California

unhappycamper

(60,364 posts) Mon Jun 30, 2014, 09:14 AM Jun 2014

Critics say climate program would create 'hidden gas tax'

http://www.latimes.com/business/la-fi-capitol-business-beat-20140630-story.html

A California law requiring oil refineries to pay for the right to release carbon emissions could drive up gas prices, critics say. But it could also save motorists money as cars become more fuel-efficient, environmentalists counter.

Critics say climate program would create 'hidden gas tax'
Marc Lifsher
6.29.2014

California's latest move to combat global warming will either siphon dollars from motorists' wallets or save them big money on their gasoline bills.

Those are the starkly different predictions being bandied about the Capitol by critics and fans of the state's controversial system for buying and selling pollution credits. Starting Jan. 1, oil refineries must pay for the right to release excess carbon and other greenhouse gases to the atmosphere.

A bipartisan group of at least 40 members of the state Assembly last week wrote Gov. Jerry Brown and his environment secretary to complain that putting motor vehicle fuels into the program would create what some called "a hidden gas tax."

They forecast that already high prices could jump by at least an additional 15 cents for regular gas, an increase that low- and middle-income Californians could ill afford. Lawmakers want Brown to exempt refineries from having to buy pollution credits.

3 replies

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Critics say climate program would create 'hidden gas tax' (Original Post) unhappycamper Jun 2014 OP

I don't get it tularetom Jun 2014 #1

Gas is ridiculously cheap in the US. DetlefK Jun 2014 #2

Diesel is £1.36'ish / litre in the UK dipsydoodle Jun 2014 #3

tularetom

(23,664 posts)

1. I don't get it

Reply to unhappycamper (Original post)

Mon Jun 30, 2014, 09:25 AM

Jun 2014

Are the refineries being asked only to pay for those gases released during the refining process?

Or are they being required to prepay for the gases that are released by the end use of the refined product, that is the emissions from cars which consume the gas?

If it's the latter, I'd have to agree with those who call it a hidden gas tax.

DetlefK

(16,423 posts)

2. Gas is ridiculously cheap in the US.

Reply to unhappycamper (Original post)

Mon Jun 30, 2014, 09:30 AM

Jun 2014

In Germany it's ~€1.60 per liter. (Diesel has a tax-loophole and costs ~€1.30 per liter.)
http://de.statista.com/statistik/daten/studie/1690/umfrage/preis-fuer-einen-liter-superbenzin-monatsdurchschnittswerte/
€1.60 = $2.19
1 liter = 0.264 gallons
-> $8.28 per gallon

In the US it's $4 per gallon.
http://www.eia.gov/petroleum/gasdiesel/

dipsydoodle

(42,239 posts)

3. Diesel is £1.36'ish / litre in the UK

Reply to DetlefK (Reply #2)

Mon Jun 30, 2014, 09:58 AM

Jun 2014

ie c. €1.70 / litre. Petrol is cheaper here @ €1.63.

Compared with Europe complaints about figures in the US are a joke.

They also help explain this tragedy :

Which nations are most responsible for climate change?

Historical emissions

Since carbon dioxide added to the atmosphere can stay there for centuries, historical emissions are just as important – or even more important – than current emissions. The tricky question of historical responsibility is one of the key tensions in the process of negotiating a global climate deal. The following figures from the World Resources Institute show the top 10 nations as measured by their cumulative emissions between 1850 and 2007. The US tops the list by a wide margin – though Chinese emissions have risen significantly since these data were assembled.

1. US: 339,174 MT or 28.8%
2. China: 105,915 MT or 9.0%
3. Russia: 94,679 MT or 8.0%
4. Germany: 81,194.5 MT or 6.9%
5. UK: 68,763 MT or 5.8%
6. Japan: 45,629 MT or 3.87%
7. France: 32,667 MT or 2.77%
8. India: 28,824 MT or 2.44%
9. Canada: 25,716 MT or 2.2%
10. Ukraine: 25,431 MT or 2.2%

http://www.theguardian.com/environment/2011/apr/21/countries-responsible-climate-change

The US is marginally less than China, Russia Germany and the UK combined.

To further add to the tragedy the US is now seriously considering shipping LNG to Europe. One super tanker emits the equivalent of 50 million cars annually. The total requirement is foreseen to be 400 such tankers. Do the maths.

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