The state's greenhouse gas law is expected to do more than cost California businesses over $1 billion in pollution permit fees.
Starting next year, the law will force distributors of gasoline, natural gas, propane and other fuels you use into the same cap-and-trade marketplace as utilities and major manufacturers.
Oil industry analysts say that's going to mean price increases of at least 12 cents a gallon right off the bat.
State Senate President Darrell Steinberg believes the additional fuel costs eventually could go as as high as 40 cents a gallon.
He's suggesting an alternative, which would mean a flat carbon tax starting at 15 cents a gallon.