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The Hill
a day ago
- Automotive
- The Hill
California regulators back moves to boost zero-emissions vehicles as feds take on state's standards
California regulators on Tuesday vowed to strengthen their commitment to slashing harmful vehicular emissions as the Trump administration ramps up efforts to overturn the state's pollution policies. 'Clean air efforts are under siege, putting the health of every American at risk,' Liane Randolph, chair of the California Air Resources Board (CARB), said on a Tuesday press call. 'California is continuing to fight back and will not give up on cleaner air and better public health — we have a legal and moral obligation,' she added. Randolph spoke alongside the publication of a new CARB report that outlined ways the state could fight back: by accelerating zero-emission vehicle (ZEV) adoption via increased private investment, government incentives and changes in ZEV fuel pricing. The report, submitted to Gov. Gavin Newsom (D), identified these specific priority action areas and others relating to state regulations and ZEV procurement, as requested by the governor in a June executive order. Chief among the CARB report's priorities was ensuring that private investment continues to support the ZEV market. To do so, the agency recommended sustaining California's Low Carbon Fuel Standard, a program designed to reduce the carbon intensity of fuels, decrease petroleum dependency and achieve air quality gains. As far as government incentives are concerned, CARB suggested that the governor and the legislature consider backfilling federal clean vehicle tax credits, which are set to expire at the end of September. Those credits could take the form of point-of-sale rebates or vouchers and could be scaled to match state policy goals, per the report. The agency also proposed creating an education pipeline for high-paying jobs in the clean transportation industry, as well as investigating opportunities to reinstate high-occupancy vehicle lane access for ZEVs. Regarding infrastructure, CARB identified a need for collaborative buildouts of charging and refueling infrastructure. As for the price of fuels, the agency suggested implementing an electric bill crediting system for EV charging, while support Western grid regionalization and leveraging private investments to bring down the cost of hydrogen. In the regulations area, the agency recommended advancing ZEV consumer assurance measures and working with local air districts on reducing 'indirect sources' of pollution, such as warehouses or railyards. The final priority, procurement, would benefit from the purchase of ZEVs for state fleets and support for doing so in local governments, according to the report. The recommendations, Randolph said, serve to steer near-term actions and 'ensure the state stays on track to meet its air quality and climate goals.' Newsom's June executive order — which mandated the CARB report — occurred after President Trump signed three congressional resolutions revoking California's previously approved emissions rules. That approval had come from the Biden administration, which granted California a waiver to set stricter-than-federal rules via the 1970 Clean Air Act. One such rule was the Advanced Clean Cars II standard, which sought to require that all cars sold in California would be zero-emissions by 2035. A second was the Advanced Clean Trucks rule, requiring 7.5 percent of heavy-duty vehicles to be emissions-free by 2035. A third, the Omnibus Regulation, focused on slashing nitrogen oxide releases. Just last week — in an about-face on compliance with the Golden State's standards — four major truck manufacturers sued California regulators over the latter two rules. Soon after, the Federal Trade Commission (FTC) announced that a voluntary ' Clean Truck Partnership ' between the companies and the state was 'unenforceable.' Then, Friday, the Department of Justice declared its intent to sue California about the same partnership, in a bid to 'advance President Donald J. Trump's commitment to end the electric vehicle (EV) mandate.' Later that day, CARB only said that it would not comment on pending litigation. On Tuesday, however, Randolph said that regardless of federal government's waiver revocation, California is continuing 'to fight hard for the emissions reductions that can easily be achieved in the heavy-duty sector and are already being achieved.' Referring specifically to the Advanced Clean Trucks regulation, she noted that 'the actual adoption is way ahead of the compliance obligation in that regulation.' 'The market is there, and the market is moving,' she said. Randolph also told reporters that CARB is already working on updating Advanced Clean Cars, with the idea that rulemaking processes can take two to four years. By starting now, she explained, the rule might 'be ready, ideally, for a more receptive U.S. EPA.' Slamming the current federal administration for 'choosing to quit the race,' she stressed that 'California is still in.' 'The world is accelerating forward toward cleaner vehicle technologies and is going to watch the U.S. fade into the rearview mirror,' Randolph added.
New York Post
12-07-2025
- Business
- New York Post
Idiotic ‘cap-and-invest' program hurt California — and it may be coming NY next
California is seeing a staggering increase in gasoline prices, and it's all due to idiotic state policies that may also be coming to New York. On Tuesday, the campaign team of Republican candidate for governor Steve Hilton posted a picture of the especially high prices at a Chevron station in Los Angeles. 'Downtown L.A. – almost $8 a gallon!' they wrote. One reason could be the latest update of California's 'Low Carbon Fuel Standard,' a carbon credit trading program, which kicked in on July 1. The update had been estimated to add 65 cents per gallon to the cost of gasoline. 5 Sky-high gas prices across California are not just about the cost of gas — but the added cost of state policies such as the cap-and-invest scheme. Getty Images But that's only part of the state's war on petroleum products. There's also the 'cap-and-trade' program. It drives the cost of energy — and the cost of living — higher in California by requiring refineries, utilities and manufacturers to buy 'allowances' to emit greenhouse gases. The revenue from auctioning the allowances goes into the Greenhouse Gas Reduction Fund, conveniently located in the state treasury. The legislature spends the money on projects that supposedly reduce greenhouse gas emissions. Currently, 25% of the revenue is spent to build California's high-speed rail boondoggle. The state has raised tens of billions of dollars by selling these permits and has thrown hundreds of millions of dollars at such things as 'equitable building decarbonization' and an 'alternative manure management program.' More than $6 billion has gone to the high-speed rail project. Billions more have gone out in grants to various governments, agencies, authorities, commissions, districts and developers. California's cap-and-trade program is set to expire in 2030, which would immediately lower prices statewide, but Gov. Gavin Newsom now says he intends to extend the newly renamed 'cap-and-invest' program through 2045, with $1 billion per year designated for the high-speed rail project. All of this, minus the bullet train, could be coming to New York. In 2019, New York enacted The Climate Leadership and Community Protection Act. It created a 'Climate Action Council' to determine how the state would reduce greenhouse gas emissions 40% below 1990 levels by 2030, and then achieve 'carbon neutrality' by 2050. 5 Despite the added costs and regulation, California Gov. Gavin Newsom has made clear he will extends the program's lifespan. AP The Climate Action Council spent two years formulating targets for slashing the number of homes using natural gas water heaters and furnaces, replacing gasoline-powered cars with electric vehicles, and generating 70% of the state's electricity from 'renewables.' The mechanism to make this happen? A 'cap-and-invest' program. The idea of these programs is to reduce greenhouse gas emissions by charging 'polluters' a lot of money for a gradually declining number of 'allowances' to operate their businesses. Then the money raised can be spent on projects that further reduce greenhouse gas emissions. But higher energy costs drive up the price of everything that's made or transported in the state, including food. According to the Census Bureau, California has the highest poverty rate in the nation when the cost of living is considered. 5 New York Gov. Kathy Hochul has put (some of) the brakes on her state's potential cap-and-invest initiative, but the plan could still come to fruition. Matt Roberts/Shutterstock In a confession that this drives up energy prices to the consumer, California's cap-and-trade program reserves some of its funds to give state residents an annual credit on their energy bills to partially compensate for the higher costs. Is it worth the cost? All of California accounts for only about 1% of global greenhouse gas emissions, but state officials maintain that California must show global leadership. Who's following, and how is it going? On January 1, 2023, the state of Washington became the only other state to implement an economy-wide 'cap-and-invest' program. Less than six months later on June 21, the Seattle Times headlined, 'WA gas prices now highest in U.S.; some experts point to new climate legislation.' 5 Some 25% of California's cap-and-invest revenue is being used to fund the state's high-speed rail system. AP One of those experts was Severin Borenstein, University of California Berkeley professor of business administration and public policy, who was invited by state lawmakers to explain the jump in fuel prices. He said there was no question that the cap-and-invest program was raising gas prices in Washington. He calculated that if carbon allowances cost $50 per metric ton of greenhouse gases, 'the price of gasoline goes up about 50 cents per gallon.' The Oil Price Information Service reached the same conclusion. In Canada, Quebec and Ontario adopted cap-and-trade programs, but Ontario bailed out in 2018. 'It was costly, it was ineffective, it was killing jobs, it's gone today,' said Environment Minister Rod Phillips. There are signs that Gov. Hochul has cold feet about going forward with the cap-and-invest program that has been in the works for New York. In March, the Department of Environmental Conservation issued proposed regulations for the state's 'Mandatory Greenhouse Gas Reporting Program' revealing that even this preliminary step would not begin until June 1, 2027. That puts the start of higher gas prices safely past the next election. 5 University of California Professor Severin Borenstein says there is no doubt that California's cap-and-invest scheme has helped make the state among the costliest in the nation. Berkeley It's transparently evident that cap-and-invest programs are just a hidden tax on energy to fill up slush funds for politicians to spend on the kinds of things that people choose not to buy with their own hard-earned money. Fair warning, New York. Susan Shelley is a columnist and editorial writer with the Southern California News Group, and VP of the Howard Jarvis Taxpayers Association. On X: @Susan_Shelley.
Time of India
01-07-2025
- Business
- Time of India
California gas prices jump 2¢ per gallon, pain at the pump hits again and you are responsible for it
Drivers across California are bracing for a new hit at the pumps: gas prices rise by approximately 1.6 cents per gallon today, July 1, as the state's automatic annual gas tax increase took effect. This additional charge supports infrastructure projects, including road repairs. This increases the total excise tax to 61.2 cents per gallon. Stricter Low Carbon Fuel Standard (LCFS) rules also added 5–9 cents per gallon, bringing the estimated price hike to 7-10 cents overall, far below claims of a 65-cent surge. The LCFS changes require fuel suppliers to offset carbon emissions, which experts say could drive up future costs but benefit long-term emissions goals. Refinery closures are also contributing to pressure on fuel supply. Lawmakers are now pushing reforms to stabilize fuel markets and manage carbon credit pricing. Motorists in Fresno and beyond already took notice. 'Everything costs more in California,' said local resident Max Emberton, reflecting widespread frustration. Another driver added, 'I feel like gas prices are artificially inflated,' despite broader market stability. That tax hike is just the first push, the California Air Resources Board 's Low Carbon Fuel Standard is expected to further raise costs, adding yet another layer to the final price at the curb. Live Events Matt McClain of GasBuddy explained, 'This creates a higher price point in California than really most any other state in the United States,' linking California's reg alone to consistently steeper pump prices. Local businesses are also feeling the pinch. Scott Miller of the Fresno Chamber of Commerce warned, 'For some businesses, it'll be less profit. For some, they'll be passing the cost … to their customer.' While short-term price trends may dip slightly, ongoing regulatory fees and automatic tax escalators will likely prevent significant relief anytime soon.
Newsweek
26-06-2025
- Automotive
- Newsweek
California Gas Prices to Go Up July 1: What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. California drivers will see higher gas prices starting July 1, as two state policies take effect. First, the state's gas excise tax will increase from 59.6 cents to 61.2 cents per gallon, part of an annual adjustment for inflation. At the same time, the California Air Resources Board (CARB) is rolling out stricter rules under its Low-Carbon Fuel Standard (LCFS), which requires fuel producers to cut the carbon emissions from their products more sharply than before. The 2025 benchmark requires a 22.75 percent cut in carbon intensity from 2010 levels—a sharp increase from the previous goal of 20 percent by 2030. To meet these targets, companies will need to blend in more expensive clean fuels or buy emissions credits—costs that are expected to be passed on to drivers. Meanwhile, two major refineries, Phillips 66 in Los Angeles and Valero in Benicia, announced they will close by the end of 2026. The closures will reduce the number of gasoline producers in the state from nine to seven, which could trigger a sharp spike in fuel prices, based on analysis by University of Southern California Professor Michael Mische. His projections indicate gas could hit $6.43 per gallon after the first closure and soar to $8.43 once both refineries are offline, with even higher prices possible under volatile market conditions. Together, these changes could raise gas prices by as much as 6 to 10 cents per gallon. But some experts warn the increase could be even higher. Why It Matters Retail prices for regular grade gasoline in California are already consistently higher than in any other state in the continental United States, often exceeding the national average by more than a dollar per gallon. Therefore, a dramatic surge in gas prices could deepen California's cost-of-living crisis, strain working families, and reverberate through the broader economy. Gasoline prices above 6.00 dollars a gallon are shown at a gas station in Los Angeles on Tuesday, June 7, 2022. Gasoline prices above 6.00 dollars a gallon are shown at a gas station in Los Angeles on Tuesday, June 7, 2022. Richard Vogel/AP What To Know A University of Pennsylvania report projected that changes to California's Low Carbon Fuel Standard (LCFS) could raise gas prices by 65 cents per gallon in the near term and 85 cents by 2030. In response, Senate Minority Leader Brian Jones launched a petition urging lawmakers to repeal what he called an "unaffordable 65 cent gas price hike," arguing, "Californians already face the highest gas prices in the country." As of Thursday morning, the petition has more than 29,000 signatures — 21,000 short of its target. However, the California Air Resources Board (CARB) disputed the 65 cent figure, calling it "misinformation." A spokesperson said prices may rise only 5 to 8 cents and that any increase would come from oil companies deciding how much compliance costs to pass on. Governor Newsom's office echoed that, calling the higher estimate false and emphasizing the LCFS could actually reduce fuel costs per mile by 42 percent by 2045. Studies back this up. Research from the University of Minnesota and Biofuels Digest found little connection between LCFS credit prices and retail gasoline prices. In fact, California's gas price gap with the national average remained steady before and after the LCFS was introduced. Jones rejected those claims, calling them "hogwash," telling Newsweek, "I'm really not too concerned about whether it's 10 cents or 65 cents. Basically we're splitting hairs at that point in time. It probably is in between somewhere. The bottom line is, these regulations are going to cause the price of gasoline to increase." He also accused Newsom's office of trying to walk back an earlier CARB estimate of a 47 cent increase, saying, "They originally came out with 47 cents... and then they had to walk that back." CARB did initially project a 47 cent increase for 2025, but later clarified that the analysis was not meant as a direct pump price forecast. Meanwhile, Democrats in the state Senate unanimously voted down a bill from Jones to pause the LCFS changes, which he claimed was part of Newsom's broader effort to phase out gas vehicles in favor of EVs. "I believe Newsom's goal is to push Californians into EVs under the ideological guise that he's saving the planet," Jones said. Newsom's office defended the policy on environmental grounds, noting that transportation accounts for over half of the state's carbon emissions and nearly all of its toxic diesel pollution. "This is the most impactful step our state can take to fight climate change," Newsom said in 2023, arguing that car emissions worsen asthma, wildfires, and sea-level rise. But Jones dismissed such arguments. "California has done a very good job over the last 20 to 30 years cleaning up our air," he said, adding that the state's emissions make up just "about 1 percent of global emissions," and eliminating all internal combustion engines "would have zero impact on the rest of the planet." Meanwhile, California gas prices remain high. In April, the state's average price per gallon was $4.85—$1.69 higher than the national average. Prices have spiked above $6 twice in the past two years, sparking public backlash and new legislation. What Happens Next The updated Low Carbon Fuel Standard (LCFS) regulations were resubmitted to the Office of Administrative Law on May 16, after being rejected in February. The office has until June 30 to issue a final decision, and if approved, the changes could take effect as soon as July 1.
Los Angeles Times
25-06-2025
- Automotive
- Los Angeles Times
Ready for a summer road trip? Here's why a visit to the gas pump could cost you more in July
Bad news if you are planning a road trip this summer. Gas prices at the pump in California will likely jump in July, the result of a state sales tax hike and stricter rules on refineries to encourage them to create lower-carbon fuels. The combined increases could boost gas prices by nearly 70 cents, although industry experts said they can't estimate the exact price of a gallon of gas for next month. Californians and drivers nationwide typically see a spike in fuel prices during the month of June but the oil supply market is currently outweighing demand, leading to slightly cheaper prices compared to 2024, according to the American Automobile Assn. As of Wednesday, the current average for the state is $4.64 per gallon compared to $4.81 on the same day last year, a 17-cent decrease. Even though forecasters predict global oil inventories will increase over the next five months, relieving pressure on oil prices, California consumers won't feel the expected continued reprieve next month. On July 1, California's gas and diesel excise tax will increase to 61.2 cents per gallon, from the current rate of 59.6 cents per gallon, according to the California Department of Tax and Fee Administration. Diesel fuel will also increase from 45.4 to 46.6 cents per gallon. The state adjusts its fuel tax rates based on data from the Department of Finance annually and the new rate goes into effect on July 1 of each year. This isn't the only factor that will drive up gas prices this summer. In 2024, California Air Resources Board approved amendments to the state's Low Carbon Fuel Standard program that was established in 2011 with two goals in mind: shifting the state's fuel dependence toward lower-carbon fuels and helping the state reach the goal of cutting fuel use by 49% by 2045. The approved amendments are meant to incentivize the value of lower-carbon fuel and impose stricter limits on carbon intensity fuels so gasoline producers are encouraged to create less-polluting fuels. But that extra cost to comply with the new regulations will be passed onto motorists at the pump. Last year, CARB estimated the amendments could raise gasoline prices by 47 cents a gallon, or $6.4 billion a year. Months later the agency walked back its estimate and said it would not provide the public with a revised one. The agency previously told The Times that no new numbers will be forthcoming because 'what we are not equipped to do is analyze what the effect would be on retail gasoline prices,' it instead analyzes economic growth, job creation and public health. Danny Cullenward, vice chair of the California's Independent Emissions Market Advisory Committee, estimated that near-term affects from the program amendments on gas prices could be an additional 65 cents a gallon this year, $0.85 per gallon by 2030, and nearly $1.50 per gallon by 2035. AAA said it doesn't have an estimate yet on how the amendments to the Low Carbon Fuel Standard program will affect gas prices next month, 'especially with the recent drop in oil prices.' 'If those stay low, the impact could be smaller,' said Gianella Ghiglino, spokesperson for AAA of Southern California. Drivers won't be able to avoid the price hike at the pump in California but there are ways to locate gasoline stations with the cheapest prices. There are several apps and websites that can help you find lower prices near your traveling route.
