More unintended consequences.
"Big Oil’s Answer to Carbon Law May Be Fuel Imports (Update2)
http://www.bloomberg.com/apps/news?pid=20601109&sid=a1ZiIqv3E4QEThe equivalent of one in six U.S. refineries probably would close by 2020 as the cost of carbon allowances erases profits, according to the American Petroleum Institute, a Washington trade group known as API. Carbon permits would add 77 cents a gallon to the price of gasoline, said Russell Jones, the API’s senior economic adviser.
“Because it’s going to be more expensive to produce the stuff, refiners will slow down production and cut back on inventories to squeeze every penny of profit they can from the system,†said Geoffrey Styles, founder of GSW Strategy Group LLC in Vienna, Virginia. “We will end up with less domestic product on the market and a greater reliance on imports, all of which means higher, more volatile prices.â€
I didn't see it mentioned in the article, but i wonder if refineries might spring up in Mexico to replace the ones closing in the US.