Another Tax Proposal by California’s Air Regulators

Now, the Air Resources Board is considering a new regulation (sub. req’d, posted 10/4/2012) creating a “border adjustment fee” on California fuels. This is an explicit acknowledgment that their regulatory actions will substantially increase the price of fuels, creating “leakage” of both jobs and GHG emissions to other states. So the Board’s natural response is – no, not reducing the cost impact of their regulations – but attempting to increase the cost of competing fuel imports.
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