Note: This is the first part in a three-part series on CARB’s Cap-and-Invest proposal and the surrounding controversy. Part 2 runs on Tuesday and Part 3 on Wednesday.
SACRAMENTO — California air regulators are weighing a sharp cut to carbon allowances under the state’s Cap-and-Invest program for fuels, a move oil companies, labor allies and some lawmakers say could add about $1 per gallon to gas by 2030, while climate advocates argue the cut doesn’t go far enough.
The California Air Resources Board’s proposal, which will be heard on May 28, would remove 118.3 million allowances between 2027 and 2030, tightening a market that now adds roughly 24 cents per gallon to prices at the pump. Industry letters to Gov. Gavin Newsom warn allowance prices could rise toward $135 per metric ton (about $1.21 per gallon), while a coalition led by NextGen Policy urges deeper cuts, up to 265 million allowances, to stay on California’s net-zero trajectory.
Industry leaders, such as Chevron, PBF Energy, and Marathon Petroleum Corp., outlined their warnings in letters to Newsom and CARB, arguing the proposal would cripple the state’s remaining refineries….
