California presents relief plan for gas and gasoline price rises
CALIFORNIA – Faced with record high gasoline prices in the state of California, where cities such as San Diego and Los Angeles maintain an average price above $5.30 per gallon, the governor of said state, Gavin Newsom, announced a relief program that intends to allocate up to $11 billion dollars to address the high costs of hydrocarbons and gas.
“We are taking immediate steps to put money directly into the pockets of Californians facing higher gas prices as a direct result of Putin’s invasion of Ukraine. But this package also focuses on protecting people from volatile gas prices, and advancing clean transportation – providing three months of free public transit, accelerated incentives for electric vehicles and charging stations, and new funding for local biking and walking projects,” Newsom said.
The governor’s proposal calls for $9 billion in tax rebates to Californians in the form of direct payments of $400 per registered vehicle, capped at two vehicles.
The California government indicated that the tax rebate will be in the form of $400 debit cards for registered vehicle owners, and individuals will be able to receive up to two payments. Eligibility will be based on car registration, not tax records, in order to include seniors receiving Social Security disability income and low-income citizens who do not file taxes.
The package also provides $2 billion in broader relief that includes $750 million in grants to incentivize transit and rail agencies to provide free transportation to Californians for three months.
Also, $600 million is provided to pause a portion of the sales tax rate on diesel fuel for one year; another $523 million to suspend the inflation adjustment of the excise tax rates on gasoline and diesel fuel.
In addition, the package includes $500 million in active transportation for projects to promote bicycling and walking throughout the state. In addition, this proposal accelerates a $1.75 billion portion of the $10 billion ZEV program to reduce the state’s dependence on oil and through investments in electric passenger vehicles and building more charging infrastructure.
Newsom will meet with the Legislature to negotiate the details of the proposal in the coming days. Once approved, the first payments could begin as early as July.
Source: MEXICONOW Staff