A group of California Democrats is having second thoughts about the state’s expanding cap-and-trade program, urging Gov. Jerry Brown’s administration to rethink the plan out of concern that it will drive up gas prices and hurt low-income residents.
The Golden State already has the program in place — which caps greenhouse gas emissions and requires companies to buy permits in order to breach those caps — but right now it only applies to power plants and other heavy manufacturers. Next year, California is set to expand the regulations to transportation fuels.
Sixteen state Democratic lawmakers wrote a letter to the head of the California Air Resources Board earlier this month warning this could trigger a cost increase of roughly 15 cents per gallon of gasoline.