Kashkari’s claim: Brown is causing gas prices to increase to fund the state’s high-speed rail project.
The truth: Oil industry groups are pressing Brown to delay expanding California’s cap-and-trade program to vehicle fuels in 2015 – a step they say will result in higher gas prices.
The carbon market is the centerpiece of Assembly Bill 32, greenhouse gas reduction legislation. Brown supports the 2006 law, which was passed long before he was governor – and utilities and big industrial polluters have been required to reduce emissions or buy allowances since 2012.
The Brown administration expects to generate about $550 million in proceeds from carbon auctions this budget year. Funds are earmarked for high-speed rail and other projects.