Gov. Brown’s administration has been talking directly with oil companies in hopes of reaching a consensus on extending California’s landmark climate programs, opening a back channel with an industry he has harshly criticized as a barrier to addressing global warming.
The dialogue was described by sources who requested anonymity to talk about private discussions and later confirmed by the Western States Petroleum Assn., which represents oil companies in Sacramento.
The organization’s president, Catherine Reheis-Boyd, told the Los Angeles Times that the industry is engaged in “ongoing talks with the administration to improve the state’s current climate change programs.”
Behind-the-scenes conversations come at a time when Mr. Brown is searching for the best way to safeguard the cap-and-trade program, which requires companies to purchase permits in order to pollute and serves as the centerpiece of California’s efforts to reduce greenhouse gas emissions. The program, an important revenue generator for projects such as the bullet train to connect Los Angeles and San Francisco, has suffered from waning political support and legal questions over how long it can keep operating.
It is far from certain that the conversations, which have been underway for weeks and don’t include lawmakers, will produce any consensus between two sides that have historically been at odds over tackling climate change.
Each camp has reasons to come to the table. Mr. Brown wants to avoid having his agenda thwarted by an industry that has proved adept at rallying lawmakers to its defense. Meanwhile, oil companies are seeking an opportunity to influence state policy rather than risk more aggressive efforts from Brown, who has vowed to use regulations to keep reducing California’s dependence on oil — whether or not he gets new legislation.
A key issue in the talks has been the state’s low-carbon fuel standard, which requires the production of cleaner gasoline. Oil companies claim the regulation — which is scheduled to require a 10 percent reduction in the carbon content of fuels by 2020, up from the current 2 percent — sets an unobtainable target that will raise costs for consumers.
State officials estimate the eventual cost increase would be less than 20 cents per gallon, and the Brown administration has defended the regulation as an important tool for curtailing emissions from vehicles, one of California’s biggest hurdles to cleaning up its air.
Even if a deal is reached, the governor would need to sell it to lawmakers with whom he has not always seen eye to eye. Some Democrats are moving forward with their own proposals to extend cuts in greenhouse gas emissions and stem pollution from refineries, setting the stage for a contentious debate over California’s climate policies at the end of the legislative session in August.
Mr. Brown would also need to find common ground with fellow Democrats who have been skeptical of cap-and-trade, the bullet train that’s being funded with the program’s revenue and the value of increased environmental regulations.
This story originated at www.latimes.com
chris.megerian@latimes.com and melanie.mason@latimes.com
