Bill to disclose extra fuel costs under AB 32 moves

By CMTA Staff

Capitol Update, May 1, 2014 Share this on FacebookTweet thisEmail this to a friend

Beginning in 2015 all transportation fuels will be put “under the cap” of the greenhouse gas cap-and-trade program operated by the California Air Resources Board (CARB). That means fuel suppliers must buy a greenhouse gas “allowance” for each gallon of gasoline or diesel sold in the state. The costs will be passed along to consumers at the pump.

AB 2656 (Brian Jones, R-Santee) requires disclosure of those costs in both wholesale fuel invoices and at retail fuel pumps. Fuel consumers will be educated about the new costs through these disclosures.

Both CARB and others estimate that costs will range from 12-15¢ per gallon as the program rolls out. The author states that transparency about the reason for the extra charge will improve public awareness of the climate change program.

CMTA supported the bill in committee this week. We noted that CARB itself promotes “putting a price on carbon” as one of the key purposes of the cap-and-trade program. Cap-and-trade costs along with the disclosures in this bill will make the costs known to the public in a way that will discourage unnecessary driving, promote the use of mass transit, etc. Consumers will become aware that the extra cost is not a fixed charge outside of their control, but rather is within their power to influence through wise use of their vehicles to reduce market demand for allowances.

The bill successfully moved out of the Assembly Business and Professions Committee with bipartisan support. 

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