The California Air Resources Board is about to finalize it’s AB32 Global Warming Final Solutions Act regulations. Some have stated that it will have big impacts on average people. Gasoline, for example, will certainly rise to over $4/gallon and could, over time, be double that.

Cost impacts on consumers would result from changes in energy prices. Households and small businesses that consume less energy (directly by reducing their consumption of energy or indirectly by utilizing goods and services that are produced using less energy) will be less affected by higher prices than those that consume more energy. Incentive programs available to small businesses and consumers will provide access to funds for investing in energy efficient technologies, which includes low interest loans, rebates and credits. Energy savings from efficiency improvements are likely to partially offset or fully mitigate the impact of any increase in electricity prices and could mean decreased energy bills. Most California businesses will likely pass along the cost increases to consumers in the form of slightly higher prices for their products or services.

Emphasis added. The link below will take you to a summary of the law. The public comment period ends December 16th, 2010.

Read Cap and Trade Regulation Summary.