Input Stories

Input Stories

Overly Strict Climate Policies Hurt Consumers, Manufacturers

California’s climate policies are spiking gasoline prices for the state’s drivers—and putting energy security at risk, Bloomberg reports.

What’s happening: “The premium California drivers pay for gasoline over the national average is likely to rise significantly if state legislators continue enacting policies to discourage petroleum production, Andy Walz, who leads [Chevron’s] U.S. refining division, said in an interview.”

  • Drivers in California, the country’s second-largest consumer of gasoline, paid an average of $4.94 per gallon of gas in the last quarter of 2023. That’s about $1.72 higher than the national average.

Why it’s happening: “Ever-tightening regulations” are making it more costly to do business.

  • Among these regulations: a proposal to cap oil and gas companies’ refining capacity.
  • Walz told the news outlet the rule is making Chevron rethink the number of resources the company puts into California.

Why it’s problematic: “The problem is magnified because California is essentially an island when it comes to fuel [due to] a lack of pipelines connecting it with the rest of the country.”

Part of a larger onslaught: California’s refining-limit proposal joins a number of other problematic measures in that state and at the federal level.

  • In October, California Gov. Gavin Newsom signed a bill requiring large companies doing business in the state to disclose their greenhouse gas emissions—including, by 2027, so-called “Scope 3” emissions—to state regulators.
  • Last year, the Biden administration proposed changes to the National Ambient Air Quality Standards that would lower the primary annual particulate matter standard drastically, from 12.0 µg/m3 to between 8.0 and 10.0 µg/m3. The stricter standard would create permitting gridlock nationwide.

What we’re doing: The NAM continues to fight overregulation handed down by federal agencies.

  • It recently formed Manufacturers for Sensible Regulations with members of the NAM’s Council of Manufacturing Associations and Conference of State Manufacturers Associations to address the rulemaking deluge.

​​​​​​​​​​​​​​Further reading: Learn more about the high costs of regulations and the extreme burden on small manufacturers in this recent NAM study.

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