You may have seen the ads on Facebook, or on one of the roving billboards being pulled by a gasoline-powered truck. They warned darkly of a coming “hidden tax” on fuel that was so hidden nobody in the media was talking about it. You may have wondered what it meant, even as the ads urged you to sign a petition today.
The California Drivers Alliance gathered a whopping 115,000 signatures, and “dozens” of people showed up to deliver them. It urges the Air Resources Board to delay its “plan to increase fuel prices next year” and charges that the agency has been “unresponsive” and “has not even put this far-reaching policy on its agenda for public discussion.”
Not a word of which is true.
There is no “hidden gas tax” that will suddenly come into being in January. The Air Resources Board has no “plan to increase fuel prices,” nor could it do so. The only change coming is that transportation fuels will become subject to California’s cap-and-trade system.
That means that distributors and transporters of fuels must either 1) comply with requirements to produce no more than a certain amount of greenhouse gas emissions (the “cap” on emissions), or 2) buy enough “pollution credits” from the state to “meet” the cap. This is the “trade” part of the system.
The EPA estimates that transportation contributes a quarter of the greenhouse gas emissions in the country.
To adopt the industry’s tactic of endless repetition: “There is no ‘hidden tax,’ or any other tax associated with [California climate change law A.B. 32] programs,” according to a written statement from Dave Clegern of the Air Resources Board. “There is simply a market mechanism, which industry preferred, to allow businesses to spread their emission reductions between now and 2020 . . . instead of having to make those greenhouse gas reductions all at once.”
The Air Resources Board knows that the industry prefers this method because it has said so. “The oil industry and dealers were at the table through this whole process, and have been aware this coverage was coming for at least five years,” wrote Clegern.
In official comments submitted to the Board in 2011, the industry’s trade group, the Western States Petroleum Association, wrote: “WSPA reiterates its support for the Cap and Trade program and a market-based approach to implementing AB 32.” [PDF]