New environmental rules in California could drive up gas prices

SAN DIEGO (KGTV) — California’s gas prices could increase significantly under new environmental regulations set for a vote Friday. The California Air Resources Board (CARB) is considering changes to the Low Carbon Fuel Standard (LCFS), a policy aimed at reducing vehicle emissions and promoting alternative fuels.
Critics warn these proposed changes could push gas prices up by nearly 50 cents per gallon as soon as next year.
“Lower the prices — it’s too high right now,” said Drafton Bunch, who spends about $100 weekly on gas. “I’m about to get me a bicycle.”
Many Californians echo Bunch’s frustration. The state’s strict emissions standards and fuel taxes contribute to some of the highest gas prices in the nation.
Since 2011, the LCFS has required fuel producers to pay the state based on their fuel’s carbon emissions, with costs often passed down to consumers. California’s Department of Energy estimates that the program currently adds about 12 cents per gallon to gas prices.
“All of that adds up to cost,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Unfortunately, cleaner fuels tend to be more expensive, and the production process for these fuels can be very costly.”
CARB’s proposed changes aim to tighten standards further, with a goal of reducing fuel emissions by 20% to 30% over the next few decades.
At Friday’s meeting, supporters emphasized the need to cut emissions to improve air quality and to shift California toward alternatives like electric vehicles.
“As we consider the future of California’s transportation policies, we need to keep air quality challenges front and center,” said Dillon Miner, an air pollution specialist with CARB. “About half of Californians breathe unhealthy air despite all the progress we’ve made over the past 50 years.”
Opponents, however, argue they’re already overburdened by high gas prices, and further increases may not be justifiable. Last year, CARB projected that the proposed changes could raise gas prices by up to 47 cents per gallon next year and by as much as $1.80 by 2040.
“California gasoline is only slightly cleaner than what’s used in the rest of the country, but the cost difference is significant,” De Haan said. “It’s staggering.”
While many Californians are concerned about rising prices, experts say it’s difficult to predict the precise impact, as prices ultimately depend on supply and demand.
“When times are good, the added cost may be 15 to 20 cents more,” De Haan said. “But if issues arise, the cost could skyrocket. If alternative sources of low-carbon fuel for California become scarce, the true cost could be even higher.”
For those interested,
and live coverage of the vote are available online.