Why $6 Gas Threatens California’s Climate Goals


The Chevron refinery in Richmond sits behind a neighborhood on Feb. 21, 2024. Photo by Lauren Elliott for CalMatters
The Chevron refinery in Richmond on February 21, 2024. Photo by Loren Elliott for CalMatters

For many Californians, May’s unseasonal winds and wildfires are a reminder that climate change is intensifying extreme weather. But as gas prices continue to rise, the long-standing debate in the Capitol is heating up again: Can California consumers afford it? the state’s flagship national climate program?

As CalMatters’ Alejandro Lazo explains, the war in Iran has shot up gas prices to an average of $6 a gallon nationwide and will likely squeeze more out of drivers as the conflict drags on. Two of the state-owned refineries have also been shut down in the past six months, further curtailing resources.

The situation prompted the California Air Resources Board to consider giving large companies up to $4 billion worth of new free carbon permits, with half of those permits reserved for the fossil fuel industry. In exchange for this subsidy in the state’s cap-and-invest program, polluters must commit to investing in clean energy projects.

  • Zach Learylobbyist for the Western States Petroleum Association: “The state recognizes that affordability and ambition are not very well understood right now.”

But environmentalists say the plan is a freebie for Big Oil and weakens California’s cap-and-trade program, which is the only state policy that sets a firm cap on emissions. Critics also say it would wipe out any progress made toward reducing California’s 2030 emissions targets.

  • Chloe Amespolicy advisor at NextGen Policy: “We’re really concerned that this is going to significantly hit the program.”

State air regulators say the environmentalists’ framework is flawed and that the allowances are limited, temporary and could be revoked.

Revenue for state programs that comes from carbon market auctions could also fall into the proposal, from about $4 billion a year to $2 billion, according to the nonpartisan Legislative Analyst’s Office.

Some MPs support the plan. In a joint statement, both heads of the Assembly’s climate and energy committees said the proposal “reflects the Legislature’s focus on affordability.”

The Air Council will decide whether to approve the plan on May 28.

Read more.


We’re bringing our voter guide to life through Voting is important events in California this month, in collaboration with on-the-ground partners: local news organizations, colleges, libraries, churches and nonprofits. Our next events are tonight at Vallejo and Wednesday evening at San Francisco. We also have a DIY kit to organize your own event.



Have a question about The Lincoln Project?

Rows of name badges for the CalMatters Festival of Ideas sit in blackboards on a registration table. The badges show the event logo and the words
Passes to the CalMatters IdeasFest at the Sheraton Grand Hotel in Sacramento on June 5, 2024. Photo by Larry Valenzuela, CalMatters/CatchLight Local

We’re bringing together some big names in politics, tech and nonprofits this week for our second Festival of Ideas, and we’d love to hear from you if you have a question for our speakers.

The event will feature a main-stage discussion reuniting the three founders of the Lincoln Project, the anti-Trump Republicans who nominated Joe Biden in the 2020 election. We’ll also hear from Cesar Fernandez, head of US state and local government relations at Anthropic; Julián Castro, CEO of the Latino Community Foundation; and California Attorney General Rob Bonta.

If you want to ask them a question, send an email whatmatters@calmatters.org and they can respond live on stage. If you can’t make it to Sacramento, we’ll be taping all the main stage sessions and posting them on our site at a later date.

Check out ours full list of speakers and get tickets. We hope to see you there!

Community colleges are cracking down on cheating

Students with backpacks walk down the campus sidewalk past a sign that reads
Students walk past a sign for the financial aid office at City College of San Francisco in San Francisco on December 8, 2017. Photo by Leah Suzuki, San Francisco Chronicle via Getty Images

Better filtering practices and new software help curbing financial aid fraud at California community colleges — a welcome change from last spring, when colleges saw unprecedented reports of cheating, CalMatters’ Adam Echelman writes.

Colleges reported losing just under $1.5 million in federal student aid to fraudsters between January and March and about $330,000 in state aid. Last spring, fraudsters stole almost $5.6 million in federal aid and more than $900,000 in state aid.

The downward trend follows CalMatters’ continued coverage of financial aid fraud, as well as increasing scrutiny from federal and state lawmakers.

Last year, the Office of the Chancellor of California Colleges also approved a new student ID verification policy and negotiated a multimillion-dollar contract with a software company that uses artificial intelligence to detect potentially fraudulent applicants.

It’s important to note that even when fraud was at its peak last spring, the aid money awarded to fraudsters represented less than 1 percent of the total financial aid awarded to California college students. However, “the ultimate goal for our system is zero,” said Chris Ferguson, executive vice chancellor for finance and strategic initiatives.

Read more.

And last: No one at the wheel of the Fast Food Council

A McDonald's location in south Fresno on September 12, 2022. Photo by Larry Valenzuela, CalMatters/CatchLight Local
A McDonald’s location in south Fresno on September 12, 2022. Photo by Larry Valenzuela, CalMatters/CatchLight Local

Lawmakers created the nation’s first fast-food council in California in 2023 to allow workers and labor advocates to set industry standards for wages, working conditions, safety and health. But the council hasn’t met in more than a year and still doesn’t have a chairman, prompting workers to demand that Gov. Gavin Newsom appoint a chairman, as required by law. Read more by Levi Sumagaysay at CalMatters.



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Lynn La is a newsletter writer for CalMatters, which focuses on the top political, policy and Capitol stories in California each weekday. She produces and curates WhatMatters, CalMatters’ flagship daily newsletter…

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