California’s Climate Cap and Spend

Republicans let Jerry Brown raise energy prices again.

Republicans in Sacramento handed Jerry Brown the biggest legislative victory of his governorship on Monday by reauthorizing carbon cap and trade. This act of political self-sabotage and voter betrayal ranks close to the Senate GOP’s ObamaCare failure.

Seven Republicans in the state Assembly joined 48 Democrats to extend the state’s cap-and-trade program from 2020 through 2030. Mr. Brown demanded that a legislative supermajority—which is needed to raise taxes and fees—renew the program to fund his not-exactly-a-bullet train, among other progressive priorities.

But Democrats representing low- and middle-income areas balked after voting to raise gas taxes in the spring. Cap and trade is projected to increase gas prices by 24 to 73 cents a gallon by 2031. Manufacturers, refiners and other employers in lower-income areas will also have to spend millions to upgrade their equipment or buy carbon permits.

Mr. Brown wooed Republicans by offering to extend a partial sales tax exemption for manufacturing equipment and waive a rural fee for fire prevention. He drew support from the state Chamber of Commerce, Business Roundtable and Farm Bureau. Former Republican Governors Pete Wilson and Arnold Schwarzenegger lent their support, for whatever it’s worth nowadays. California’s cap and trade will have a de minimis effect on climate change since the state accounts for less than 1% of global emissions.

The seven Assembly Republicans who gave Mr. Brown a bipartisan supermajority let six Democrats—four of whom could face difficult re-election bids in 2018—off the hook. Republicans will now have a harder time using cap and trade as an issue next fall.

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