Rep. Doug LaMalfa Slams California's New 65-Cent Per Gallon Environmental Tax

California's Fuel Cost Breakdown

• ⛽ The average gas price in California is $1.44 higher than the national average.
• 📊 Over a third of this cost is attributed to state-imposed regulations and taxes.
• 💰 Key components include crude oil costs, refinery costs (86 cents), transportation to retailers (47 cents), and various taxes.

Escalating Taxes and Fees

• 🧾 Existing taxes include cap and trade (24 cents), low carbon fuel standard (18 cents), federal excise tax (18 cents), state excise tax (60 cents), state and local sales tax (10 cents), and underground storage tank fee (2 cents).
• 📈 An automatic tax increase of 1.6 cents per gallon is set to occur in July.
• ⚠️ A new environmental tax is estimated to add an additional 65 cents per gallon, making California the most expensive state for fuel.

Environmental Regulations and Mandates

• 🚗 California's environmental regulations, such as CARB rules, are being emulated by other states.
• ⚡ A recent electric vehicle mandate, which California sought a waiver for, would require 35% of vehicles sold to be electric by next year, impacting auto manufacturing and consumer choice.
• 📉 Other states like New Jersey, Colorado, New York, and Massachusetts are considering similar mandates.

Refinery Closures and Fuel Shortages

• 🏭 Two California refineries, owned by Philip 66 and Valero, are slated to close, removing 21% of the state's refinery capacity.
• ⛽ This closure will exacerbate fuel availability issues, as California uses a special fuel blend not easily sourced elsewhere.
• ⚠️ A USC study predicts a daily shortfall of up to 13.1 million gallons of gas due to these closures.
• 💸 The combined impact of tax hikes, regulations, and refinery shutdowns could lead to fuel prices reaching $8.43 per gallon in California.

Economic Impact on Industries and Workers

• 🚜 Farmers and industries relying on diesel fuel face significant cost increases.
• 🧑‍💼 Mandated wage increases, such as the $20/hour minimum wage for fast-food workers, are also contributing to rising costs and automation.
• 💸 The state's $12 billion deficit, partly due to costs for illegal immigrants and Medicaid, is being offset by increased taxes on citizens.