Assembly members voice concerns over proposed 47 cent per gallon gas increase in 2025

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CALIFORNIA – California Assembly members voiced concerns, May 14, over a proposed 47 cent gas increase in 2025 and annual increases, to the California Air Resources Board (CARB).

The assembly members said currently, consumers pay roughly 11 cents per gallon as a result of the Low Carbon Fuel Standard (LCFS) program. 

“Your proposed amendments are anticipated to cost consumers up to 47 cents per gallon in 2025 and 52 cents in 2026. This is a significant increase, especially given that our constituents already struggle to afford the highest gas prices in the nation,” said the members in the letter.

Shocked to see it

The LCFS program discourages gasoline and diesel production in favor of other alternatives.

In a 2023 report, CARB staff said proposed reforms to LCFS would raise costs for the gasoline and diesel production companies that could get passed on to drivers. 

CARB hosted a workshop in April, discussing the proposed amendments to the LCFS. 

Assembly members said while they appreciate that CARB was transparent in acknowledging the pass-through costs to consumers, the large projected cost increases raise serious concerns.

“Even the climate economist and advisor to the state, Danny Cullenward, said he “was shocked to see it . . . a 50 cent [per gallon] increase in the price of fuel is not a small thing,” said the members in the letter.

Photo credit: CARB

45 cents per gallon of gas 

The members also addressed in the letter, a cap-and-trade program CARB says is designed to help California meet its greenhouse gas reduction goals.

“Today, consumers pay about 30 cents per gallon as a result of cap-and-trade, a number derived from the state’s calculation that every $10 increase in the allowance price results in about 9 cents per gallon of gasoline in additional costs,” said the members in the letter.

They go on to say that following this practice, if the allowance price is $50, consumers would pay about 45 cents per gallon of gas. 

“We respectfully request that you analyze the LCFS and cap-and-trade programs together to understand the full impact to consumers at the pump and we expect that you be transparent about the consumer cost impact per gallon of the cap-and-trade amendments you are considering,” said the members in the letter.

CARB said they will make a decision on the LCFS amendments in late 2024 or early 2025.

Photo credit: CARB

To read the full statement visit https://src.senate.ca.gov/sites/src.senate.ca.gov/files/2024%20Joint%20Republicans%20CARB%20Letter%20Fuel%20Costs_May%2015%202024.pdf

RELATED: Air Resources Board hosting workshop on climate change program amendments that would increase gas by 50 cents

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