EDITORIAL: California Democrats worried about gas price hikes they created

Any California Democrat who doesn’t understand the reason for the state’s high gasoline prices should look in the mirror.

Drivers in the Golden State already pay the highest gasoline costs in the country. By the end of the year, prices could be quite a bit higher. Last November, the California Air Resources Board approved changes to its Low Carbon Fuel Standard. Gov. Gavin Newsom selected most of the board’s members.

The Low Carbon Fuel Standard is a regulatory labyrinth to push fuel providers away from traditional gasoline. Those selling fuel that’s deemed to be too carbon intensive generate a deficit. Those making fuel that’s deemed to be less carbon intensive generate a credit. To comply with these regulations, producers with deficits must purchase credits.

These deficits and credits have no intrinsic value. You can’t power a car with a credit. They’re essentially government-created permission slips to push fuel producers away from traditional fossil fuels.

Unfortunately, regulatory hoops impose real costs, as a study from the University of Pennsylvania’s Kleinman Center for Energy Policy found. It projected that this change would boost retail gasoline costs by 65 cents a gallon in the near term. The amount would increase by $1.50 a gallon within a decade.

This month, state Senate Minority Leader Brian Jones, R-San Diego, forced a vote on repealing this price-hiking change. Democrats rejected it.

That’s not the only problem facing California drivers. Last October, Gov. Newsom and legislative Democrats pushed through new legislation aimed at oil refineries. This was supposedly necessary to stop greedy oil companies from gouging consumers. Instead, two oil refineries have announced plans to close. A USC study found this could push gas prices above $8 a gallon.

Even in California, that might trigger a political revolt. Some Democrats are wondering what’s happening. “If California companies were raking it in, why did we have two refineries announce their intent to close?” Assemblymember Cottie Petrie-Norris, D-Irvine, asked at a legislative hearing last month.

Unfortunately, this isn’t just a California problem. Most of Nevada’s gasoline comes from California, which means prices here are also likely to spike. During the recent legislative session, Nevada Senate Minority Leader Robin Titus proposed Senate Bill 505 to look at how Nevada could reduce its dependence on California oil. It didn’t pass, but Gov. Joe Lombardo should lead a similar effort.

California Democrats may now be feigning ignorance and outrage over the coming gasoline price hikes. But Nevada’s gasoline prices shouldn’t hinge on whether California Democrats eventually rediscover common sense.