By Haddon Libby
The California State Senate passed a bill this month requiring that 50% of all electricity used in our state be generated from renewable sources like wind and solar by 2030. Additionally, greenhouse gas emissions from cars will have to fall by 80% from 1990 levels by 2050. Titled SB 350, this bill will also change how buildings are made so as to create energy efficient buildings.
SB 350, a cornerstone of Governor Brown’s reelection agenda, now heads to the State Assembly for final passage.
Democrats hail this legislation as ushering in a new era for California where our state will transition to an economy that operates sustainably while eliminating pollution and reliance on petrochemicals like oil and coal.
Every Republican in the Senate disagreed and voted against this legislation. Our very own State Senator, Jeff Stone, showed anger on the Senate floor as he believes that the legislation will, “kill thousands of blue and white collar jobs in the Central Valley.”
Small Business California, the leading organization representing small businesses, strongly supported the bill while the petroleum industry took to the airwaves to scare/educate voters.
So who is right – small businesses and Democrats or the oil industry and Republicans?
Small businesses feel that a shift away from fossil fuels is critical to their ability to remain competitive as they cannot compete with offshore labor costs. UC-Berkeley confirmed this belief in a study that proved that a shift to renewable fuels shields businesses from increasing energy prices.
In their scare/educational campaign, the oil industry wants you to believe that a panel called the California Air Resources Board will soon begin rationing the gas that you can use. This isn’t true. They also want you to believe that the lowest income people in our community will be hurt the most. Catherine Reheis-Boyd, president of the Western States Petroleum Association states, “We will continue to educate consumers and businesses on the enormous negative impact the legislation will have on all Californians.”
A big problem with Big Oils’ argument can be found in the current price of gas in California. The average price for a gallon of gas in Texas in $2.00 yet we pay nearly 75% more. Surely if the industry was so concerned with low-income California consumers, our gas prices would be lower. Their campaign didn’t mention the fact is that nearly 50% of oil industry profits in the United States come from California.
With this as a backdrop, it seems natural that Californians would be fed up with the price manipulation that has been typically deployed on our state.
While long-term effects of this legislation cannot be known as of today, James Sweeney, director of Stanford University’s Precourt Energy Efficiency Center said, “I’m quite dubious about our ability to accomplish these goals (that) we’re getting so many kudos for setting. It’s going to be up to future governors and future lawmakers to make these goals work. Unless we come up with a plan that’s not terribly disruptive to average Californians’ lives, they’re never going to follow through.”
SB 350 is about recognizing that we need to move away from fossil fuels if we are to improve the quality of life for Californians. To continue paying such high prices for gas and electricity means that local businesses can only compete with lower cost offshore businesses by keeping wages low – a virtual impossibility. It also means that many of our dollars go to rogue nations like Iran, Russia and Venezuela while supporting some of the wealthiest companies in the world.
So is gas rationing coming? If you ask someone with limited finances, I think they would tell you that $3.50 gas has already caused them to self-ration so that they can afford to a roof over their head and a meal on their table.
