EGN NEWS DESK
Community members gathered greater than 4,500 signatures to get the proposed fuel tax on the poll, which formally certified on the finish of May. The tax would cost giant constructing homeowners $2.96 for each 100 cubic toes or 100,000 BTUs of pure fuel used, a worth primarily based on the social price of carbon, which estimates the damages brought about to society by extra greenhouse fuel emissions.
Residents in low-income communities could be among the many first to obtain funding from the taxes to improve and electrify older buildings, and union labor could be prioritized for constructing retrofit work funded by the tax. If accredited, the coverage would take impact January 1, 2025, and expire on the finish of 2050.
Amy Turner, director of the Cities Climate Law Initiative at Columbia University’s Sabin Center for Climate Change Law, stated that Berkeley’s proposed tax is a novel method. Existing insurance policies, reminiscent of constructing efficiency requirements in New York City, Boston, and Seattle, require buildings to decrease emissions over time and might positive property homeowners for failing to conform. But they are usually “gas impartial,” which means they don’t explicitly goal a particular power supply like fossil fuel. “We haven’t seen a payment or a cost of any variety be related on to the sort of gas {that a} constructing is utilizing,” she stated.
Some commerce teams, just like the county’s constructing and development trades council, have criticized the measure for levying further prices on native companies in an space with already higher-than-average taxes. And whereas the measure’s textual content explicitly prohibits property homeowners from passing on prices to renters, a metropolis report expressed considerations that the tax might nonetheless end in greater rental prices “both on the time of lease renewal or, for price-controlled items, changes throughout occasions of emptiness.” The report additionally said the initiative would probably enhance job alternatives for contractors and incentivize all-electric new development of enormous buildings in Berkeley.
Berkeley’s proposed tax requires a easy majority to go. But that’s not the one hurdle: The measure may even have to resist the identical authorized scrutiny confronted by the town’s earlier fuel ban. In April 2023, the Ninth Circuit Court dominated that the federal Energy Policy and Conservation Act, a regulation that units nationwide power effectivity requirements, preempted Berkeley’s ban, stating that the coverage would in impact stop using fuel home equipment that meet these nationwide requirements.
Fossil Free Berkeley organizers level out that the court docket’s resolution explicitly allowed for the opportunity of a carbon tax much like the one on the November poll, making the brand new measure protected from authorized challenges primarily based on the Energy Policy and Conservation Act. Turner likewise famous that the town’s new method — a tax somewhat than a ban — is considerably totally different from the one tossed out by courts.
“Certainly there are incentives of every kind for buildings to be constructed or be operated in sure methods, and people will not be topic to EPCA preemption,” she stated.
Beyond decreasing fossil fuel use, which accounts for roughly one-third of Berkeley’s greenhouse fuel emissions, the proposed tax would additionally assist put together the town for an power transition that’s already underway, Tahara stated.
In March of final yr, California’s Bay Area Air Quality Management District, which governs air air pollution in Berkeley and different close by cities, handed laws to part out the sale of gas-powered home equipment by 2027. But the regulation “left a lot of the thorny implementation points to native municipalities,” reminiscent of how you can make it reasonably priced for houses and companies to make the swap, Tahara stated. Revenue from the tax, which might roll in as early as 2026, would assist present the funding wanted for electrical and constructing upgrades to “put together for these laws, in order that they are often rolled out equitably,” he stated.
