"California is considering giving oil refineries and other major polluters billions in free pollution permits under a major overhaul of its carbon market. The fight is exposing a deeper question inside Gov. Gavin Newsom's climate agenda: Can California lower emissions without driving up gas prices?"
"California is considering handing oil refineries and other major polluters billions of dollars in free emission allowances just as the state says carbon reductions need to come faster than ever.
In the last six months, two refineries have closed and gas prices have topped an average of $6 a gallon as the Iran-Israel war sent oil markets into turmoil. The oil and gas sector spent $10.3 million lobbying Sacramento in the first three months of the year, according to lobbying filings, with the Western States Petroleum Association and Chevron accounting for the bulk of it.
The result is a new proposal before the California Air Resources Board that would provide as much as $4 billion in new free emission permits to companies with half slated for the fossil fuel industry in exchange for commitments to invest in clean energy.
Environmentalists warn the proposal is a giveaway to Big Oil that would weaken California’s “cap-and-invest” program just as the state is relying on it to cut emissions and fund climate, housing and other programs. Anthony Martinez, a spokesman for Gov. Gavin Newsom, said the changes are necessary to keep the state’s carbon market “durable” and “affordable” amid mounting refinery closures."
