Proposed California low-carbon fuel standard changes could raise gas prices - CBS San Francisco

By Kenny Choi

October 18, 2024 / 6:19 AM PDT / CBS San Francisco

Californians already pay the highest price for gasoline in the country, and some analysts estimate proposed changes to the state's low-carbon fuel standard could increase prices at the pump by as much as 65 cents a gallon.

The California Air Resources Board is slated to vote on policy changes in November that would lower carbon emissions faster, but increase the cost for refineries.

Republican lawmakers are urging state regulators to delay the vote, saying prices at the pump would spike.

Gas prices in California are on average $1.47 a gallon higher than the national average mainly because of its gas taxes, the highest in the country.

Some state lawmakers say new policies to lower carbon emission standards would hurt everyday residents.

"This will have a direct impact on pocketbooks. Is it the right time to actually move forward on these types of regulations? Or should we have a little moratorium and let Californians breathe," said Republican State Senator Rosilicie Ochoa Bogh.

Ochoa Bogh is one of 25 Republican lawmakers asking California Air Resources Board to delay its vote.

They are accusing CARB of a lack of transparency and demanding the board to disclose the actual costs and benefits of any proposed changes to the public.

"Delaying a vote will actually give an opportunity for Californians to hear the message, see what's going on and let them know, 'Hey, we're not okay with this,'" said Ochoa Bogh.

"When we have more aggressive standards it drives up the cost more and when that happens it drives up the cost we pay at the pump," said UC Berkeley Energy Institute at Haas Director Severin Borenstein.

Last year, CARB itself projected that the stricter standard would increase gas prices by 47 cents a gallon.

Other analysts believe that figure could reach as high as 65 cents per gallon, but Borenstein says the cost right now is 8 cents per gallon and not having a big effect.

"If they change rules on some of those qualifications or make standards more aggressive, we could see it have a bigger impact on fuels," said Borenstein.

A CARB spokesperson issued a statement that read in part, "The Low Carbon Fuel Standard is an effective climate and air quality program that has successfully reduced the use of fossil diesel in the state by 70% by incentivizing the development of cleaner fuels that give consumers increased options."

"In fact, we estimate that the program will reduce transportation costs 42% over the next 20 years through increased options that are also better for the environment and public health," the statement added. "That is good for consumers and good climate action."

The board is scheduled to vote on policy changes November 8.

When Kenny Choi jumped into the backseat, he never thought he would be introducing his ride share driver to National Public Radio. The hour-long ride to the airport turned into a conversation that included politics, the economic divide, and the cultural differences between the East Coast and the West Coast.