Going green gets more costly in California

Presented by Chevron: Your guide to the political forces shaping the energy transformation

Feb 26, 2024 View in browser   By Rebekah Alvey Presented by Chevron Workers install solar power modules for producing heat on the roof of a house Oct. 15, 2011, in Wessling, Germany. | Alexandra Beier/Getty Images California’s efforts to meet ambitious climate goals are increasing the daily cost of life, testing the state’s political will to quickly transition away from fossil fuels while it copes with the ravages of rising temperatures. Some Californians' electric bills have more than doubled in the past decade, as utilities bury power lines to reduce wildfire risk and build out transmission for renewables, writes Wes Venteicher. And, as Anne Mulkern reports, a proposal to boost low-carbon fuels in the state could increase gasoline prices by almost 50 cents a gallon next year. The result: sticker shock that has some Democratic politicians reconsidering the state’s approach, particularly in an election year. “Californians are fed up,” said Democratic state Assemblymember Marc Berman at a recent news conference on the utility bills. “My constituents are pissed off. I know because they told me over and over again at every community coffee that I had in the fall and in the winter.” California is not alone. Other Democratic states like New York and Massachusetts are grappling with how to transition from fossil fuels without adding financial burdens for ratepayers. Two climate proposals are now up in the air in California. One would restructure utility bills so that the wealthy pay the most; at least 20 Democratic state lawmakers now want to repeal it after voting for it two years ago. (Though the bill passed, a state agency has yet to put it into a regulation.) The other is a proposed overhaul of the state’s low-carbon fuel standard. The California Air Resources Board says a rewrite of the standard would push more Californians to switch to electric vehicles and help the state meet its goal of net-zero carbon emissions by 2045. But a CARB analysis found that the update — which would require deeper cuts in fuels’ allowable planet-warming emissions — could increase prices at the pump by as much as 47 cents per gallon next year and by 52 cents by 2026. Opponents argue the price hikes would hurt California motorists who can’t easily buy or charge an EV, including those in low-income communities and communities of color. California’s gasoline prices are already among the highest in the nation, averaging $4.64 per gallon of regular gas Sunday. “This will hit the working class between the eyes,” said Jamie Court, president of Consumer Watchdog, a California-based consumer protection group. “That is unacceptable … even in exchange for what are very noble climate goals.”   It's Monday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Rebekah Alvey. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to ralvey@eenews.net.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.     Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Jordan Wolman breaks down the fights in Pennsylvania and Virginia as they weigh participating in the Regional Greenhouse Gas Initiative.   A message from Chevron: Energy demand is projected to reach record highs and continue to rise in the future. Chevron is responding to that growing need while innovating to help do so responsibly. All to help us provide energy that’s affordable, reliable, and ever-cleaner.   Power Centers iStock; AP Hydrogen producers ready for court If the Treasury Department sticks with its proposed rules for the new hydrogen tax credit known as 45V, opponents will likely challenge the regulations in court, writes Christian Robles. Treasury’s initial guidance in December set requirements for companies to claim the credit, including that hydrogen production facilities must use clean energy sources added to the grid. It immediately faced backlash from hydrogen producers and congressional Democrats, who argued the plan would slow industry growth. The rule could be more vulnerable to legal action if the Supreme Court upends the Chevron doctrine, which has helped federal agencies defend regulations in court for 40 years. Opponents of the hydrogen guidance may argue that Treasury’s tax rules overstep the department’s legal authority, and question whether the department can adopt its proposed method to track emissions caused by hydrogen production’s use of the grid. LNG pause could hurt Biden in Pennsylvania Democrats in Pennsylvania are worried that the Biden administration’s pause on liquefied natural gas export permits will hurt the key swing state, writes Josh Siegel. The move garnered support from environmentalists but some backlash from Pennsylvania Democrats up for reelection in November like Sen. Bob Casey and Reps. Chris Deluzio and Susan Wild. Pennsylvania has become the second biggest natural gas producer in the country behind Texas, giving the natural gas industry significant sway. The state sealed President Joe Biden’s victory in 2020, but the latest move could upset voters he needs for reelection. Biden is in a similarly precarious situation in Michigan, where his electric vehicle commitments have often clashed with the demands of the United Auto Workers. Tuesday's state primary will be a key test on how he has balanced these interests. European farmers unleash fury Protesting farmers shut down Brussels’ European Quarter, where they set fire to tires, dumped manure on the street, rammed their trucks into roadblocks and shot flares at police. It’s the latest pressure point in a wave of protests across Europe as farmers air a variety of grievances, from falling revenues to excessive environmental burdens, Alessandro Ford and Claudia Chiappa report. There are unified concerns across Europe over Ukrainian grain, chicken and sugar imports, and the fear of cheap South American beef flooding the market should the European Union finalize a trade deal with the Southern Common Market countries.   A message from Chevron:   In Other News China objects: China’s vice minister for the environment objected to the EU’s carbon border tax, arguing it imposes additional costs on poorer countries. Instead, Vice Minister Zhao Yingmin suggested collaborating on a global carbon market. Calling coal clean: A proposed bill in Alaska’s Legislature aims to define coal-generated electricity as “clean energy,” in an effort to revive green energy policy proposals that have stalled.   A message from Chevron: Oil and gas are still an important part of the global energy system. To help responsibly address growing needs, Chevron is stepping up. Our Gulf of Mexico facilities are some of the world’s lowest carbon intensity operations, and our technological advances enable us to reach previously unviable oil and gas reserves there. In the Permian Basin, we’re harnessing new drilling and completion technologies to increase the amount of oil we recover. We expect to reach 1 million barrels of oil-equivalent there per day by 2025. Providing energy that’s affordable, reliable, and ever-cleaner. That’s energy in progress.   Subscriber Zone A showcase of some of our best subscriber content. EPA Administrator Michael Regan speaks at the University of Maryland on May 11, 2023, in College Park, Maryland. | Nathan Howard/AP EPA’s rule cracking down on methane emissions from the oil and gas industry is set for official publication in the Federal Register on March 8, following a long, worrisome delay. Denmark closed its investigation Monday into the 2022 blasts on the Nord Stream gas pipelines that transport gas from Russia to Germany. Authorities concluded that while it was deliberate sabotage, there is no basis for pursuing criminal proceedings in Denmark. The U.S. Securities and Exchange Commission is expected to scale back a climate risk disclosure rule following backlash from GOP lawmakers and business lobbyists. That's it for today, folks! Thanks for reading.   YOUR TICKET INSIDE THE GOLDEN STATE POLITICAL ARENA: California Playbook delivers the latest intel, buzzy scoops and exclusive coverage from Sacramento and Los Angeles to Silicon Valley and across the state. Don't miss out on the daily must-read for political aficionados and professionals with an outsized interest in California politics, policy and power. Subscribe today.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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