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Bill would add fee on Bay Area gasoline to fund climate efforts

CALIFORNIA – A bill that would impose an additional gas fee in the Bay Area and Los Angeles made its way through the Capitol this month, receiving near unanimous approval in Senate committees.

The fuel surcharges bill jointly authored by Assemblyman Jared Huffman, D-San Rafael, and Assemblyman Mike Feuer, D-Los Angeles, was introduced in February as a way to raise funds for climate change mitigation projects in the two regions and so far has had a successful run.

If signed by the governor, the bill would authorize the regional Metropolitan Transportation Commission to fund projects aimed at reducing vehicle emissions and air pollution though a 3 percent increase on the retail price of gasoline, which voters would have to approve. Alternatively, voters could approve an increase in vehicle registration fees that would not exceed $90 a year per vehicle.

These projects could include improving transportation and mitigating congestion, including rail.

“AB 2558 will provide a means for the Bay Area and Los Angeles regions to address air pollution and global warming caused by carbon emissions – as well as congestion that adds to pollution by vehicle emission of greenhouse gases – by creating a revenue source for programs that will address these issues,” Assemblyman Huffman said.

The bill would include the nine Bay Area counties including Sonoma, Napa and Marin.

The Stop Hidden Taxes Coalition, which represents 60 businesses, has come out against the bill, saying it side-steps more stringent voter approval requirements by calling the increases regulatory fees rather than taxes.

The office of the legislative analyst also warned legislators that funding for highway and road maintenance is already facing a shortfall of about $3 billion. Imposing the tax now for climate change mitigation might prevent officials from getting voter approval for another tax in the future.

Other groups supporting the bill include the Transportation and Land Use Coalition, Los Angeles Business Council, Coalition for Clean Air and the League of Women Voters of the Bay Area.

A recently completed poll by the MTC found that 69 percent of respondents said they would consider paying 25 cents more per gallon of gasoline to limit or reduce global warming.

Other groups in opposition to the bill include the California Taxpayers Association, California Manufacturers and Technology Association, California Black Chamber of Commerce and others.