California's nat gas bans, two new podcasts

Natural gas bans, Alhajji on oil, Cooper returns
An excellent Friday before Christmas to you. Three items in today's blast: 

• Regressive taxes and natural gas bans 

• Oil market analyst Anas Alhajji on the Power Hungry Podcast 

• Assemblyman Jim Cooper makes a second appearance on the podcast 

Natural gas bans are fashionable in California. This week, I published a piece in Forbes about the fight over the bans, which are being done in the name of climate change. As I explained:  

A battle over energy policy is raging in California and it portends an even broader fight if other states, or the federal government, attempt to implement similar bans on natural gas. The bans have ignited a backlash from some of California’s most prominent Black and Latino leaders, who are saying that the prohibitions on the use of the fuel are a form of regressive tax on low- and middle-income residents. Assemblyman Jim Cooper, a Democrat from Elk Grove, has become one of the harshest critics of California’s climate policies and the environmental groups that are pushing them. 

The battle over the future of residential and commercial use of natural gas in California has become one of the most interesting and important fights in the country. Further, they are a clear example of regressive taxation. As I explain, "The bans on natural gas are occurring at the same time that California’s electricity prices are skyrocketing. On December 3, the California Public Utility Commission approved an 8.1% electricity rate increase for Pacific Gas & Electric. That increase will cost the average residential customer in PG&E’s service territory an additional $13.44 per month."

That rate increase was approved the same week that San Jose and Oakland approved bans or restrictions on the use of natural gas. That's worth noting because, as I wrote, "San Jose and Oakland are both served by PG&E." Some 40 communities in the state have now implemented bans or restrictions on the use of the fuel. 

Perhaps the best summary of what's happening in California came from my phone interview with Jennifer Hernandez, an attorney for The Two Hundred, a coalition of Latino civil-rights leaders who have sued the state of California over its energy and housing policies. (I wrote about that litigation in Forbes last month.) Hernandez told me the bans on natural gas make no sense. “We don’t have enough electricity on the grid now. And they want to ban natural gas?” 

Anas Alhajji talks oil demand after Covid

I have known Anas Alhajji for more than a decade. Alhajji is an editorial advisor of Attaqa, the first Arabic-language energy media and research platform. He came on the Power Hungry Podcast to discuss the future of oil and why the U.S. is not "energy independent." He explained that domestic refineries are still importing foreign oil because the type of crude provided by other countries is more profitable for them to refine. We also talked about Iran, Saudi Arabia, and why the shale revolution, as he put it, “flipped everything upside down.”Alhajji also explained why the world will continue to need oil for decades to come, and why as he put it, natural gas is seeing "an increase in strategic importance, because it’s moving from a regional commodity to a global commodity." 

Alhajji has deep roots in the Arab world. That gives him a perspective that is not often seen in big media outlets. That's one reason why it was such an interesting interview. It was a fun discussion. Give it a listen.

Cooper on climate and "deliberate indifference" 

On Tuesday, I welcomed Assemblyman Jim Cooper back to the Power Hungry Podcast. I invited Cooper to come on the show again because he has become one of the most prominent critics of California's energy and climate policies. As I explain in my Forbes article, Cooper and Assemblywoman Blanca Rubio wrote a letter to California regulators about the alliance between the state and the Sierra Club. They wrote that “the growing ‘ban natural gas’ chorus from organizations such as the Sierra Club, the Environmental Defense Fund (EDF) and Union of Concerned Scientists to name a few, has become more aggressive, and there has never been a mention by them about what the cost impacts would be on customers who are struggling with utility costs, and household expenses.”

They continued, “More importantly, it appears their belief is cost increases should not be a determining factor with regard to approval of new energy policies because the need to address climate change trumps all concerns that might arise.”

After seeing that letter, I knew I wanted to talk to Cooper again. On  the podcast, he said that in the rush to push policies aimed at climate change, environmental groups are showing “deliberate indifference” to the needs of low- and middle-income Americans. He added that "Right now our rates for electricity for utilities in California, are the highest in the nation. On average, we pay 55% more than folks do in neighboring states. We also pay $1 more gallon and gas. So the people that can afford the least right now, with COVID, the economy, homelessness, they’re being forced to pay more, because the people like the Sierra Club that really don’t have their interest in mind."

The episode with Cooper also has the distinction of being the shortest edition of the Power Hungry Podcast at just over 24 minutes. So if you have a few minutes, listen to  Cooper as he explains why he opposes natural gas bans.

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