California bills focus on Low Carbon Fuel Standard

Increased transparency about fuel costs is the focus of California legislation.

The statehouse pursuits follow action last month by the California Air Resources Board to adopt updates to the agency’s Low Carbon Fuel Standard regulations. Most of the panel is appointed directly by the governor.

In place since 2011, the regulations are intended to encourage the use of cleaner fuels with financial incentives as the state works to phase out gas and diesel and to achieve net-zero greenhouse gases by 2045.

On Nov. 8, the board approved additional restrictions that are expected to result in much higher fuel costs after the first of the year. CARB previously estimated the cost to consumers over the next year would be 59 cents per gallon for diesel and 47 cents per gallon for gas.

The panel has since backed off the projections. An exact amount is unknown, because CARB did not do a cost analysis of the mandate.

A study published by the Kleinman Center for Energy Policy at the University of Pennsylvania, however, reports the regulations could increase fuel prices by 65 cents per gallon very quickly.

“Hard-working Californians continue to struggle to pay the bills. The price of everything from rent to food to the price of gas is out of control. Yet, the Newsom Administration continues to impose mandates that will increase the cost of living without transparency.”

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— California Assembly Republicans (@AsmRepublicans) December 4, 2024

Improved transparency pursued

In California, multiple measures introduced within days of the start of the regular session are intended to thwart the CARB action.

Assemblywoman Alexandra Macedo, R-Tulare, is behind one bill that she touts to increase transparency in government and help prevent fuel price hikes.

“The price of everything from rent to food to the price of gas is out of control,” Macedo said in prepared remarks. “Yet, the Newsom administration continues to impose mandates that will increase the cost of living without transparency.”

Macedo said it is important to “shine a light on the government decisions that increase our cost of living and rob us of financial stability.”

Her bill, AB41, would require the governor’s office to conduct cost analyses of regulations and disclose the information to the public.

The bill states that the estimate would be required to include a maximum estimated impact on retail fuel prices “that assumes the maximum possible cost imposed,” also noting that all costs are passed on to consumers.

“It is an affront to Californians that the Newsom administration imposed a mandate that will drive prices without telling the public the true cost,” Macedo said.

AB41 has yet to be assigned to a committee.

Regulatory repeal effort

In the California Senate, one leading lawmaker wants to simply repeal the regulatory rule revision.

Senate Minority Leader Brian Jones, R-San Diego, has expressed concern about the CARB action. He said it is a “direct assault” on Californians, who will have costs passed on to them at the pump.

In an effort to keep fuel costs down, Jones introduced a bill to repeal updates by the board. Every Senate Republican is listed as a co-sponsor.

Jones said the CARB updates will dramatically increase operating costs for companies producing fuel in the state, as well as for importers of oil and fuel and all other ancillary businesses in the fuel supply chain.

His bill, SB2, has moved to the Senate Rules Committee. The Assembly version, AB12, awaits assignment to the committee. LL

I am proud to co-author AB 12 which would reverse CARB’s decision to implement LCFS, costing drivers up to 65 cents per gallon. pic.twitter.com/VpswhXxGiL

— Assemblyman Tri Ta (@TriTa4CA) December 3, 2024

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