When I took a road trip through three West Coast states two weeks ago I found that gas prices fluctuated by as much as $1.53 per gallon. Prices were highest in northern California, where I paid as much as $5.899 per gallon and lowest on the Oregon coast, where gas could be found for $4.37 per gallon. Meanwhile, western Washington prices tended to hover around $4.60 per gallon.
How do these prices compare with nationally? On Monday, May 20 the U.S. average was $3.58 per gallon, according to the federal Energy Information Administration (EIA, 2024).
Why might any of this matter if you live in other parts of the country? Because West Coast states have tended to be trend setters on climate change initiatives. The battles that are playing out here could spread to other parts of the country.
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As a case in point, in 2022 the leaders of California, Oregon, Washington and the Canadian province of British Columbia signed a statement of collaboration on climate action in an effort to reduce greenhouse gas emissions by at least 80 percent by 2050 (Udasin, 2022). All three states have also joined a regional “cap-and-trade” initiative (Carpenter-Gold, 2023).
Cap-and-trade energy programs are intended to reduce greenhouse gases by issuing a set amount of permits that cap emissions. Companies that surpass their cap are taxed, while those that do not may sell or trade their credits (Kenton, 2020).
Chevron tries to mobilize customers to lobby state
Chevron stations in California had banners near gas pumps that said, “Filling up your tank is a lot cheaper in other states. Scan here to do something about it.”
Follow their instructions and you reach a web page titled, “Policymakers are Driving Up California’s Gas Prices” (Chevron, 2024). You are then asked to “make your voice heard” by connecting with your legislators. Chevron’s narrative focused on the impacts of California’s efforts to fight climate change through its Low Carbon Fuel Standard and cap-and-trade program.
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CNN reported that Californians have paid more for gas than any other state except for Hawaii partly because it has the highest taxes in the nation. In addition, gas stations are required to use a cleaner blend of fuel that is produced by only 11 major refineries. Shortages — and price spikes — can result when multiple refineries go offline (Delouya, 2024).
An additional factor in California’s higher prices could be that it has fewer off-brand sources of gas that cost less than name-brand gas stations such as Chevron, Shell and Mobil (Delouya, 2024).
Washington initiative would repeal climate legislation
Washington’s climate policies face an even bigger challenge than California’s — Initiative 2117 would repeal the state’s new cap-and-trade law that puts a tax on CO2 emissions. The Washington Policy Center, a “free-market” think tank, has argued that the law has resulted in taxes on CO2 that added 43 cents per gallon in its first year (Myers, 2024).
Views on the initiative, which will be on the November 2024 ballot, tend to sort along partisan lines. The state’s Senate Republicans (2024) have argued that the cap-and-trade law “is one of the big reasons the cost of living in Washington is skyrocketing.” The legislation was championed by Democratic Governor Jay Inslee, who has made fighting climate change a top priority.
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“This effort and this initiative is to allow an unlimited amount of pollution, to strip our children of the protection against this pollution,” Inslee said in a recent interview (Denkmann, 2024).
Interestingly, the Association of Washington Business has decided to not take a stand on this initiative, noting that “there is a range of opinion about whether it would be better to repeal the program or continue to address the issues with the existing program” (Davis, 2024).
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RE:SOURCES
- Carpenter-Gold, Daniel; 2023. “Cap and Trade Heats Up—For Better or Worse.” LegalPlanet. Posted March 15.
- Chevron; 2024. “Policymakers are Driving Up California’s Gas Prices.” Accessed May 31.
- Davis, Brett; 2024. “Association of Washington Business endorses two of three initiatives on the fall ballot.” The Chronicle. Posted May 30.
- Delouya, Samantha; 2024. “Here’s why gas always costs more in California.” CNN. Posted Jan. 27.
- Denkmann, Libby; 2024. “Will Gov. Inslee’s signature achievement live past his time in office?” KUOW. Posted April 2.
- EIA; 2024. “U.S. gasoline prices ahead of Memorial Day weekend are 1% higher than last year.” Energy Information Agency. Posted May 23.
- Kenton Will; 2020. “Cap and Trade Basics: What It Is, How It Works, Pros & Cons.” Investopedia. Posted Dec. 5.
- Myers, Todd; 2024. “Initiative 2117, to repeal the Climate Commitment Act.” Washington Policy Center. Posted Feb. 22.
- Senate Republicans; 2024. “Repeal the ‘Climate Commitment Act’ and its ‘cap-and-tax’ program.” Accessed May 31.
- Udasin, Sharon; 2022. “West Coast leaders sign agreement to expand regional climate collaboration.” The Hill. Posted Oct. 6.
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