Posted on 05/14/2025 2:58:09 PM PDT by karpov
California Gov. Gavin Newsom released his revised state budget proposal for FY 2025–2026 on Wednesday. After having a roughly balanced budget in January, the state must now "close an estimated $12 billion shortfall to balance the budget" because of President Donald Trump's tariffs, which have "driven a downgrade in both the economic and revenue forecasts" and increased spending for the state's Medicaid program.
Despite this shortfall, Newsom's budget calls for maintaining or extending expensive government programs, including the state's cap-and-trade program, which was set to expire in 2030.
Launched in 2013 to reduce greenhouse gas emissions (GHG) in the state, the program sets a GHG emissions cap for "covered entities," which includes electricity generators, oil refineries, and manufacturing facilities. Entities must comply with this annual cap either by voluntarily reducing their GHG emissions or by purchasing allowances (essentially permits to emit 1 ton of carbon dioxide equivalent) at quarterly auctions.
Most of the money generated from these auctions goes to the California Climate Investments program, which has funded $12.8 billion worth of environmental and energy projects since 2014. The California Air Resources Board estimates that these projects have prevented over 1,000 premature air pollution-related deaths.
At the same time, cap-and-trade has been prohibitively expensive for consumers. While some auction funds go toward utility bill rebates, the program has increased energy costs for Californians. The state's Legislative Analyst's Office estimates that it adds 23 cents per gallon to gas prices, which could increase to 74 cents per gallon if the state decides to pursue more aggressive GHG reductions. The state currently has the highest gas prices in the country.
Wayne Winegarden, senior fellow at the Pacific Research Institute, tells Reason that the program is a "bad tradeoff."
(Excerpt) Read more at reason.com ...
IF I’m the oil/gas company, I’d pull out and say so long.
It’s a competition between Cali and Washington state to see who can tax gasoline buyers the hardest
These Leftists never did understand basic economics, Econ 101 and Econ 102.
And these Leftists in gov’t never did understand that their job is to protect and facilitate the people’s freedoms, happiness, and prosperity.
How I hate the left.
Close and leave. The state plans on suing you for climate change liability anyway, expecting a Frankenstein climate version of the Tobacco Settlements awarded in 1998. Imagine the litigation discovery in proving climate change....
Lying sack of sh*t.
Unfortunately, Maricopa County is required to use a special gasoline formulation that comes from California. We will be punished for California’s sins.
It’s what they voted for...congrats Cali horny yahs!
For the love of G_d, can we please differentiate between gas (natural gas) and gas (gasoline)!
Oh wait. Asking too much as noob writers don’t know the difference, so much like whether a basketball player falls and “hits the ground”.
It’s a GD floor, you twinks!!
Newsom will most likely be the democrat nominee in 2028.
He has the money & name recognition that gives him a head start on other democrat contenders.
With that said, the guy has a lot of policy, political, & personal baggage to overcome.
Running against another California democrat should produce a Republican victory.
There is a law that the Kalifornia gasoline tax is mandated for use building more roads. A previous democRAT governor stated that he would use all of the gas tax revenue for anything BUT more roads.
As usual, rules, laws, regulations and statutes are for “others.”
North West Nevada gets that “benefit’ too. And pretty sure the current NV legislative session never addressed it. Two refineries near San Fran are getting ready to close.
They are. i think Phillips closed a refinery and Valero has announced a closure of it’s refinery in LA
“The California Air Resources Board estimates that these projects have prevented over 1,000 premature air pollution-related deaths.”
Prove it.
Put a $5.00 tax on each dozen eggs. Rake in all of the profits!
Same liars applaud 1,000 abortions
That should doom his hopes for 2028.
It only appears that Newsom and the Democrats controlling the State House want to price the average Kalifornia citizen out of the gasoline market. What they really want is to completely eliminate the sale of petroleum fuel inside the state. It’s all about absolute Democrat control over all of the people, you know, like the communist do in China.
my pet peeve border- boarder...
California will never get another refinery built. They will be at the mercy of Indian Mexican or Korean oil companies. No refinery in the USA will make California’s special gasoline, especially since it’s becoming sue the oil company for Global Climate Change. Plus they doubled down on EV’s. Drove Telsa out of the State, so California has no control over Telsa. Great plan! No gasoline and not enough EV’s. Well they can always that that super train…. 🤔🤔🤔🤔
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.