03/29/2024

California gas prices could rise if the state’s cap-and-trade program is extended, legislative analyst says

As California lawmakers debate the future of the state’s battle against global warming, there’s one politically sensitive issue they’ll have to consider: gas prices.

Gov. Jerry Brown wants lawmakers to extend the cap-and-trade program, which requires companies to buy permits to release greenhouse gas emissions. Right now, the price of permits sold in state-run auctions is less than $14.

However, if the program is extended and the state pushes forward with its tougher climate goals, the price of allowances could rise to $50 over several years, according to Ross Brown from the nonpartisan Legislative Analyst’s Office.

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