‘California-Only’ Diesel Will Come at High Cost for State

Study: Clean fuel directives will lead to job losses, drive price up to $6.69/gallon

California clean fuel directives will lead to significant job losses for the state and drive up diesel prices at the pump to around $6.69 per gallon, according to a study just released by the California Trucking Association (CTA).

The study, “The Impact of the Low Carbon Fuel Standard & Cap-and-Trade Programs on California Retail Diesel Prices,” prepared by Bethesda, Md.-based consultants Stonebridge Associates Inc., examined the effect of California’s new low-carbon fuel and cap-and-trade emissions initiatives on the state’s retail diesel future.

By 2020, the two programs combined could increase the price of diesel fuel by $2.22 per gallon, the report said. That would represent more than a 50% increase in the price of diesel and a shocking $6.69 per gallon at the pump. The average price difference between California and neighboring states would be $2.33 per gallon, when accounting for taxes.

According to the study, between 2015 and 2020, the higher costs of “California-only” diesel will cause the loss of nearly 617,000 jobs in the containerized import sector, $68.5 billion in lost state domestic product, $21.7 billion in lost income and $5.3 billion in lost state and local taxes.


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2 responses to “‘California-Only’ Diesel Will Come at High Cost for State

  1. That state is commiting suicide

  2. It might be really interesting if trucking in California switched to natural gas. Why, diesel is taxed at a higher rate then natural gas so the state will be getting less tax money for road maintenance.

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