California Lawmakers Push to Pause Gas Tax as Prices Surge at the Pump
Democrat and Republican lawmakers in California are facing roadblocks in their push to temporarily suspend the state’s climate programs and gas tax as retail prices have skyrocketed nearly $1/gal above year-ago marks.
Republican State Sen. Tony Strickland proposed bipartisan SB 1035, the Gas Tax Relief Act in a Senate Environmental Quality Committee hearing Wednesday, where legislators shot down the bill.
Strickland’s legislation called to suspend the state’s Low Carbon Fuel Standard for one year, it also exempted transportation fuel suppliers from California’s Cap-and-Invest program for a year, and suspended taxes on motor vehicle fuels and to pass all savings onto the end consumer.
By temporarily freezing state programs and taxes, Strickland surmised that the bill would provide an estimated immediate savings of roughly $1.08/gal for California drivers “the second the Governor signs” had it reached Gov. Gavin Newsom’s desk.
California retail gasoline prices averaged $5.61/gal Thursday, 96cts above year-ago levels, according to the Auto Club’s Weekend Gas Watch.
Democrat Sen. Catherine S. Blakespear voted against the proposal, citing the “relatively small” fees associated with the state’s climate programs and taxes help the “same people who are struggling with those high gas prices” through funding disadvantage and low-income communities.
“Altogether, Cap-and-Invest and LCFS add about $0.38 (per gallon) to the price of gas,” said Democrat Sen. Catherine S. Blakespear.
Blakespear argued the bill would cause “irreparable damage” to the state’s two biggest climate programs and said she would not relitigate “arguments of the past.”
Strickland pointed to the ongoing conflict in the Middle East and the state’s heavy reliance on imports as contributing factors to the high gasoline prices.
“Now we’re facing $8 a gallon gas of gas and it’s even projected with the war on Iran that it could go up to $10 a gallon of gas,” Strickland said.
“Why we’re now not willing to lower the gas prices by $1 to help with that relief,” Strickland added.
Strickland acknowledged that the bill would not resolve all issues the California fuel system is currently facing, however, the senator said it would help with the “crisis” the state is grappling with today.
Republican State Sen. Suzette Martinez Valladares supported the bill, stating Californians need immediate relief from the elevated gasoline prices stemming from the war on Iran.
Two Democratic gubernatorial candidates also called for an overhaul on California’s gas taxes and fees.
San Jose Mayor Matt Mahan pushed to suspend the fuel tax “for the duration of the war” in Iran or “as long as gas prices are over $5 a gallon” in the state.
Mahan also indicated that he would consider easing some of the refinery regulations.
Former Los Angeles Mayor Antonio Villaraigosa is calling for a moratorium on multiple “failed policies” enacted by the state’s climate goals.
“These failed policies are not only hurting tens of millions of Californians, they are terrible for the environment because they have forced California to depend on imported foreign oil from the Middle East,” Villaraigosa said.
Villaraigosa has received several campaign donations from the fossil fuel industry, including from Chevron, Marathon, the state’s largest oil and gas producer California Resources Corporation, and executives of two Kern County drilling companies, according to reporting by CalMatters.
Assemblymember Cottie Petrie-Norris (D-Irvine) expressed skepticism about the gas tax suspension proposals, saying she is open to ideas for replacing lost transportation revenue but criticized the current push as politically motivated.
“If anyone has a proposal about how to backfill transportation revenues, I’m up for that conversation, but so far, it’s just a political talking point,” she said.
Reporting by Sydnee Novak, sbeach@opisnet.com; Editing by Bayan Raji, braji@opisnet.com