A faction of California’s Democratic legislators, who supported revisions to the state’s cap-and-trade climate initiative last year, are now calling for a reassessment of a pivotal component of the policy. They are cautioning that it could further disrupt the state’s energy market and exacerbate price surges.

On Monday, 15 Democratic Assembly members penned a letter to the California Air Resources Board (CARB), urging a reevaluation of proposed changes to the cap-and-invest program, which encompasses fuels, gas, and electricity. This program sets a “cap” on greenhouse gas emissions and mandates that major polluters purchase allowances for these emissions.

Interestingly, the same legislators expressing reservations had previously voted in favor of the September legislation reauthorizing the cap-and-invest program, which mandated regulators to revise the rules—a task CARB is currently undertaking.

Set for a vote in May, the proposal could potentially increase gasoline prices by over $1 per gallon by 2030, according to estimates from Chevron. The energy giant cautioned on Monday that these changes could jeopardize California’s cost of living, job stability, and dependable energy sources.

However, the legislators, in their communication with CARB Chair Lauren Sanchez, now express concern that the proposed modifications might overburden California’s energy infrastructure.

“A transition in energy that surpasses the readiness of infrastructure, market realities, and technological capabilities risks causing chronic supply imbalances and enduring market instability,” the lawmakers emphasized in their letter to Sanchez.

The lawmakers warned regulators that the state’s energy costs are already crushing families. “This crisis is not a fallacy nor a thinly veiled threat,” the group wrote. “It is a reality borne by consumers today who are historically and empirically least able to afford it.”

They added that while California prides itself on being a national leader on climate change, policies shouldn’t come at the expense of working families.

“California’s climate leadership cannot come at the cost of destabilizing our energy markets and burdening those least able to bear it,” the lawmakers said.

Oil companies also warn that stricter climate rules could make the situation worse by pushing more refineries out of state.

The letter was signed by Assemblymembers Blanca Rubio, Michelle Rodriguez, Jose Luis Solache, Stephanie Nguyen, Lisa Calderon, Juan Carrillo, James Ramos, Lori Wilson, Blanca Pacheco, Maggy Krell, Esmeralda Soria, Tina McKinnon, Cecilia Aguiar-Curry, Anamarie Avila Farias, and Mike Gipson. 

The debate now sets up a major political clash in Sacramento as regulators prepare to finalize the updated cap-and-invest rules later this year. If they move forward, it looks like the “California premium” may get a whole lot more expensive.