NO on AB 638
Fuel prices are too high already! The last thing we need is a law that would intentionally put upward pressure on gasoline and diesel prices by adding new taxes and other fees to the cost of transportation fuels – but that’s precisely what AB 638 (Skinner) will do.
AB 638 would require measures to reduce petroleum fuel consumption by 15% below the 2003 level by 2020 and to increase alternative fuel consumption to 26% by 2022. Analyses of previous similar legislation found that the following types of measures would be necessary:
· Higher gasoline and diesel taxes
· A tax on vehicle miles traveled
· Pay-at-the-pump auto insurance
· Punitive taxes on the purchase of certain vehicles
AB 638 = Higher Costs, Tight Supplies
· The taxes and fees necessary to achieve the required reduction in conventional fuel use will be added to the already high costs of producing California’s unique gasoline and diesel fuels, hitting producers, businesses and consumers hard at a time they can least afford it.
· The required alternative fuels and vehicles are likely to be more expensive, less reliable and not available in sufficient quantities to meet AB 638’s arbitrary quota.
Hurts Those Least Able to Afford It
· Driving a car or truck is not a luxury. Californians need their vehicles to run their businesses, deliver essential goods and services, get to work, get to school, and go to the doctor. Government-imposed fuel cost increases won’t reduce the need to drive; it will just make it even more expensive than it already is.
· Small businesses and low income families will be hit hardest by AB 638 because they typically spend a larger percentage of their budgets on energy. They simply cannot afford to absorb AB 638 taxes on top of the already-high cost of producing California’s gasoline and diesel fuels.
Ignores Existing Laws to Promote Fuel Diversity and Independence
California already has the toughest vehicle emissions rules in the country and the most aggressive policies to achieve energy independence and fuel diversity. Examples of current and pending regulations include:
· Pavley auto emissions standards
· CARB’s Low Carbon Fuel Standard
· Clean fleet requirements
· Subsidies and incentives for the purchase of alternative fuel vehicles
