CA legislative leaders signal concern with CARB decision that could raise gas prices
It’s still unclear how much gas prices will rise in California after the California Air Resources Board approved stricter clean air requirements, and the state’s Democratic legislative leaders suggested on Monday they have concerns about the impact. On Friday night, the board approved updates to its Low Carbon Fuel Standard program, a 300-page rule that includes the goal of cutting carbon emissions from California’s transportation sector by 30% by 2030. While Californians already pay an extra ten cents for the current standard, the updates that go into effect in 2025 are expected to raise gas prices even more in the state with the second-highest gas prices in the nation. “I have concerns about reports that gas prices may be adversely affected by the recent vote,” said Assembly Speaker Robert Rivas in a statement on Monday. “In my district alone, tens of thousands of commuters hit the road every day, and they’re already paying record prices at the pump. I expect the Air Resources Board to be responsive to the public and the Legislature, which includes reviewing gas blends that could bring down prices. My Assembly colleagues and I are committed to lowering the cost of living in our state.”“Climate change is an existential threat to all of us, and in the coming years, we must continue to buckle down to meet our goals,” said State Senate Pro Tem Mike McGuire. “That said, any new regulations must be open and transparent which is why we’re analyzing their actions and will do so in earnest come January when the Legislature convenes.”The Low Carbon Fuel Standard program is not a direct tax on consumers. However, the large, complex program requires the oil and gas industry to pay for “credits” in order to emit carbon into the air. With the new updates, the industry will also need to make cleaner fuels like biofuel and hydrogen, which Chevron executives have said are more expensive. Those costs, executives confirmed, will be passed onto customers. “We don’t dispute their policy and their intent, but we would just like the policymakers to take accountability for what they’re doing,” said Andy Walz, the president of Chevron’s Downstream, Midstream and Chemicals division. In its initial assessment of the updated standards, CARB projected the new rules would increase gas prices up to 47 cents per gallon in 2025. After facing backlash, staff walked the number back and claimed to make changes to the program but refused to release a new estimate ahead of Friday’s decision.”It’s hard to predict,” Walz acknowledged when KCRA 3 asked what Chevron customers can expect. “I think their first estimates are probably closer.” Gas Buddy analyst Patrick De Haan suggested there could be broader impacts beyond just gas prices.”CARB has approved a significant reduction in carbon intensity for fuel produced in California, forcing refiners to figure out how to achieve said redux. Don’t be surprised to see older refiners throw in the towel, exacerbating California’s #gasprices and supply,” De Haan posted on X over the weekend.The board’s decision was widely seen as mainly a way to bolster electric vehicles in California. While the air board promised cleaner air with the new rules, environmental groups opposed the update, saying it does not do enough to reduce air pollution. It’s one of the reasons why one of the board’s environmental justice members voted no. “I do think we could’ve done better in a number of ways that I’m not going to list here,” said member Diane Takvorian. The most recent poll by the Public Policy Institute of California shows the cost of living and the economy is the top concern for voters. Members of the air board rebuffed suggestions they could be to blame for higher prices. “Yes, American families are feeling the economic squeeze,” said Davina Hunt on Friday. “But I also find myself asking, how is it that fossil fuel companies and their executives continue to post record-breaking profits? Yet turn to the government to place blame of gas costs won what are lifesaving regulations.” See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
It’s still unclear how much gas prices will rise in California after the California Air Resources Board approved stricter clean air requirements, and the state’s Democratic legislative leaders suggested on Monday they have concerns about the impact.
On Friday night, the board approved updates to its Low Carbon Fuel Standard program, a 300-page rule that includes the goal of cutting carbon emissions from California’s transportation sector by 30% by 2030.
While Californians already pay an extra ten cents for the current standard, the updates that go into effect in 2025 are expected to raise gas prices even more in the state with the second-highest gas prices in the nation.
“I have concerns about reports that gas prices may be adversely affected by the recent vote,” said Assembly Speaker Robert Rivas in a statement on Monday. “In my district alone, tens of thousands of commuters hit the road every day, and they’re already paying record prices at the pump. I expect the Air Resources Board to be responsive to the public and the Legislature, which includes reviewing gas blends that could bring down prices. My Assembly colleagues and I are committed to lowering the cost of living in our state.”
“Climate change is an existential threat to all of us, and in the coming years, we must continue to buckle down to meet our goals,” said State Senate Pro Tem Mike McGuire. “That said, any new regulations must be open and transparent which is why we’re analyzing their actions and will do so in earnest come January when the Legislature convenes.”
The Low Carbon Fuel Standard program is not a direct tax on consumers. However, the large, complex program requires the oil and gas industry to pay for “credits” in order to emit carbon into the air.
With the new updates, the industry will also need to make cleaner fuels like biofuel and hydrogen, which Chevron executives have said are more expensive. Those costs, executives confirmed, will be passed onto customers.
“We don’t dispute their policy and their intent, but we would just like the policymakers to take accountability for what they’re doing,” said Andy Walz, the president of Chevron’s Downstream, Midstream and Chemicals division.
In its initial assessment of the updated standards, CARB projected the new rules would increase gas prices up to 47 cents per gallon in 2025. After facing backlash, staff walked the number back and claimed to make changes to the program but refused to release a new estimate ahead of Friday’s decision.
“It’s hard to predict,” Walz acknowledged when KCRA 3 asked what Chevron customers can expect. “I think their first estimates are probably closer.”
Gas Buddy analyst Patrick De Haan suggested there could be broader impacts beyond just gas prices.
“CARB has approved a significant reduction in carbon intensity for fuel produced in California, forcing refiners to figure out how to achieve said redux. Don’t be surprised to see older refiners throw in the towel, exacerbating California’s #gasprices and supply,” De Haan posted on X over the weekend.
The board’s decision was widely seen as mainly a way to bolster electric vehicles in California.
While the air board promised cleaner air with the new rules, environmental groups opposed the update, saying it does not do enough to reduce air pollution. It’s one of the reasons why one of the board’s environmental justice members voted no.
“I do think we could’ve done better in a number of ways that I’m not going to list here,” said member Diane Takvorian.
The most recent poll by the Public Policy Institute of California shows the cost of living and the economy is the top concern for voters. Members of the air board rebuffed suggestions they could be to blame for higher prices.
“Yes, American families are feeling the economic squeeze,” said Davina Hunt on Friday. “But I also find myself asking, how is it that fossil fuel companies and their executives continue to post record-breaking profits? Yet turn to the government to place blame of gas costs won what are lifesaving regulations.”
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
Source link