Americans are angry and rightfully so.
Anger is growing across California as residents push back against new environmental regulations backed by Democratic Governor Gavin Newsom that critics warn could drive gasoline prices even higher.
Many Californians say they are already struggling with the highest gas prices in the nation, and they fear the proposed changes could make the situation even worse.
The backlash centers on potential changes to the state’s Cap-and-Invest program, a climate policy overseen by the California Air Resources Board (CARB). The program places limits on greenhouse gas emissions and requires companies to purchase permits for each ton of carbon they release.
Supporters say the policy is designed to reduce pollution and fund environmental programs. But critics argue the real-world impact is simple: higher energy costs for everyday Americans.
Californians Say Rising Gas Prices Are Crushing Families
Drivers across the Golden State are speaking out as the cost of living continues to rise.
Victoria Comfort, one resident responding to the proposed rules, said many Californians feel they are being pushed to the breaking point.
“Stop taxing us to death,” she wrote in comments submitted to regulators. “These policies aren’t helping Californians or the environment. They’re hurting families and destroying the oil and gas industry in our state.”
According to the California Energy Commission, the Cap-and-Invest program already adds about 24 cents per gallon to gasoline prices.
And California drivers are already paying far more than the rest of the country.
In early March, the average gas price in California was about $4.80 per gallon, compared to roughly $3.25 nationwide, according to AAA.
For many families, that difference adds up quickly.
How California’s Climate Policy Impacts Gas Prices
California’s Cap-and-Invest program currently covers roughly 80 percent of the state’s greenhouse gas emissions.
Under the system, companies must purchase carbon allowances for the emissions they produce. Each year, the number of available allowances is reduced, tightening the limit and increasing pressure on businesses to cut emissions.
Revenue generated from these carbon permits flows into the state’s Greenhouse Gas Reduction Fund, which helps pay for public transportation projects, environmental initiatives, and other climate programs.
However, critics say the cost of these policies ultimately gets passed on to consumers — especially through higher gasoline and diesel prices.
Energy Industry Warns of Job Losses and Higher Costs
Major energy companies are also warning that stricter regulations could threaten California’s already shrinking refining industry.
In a letter to regulators, energy giant Chevron warned that the proposed changes could seriously harm the state’s refining sector and potentially force additional refinery closures.
According to industry estimates, the oil and gas sector supports more than 530,000 jobs in California and contributes roughly $64 billion annually in tax revenue.
Critics argue that aggressive regulations could lead to:
- More refinery shutdowns
- Fewer high-paying energy jobs
- Greater reliance on imported fuel
- Even higher gasoline prices
Environmental Groups Push For Even More Regulations
While many residents are pushing back against the proposal, some environmental groups want the state to go even further.
The advocacy group Biofuelwatch urged regulators to close what it calls a “biogenic CO2 exemption loophole,” which allows some biofuel producers to avoid purchasing carbon allowances for certain emissions.
The organization estimates that more than 23 million tons of emissions linked to biogenic fuels were exempt from the program in 2024.
According to the group, closing the exemption could generate between $593 million and $712 million in additional revenue for the state.
Californians Say Energy Policies Are Hurting Local Industry
Many residents say the state’s energy policies have weakened California’s domestic energy industry while increasing reliance on foreign fuel imports.
Michael Chavez, another California resident, criticized state leaders for what he described as harmful energy policies.
“California’s leaders managed to destroy in-state refining, eliminate good-paying jobs, increase reliance on imports, and then blame consumers,” he wrote.
“Californians are not using less energy. We’re just being forced to buy it through a more expensive system.”
Concerns Grow Over Electric Vehicle Push
Others argue California is moving too quickly toward electric vehicles without ensuring affordability or infrastructure.
Brian Rohmer said many working families simply cannot afford the transition.
“California has a reputation for excessive regulations that make life more expensive,” he wrote. “I cannot afford an electric vehicle, and the charging infrastructure simply isn’t ready.”
Drivers Say Gas Prices Are Already Near $5 Per Gallon
For many residents, the debate comes down to one thing: the price at the pump.
Ramona Bonitatis of Santa Clarita said gas prices in her neighborhood are already approaching $5 per gallon, far higher than prices in most other states.
“Every time we fill up our tanks we are reminded how expensive it is to live here,” she wrote.
“Families in other states are paying two or three dollars a gallon while Californians are being punished.”
She urged regulators to reject the proposed changes and focus on policies that reduce costs for everyday Americans.
“California’s leaders must stop these burdensome regulations that hurt families and workers,” she wrote.
“Enough is enough.”