Another California energy crisis looms, draft report warns

Four years after electricity prices soared and blackouts rolled across California, the state is in danger of another energy crisis – this one involving gasoline and natural gas as well, said a draft report Friday.

The state is a captive of its own geographic and regulatory isolation, separated by miles and mountains from many refineries and fossil fuel sources. Moreover, the state sets stricter fuel standards to trim air pollution, driving up prices and limiting availability as is evident in the wake of Hurricane Katrina, said the California Energy Commission.

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