Fuel, energy prices raise the pressure as California officials take next steps on climate

"The program progressively lowers the amount of greenhouse gas emissions allowed in the state, and lets emitters buy and sell unused pollution credits, or allowances. It is key to California's climate strategy and generates billions in revenue for the state each year."

"Among the proposed updates, the plan would tighten the cap on carbon dioxide emissions by 118 million tons by 2030. It would also adjust the state's system of free allowances, which have historically been given to oil refineries and other industrial facilities in the hope of keeping them in California."

"Some are concerned the plan would raise costs for refineries, driving more of them out of California and leaving the state more dependent on imported refined fuels. Others are worried the plan doesn't do enough to address high electricity costs."

California regulators are updating the state's cap-and-invest program, which progressively lowers greenhouse gas emissions and generates billions in annual revenue. The proposed changes include tightening the carbon dioxide emissions cap by 118 million tons by 2030 and adjusting the system of free allowances historically given to oil refineries and industrial facilities. The plan would shift more free allowances from natural gas utilities to electric utilities. Lawmakers, oil companies, environmental advocates, and consumers have submitted extensive public comments expressing concerns. Democratic lawmakers who supported the program's extension worry the plan could raise costs for refineries, potentially driving them out of California and increasing dependence on imported refined fuels, while others question whether it adequately addresses high electricity costs.

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