"California-Only” Diesel Will Come at High Cost

[Desert Rancher]

From the California Trucking Association:

The report titled “The Impact of the Low Carbon Fuel Standard and Cap-and-Trade Programs on California Retail Diesel Prices” demonstrates the effect that CARB’s regulatory actions will have on the state’s retail diesel future leading to a $6.69 per gallon price tag.

http://caltrux.org/sites/default/files/uploads/PR/PR%204-24-2012%20LCFS%20Study.pdf

http://caltrux.org/sites/default/files/CTALCFS.pdf

 

[craig333]

Wow, thats scary. I could see many trips to NV in the future. I wonder just what the heck low carbon fuel is?

 

[brp]

If diesel is $6.69/gallon in 2020, as the study suggests, I would consider that a big surprise. I bet that anybody involved in petroleum pricing/economics would think it will be quite a bit more than that. I have already seen gas above $5 many times in CA.

This study is done by the California Trucking Assoc, so I consider it quite biased.

The real cost of California Diesel will likely be lower than regular diesel. Its is just that instead of of a large percentage of the real cost of the fuel being forced on the general population, it will be focused on the purchaser. This is substantiated by studies that often find the cost of gasoline, post subsidies, environmental, military, costs, etc, to be as high as $15/gallon. Here is one, http://www.iags.org/costofoil.html. Others have it around $3/gallon above retail price.

Where are the subtractions in the costs for things like climate destabilization reduction, air quality improvement, etc?

Remember, restricting asbestos used cost jobs, same with lead paint, leaded fuel, etc. If we outlawed tobacco, it would hands down be a net economic gain. Health care costs, lost productivity reclaimed, opportunity costs of using farm land for other things, missed work, accidental fires, etc. However, people would say how it costs jobs, not mentioning the substantial economic upsides.

Either way, I don't want truckers to bear the burden on their own. Does anybody know if CA is doing anything to else spread the "costs" across the broader economy?