California’s Plan to Overhaul a Key Climate Program — Raising the Cost of Gas — Ignites Debate

A Chevron gas station in Fresno on June 23, 2022. Photo by Larry Valenzuela, CalMatters/CatchLight Local

What you pay at the pump may be increasing soon.

California plans to overhaul one of its cornerstone climate programs — a decision that could push gasoline prices higher in a state where residents already pay the most at the pump.

On Nov. 8, just three days after an election marked by concerns over rising costs, the California Air Resources Board will hold a public hearing and vote on its plan to amend the Low Carbon Fuel Standard.

The program, which has existed since 2011, is a $2-billion credit trading system that requires fuels sold in California to become progressively cleaner, while giving companies financial incentives to produce less-polluting fuels, such as biofuels made from soybeans or cow manure. The standard has helped the state phase out fossil fuels to clean up air pollution and cut climate-warming gases.

The concern over gas prices has been part of the debate since last December, when the plan was released. Much of the agency’s overhaul, however, has focused on highly technical disputes between oil companies, dairy farms, biofuel and other lower-carbon fuel companies, and environmental justice advocates who say the program maintains polluting industries.

In summary, the state air board will vote on changes to its landmark clean fuel program that would cut more greenhouse gases but could raise the cost of gas and diesel. Read the full CalMatters article here.

UPDATE:

On November 8, 2024, the California Air Resources Boards approved the controversial emissions program changes that could raise gas prices as much as 65¢ a gallon.

The program has a wide swath of critics -- from environmentalists to the oil industry -- with some analysts estimating changes to the state's low carbon fuel standard, or LCFS, could increase prices at the pump by as much as 65 cents a gallon. 

The plan approved late Friday at the end of a 12-hour meeting will increase the state's emission reduction targets and fund charging infrastructure for zero-emission vehicles. It also will phase out incentives for capturing methane emissions from dairy farms to turn into fuel.  

"Today's decision by CARB will not only make it more expensive for families, but also disproportionately affect residents in rural communities in my district who must travel long distances for groceries, healthcare, etc.," Republican Senator Brian Dahle said following the vote. "Californians shouldn't have to forfeit taking their family out to dinner in order to afford putting gas in the car just to get to work." 

Read the CBS article "California Air Resources Board approves controversial emissions program changes that could raise gas prices" for the full details on the vote.

District 1 Supervisor Nora Vargas is a member of the California Air Resources Board. She was appointed on February 2, 2022 by Governor Gavin Newsom and will serve until her term ends December 31, 2024.

Sources:

Alejandro Lazo | October 25, 2024 | CalMatters

Photo by Larry Valenzuela, CalMatters/CatchLight Local

CBS News | November 8, 2024 | Bay Area

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