Emissions bill is a costly political ploy

Gov. Gavin Newsom is an intelligent man, so when he promotes an inexplicably stupid measure, we chalk it up to political grandstanding or cynicism. Such is the case with his recent signing of Senate Bill 253, which requires oil companies that do business in California (with at least $1 billion in annual revenues) to report their annual greenhouse-gas emissions.

The stated goal, as AP reports, is to force Big Oil to calculate its culpability in climate change — and prod these companies to reduce their carbon footprint. In practice, it will add impose accounting requirements and make these companies subject to additional bureaucratic oversight. It's not “cheap” political grandstanding, as it will be expensive to comply. As always, consumers will foot the bill.

The impact will be felt beyond so-called Big Oil. A coalition of business groups opposed to the bill issued the following statement, as reported in the Senate floor analysis: “Requiring reporting and limiting emissions associated with a company's entire supply chain will necessarily require that large businesses stop doing business with small and medium businesses that will struggle to accurately measure their greenhouse gas emissions.”

This is just the latest in the governor's efforts to target oil companies, even though a 2019 study shows that the industry creates $152 billion in economic activity in California and sustains — directly and indirectly — around 366,000 jobs. Meanwhile, Newsom and Democratic lawmakers keep accusing the industry of price gouging in response to complaints about California's nationally high gas prices.

Price gouging isn't the cause. Refiners aren't greedier in California than they are elsewhere. Our state has among the highest gas taxes in the nation. We mandate a special fuels formulation that reduces supplies. The state is trying to phase out fossil-fuel production, which is discouraging companies from investing in refinery capacity. Additional regulations only add to the costs.

Supporters tout SB 253 as a “landmark” climate-change law, but consumers should recognize it for what it is: the latest example of why Californians pay nearly $2 a gallon more at the pump than the national average.