OPINION | This article contains the author's opinion.
Energy Secretary Jennifer Granholm discussed the impact of California’s policies on gas prices and the transition to electric vehicles.
She emphasized the cost-effectiveness of operating electric vehicles, citing tax benefits and lower operational expenses.
Granholm addressed concerns about California’s policies affecting gas prices nationwide, highlighting the state’s unique circumstances and the role of taxes. (Trending: Chilling Arrest Footage of Trump Co-Defendant Provides Glimpse Into Jack Smith Probe)
Becky Quick said, “[T]o see some of these policies embraced in California where they say we want to be at peak gasoline usage, and, as a result, we’re going to make more and more strict laws that require all of these other things that make it less and less likely for companies to want to invest in the refineries there, what you’ve seen is gas prices are much higher there than anywhere else in the nation — with the exception of potentially Hawaii and Alaska.”
She also mentioned the ongoing transition to electric vehicles and the potential for decreased prices as production scales up.
“But what you see are these California prices that are significantly higher. If you see that carried out throughout the rest of the country, you will probably have a very unhappy electorate, because every time they see gasoline prices up $1, they scream,” she continued.
Granholm said, “Of course. And I don’t think you’re going to see California taxes or prices carried out through the rest of the country, because these are all done, as you say, on a state-by-state basis. California is unique –.”
Becky Quick raised broader policy implications and potential reactions if similar measures were implemented nationally.
“But they’re talking about the same things that you just about with biodiesel and other issues. If you spread those on a national level, you will have probably similar reactions,” said Quick.
Granholm answered, “Well, but a lot of the increase, a lot of the price gap for California, the significantly more expensive price per gallon, does have to do with gasoline taxes too. So, I think everybody knows, Becky, we are in this transition right now. It is, for consumers, significantly less expensive to operate an electric vehicle than an internal combustion engine vehicle –.”
“With tax incentives that taxpayers pay for,” interjected Quick.
Granholm acknowledged additional factors influencing prices in California and expressed skepticism about a widespread adoption of the state’s policy framework.
“Well, it’s — on federal — there [are] federal tax credits that they benefit from if they are able to take it up, and if they’re able to afford a lease. And a lease, of course, is cheaper than perhaps a monthly payment for a purchase,” said Granholm.
“And these tax credits, $7,500 off of a lease, you can really have an affordable vehicle. It’s much cheaper for somebody to operate that. So, we’re in this transition. It is not going to always be smooth and easy, but on the other side of this transition, I think that people will come to love, as people who drive electric vehicles have — 95% according to the J.D. Power survey, [are] extremely happy with their electric vehicles because of cost and because they’re fun to drive. I think you’re going to see this transition continue to increase. It is at about 10% of the fleet right now, but that is going to continue to increase at the same sort of pace that we’ve been seeing it increase,” she explained.
“[I]t’s not just gas taxes. There’s an awful lot more there,” so Quick.
Granholm said, “There is, there is, the refinery — there’s no doubt that there are other policy issues in California that are affecting prices.”
“And that’s their choice. And that’s why they have such a massive uptake in electric vehicles in California. But I just don’t see a massive rolling of the California policy framework in the other 50 states. That’s just not going to happen,” added Granholm.
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