CONNECTICUT RESIDENTS SHOULD BE PREPARED TO PAY MORE IN TAXES ON FUEL AND OTHER ENERGY SOURCES IF A STATE BILL BECOMES LAW
Connecticut residents pay the second highest overall tax rate in the nation, second only to New Jersey, and a new bill could have them digging deeper into their pockets to fill up at the pumps, heat their homes and pay their electric bills. This comes at a time when so many residents are already struggling to pay skyrocketing electric bills and more. CEMA warned consumers about a bill that would increase energy across the board and held a press conference on April 18th, (Tax Day) to sound the alarm regarding S.B. 1145.
What’s at stake?
S.B. 1145 would create a 4th gasoline tax in Connecticut and unprecedented new taxes on home heating oil, natural gas, electricity, and any energy source made with fossil fuels.
S.B. 1145 would create a market-based compliance mechanism or “Cap and Trade” program as seen with the Transportation Climate Initiative (TCI) just two years ago. TCI caused public outrage and was defeated in Connecticut and other states that tried to pass it.
S.B. 1145 is much worse than TCI because it would create a new fuel tax on all energy sources made from fossil fuels.
S.B. 1145 would also take away power from the Connecticut General Assembly and give it to the Commissioner of the Connecticut Department of Energy and Environmental Protection (DEEP) who would have the authority to enter into agreements with other states and Canadian provinces. The DEEP commissioner would have the authority to create new taxes on Connecticut residents who would have no recourse to fight it.
S.B. 1145 would increase energy by taxing fuel used for cars, buildings, electric plants, and other energy sources used to fire up your gas stove and fireplace!
Chris Herb, President and CEO of Connecticut Energy Marketers Association (CEMA); Peter A. Brennan,
Executive Director, New England Convenience Store & Energy Marketers Association, Inc. (NECSEMA); and John D. Blair,
President of Motor Transport Association of Connecticut, held a press conference to discuss the far reaching impacts S.B 1145 would have on energy sources that use fossil fuels including gasoline, natural gas, home heating oil, electricity, propane and more.
S.B. 1145 would pave the way for Connecticut to adopt California’s emissions program. Using the same standards California uses Connecticut residents could see energy costs increasing across the board by the maximum amount as seen below:
• The price of gasoline could increase by 72 cents a gallon costing the average household an additional $475 per year.
• Home heating oil/diesel could increase by 83 cents a gallon costing the average household an extra $663 per year.
• Propane could increase by 47 cents per gallon costing an additional $573 per year.
• Natural gas could increase by 48 cents/ccf costing the average household an additional $514 per year.
This is based off on the price cap for carbon dioxide equivalent or CO2e which in California for 2023 is $81.50 per metric ton of CO2e. (https://ww2.arb.ca.gov/our-work/programs/cap-and-trade-program/cost-containment-information)
Press coverage includes stories on WFSB-TV, WTIC-1080, Connecticut Inside Investigator, WICC-660 am, and previous coverage on CT Mirror, Y CT Matters podcast, and various other news outlets including the Journal Inquirer, WNBC-30, Fox 61, Talk of Connecticut and more.
CEMA is encouraging members and consumers to contact their state representative directly and tell them to vote no to S.B. 1145.