Recently, the California Air Resources Board (CARB) voted to amend the low carbon fuel standard. Some believe that this measure could potentially increase the price of gasoline by 65 cents per gallon; however, the regulatory agency stated that the impact on fuel prices would not be as significant.
On November 8th, CARB approved the amendments to strengthen air quality regulations by a vote of 12 to 2. The amendments aim to incentivize investments in alternative vehicle power sources such as electricity, hydrogen, and biofuels to replace traditional fossil fuels.
According to the proposal summary in the meeting agenda, the estimates provided by the committee predict that the new regulations will reduce greenhouse gas emissions by at least 30% by 2030 compared to 2010 levels, and by 90% by 2045, while also reducing particulate matter and other air pollutants.
The potential impact of these amendments on California’s fuel prices became a focal point of debate for CARB and legislators. During the 12-hour-long meeting, hundreds of public commenters expressed both supportive and opposing views.
California Senate Minority Leader Brian Jones stated in a statement to Epoch Times, “Californians have had enough—we are already paying the highest gasoline prices in the nation, and now prices are set to increase significantly.”
Jones said, “It is time to rein in CARB’s unchecked power, starting with rescinding federal waivers that allow them to act without the consent of Californians, who bear the costs.”
Jones labeled these amendments as a direct attack on hardworking Californians and criticized the timing of the meeting scheduled just three days after an election as a strategy to dampen public opinion and scrutiny.
CARB assessed the impact of stricter standards on fuel prices in September of last year, predicting an increase of 47 cents per gallon by 2025 in California, and a rise of $1.50 by 2031.
Some critics of the proposal argue that these impacts will adversely affect industries in California.
“Adding 50 cents will devastate small businesses,” Tim Taylor, Legislative Director of the National Federation of Independent Business, told CARB. “The economic impact on the entire supply chain downstream could be staggering… and will exacerbate the economic challenges faced by small business owners.”
Some analysts predict that fuel prices will further increase due to stricter regulations.
Danny Cullenward, Vice Chair of the Emissions Market Advisory Committee in California, authored a paper published by the University of Pennsylvania’s Kleinman Center for Energy Policy on October 7. The paper forecasts a potential increase of up to 65 cents per gallon in California fuel prices in the coming year, reaching 85 cents by 2030 and $1.50 by 2035.
A Republican lawmaker attended the public comment portion of the meeting and urged a vote against the proposal.
Assemblyman Tom Lackey emphasized their concern for the environment and clean air but stressed that this is about “survival, financial survival.”
Lackey pointed out that analysts predict a significant rise in fuel prices in the coming years, which would pose financial challenges for many working-class Californians. “We simply can’t afford it,” he said. “Please don’t bankrupt us.”
CARB Executive Officer Steven Cliff reassured committee members that there is no direct causal relationship between the low carbon fuel standard and gasoline prices.
However, committee members and former majority leader of the State Senate Dean Florez disagreed with this assertion, suggesting that strengthening regulations would inevitably lead to price hikes as compliance costs for oil companies might be passed on to consumers.
“How could we with a clear conscience say it’s not tied to us?” Florez questioned, also raising concerns about so many representatives from the energy industry supporting these amendments during the meeting.
According to the board’s agenda summary, the Low Carbon Fuel Standard program was implemented in 2009, established based on Assembly Bill 32 passed in 2006, which has tripled the amount of low carbon transportation fuels in California.
Subsequent legislation has updated the standards and implemented stricter regulatory policies. For instance, according to CARB, in 2022, Governor Newsom signed several climate bills, including AB1279, which “requires reducing greenhouse gas (GHG) emissions by 85% below 1990 levels by 2045.”
Over 13,000 Californians signed a petition asking the regulatory agency to postpone the vote until clear information on the impact on fuel prices is available.
The petition stated, “We have the right to demand transparency from our government, and before any amendment that increases the financial burden on consumers is approved, we should know exactly how much more we will be paying.”
The new regulations are set to take effect in January 2025 after approval. ◇