- Tariffs impact businesses in Rye Canyon differently
- Supreme Court may rule on Trump’s emergency tariffs soon
- Some businesses adapt, others struggle with tariff costs
California
As California Pushes Increased Ethanol Use, Experts Sound the Alarm on Environmental Impacts – Inside Climate News
On Oct. 25, California Governor Gavin Newsom encouraged the California Air Resources Board (CARB) to accelerate its study of E15, a gasoline-ethanol blend, as a way to potentially lower the cost of gasoline in California and “save Californians as much as $2.7 billion every year —with little to no impact on the environment.”
The idea that E15 could lower gas prices in California is, itself, controversial. Even more controversial, though, is the notion that expanding the use of biofuels comes with few consequences.
Policy changes in California, especially when it comes to reducing greenhouse gas emissions or offsetting emissions through carbon credits, can have ripple effects throughout the U.S., and even around the globe; if California were a country, it would have the fifth-largest economy in the world. In the case of E15, California’s decision-making could impact land use in places like the Midwest, which produces most of the corn that goes into ethanol.
Ethanol is a renewable fuel that can be made from a variety of products. According to Silvia Secchi, a professor of geological and sustainability science at the University of Iowa, ethanol was originally sold as a “bridge fuel” that could one day primarily be made from cellulosic materials like wood shavings and other waste products.
Overwhelmingly, this has not happened. Corn still dominates ethanol production.
According to the U.S. Department of Agriculture, 45 percent of all corn produced in the U.S. is used for ethanol production. The USDA admits that increases in corn acreage are “a result of expanding ethanol production” and notes that while the acreage of farms growing other feed grains, such as barley and sorghum, has declined, the number of acres of corn has risen.
Increased intensity on the land in places like Iowa, which produces more corn than any other U.S. state and, as a result, uses a significant amount of fertilizer, has caused an environmental situation so dire that advocates are calling for federal intervention.
“I really wish that every time people put ethanol in their car, they would drink Iowa well water at home,” Secchi told Inside Climate News. “California is not going to be producing that ethanol. It’s going to be importing that ethanol from places like Iowa or Nebraska or Kansas or South Dakota, and the environmental impacts of that ethanol, in terms of land use change, in terms of water quality, all the degradation that ethanol brings with it, they’re going to stay with us.”
Nitrogen-based fertilizers, commonly applied to corn, can leak into aquifers and waterways in the U.S., causing nitrate contamination in drinking water that could take decades to reverse. The potential effects of nitrate-contaminated drinking water on people range from blue baby syndrome in infants to colon cancer in adults. In Des Moines, Iowa, the worlds’ largest nitrate-removal facility may need to get bigger to keep up with rising rates of contamination.
For Danny Cullenward, senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, the impacts of biofuels on the land are difficult to overstate.
“Huge industrial use of nitrogen-based fertilizers, destroying water quality throughout most of the country, that’s not actually good. And those are the consequences that come from this myopic and very narrow look at this carbon accounting lens through these flawed methods,” he said. “All of that is necessary to underpin the notion of, maybe this will be good for consumers.”
Experts Inside Climate News spoke with are calling for more environmental impacts of E15—a blend of 85 percent gasoline and 15 percent ethanol—to be taken into consideration, not just the potential wins for consumers at the gas pump.
A “Bridge Fuel”
Ethanol is a highly subsidized biofuel. Over the last 40 years, U.S. taxpayers have spent tens of billions of dollars supporting the ethanol industry through tax incentives, farm bill programs and the Renewable Fuel Standard, a 2005 program which mandated that U.S. transportation fuel contain a certain volume of renewable fuel. That same year, the U.S. became the world’s largest ethanol producer. In 2006, California’s Low Carbon Fuel Standard (LCFS) was first authorized as a way for the state, home to the most registered vehicles in the nation, to decrease its reliance on petroleum.
The program provides incentives for fuel producers to purchase “credits” from lower-carbon fuel sellers, or lower the carbon intensity of their fuel. Ethanol, a biofuel, became a way for producers to lower their carbon intensity. As Cullenward wrote in a recent paper, the LCFS “plays an important and increasingly controversial role in California’s strategy for reducing greenhouse gas emissions.”
In 2006, excitement was brewing that “innovation might be just around the corner,” Cullenward told ICN. Perhaps biofuels could be derived not from food products themselves—like corn and soybeans—but instead from waste products. Year after year, things did not change, and biofuels are still heavily subsidized.
“I think most transportation policy experts would tell you that the primary way we’re going to reduce emissions from the transportation sector for light duty vehicles is by electrifying them,” Cullenward said. “This is a really important part of the story, because the federal government has so heavily subsidized the production of ethanol, and because the California government sort of doubled down on this. There’s still a lot of financial support through policy mechanisms for crop-based ethanol production.”
Increased biofuel production has also resulted in the creation of carbon capture and storage projects at ethanol plants—the likes of which are already showing signs of inadequacy.
Soybeans, the second-most popular commodity crop in the U.S., are one of the main ingredients in biodiesel, which is used to fuel medium and heavy-duty vehicles like semi-trucks and buses. According to Cullenward, California accounts for almost all U.S. biodiesel consumption, most of which is shipped in from Singapore.
In 2023, the Science Advisory Board, a federal advisory committee to the U.S. Environmental Protection Agency, wrote to Administrator Michael Regan that “almost two decades after the Renewable Fuel Standard (RFS) program’s creation, the efficacy of the program in reducing greenhouse gas (GHG) emissions remains highly uncertain from a scientific perspective, and many other environmental concerns regarding the RFS have been raised.”
The Renewable Fuels Association (RFA), an industry lobby group, responded to SAB’s letter by sending one of their own to Regan. “The overwhelming preponderance of scientific analyses and empirical data clearly show that corn starch ethanol significantly reduces GHG emissions relative to the gasoline it replaces,” they wrote.
RFA funded the study Newsom referenced in his press release, which concludes that gasoline prices will go down with the introduction and adoption of E15 gasoline in California.
“The Renewable Fuels Association is a lobbying group, so they’re going to be looking to push findings that potentially benefit them,” said Aaron Smith, professor of agricultural and resource economics at the University of California, Berkeley.
Most gasoline consumers are pumping into their cars contains 10 percent ethanol. E15 would increase the ethanol composition to 15 percent. Smith says policymakers would need to “jump through a lot of hoops” to believe that adding five percent more ethanol to the gasoline blend would lead to a dramatic decrease in gasoline prices. Not to mention, he told ICN, that just because E15 is legal does not mean fuel suppliers will provide it. Incorporating more ethanol into gasoline blends can require suppliers to upgrade storage tanks and take on added costs.
In response to Newsom’s announcement, the Renewable Fuels Association applauded the governor’s efforts.
“Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump. Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits,” RFA President and CEO Geoff Cooper wrote in a press release.
“There’s no credible evidence that I’ve seen that this is really going to affect gas prices at all,” Smith countered.
A “Win-Win” for Californians
In the October press release, Newsom called introducing E15 a “win-win” for Californians. But even if, in a perfect world, E15 brought down gas prices in the state, increased ethanol production is not necessarily a “win-win” for the climate.
The California Air Resources Board did not respond to requests for comment on the criticism before publication time.
This story is funded by readers like you.
Our nonprofit newsroom provides award-winning climate coverage free of charge and advertising. We rely on donations from readers like you to keep going. Please donate now to support our work.
Donate Now
“When you clear land to grow corn, what you’re doing is you’re losing a whole bunch of carbon that’s in the forest or the grass or whatever is on those fields before you clear it to make corn,” Smith said.
For Secchi, California’s renewed interest in E15 is a “sign they’ve lost their way.”
“The scope of their policy is not including these effects beyond the state boundaries,” she said. “Maybe even more important, these policies that are just looking at carbon are often really stupid because they don’t consider other environmental effects. So, if we’re trading carbon for water or water for carbon, that’s not a good policy. That’s not a win-win.”
On Nov. 8, in the midst of national election coverage, the California Air Resources Board amended its Low Carbon Fuel Standard, which some experts, like Cullenward, warn might even increase gas prices, though there is truly no way to tell. The amendments included an increased obligation for fossil fuel sellers to cover their deficits by purchasing credits from low-carbon fuel sellers. But rising credit prices could lead to increased gas prices, with the added layer of benefitting biofuel companies, some of which are owned by oil companies.
According to Cullenward, because of California’s convoluted carbon credit program, there is a world where E15 gasoline could be a little bit cheaper, if approved for sale in California.
“You could conceivably say, ‘I am exploring a direction that will lower costs for consumers, but it really is primarily about consuming more biofuel products,’ which is terrible for the climate, and to the extent it’s cheaper, it’s because you’re subsidizing it at the same time you’re mandating it, which is just a really weird, weird system,” Cullenward said.
About This Story
Perhaps you noticed: This story, like all the news we publish, is free to read. That’s because Inside Climate News is a 501c3 nonprofit organization. We do not charge a subscription fee, lock our news behind a paywall, or clutter our website with ads. We make our news on climate and the environment freely available to you and anyone who wants it.
That’s not all. We also share our news for free with scores of other media organizations around the country. Many of them can’t afford to do environmental journalism of their own. We’ve built bureaus from coast to coast to report local stories, collaborate with local newsrooms and co-publish articles so that this vital work is shared as widely as possible.
Two of us launched ICN in 2007. Six years later we earned a Pulitzer Prize for National Reporting, and now we run the oldest and largest dedicated climate newsroom in the nation. We tell the story in all its complexity. We hold polluters accountable. We expose environmental injustice. We debunk misinformation. We scrutinize solutions and inspire action.
Donations from readers like you fund every aspect of what we do. If you don’t already, will you support our ongoing work, our reporting on the biggest crisis facing our planet, and help us reach even more readers in more places?
Please take a moment to make a tax-deductible donation. Every one of them makes a difference.
Thank you,
Continue Reading
California
500-pound bear evicted after living under California home for months
Watch massive bear evicted after from under home
A bear settled in underneath a California home, and BEAR League, a wildlife team, assisted in the animal’s removal.
A 500-plus-pound bear living underneath a residence in Southern California has departed the space it called home for months, according to the nonprofit that helped evict the large mammal.
BEAR League announced in a Facebook post on Jan. 8 that it helped remove the bear from Kenneth Johnson’s home after he reached out to the nonprofit. Johnson previously told the Los Angeles Times and KTLA that he found signs of something living under his home as early as April 2025, but he didn’t know what it was for sure until November, when a security camera caught the bear sneaking into a crawl space.
At an estimated weight of 500-plus pounds, the bear “barely fit into the crawlspace and caused extensive damage to the home’s heating ducts,” according to BEAR League. Concerned over a possibly damaged gas line, Johnson shut off his gas service just before Christmas, the nonprofit said.
BEAR League said it stepped in to evict the bear after earlier removal attempts by state wildlife officials were unsuccessful. Two first responders with the nonprofit traveled to Johnson’s home, where one of them crawled beneath the residence — “fully aware the bear was still there” — to get behind the animal and “encourage him to exit through the crawlspace opening,” according to Lake Tahoe-based the nonprofit.
The nonprofit also said it loaned Johnson electric unwelcome mats, which shock bears when they step on them, to give him time to make repairs and secure the crawlspace to prevent future visits.
“If you live in bear country, securing your crawlspace is essential. This time of year, BEAR League evicts multiple bears from under homes every day,” BEAR League said.
Kenneth Johnson creates GoFundMe to help with repairs
At the bottom of BEAR League’s social media post, the nonprofit linked to Johnson’s GoFundMe page, which he created to help cover repair costs.
According to Johnson’s fundraiser page, the 500-plus-pound bear dwelled underneath his home in Altadena for over a month, causing “tens of thousands of dollars in damage.”
“I’m in a situation I never imagined,” Johnson wrote on the fundraising page.
Johnson further explained his current employment situation, saying that right after surviving the Eaton fire in early January 2025, he lost his job, and shortly after that, the “bear began tearing into the structure of (his) home.”
“I have video footage of it twisting gas pipes, which created an extremely dangerous situation and forced me to shut off my utilities just to stay safe,” he continued.
The funds would also go toward making Johnson’s home “safe and livable again,” which includes paying for professional traps. As of Jan. 10, the GoFundMe has raised over $8,000; however, its goal is $13,000.
Jonathan Limehouse covers breaking and trending news for USA TODAY. Reach him at JLimehouse@gannett.com.
California
Gavin Newsom proposes $350B California budget — kicks the can on debt
California Gov. Gavin Newsom unveiled a record-high $350 billion state budget Friday that makes “historic” investments in areas like education — but kicks the can on paying down federal debt, foisting costs onto struggling employers.
Newsom’s budget incorporates a $43 billion windfall tied to the stock market that he touted in his State of the State speech Thursday, bringing his office’s estimated deficit down to $3 billion — the state’s fourth deficit in a row. The budget plows billions into maintaining education, health care, and other programs but ignores a $20 billion federal loan for Covid unemployment payments — a situation one legislator called “alarming.”
Ignoring the loan means small businesses are on the hook for the state’s debt, said state Sen. Roger Niello of Fair Oaks.
“We already have the highest unemployment in the nation and we’re putting this additional burden on our employers. It makes absolutely no sense,” Niello said.
The budget includes $662.2 million in mandatory interest payments, but there is no money going towards the principal.
Since July, the total balance has ballooned to $21.3 billion, and private employers in California pick up the tab under federal rules. Employers pay an $42 extra per employee this year and growing, per KCRA
Every state expect California has paid off the Covid-era loans.
“That is an alarming thing because [Newsom is] basically saying that businesses and employment are not a priority to him and that’s troubling,” Niello added.
At 5.5%, California’s unemployment rate was the highest in the country as of November.
Newsom’s $350 billion budget proposal is about $30 billion higher than this year’s budget, thanks largely to federal healthcare cuts that forced costs onto the state and mandatory set-asides in areas like education.
At a budget briefing Friday, Newsom’s finance director Joe Stephenshaw highlighted record spending on education— amounting to a record $27,418 per K-12 student, $5.3 billion for the University of California system, $15.4 billion to community colleges, and $1 billion to needy schools — along with $500 million towards local homelessness prevention, $195 million in new public safety spending, $3 billion for the state’s rainy day fund and $4 billion for school reserve funds.
The budget includes some cuts to climate-related spending and housing and homelessness, per Calmatters. And it does not include any direct funding for Prop. 36, the anti-crime measure supported by nearly 70% of voters in 2024 — a move Republicans blasted.
But even with Newsom’s unexpected windfall, analysts expect deficits to grow to as high as $35 billion in the coming years as expenditures outpace even optimistic revenue projections.
Newsom and the state Legislative Analyst create separate budget projections, and the governor’s has historically been far rosier on the revenue side. The legislative analyst projected a $18 billion deficit in the coming fiscal year, while the governor calculated $3 billion.
Under Newsom, the state’s general fund spending has increased by 77% partly owing to new programs spun up when the state was flush with cash, according to Republican legislators.
Newsom’s $350 billion budget — the last before he leaves office next year — does little to confront ballooning expenses, dumping the problem on the future governor and Legislature, according to Senate Minority Leader Brian Jones.
“This is more of the same from a lame-duck governor content on leaving the rest of us to pick up the financial pieces when he leaves office,” Jones said in a statement.
Democrats in the legislature were more measured in their responses.
“During these times of uncertainty, we must craft a responsible budget that prioritizes the safety and fiscal stability of California families,” said State Senate Leader Monique Limón in a statement.
Newsom and legislators will refine the budget in the coming months towards a final proposal in May.
One major unknown is how California will handle a loss of about $1.4 billion in funding due toTrump administration changes to low-income health care and food programs.
Last year, Newsom was force to scale back a controversial plan to provide Medicaid coverage for illegal immigrants after costs spiked, forcing California was forced to borrow $3.4 billion, Politico reported.
Newsom’s budget didn’t fully explain what would happen to immigrant health care under federal cuts, and Stephenshaw struggled to answer detailed questions from reporters — saying Newsom’s office was still awaiting guidance from the feds.
“As we work through the May revision, this is something we’ll be well aware of and we’ll make those decision at that time,” he said.
California
How Trump’s tariffs ricochet through a Southern California business park
VALENCIA, California, Jan 9 (Reuters) – America’s trade wars forced Robert Luna to hike prices on the rustic wooden Mexican furniture he sells from a crowded warehouse here, while down the street, Eddie Cole scrambled to design new products to make up for lost sales on his Chinese-made motorcycle accessories.
Farther down the block, Luis Ruiz curbed plans to add two imported molding machines to his small plastics factory.
Sign up here.
“I voted for him,” said Ruiz, CEO of Valencia Plastics, referring to President Donald Trump. “But I didn’t vote for this.”
All three businesses are nestled in the epitome of a globalized American economy: A lushly landscaped California business park called Rye Canyon. Tariffs are a hot topic here – but experiences vary as much as the businesses that fill the 3.1 million square feet of offices, warehouses, and factories.
Tenants include a company that provides specially equipped cars to film crews for movies and commercials, a dance school, and a company that sells Chinese-made LED lights. There’s even a Walmart Supercenter. Some have lost business while others have flourished under the tariff regime.
Rye Canyon is roughly an hour-and-a-half drive from the sprawling Ports of Los Angeles and Long Beach. And until now, it was a prime locale for globally connected businesses like these. But these days, sitting on the frontlines of global trade is precarious.
The average effective tariff rate on imports to the U.S. now stands at almost 17%–up from 2.5% before Trump took office and the highest level since 1935. Few countries have been spared from the onslaught, such as Cuba, but mainly because existing barriers make meaningful trade with them unlikely.
White House spokesman Kush Desai said President Trump was leveling the playing field for large and small businesses by addressing unfair trading practices through tariffs and reducing cumbersome regulations.
‘WE HAD TO GET CREATIVE’ TO OFFSET TRUMP’S TARIFFS
Rye Canyon’s tenants may receive some clarity soon. The U.S. Supreme Court could rule as early as Friday on the constitutionality of President Trump’s emergency tariffs. The U.S. has so far taken in nearly $150 billion under the International Emergency Economic Powers Act. If struck down, the administration may be forced to refund all or part of that to importers.
For some, the impact of tariffs was painful – but mercifully short. Harlan Kirschner, who imports about 30% of the beauty products he distributes to salons and retailers from an office here, said prices spiked during the first months of the Trump administration’s push to levy the taxes.
“It’s now baked into the cake,” he said. “The price increases went through when the tariffs were being done.” No one talks about those price increases any more, he said.
For Ruiz, the plastics manufacturer, the impact of tariffs is more drawn out. Valencia makes large-mouth containers for protein powders sold at health food stores across the U.S. and Canada. Before Trump’s trade war, Ruiz planned to add two machines costing over half a million dollars to allow him to churn out more containers and new sizes.
But the machines are made in China and tariffs suddenly made them unaffordable. He’s spent the last few months negotiating with the Chinese machine maker—settling on a plan that offsets the added tariff cost by substituting smaller machines and a discount based on his willingness to let the Chinese producer use his factory as an occasional showcase for their products.
“We had to get creative,” he said. “We can’t wait for (Trump) to leave. I’m not going to let the guy decide how we’re going to grow.”
‘I’M MAD AT HIM NOW’
To be sure, there are winners in these trade battles. Ruiz’s former next-door neighbor, Greg Waugh, said tariffs are helping his small padlock factory. He was already planning to move before the trade war erupted, as Rye Canyon wanted his space for the expansion of another larger tenant, a backlot repair shop for Universal Studios. But he’s now glad he moved into a much larger space about two miles away outside the park, because as his competitors announced price increases on imported locks, he’s started getting more inquiries from U.S. buyers looking to buy domestic.
“I think tariffs give us a cushion we need to finally grow and compete,” said Waugh, president and CEO of Pacific Lock.
For Cole, a former pro motorcycle racer turned entrepreneur, there have only been downsides to the new taxes.
He started his motorcycle accessories company in his garage in 1976 and built a factory in the area in the early 1980s. He later sold that business and – as many industries shifted to cheaper production from Asia – reestablished himself later as an importer of motorcycle gear with Chinese business partners, with an office and warehouse in Rye Canyon.
“Ninety-five percent of our products come from China,” he said. Cole estimates he’s paid “hundreds of thousands” in tariffs so far. He declined to disclose his sales.
Cole said he voted for Trump three times in a row, “but I’m mad at him now.”
Cole even wrote to the White House, asking for more consideration of how tariffs disrupt small businesses. He included a photo of a motorcycle stand the company had made for Eric Trump’s family, which has an interest in motorcycles.
“I said, ‘Look Donald, I’m sure there’s a lot of reasons you think tariffs are good for America,” but as a small business owner he doesn’t have the ability to suddenly shift production around the world to contain costs like big corporations. He’s created new products, such as branded tents, to make up for some of the business he’s lost in his traditional lines as prices spiked.
He pulls out his phone to show the response he got back from the White House, via email. “It’s a form letter,” he said, noting that it talks about how the taxes make sense.
Meanwhile, Robert Luna isn’t waiting to see if tariffs will go away or be refunded. His company, DeMejico, started by his Mexican immigrant parents, makes traditional-style furniture including hefty dining tables that sell for up to $8,000. He’s paying 25% tariffs on wooden furniture and 50% on steel accents like hinges, made in his own plant in Mexico. He’s raised prices on some items by 20%.
Fearing further price hikes from tariffs and other rising costs will continue to curb demand, he’s working with a Vietnamese producer on a new line of inexpensive furniture he can sell under a different brand name. Vietnam has tariffs, he said, but also a much lower cost base.
“My thing is mere survival,” he said, “that’s the goal.”
Reporting by Timothy Aeppel; additional reporting by David Lawder
Editing by Anna Driver and Dan Burns
Our Standards: The Thomson Reuters Trust Principles.
-
Detroit, MI1 week ago2 hospitalized after shooting on Lodge Freeway in Detroit
-
Technology5 days agoPower bank feature creep is out of control
-
Dallas, TX2 days agoAnti-ICE protest outside Dallas City Hall follows deadly shooting in Minneapolis
-
Dallas, TX6 days agoDefensive coordinator candidates who could improve Cowboys’ brutal secondary in 2026
-
Delaware2 days agoMERR responds to dead humpback whale washed up near Bethany Beach
-
Iowa4 days agoPat McAfee praises Audi Crooks, plays hype song for Iowa State star
-
Health7 days agoViral New Year reset routine is helping people adopt healthier habits
-
Nebraska4 days agoOregon State LB transfer Dexter Foster commits to Nebraska

