CALIFORNIA – The California Air Resources Board (CARB) is hosting a workshop in April to discuss proposed amendments to the Low Carbon Fuel Standards (LCFS) that would increase the cost of gas by 50 cents per gallon.
In a report, published last September, CARB staff said proposed reforms to LCFS would raise costs for the gasoline and diesel production companies that could get passed on to drivers.
The report came out ahead of CARB’s – now postponed March decision to amend the program that discourages gasoline and diesel production in favor of other alternatives.
Annual price increase
In the report, CARB states that there are no direct regulatory costs incurred by individuals as a result of the proposed amendments, however, they say businesses that incur costs may pass on costs to consumers, which could result in increased prices for gasoline and diesel.
“Once the proposed amendments are implemented in 2024, they are projected to potentially increase the price of gasoline by an average of $0.37 per gallon, potentially increase the price of diesel by an average of $0.47 per gallon, and fossil jet fuel $0.35 per gallon,” says the report.
They go on to say that on average, from 2031 through 2046 the proposed amendments could increase the price of gasoline by $1.15 per gallon, the price of diesel by $1.50 per gallon and fossil jet fuel by $1.21 per gallon.
Photo credit: CARBCriticism of LCFS amendments
Environmental justice advocates are critical of the LCFS amendments leading to gas price increases.
“These LCFS amendments will increase transportation costs for lower income people and people of color,” said Leadership Counsel for Justice and Accountability co-founder Phoebe Seaton.
Seaton says that the program could achieve its goals while reducing cost impacts to lower income people by eliminating excessive and misaligned credit generation for biogas and biofuels.
Workshop
Instead of moving forward with the March vote to amend the LCFS, a workshop is scheduled April 18, 2024 to discuss the proposed amendments.
CARB estimates that Californians could lower transportation costs up to 42% as drivers transition away from fossil fuels and into more energy efficient vehicles.
For more information about the workshop visit https://ww2.arb.ca.gov/events/clean-transportation-equity-incentives-symposium
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