California’s Air Resources Board votes to increase new fuel standards, raising gasoline prices by up to 65 cents per gallon

SAN FRANCISCO (KGO) — Gasoline prices are falling, but perhaps not for long. The national average is $3.09, down 10 cents from a month ago.

In California, the average is $4.68, down 16 cents from a month ago. San Francisco is the most expensive in the Bay Area, but it’s down nearly a quarter from last month.

Gasoline prices in California are poised for a sharp increase.

“We know that to successfully combat climate change, we must continue to reduce our use of fossil fuels,” said Liane Randolph, chairwoman of the California Air Resources Board.

On Friday, the California Air Resources Board approved updates to the Low Carbon Fuel Standard (LCFS).

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The board’s goal is to “accelerate the construction of zero-emissions infrastructure and keep the state on track to meet legally mandated air quality and climate goals.”

Gas prices in California could be on the verge of a 65 cents per gallon increase, according to a report from the Kleinman Center for Energy Policy.

“If LCFS credit prices reach their maximum allowable levels, as they have in the past, the impact on retail gasoline prices could be $0.65 per gallon in the near term, $0.85 per gallon by 2030, and nearly $1.50 per gallon by 2035.”

In an email to ABC7 News, Lys Mendes, CARB’s communications director, explained the possible partial change.

“How oil producers pass on the compliance costs of required pollution reductions is a business decision they make, and there are multiple ways to achieve the goals. Current self-reported data from fuel producers suggests a pass-through cost of $0.08 to $0.10 a gallon due to LCFS,” Mendes said.

CARB explained its decision in a press release. “The LCFS reduces air pollution and greenhouse gas emissions by setting a declining carbon intensity target for fuels used in California. Manufacturers that do not meet established benchmarks purchase credits from those that do. This system has resulted in $4 billion in annual private sector investment toward a cleaner transportation sector.”

“Voting to make it higher just doesn’t make sense because we’re already making ends meet somehow. A lot of people live paycheck to paycheck,” said Tanner Ramsey, a driver from the Bay Area.

Before the vote, California Senate Republicans submitted a petition with nearly 13,000 signatures asking that body to postpone the vote.

“This is really going to have a negative impact on millions of people here in California,” said Senator Brian Jones. “And for this unelected board, made up of a group of millionaires, to even consider raising our gas prices now while Californians are struggling with the cost of living here in California, it’s unbelievable to me that we’re even having this discussion .”

Senate Minority Leader Brian Jones suggests a different path.

“Currently, California has waivers from the federal government to regulate fuel production and supply, and the EPA is letting California do whatever it wants with those waivers,” said Senator Jones. “I want to explore how the federal government can remove these exemptions and begin to impose some accountability on these unelected bureaucrats.”

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The board said its goal is to address climate change and reduce the use of fossil fuels.

“Design a plan to achieve carbon neutrality by 2045 that would also result in a 94% reduction in petroleum demand by 2045,” said Liane Randolph, chair of the California Air Resources Board.

Some Californians see this as an attempt by the state to drive electric vehicles, something not everyone can afford or, in some cases, wants.

“I’m a bit old-fashioned. I just like the gas better. I’m also afraid of the range. I don’t want to have to worry about how often I have to stop when I’m driving six hours away.” “Charge when I can just get gas and be gone in five minutes,” Ramsey said.