The cost of gasoline could soon go up yet again in California after the state adopted new climate rules.
The California Air Resources Board last week approved the Low Carbon Fuel Standard, a new climate change program whose main goal is to reduce California’ greenhouse gas emissions.
While the new environmental program mean gas prices could go up as much as 47 cents per gallon, the state is looking to toughen its environmental policies ahead of the second Trump administration.
As President-elect Trump begins to nominate his cabinet members, he has selected former Congressman Lee Zeldin as the head of the Environmental Protection Agency (EPA). In the past, Zeldin criticized the very agency he will likely lead over overregulation and being anti-energy development.
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“We have a chance to roll back regulations that have forced businesses to struggle,” Zeldin said during an interview Monday.
The Low Carbon Fuel Standard is California's antidote to what Zeldin may seek to undo as the California Air Resources Board voted 12 to 2 pass the new climate program shortly after Trump won the 2024 election.
The Low Carbon fuel Standard, which is designed to cut carbon emissions from cars by 30% by the year 2030, will regulate oil refineries in the state.
“We cannot continue with the status quo,” Lian Randolph, the chair of California Air Resources Board, said. “Climate change is a problem. We must continue to chart a path away from fossil fuels while avoiding other harms.”
But one of the harms, according to critics, is higher gas prices as refineries will be required to purchase “carbon credits” for carbon dioxide emissions past a certain level and forced to manufacture biofuels and hydrogen.
The cost of following the new regulations will be passed down to consumers at the pump.
Staff with the Air Resources Board initially estimated a 47-cent-per-gallon increase as early as next year although it later revised the estimation to 10 cents per gallon or no increase at all.
“It is hard to predict, but I think their first estimates are probably closer,” Andy Walz with Chevron USA said.
The Board said it took the action to improve electric vehicles across the state, but it has sparked concerns from state lawmakers from both sides of the aisle.
As Republicans said they are outraged by the new climate rules that could hurt low-income Californians, Democratic leadership in the State Assembly and the Senate said they want to take a look into the new regulations as they, too, are concerned about the possible impact on low-income people.
