President Trump Targets California’s Overreaching Cap and Trade Program

President Donald Trump has issued an executive order that targets California’s climate change laws and policies, specifically naming California’s sketchy Cap and Trade  program, which ostensibly facilitates greenhouse gas emission reductions.

Trump is promoting “all of the above” energy policy, including nuclear power.

From Trump’s executive order “PROTECTING AMERICAN ENERGY FROM STATE OVERREACH:”

My Administration is committed to unleashing American energy, especially through the removal of all illegitimate impediments to the identification, development, siting, production, investment in, or use of domestic energy resources — particularly oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources.

Trump’s order singles out California’s cap and trade program, run by the equally sketchy California Air Resources Board:

California, for example, punishes carbon use by adopting impossible caps on the amount of carbon businesses may use, all but forcing businesses to pay large sums to “trade” carbon credits to meet California’s radical requirements.  Some States delay review of permit applications to produce energy, creating de facto barriers to entry in the energy market.  States have also sued energy companies for supposed “climate change” harm under nuisance or other tort regimes that could result in crippling damages.

Trump’s executive order authorizes U.S. Attorney General Pam Bondi to “identify all State and local laws, regulations, causes of action, policies, and practices (collectively, State laws) burdening the identification, development, siting, production, or use of domestic energy resources that are or may be unconstitutional,” and to report back within 60 days to the president with findings and recommendations for action.

President Trump may help flip California back to red:

• He signed an Executive Order overriding disastrous California policies in order to fight and prevent massive wildfires in southern California.
• He signed an Executive Order threatening to revoke federal funding from “sanctuary” states and cities that refuse to comply with federal immigration law.
• His administration is working to block efforts by California to set its own vehicle emissions standards that would have forced automakers across the country to comply with the state’s extreme environmental rules.

What is Cap and Trade?

California’s cap-and-trade program places a “cap” on aggregate greenhouse gas emissions from businesses and utilities deemed “polluters” by the California Air Resources Board, which the CARB says are responsible for most of the state’s greenhouse gas emissions.

The California Air Resources Board (CARB) has taken a great deal of liberty, particularly with its interpretation of AB 32, California’s Global Warming Solutions Act of 2006. The CARB devised the cap-and-trade system whereby it holds a quarterly auction program requiring selected California employers to bid significant amounts of money for the privilege of continuing to pollute — or be faced with closing their doors.

The Air Resources Board issues carbon allowances, and businesses are forced to buy or sell these in the open market. Several other countries including Spain and Australia have already acknowledged carbon taxing does not work, but California’s Air Resources Board, Democrats, and Gavin Newsom stubbornly continue on with carbon taxing – not because they are true believers – because it’s a revenue-generating tax.

The CARB continues to push for more stringent regulations and taxes on California businesses and taxpayers, and lie that the goal is a reduction in greenhouse gasses. This is just another sizable tax on businesses. And instead of actually reducing carbon emissions through the cap and trade program, a business can merely purchase the get-out-of-jail credits to be able to continue (polluting) doing business.

It’s really just a shakedown of California businesses.

The state effectively said: Forget carbon emissions, we need the money. This legislation which originated as AB 32, California’s Global Warming Solutions Act of 2006, was financially motivated.

The corporation created by California Air Resources Board to manage the then-new cap and trade auctions, the Western Climate Initiative Inc. was formed in Delaware, and not California. Delaware is not subject to California state open meeting or sunshine laws, leaving many questioning why CARB opted for such secrecy. The only reason to register the corporation in Delaware is the lack of public or legislative scrutiny on any of their meetings or actions they take.

As more proof that the stupid people are running everything in California, the state could be flush with cash. In 1982, California imported only 5.6% its crude oil from foreign sources. In 2024, the Golden State imported 60.7% of its oil from foreign sources.

In 1982, California had 43 operational oil refineries and a population of nearly 25 million; today we have 11 operational oil refineries and a population of nearly 40 million.

California’s cap and trade program will expire in 2030. A group of lawmakers was assigned to lead a discussion on climate change in December. Energy experts anticipate another extension is in the works.

Trump goes into detail about why he issued the executive order, and it’s not just about absurdly high energy costs:

These State laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living or voting in States with these crippling policies.  These laws and policies also undermine Federalism by projecting the regulatory preferences of a few States into all States.  Americans must be permitted to heat their homes, fuel their cars, and have peace of mind — free from policies that make energy more expensive and inevitably degrade quality of life.
These State laws and policies try to dictate interstate and international disputes over air, water, and natural resources; unduly discriminate against out-of-State businesses; contravene the equality of States; and retroactively impose arbitrary and excessive fines without legitimate justification.
These State laws and policies are fundamentally irreconcilable with my Administration’s objective to unleash American energy.  They should not stand.

The California Air Resources Board has enjoyed little to no legislative oversight by the California Legislature since AB 32, California’s Global Warming Solutions Act, was passed in 2006, nearly 20 year ago. Since then, the CARB has run amok spreading devastating “climate change” regulations and cap and trade extortions on businesses in California, and infected Western states.

Notably, California’s weather events and “climate” hasn’t changed since 2006.

President Trump’s Executive Order will likely dampen Governor Gavin Newsom’s plans to decrease the state’s gas supply, driving the highest-gas-prices-in-the-nation even higher.

The national average price per gallon of gas is $3.22. In California, the average is $4.92. In many California counties it is well over $5.00 per gallon.

And even as California’s own Chevron Oil Company announced last August their corporate relocation to Houston Texas from the Bay Area, where the company has been based since 1879, Newsom was pushing legislation to drive gas prices even higher.

Chevron is just the latest big business to flee the Golden State. Notably, Chevron’s President Andy Walz said in a letter to the California Legislature that of the 36 states in which they work, only California has the highest gas prices.

Trump’s order will resonate in California with the people, but not the politicians. As the Globe recently reported, a new study by USC Professor Michael Mische found that the factors which have contributed to California’s high gasoline prices over 50-years are self-imposed by state officials and politicians. It turns out that California is its own worst enemy.

The oil and gas industry contributes hundreds of billions of dollars to the state’s economy, even in its government-created diminished condition, and Gavin Newsom won’t talk to them, and hasn’t met with industry officials in his 6 years as governor. Instead Newsom is regulating the viability out of California’s oil and gas industry… wait until he sees President Donald Trump’s order.