Commentary: Wrong way on energy

At a recent news conference, California Gov. Gavin Newsom proclaimed what he called a “fact”: “California has lower residential utility bills than states like Texas, states like Florida.”

Ask any Californian facing sticker shock paying their summer power bills and they’ll tell you a different story. Energy Information Administration figures show the average monthly price of electricity was 34.3 cents per kilowatt hour in May (second to Hawaii), compared to 14.7 cents in Texas and 13.63 cents in Florida.

These “nation leading climate policies” are an example of what Newsom calls “the California Way,” and they’re being picked up by Californian Kamala Harris in her presidential campaign. As documented in our new Pacific Research Institute book, the California Way encompasses bad policies on issues ranging from crime and homelessness to energy mandates and restrictions on worker freedom. Collectively, these ideas are subjecting the state’s 40 million residents to higher taxes, more expensive costs and less freedom.

Every American might eventually suffer under the California Way. As Newsom’s recent political roadshow through red states illustrates, these bad policies are no longer being restricted by the Sierra Nevada mountains. They are inspiring the Biden-Harris administration — the Los Angeles Times calls California the administration’s “de-facto think tank” — and state and local policymakers nationwide. On energy, California imposes a complex array of regulations, taxes and subsidies on electricity production. These include taxpayer-funded electric car subsidies and unrealistic 100% renewable energy mandates. PRI’s research found that Californians pay $1,450 average annual electricity bills, with some residents paying more than $2,000 per year. This is 56% more than the U.S. average, despite residents consuming 34% less electricity.

Worse, a recent controversial proposal would have charged people for electricity, in part, based on how much income they earned rather than how much energy they actually consumed.

Despite Newsom’s public relations campaign against oil company “price gouging,” Californians pay an additional $1.41 per gallon thanks to government taxes, fees and regulatory costs on oil production. Don’t forget the forthcoming prohibition on the sale of new gas-powered cars in the state starting in 2045. PRI’s research shows the state will be conservatively 21.2% short of the power needed daily to charge the vehicles and meet the state’s other power needs once the mandate takes effect. Then there are the green mandates putting people out of work. One recently enacted law has the state on track to ban gas-powered lawn equipment, which will be a significant cost burden on lawn care and landscaping businesses that are today a path to prosperity for many Latino entrepreneurs. Another regulation adopted by Southern California’s air quality regulators would ban commercial gas ovens in kitchens by 2036, which are used to provide baked goods for restaurants and stores. This will cost about 3,200 jobs once fully implemented.

Some may argue that these wild policies won’t catch on nationally. Think again. The recent controversy over federal bureaucrats reportedly considering a ban on gas stoves, emulating an idea that first caught steam in Sacramento, shows the California Way is spreading nationwide. With Californian Harris now topping the presidential ticket, the California Way previews a future Harris administration’s policy agenda, on green policy and so much more.

Kerry Jackson and Tim Anaya are co-authors of the Pacific Research Institute book, The California Left Coast Survivor’s Guide.