cents by 2026.
Diesel prices could also see a similar increase, with an estimated jump of 59 cents this year and 66 cents in two years. These projections are based on long-term goals for reducing carbon emissions and could have a significant impact on the affordability of gas for many Californians.
Republican state senator Janet Nguyen, a vocal opponent of taxes and government spending, has expressed concern over the potential “secret” tax increase on gas prices. She argues that this will disproportionately affect middle and low-income Californians who may already struggle with the high cost of living in the state. Nguyen suggests that many residents may not be aware of this reported increase, and may confuse it with existing taxes on gasoline. This could result in an even greater burden on those least able to absorb the additional expense.
The CARB report has also been met with criticism from others in the state legislature. Some argue that the focus on reducing emissions and transitioning to zero-emissions vehicles will have a negative impact on the economy and job market in California. Others point to the potential impact on the transportation industry, including passenger cars, heavy-duty trucks, and freight trains, which will be required to make a rapid shift to zero-emissions vehicles under the LCFS. These concerns highlight potential economic challenges that may arise from the state’s ambitious climate agenda.
However, advocates of the CARB report argue that the potential increase in gas prices is offset by the cost savings to drivers as more people transition to electric vehicles (EVs). The report suggests that by embracing zero-emissions alternatives, individuals can save on the ongoing cost of fuel, maintenance, and other expenses associated with traditional gasoline-powered vehicles. This shift is part of California’s broader climate agenda, which includes decreasing greenhouse gas emissions by 85% and decreasing oil demand by 94% by 2045.
California’s efforts to electrify its transportation sector are also gaining national attention, with nearly 20 other states adopting the state’s rules mandating 100% electric vehicle sales by 2035. This means that more than 40% of the country will be affected by the mandate in some capacity. The California Climate Commitment, announced by Gov. Gavin Newsom in 2020, outlines the state’s ambitious plan to address the climate crisis by cutting pollution and reducing reliance on fossil fuels.
In response to the concerns raised by the CARB report, staff members within the agency have revised their projections in a December 2021 report. They now suggest that the effects of the LCFS on gas prices may be incomplete, focusing instead on the potential long-term benefits of transitioning to zero-emissions vehicles. However, with gas prices already on the rise in California and potentially reaching record levels, the impact of this initiative on everyday residents remains to be seen.
Governor Newsom has expressed confidence in the state’s ability to combat the climate crisis and overcome the challenges associated with transitioning to a more sustainable future. “We can solve this climate crisis if we focus on the big, bold steps necessary to cut pollution,” Newsom said in a statement. However, with concerns about the potential impact on the economy, job market, and the cost of living for California residents, the implementation of the LCFS and the transition to electric vehicles may continue to be a topic of debate and scrutiny for years to come.