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Push To Delay Hike In Gas Prices Stalls In Sacramento

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(Photo credit: Kevork Djansezian/Getty Images)

(Photo credit: Kevork Djansezian/Getty Images)

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textalerts180 Push To Delay Hike In Gas Prices Stalls In Sacramento

LOS ANGELES (CBSLA.com) — A bipartisan effort by lawmakers in Sacramento to delay an upcoming increase in gas prices appears to have stalled Monday.

KNX 1070′s Megan Goldsby reports Democratic State Senate leaders have already signaled they would block one of two bills that seek to delay or exempt gasoline, diesel fuel, natural gas and other consumer fuels from California’s 2006 greenhouse gas emissions law.

Push To Delay Hike In Gas Prices Stalls In Sacramento

knx logo black Push To Delay Hike In Gas Prices Stalls In Sacramento
KNX 1070 NEWSRADIO

The nonpartisan Legislative Analyst’s Office said this month that fuel prices are likely to increase by 13 cents to 20 cents per gallon by 2020, but the agency warned the increase could be as high as 50 cents a gallon.

Meanwhile, Angelenos Monday saw the streak of decreases in the average price of a gallon of self-serve regular gasoline in Los Angeles County extended to 49 days.The average price has dropped nearly 33 cents during the streak to $3.851, its lowest amount since Feb. 22, according to figures from the AAA and Oil Price Information Service.

The analyst’s letter was in response to an inquiry by Assemblyman Henry Perea, D-Fresno. His Assembly Bill 69 would delay adding consumer fuels to the state’s cap-and-trade market until Jan. 1, 2018. The bill is co-authored by nine fellow Democrats, while 16 of the Assembly’s 55 Democrats signed his letter in June asking the California Air Resources Board to reconsider its regulations.

On Friday, Senate President Pro Tem Darrell Steinberg sent a letter to Perea saying he’ll block the bill from consideration during the Legislature’s final week.

Supporters of California’s greenhouse gas reduction law say one of the best ways to reduce harmful emissions is to place a higher price on the use of carbon-based fuels, which in theory would force consumers to use less or switch to alternatives, such as electric or hybrid vehicles.

“I share your concern about the costs of combatting carbon emissions. But the cost of doing nothing is much greater,” Steinberg said in the letter, provided to The Associated Press. “If we are serious about reducing fuel costs and righting the public health and economic wrongs facing our constituents, we must wean ourselves off fossil fuels and invest in clean transportation alternatives and in low income communities as we did in this year’s budget.”

Another bill, SB1079 by Sen. Andy Vidak, R-Hanford, would permanently exempt transportation fuels from the state’s cap-and-trade program. It was co-authored by 29 Assembly and Senate Republicans.

Both bills have been stalled in the Senate Rules Committee. On Thursday, Democrats who control the Senate defeated Vidak’s attempt to attach his exemption to an unrelated bill.

“Gasoline is not a luxury for most Californians; it’s a necessity,” Vidak said, saying the increase would harm poor Californians the most.

Assemblyman Scott Wilk, R-Santa Clarita, said Vidak’s bill at least deserves a vote from the full Legislature, even it fails.

“It just reinforces the fact that we’re just completely out of step up here in terms of what’s going on in the state,” Wilk said.

Steinberg, D-Sacramento, was among the first lawmakers to raise concerns about the coming price hikes, prompting serious discussion over the issue in February.

Steinberg, other Democratic leaders and Gov. Jerry Brown eventually agreed in the budget approved in June to spend part of air pollution fees for affordable housing, public transit and energy-conservation efforts to reduce greenhouse gas emissions.

The Senate leader is satisfied with the budget agreement and with assurances by the Air Resources Board “that they had price volatility under control,” Steinberg spokesman Rhys Williams said. But he noted that does not account for natural fluctuations in the market or decisions by the oil industry to pass its expected higher costs on to consumers.

Removing transportation fuels now would be disruptive not only to the state but also to utilities and other businesses that already are preparing for the price increases, said Stanley Young, speaking on behalf of the air board and the governor.

“One of our goals is to reduce our dependence on gasoline and diesel and thereby minimize the fact that we’re subject to roller-coaster prices,” he said.

While pump prices are likely to increase, the board projects that overall fuel expenses will drop by $400 per person per year by 2020. That assumes there are more electric- and hydrogen-driven vehicles available, and that consumers buy them, Young said.

It also assumes that more people walk, bike or take mass transit as a result of state-funded improvements and incentives funded by revenue from the cap-and-trade fees.

(TM and © Copyright 2014 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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