Warning: Cap-and-Trade Changes Could Raise Gas Prices by $1

SACRAMENTO — Chevron is warning that proposed changes to California’s Cap-and-Trade program could raise gas prices by more than $1 per gallon by 2030.

Months earlier, Assemblymember Greg Wallis (R-Bermuda Dunes) asked the Legislature’s independent fiscal watchdog, the Legislative Analyst’s Office (LAO), to review whether the proposal could raise costs for California families and small businesses.

In a September letter, Wallis requested an affordability analysis of AB 1207 and asked state analysts to examine potential impacts on household energy bills, transportation costs, and small businesses before lawmakers acted.

The Legislative Analyst’s Office said it could not complete the analysis before lawmakers moved forward with the policy.

“California families are already struggling with the high cost of living,” said Assemblymember Wallis. “That is why I asked for an independent affordability review. Before Sacramento adopts major energy policies, lawmakers owe the public a clear understanding of what those decisions will cost the people who are already feeling the squeeze.”

Chevron also warned the policy could threaten hundreds of thousands of jobs and increase reliance on foreign oil imports.

California already has some of the highest gasoline prices in the country. Energy analysts say reduced refining capacity and additional regulations could make prices even more volatile.

Wallis said the latest warning highlights the need for lawmakers to examine the affordability impact of major energy policies.

“Energy decisions made in Sacramento affect every driver and every small business in California,” Wallis said. “Before moving forward with new rules, lawmakers owe the public transparency about the real cost.”

A copy of the Legislative Analyst’s Office response to Wallis’ request is attached.

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