Gas price hike is test run for Cap and Trade

Oct. 9, 2012

By Wayne Lusvardi

Think today’s high gas prices are bad? Wait until Cap and Trade’s surtax on gasoline hits starting Jan. 1, 2013. Cap and Trade is being imposed as part of AB 32, the Global Warming Solutions Act of 2006.

Under Cap and Trade, gas prices are expected to increase from $0.26 to $1.61 per gallon. One study concluded that, if all the provisions of Cap and Trade were loaded into the price of gasoline, it would reflect about a $2.70 per gallon gasoline price increase above prices as they were before the current surge.  In other words, California’s current gas price bump may be a pimple of what is to come in three months when Cap and Trade kicks in on Jan. 1.

Average gasoline prices in California shot up 50 cents per gallon in the last two weeks from $4.11 to $4.61 per gallon, according Reuters.  The price difference between Jackson, Miss. at $3.43 per gallon and California at $4.61 was $1.18 higher. That’s about a 34 percent price spread.  Many independent gas stations were reportedly shutting down — not because of lack of supply of gas, but due to the jump in price that reduced profit margins to zero.

Governor Declares Emergency

On Oct. 7, Gov. Jerry Brown called a fiscal emergency due to the high gasoline prices.  Brown ordered state pollution regulators to allow the early sale of winter-blend gasoline ahead of the scheduled Oct. 31 date.

Supporters of Proposition 31 on the November 6 California ballot claim that their initiative will allow Brown to call a fiscal emergency.  Well, the governor just called one and apparently didn’t need Prop. 31 to do so.  Only in California  is voter approval required for a state constitutional amendment to expand the powers of the governor that he already has. Rest assured, however, that Brown would not declare a fiscal emergency to suspend California’s Cap and Trade law. Yet he has the power to do so, one year at a time, under AB 32.

There were many reasons for the jump in prices.  Most of the reasons centered around California’s unusual green laws, unfavorable regulations and taxes against new or expanded oil refineries, and circumstantial causes. The Exxon refinery in Torrance was shut down last week due to a power outage.  Some refineries were shut down for planned maintenance due to the state’s mandated shift to a winter fuel blend for vehicles that reduces air pollution.

All 14 oil refineries run at maximum levels, as if you were to drive your car with the pedal to the floor 24 hours a day, seven days a week. There is little room for planned maintenance shutdowns of refineries.

Green Price Hikes

In 2015, the “low carbon fuel standard” provision of the state’s Cap and Trade law will kick in.  That will only compound the problem. Regulators will be mandating bio-fuels like ethanol.  Today it is reported that bio-fuel prices are not commercially feasible.  Which could lead to another joke: possibly the only place to find the true market price of gasoline in 2015 in California will be in tax-exempt gasoline dispensing stations for fleets of government vehicles.

To show the sheer absurdity of California voters, Brown’s $8.5 billion proposed income and sales tax increase, Proposition 30, was leading in opinion polls conducted around Sept. 23 by a margin of 51 to 36 percent. Perhaps the ongoing high gas prices will curb voters’ masochistic tendencies.

In old Soviet Russia, elections were rigged and candidates for office all received 99 percent of the vote.  In California in 2012, elections are not rigged.  But the joke will be on those who voted for Prop. 30’s income and sales tax increase just before a huge jump in regulated gasoline and energy prices hit.

Soviet centrally planned government in Sacramento is once again failing due to a huge hike in gasoline prices, while other states’ prices remain flat.

Which reminds me of an old Soviet joke that I’ll adapt: “Is it true that California is the most progressive place on the planet? Of course! Life was already better yesterday than it’s going to be tomorrow!”

24 comments

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  1. Tom Tanton
    Tom Tanton 9 October, 2012, 08:15

    wasn’t the last major disruption with actual closures of stations during Brown’s first term as Governor?

    Reply this comment
  2. Douglas
    Douglas 9 October, 2012, 08:37

    First major disruption was under Reagan, but I don’t think you can blame him for the 73 embargo, or Brown for the continuing problems.

    Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 9 October, 2012, 08:49

    Brown is a sly old fox….when gas is $5.50 on going he will have a legislative super majority and Poodle will be moaning while riding a donkey in Oatman!

    Reply this comment
  4. BobA
    BobA 9 October, 2012, 08:56

    Why is it that no one ever considers the fact that:

    1- It’s been 40 years since the last refinery was built in California.
    2- California has the 2nd highest gas tax in the nation.
    3- California has the most stringent regulations on the production of gasoline in the nation that drives up the costs of refining oil.
    4- It is illegal to import gasoline from any other state into California.
    5- Oil companies do not refine oil or own refineries.
    6- California state government profits from higher gas prices.
    7- High gas prices drives up the costs of commodities and everything else.
    9- High gas prices are incentives manufacturers to leave the state.
    10- The current prices only insures that gas prices will spike above $6/gal
    early next year and $7/gal this time next year.

    Reply this comment
  5. Hondo
    Hondo 9 October, 2012, 09:34

    How many ways can the democrats hurt this state. They leave no rock unturned. Kalifornia has more ways to create economic growth and jobs than any other place on the planet. Before guv Moonbeam (whom I admit, I once liked) came into office California was the golden state. There was little welfare and if you couldn’t find a job it was because you didn’t want one or were missing an arm or a leg (I worked with a guy in a kitchen who had lost all the fingers on one hand but his thumb in a work accident. I’m sure then, and now, he could have gotten SSDI, but he didn’t. He worked every day. He could contribute something and he did)
    Bit by bit, piece by piece, the liberal democrats have destroyed the ability of business to exist. Cap and trade is just one more.
    Hondo…..

    Reply this comment
  6. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 9 October, 2012, 09:54

    Cap n Trade– Reagan’s darling! LOL

    Reply this comment
  7. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 9 October, 2012, 09:55

    We should burn the dirty blends in our cars to please our corporate masters!

    Reply this comment
  8. Bob
    Bob 9 October, 2012, 09:56

    Brown is a sly old fox….when gas is $5.50 on going he will have a legislative super majority and Poodle will be moaning while riding a donkey in Oatman!

    Where is Oatman, Upull?

    Reply this comment
  9. Rex the Wonder Dog!
    Rex the Wonder Dog! 9 October, 2012, 10:02

    Cap n Trade– Reagan’s darling! LOL
    ==
    Totally false, same as the 50 other times you told this whopper!

    Reply this comment
  10. jimmydeeoc
    jimmydeeoc 9 October, 2012, 10:11

    To Bob —–

    Oatman is an old mining town not far from Kingman, AZ.

    It’s on the original Route 66. Now mostly popular as a tourist trap for the kind of people who sport wood over everything Route 66.

    Reply this comment
  11. Wayne Lusvardi
    Wayne Lusvardi 9 October, 2012, 11:11

    Reply to Tom Tanton
    The gasoline crisis was in 1973 and Brown took office in 1975. Brown then put into place Title 24 Building Energy Regulations that did save energy but resulted in rampant “sick building syndrome” cases (Legionnaire’s disease, etc) because energy tight buildings do not have sufficient air circulation. Of course the press gave him credit for energy efficiency reforms but not for all the sick people in buildings and loss of productivity due to employee sick days. In the Netherlands they have gone back to buildings with windows that can be opened and productivity and health have improved. I’m waiting for the tort law class action lawsuit to undo building energy regulations on health grounds.
    WL

    Reply this comment
  12. BobA
    BobA 9 October, 2012, 12:00

    Ted Steele:

    Don’t you means “our political masters”? Name one corporation that has the power to raise your taxes? Can put you in jail for failure to obey “their” laws? Can legally take everything you own and/or tax you out of existence?

    Reply this comment
  13. Ulysses Uhaul
    Ulysses Uhaul 9 October, 2012, 15:59

    Oatman is out of state in a Deliverance state..Arizona.

    Oatman has lots of donkeys in town who beg for beer and food. Cute buggers…one s named BOB!

    POODLE a natural for Oatman. Beg for food and beers…a troughie!

    Reply this comment
  14. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 9 October, 2012, 20:47

    BOBA— Our corp master pull the strings— my gosh I thought you were aware of that by now. The 1% man– it’s no myth. Cit. United, etc……. I doubt folks as simple as you appear to be will ever see it…..relax………eat what they tell you…..breath whatever they want to put in the air…..do as they say and remain quiet and calm…….say things like….”save our guns…..”take back our country”…….”we’re losing our rights…”………blah blah blah——–relax———nothing you will ever do will change anything…..shhhhhhhhhh……..it’s ok. USA USA USA USA.

    Reply this comment
  15. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 9 October, 2012, 20:59

    Most of you climate deniers and anti cap and trade sociopaths won’t have the attention span or the comprehension to read this– but you ought to—- today’s conservatives have lost their way——- I keep telling readers out here to research the TOMS Sat Program—- it tells you all you ever need to remember about Reagan and cap and trade!

    http://www.climateconservative.org/whatwouldreagando.html

    nite nite sleepyheads!

    Reply this comment
  16. Rex the Wonder Dog!
    Rex the Wonder Dog! 9 October, 2012, 21:05

    Thanks for posting your usual BOOK LONG POSTS/blather Teddy, no need for a sleeping pill tonight!

    Reply this comment
  17. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 9 October, 2012, 21:38

    If you would have someone read them to you Poodle you might learn a bit about your hero Reagan, the father of cap and trade ™!

    0 for 13 ™ just too easy!!

    Reply this comment
  18. surfpunk
    surfpunk 10 October, 2012, 06:04

    ted, Can i get disability for being a anti cap and trade sociopath ,or does it make me just an enemy of the STATE?

    Reply this comment
  19. Ulysses Uhaul
    Ulysses Uhaul 10 October, 2012, 07:58

    Surf..be nice to Teddy he makes this site tolerable.

    Reply this comment
  20. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 10 October, 2012, 08:16

    surfpunk—you’ll be fine—-only Reagan would have a problem with your anti cap and trade sociopathy— but last time I checked, he was as dead as a kipper on a cracker.

    Reply this comment
  21. Rex the Wonder Dog!
    Rex the Wonder Dog! 10 October, 2012, 10:59

    RAYGUN WAS NOT THE “father of cap and trade ™!” you progressive, commie, surrender monkey ….and I mean that is a nice way 😉

    Reply this comment
  22. Ulysses Uhaul
    Ulysses Uhaul 10 October, 2012, 16:13

    Poodle your truly vicious and should be banned like your Master…Bezzie…..why are you so harsh, rude, inconsiderate?

    Could be due to childhood time outs or something in your alternative/transition school.

    Still going to homecomings???

    Reply this comment
  23. Rex the Wonder Dog!
    Rex the Wonder Dog! 10 October, 2012, 17:46

    Teddy, you mde me cry 🙂

    I thought I was your friend????? 😉

    Reply this comment
  24. The Africanized Swarm of Ted Steele System
    The Africanized Swarm of Ted Steele System 10 October, 2012, 20:41

    Homecomings! LOL Uhaul!!!

    Reply this comment

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