California’s Extremism Falters: Democrats Split on Costly Eco-Regulations
Three Democrats Join with Republicans to Reject Massive Taxes on Gas Water Heaters, Hinting at a Party Divide
A Fracture in the Eco-Crusade
The California Democratic Party has long been a bastion of environmental extremism, pushing policies that inflate gas, energy, and consumer goods prices, often hitting moderate- and low-income families hardest. Yet, a vote last Friday by the South Coast Air Quality Management District Board exposed a crack: five Democrats backed a costly new regulatory program that would have put de facto tax increases on gas water heaters, designed to force people to move to zero-emission electric models (at significant expense). But three Democrats—Riverside Mayor Patricia Lock Dawson, Riverside County Supervisor V. Manuel Perez, and Paramount Vice Mayor Brenda Olmos—voted against it, alongside Republicans Orange County Supervisor Janet Nguyen, Yorba Linda City Councilman Carlos Rodriguez, Highland City Councilman Larry McCallon, and San Bernardino County Supervisor Curt Hagman. All of them, to one degree or another, expressed concerns about the costs passed through to consumers. This 7-5 split raises a question: are we seeing a splintering within the Democratic Party, where the financial toll of ideological crusades is sparking dissent?
The Price of Green Ambition
California’s environmental mandates, from cap-and-trade to refinery restrictions, have driven up living costs with negligible global impact. Cap-and-trade tacks on 10-15 cents per gallon of gasoline, while electricity rates, at 32 cents per kilowatt-hour in 2024, double the national average, crushing low-income households. Senate Bill X1-2 caps refinery profits, and Assembly Bill X2-1 imposes maintenance and inventory rules, contributing to the closure of Phillips 66’s Los Angeles refinery by October and Valero’s Benicia refinery by next April. These shutdowns will cut nearly 20% of California’s refining capacity, with gas prices projected to jump from $4.82 to $8.43 per gallon by 2026, adding $600-$1,000 annually to family budgets. The Low Carbon Fuel Standard and looming excise tax hikes further tighten the squeeze. Just last week, Democrats doubled down on high gas prices, voting against a Republican proposal to lower prices.
HSR, CEQA, and Inflation by Regulation
California’s high-speed rail project epitomizes eco-policy excess. Sold as a $33 billion green transit fix, costs have soared past $100 billion with little progress beyond partial tracks. This siphon funds from urgent needs, such as housing or wildfire prevention, while fires—emitting triple the state’s industrial carbon in 2020—undermine carbon goals. The California Environmental Quality Act adds $100,000 per housing unit, pricing out working-class families. Median home prices reached $850,000 in 2024, and rents in Los Angeles average $2,800 per month, driven by green regulations that increase construction and utility costs. These policies force families to bear the weight of Sacramento’s environmental dreams.
Prudence Gains Ground?
The dissent from Mayor Dawson, Supervisor Perez, and Vice Mayor Olmos reflects growing unease with policies prioritizing ideology over affordability. The rejected proposal, even diluted, carried a $7 billion price tag—too steep for some Democrats to ignore amid California’s massive budget shortfall. Democrats often offset high costs with subsidies, redistributing wealth to ease the pain. However, with refinery closures threatening fuel shortages and job losses and a deficit exceeding $10 billion, such fixes are unsustainable. These three Democrats’ votes suggest a call for balance, prioritizing consumers over unchecked environmental ambition.
A Shift or a Moment?
It’s premature to proclaim a Democratic Party fracture, but this vote hints at a pivot toward common sense. If more Democrats acknowledge that environmental zeal must not take precedence over economic stability, California could reconsider its ruinous course. Leaders must focus on making California more affordable, and that may involve some introspection because more government—more taxes, more regulation—those things make living in California more expensive. For now, the stand-by Mayor Dawson, Supervisor Perez, and Vice Mayor Olmos offer hope that prudence might temper Sacramento’s green gamble, easing the burden on Californians. Then again, Democrats in the State Capitol are mostly ideologues who won primaries in safe seats, isolated from reality or accountability.