I am a California native, and an environmental professional. Contrary to the commonly held belief that California's strict air quality are the consequence of environmental lobbyists, they are in fact a result of the State regulatory agencies tasked by the State to protect and preserve environmental health and public health. The decisions to impose these regulations were taken by the people of California in order to arrest the slide towards unhealthful air quality in areas where air quality was still pretty good and, more importantly, to reverse the the trend and improve air quality in heavily urban areas such as the SF Bay Area where I live. When I was in high school I was a competative bicycle racer and well remember coming home from long summer training rides on the backroads where I lived, wheezing and short of breath. Kids riding those same backroads today don't have those problems.
If you want an object lesson in what happens with lax regulation look at modern China. Unhealthful levels of air pollution have begun to negatively impact economic growth in China. Worker productivity is being impacted on a mass scale by air pollution related lung disease.
I don't mind one bit paying a fair price for the special fuel we use in California. The problem is the current runup in gasoline costs we have seen lately is neither fair nor justified in my mind. It is the product of speculation. The gas in pumps today was purchased under contracts many months ago when the price of oil was less than it's current trading price, so there is no reason that I can see for such a rapid increase other than speculation and greed. Speculators are betting that the current unrest in the Middle East will result in an oil shortage despite the fact that the current contries where the unrest is greatest, Yemen, Bahrain, Libya, Egypt, and Tunesia collectively produce a drop in the bucket compared to the total production coming out of the Middle East, a deficit that OPEC could easily make up by opening the tap just a smidge. I believe that if speculation on oil was to be put to an end the actual fair price of a gallon of gas would emerge and the American public would be protected the kind specualtive pricing we are currently seeing.