The California Air Resources Board (CARB) followed the recommendation of its chairman, Mary Nichols, and postponed until its July meeting a final decision on how to implement an estimated $54 million in state-mandated fees assessed against providers of fuels contributing to greenhouse gas (GHG) emissions. Nichols and her colleagues closed the hearing on the issue but directed CARB staff to try to accommodate some of the concerns expressed at Thursday’s board meeting.

CARB is to take up the regulation for imposing the fee at its July 23 meeting in San Diego. When finalized, the fees most likely would begin being collected in the first half of next year, the agency has indicated.

A section of California’s global climate change law (AB 32) empowered CARB to charge fees on providers of fuels that contribute to the state’s GHG emissions, including imported natural gas and electricity. The fees are to cover the state’s cost of implementing the 2006 climate change mitigation law through its final implementation in 2012.

Late in April, Kern River Gas Transmission Co. warned shippers that they should brace for the possible collection of GHG emissions fees by the pipeline on behalf of the CARB (see Daily GPI, May 4).

CARB heard from western oil and gas industry interests and the state business and manufacturing associations with various criticism about the proposed fees.

Nichols said before postponing a vote that she would have liked to have heard more constructive alternatives from the state’s major business organizations. However, in taking an extra month before having CARB act, she said she hopes there is more “constructive dialogue” with the agency’s staff.

“I am of the mind that this is a very important regulation,” Nichols said. “And we do want to want to get in right, especially in regard to the economic conditions we’re living with right now.”

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