CARB to Vote on Regulations Potentially Increasing Gas Prices in California

ICARO Media Group
Politics
11/10/2024 19h59

**California's Fuel Regulations Could Bring Higher Gas Prices: CARB Votes Next Month**

The California Air Resources Board (CARB) is preparing to vote next month on new regulations that could lead to higher gas prices for consumers. This plan aims to reduce the carbon intensity in fuels by expanding an existing program from 2011, which imposes penalties on refineries that produce high-carbon fuel like gasoline and diesel. The proposed regulations would increase these penalties, potentially driving up production costs.

According to estimates from CARB in September last year, the new rules could raise gas prices by 47 cents per gallon. However, analysts cited by the Los Angeles Times warn that the real increase might be as much as 65 cents per gallon. Despite these figures, Steven Cliff, CARB's chief, admitted to The Times that the board has not updated its price projections due to a lack of capability. Cliff did assert that the proposed amendments could have a "net positive" impact by contributing to job creation.

The decision on the regulations is scheduled for a vote three days after the November 5 general election. Governor Gavin Newsom has expressed support for greater controls on state gas refineries, advocating for stable fuel inventories and sufficient supply backfills to prevent price spikes.

"It should be common sense for gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price spikes," Newsom stated in August, accusing Big Oil of using scare tactics to maintain the status quo and profit from price surges.

As of Friday morning, the average price for regular gas in California stood at $4.668 per gallon, more than $1 lower than the same time last year. The prices have remained relatively stable over the past few months, according to AAA.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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