San Francisco – According to CBS News, Newsom Signs signs for the climate, californical energy, oil production – Governor Gavin Newsom was again transformed into public politics into the main time and a comprehensive series of invoices under the ceiling of the Morrison Planetarium were signed last week. The spectacle promised an all-in-one solution: cheaper electricity, more reliable gas supply, cleaner air and a green job boom. “After months of hard work with the legislator, we approved historical reforms that save money for their electricity invoices, stabilize the gas supply and reduce the toxic air pollution and at the same time quickly pursue the transition of California to a clean, green workplace work.
The core of the package is an expansion of the cap-and-trade 2045. This renaming of shine, through which the structure is largely the same: companies either have to reduce their greenhouse gas emissions, buy emission allowances or invest in offset. The income from auctioning allowances is then (some) invested (many) or issued (often). In recent years, these auctions have drawn 3 billion US dollars and 4.3 billion US dollars a year. These sales fund programs range from forest fire to transport, residential and supply loans. 1
In fact, according to the California Air Resources Board Fast 33 billion US dollars Has grew up since the beginning of the state and directed into the state’s cap-and-and-and-invest system, and financed 117 initiatives “Clean-Energy and Community Resilience”. 2 This includes a large disc that describes newsoma and others as “climate loan” refunds for supply customers, some support for disadvantaged communities and guarantees a 1 billion US dollars every year Provided for high -speed rails. Yes, the same high-speed rail project, which critic repeatedly marked for overruns, delays, delays and questionable emission effects compared to its price tag.
If you want concrete examples of where Californians already feel the bite, take the electricity price into account. From mid -2025 the average residential current in California runs approximately 33.52 cents per kilowatt hour (¢/kwh)– Almost the highest in the nation, almost Double the national average from round 17.47 ¢/kWh. There are also 3 monthly bills: many California households pay on average $ 186/month for electricity, depending on the level of use, which is roughly 29% higher As the average residential building of approximately round $ 144. 4 For those who use more use heating, air conditioning, EV chargers, large houses steep.
High prices alone hurt. But if the reliability gets into the stall, the costs are more than financial – they destabilize them socially. California has suffered serious blackout events in recent decades, especially in heat waves. An example: in August 2020 during a heavy heat wave, Hundreds of thousands From Californians experienced that Rolling Blackouts lacks due to supply with the California -independent system operator. 5 In the earlier electricity crisis 2000-2001 through market manipulation, droughts and restricted capacity 1.5 million customers In a single event (19th to 20th March 2001), with other events affect hundreds of thousands of others. 6 These are not edge cases; They are consequences of the production, the grid expansion and permission through impossible schedules, while they expect perfect results.
The legislation promises up to $ 60 billion In the electricity bill, the reimbursement of the extended California climate loan reimburses, but this money is not free of charge: it comes from the same income from cap-and-trade, which are installed in the costs for companies, which will then tend to be passed on to interest payers. It is a feedback loop: regulatory authorities add costs, then sometimes offer relief and then add new mandates and then offer more discounts. Net effect: higher basic prices, more volatility, more confusion.
Despite the protests of “affordability”, the observable trend increases the stress. For example, the electricity rates in California have increased significantly since 2015 and have contributed significantly to the general affordability crisis. 7 Many households with lower and medium-sized incomes see energy as one of the few costs that cannot be postponed- utilities, heating/cooling and tank trolleys must be paid.
Recently there has also been considerable evidence that the income from the capital attrade does not grow as planned. A report by Clean and Prosperous California estimates that the state has roughly missed 3 billion dollars In the income last year because the auction results were weak and the demand for credit was not met in some rounds. 8 Such revenue reductions tighten the risks: If the promise of discounts or infrastructure is financed by uncertain sources of income, the fallback is usually tax, interest rate increases or cuts elsewhere.
While newsom’s package includes the loosening of drilling restrictions in Kern County to stabilize the fuel supply, this is much more symbolic than structural. In California, the refinery capacity was eroded under environmental and regulatory pressure. The loosening of the regulation in a district does not replace the lost capacity or immediately reduces the costs for imported fuels or high gasoline prices.
The extended forest fire fund, reinforced by $ 18 billion Financed through interest payers and supply shareholders, is more of another pavement than a fundamental structural solution. The supply companies are asked to harden the infrastructure, to manage aging devices and combat fires, but these costs are largely passed on to the residents – which already pay the highest prices in the USA
Newsom and legislators framework these guidelines as “historical”, between the climate and affordability. However, the success balance sheet suggests: fat -promising promises, political optics, delayed results and costs that concentrate on interest payers, small companies and communities with low incomes. The expansion of cap-and-trade by 2045 ensures the revenue flows and the regulatory cover. The high-speed rail segment receives its guarantee of $ 1 billion a year. Billions of others go to forest fire and climate programs. The underlying problems – grides instability, high basic rates, restrictions on fuel supply, long time delays – are usually not restricted in any sensible way.
California continues to import electricity from neighboring countries, if renewable energies are not sufficient, maintain natural gas systems under emergency support, and tolerate regulatory uncertainties that frighten private investments. None of this is reconciled with the words “clean”, “green” or “fair”. And if the costs increase anyway – as they inevitably do – the Laierer make discounts, credits and “historical” laws to appease the dissatisfaction of the public.
What the Californians can expect realistically from Newsoms Bill Signing is another level of complexity, another promise to be “soon” fulfilled, and another series of invoices that increase the costs before they contain them. The 33 billion US dollars collected here does not delete the decades of paid invoices, network stress or power failures. If leadership means something, it should mean transparent compromises and no benefits under domes.
- The legislative analyst office, “The California Cap-and-Trade program: frequently asked questions” cap-and trade auctions have raised $ 3- $ 4.3 billion $/year Last.
- Carb, “State is investing almost $ 33 billion in cap-and-trade dollars to make municipalities cleaner and healthier.”
- UVP / Electricityrate Survey: California Residential Average 33.52 ¢/kWhNational ~17.47 ¢/kWh.
- Solar reviews / State data: Average electricity bill ~ $ 186 / month compared to US $ 144.
- ABC News, report on Caiso Rolling Blackouts in August 2020 during a heat wave.
- Brattle / Historical Data on the Strom Crisis of 2000-2001: 1.5 million customers affected by a blackout event.
- “A closer look at the rising electricity quotas of California”, the Public Policy Institute of California: Interest increases since 2015, which contribute to the affordability crisis.
- Clean and wealthy California: approximately 3 billion dollars In missed income due to weak auction performance.
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