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.