New regulations aimed at limiting the carbon intensity in fuels in California could reverse the state’s ongoing drop in gas prices.
On Friday, in a meeting lasting more than 12 hours, the California Air Resources Board approved the new measures in a 12-2 vote. Supporters cited the push that the new measures will provide in moving California away from fossil fuels.
The plan will limit the carbon intensity in fuels by expanding a program instituted in 2011 that penalized refineries that create high-carbon fuel, like diesel and gasoline. New regulations would increase the penalties, thus increasing the price of production.
The CARB has previously talked about a plan to move the state toward “carbon neutrality” by 2045.
In September of last year, CARB estimated the now-passed regulations could raise gas prices by 47 cents per gallon, but CARB officials no longer believe that the prices will rise quite that high, however.
According to reporting from Nexstar Media Group’s California Capitol Reporter Eytan Wallace, board member Eric Guerra said the measure “does not have a correlation with retail retail gas prices,” but called on the board to monitor gas trends.
“If there are any changes, we need to know what that is and be able to react quickly,” Guerra said, noting families are feeling cost pressures across the state.
As of Saturday, the average gas price in California was $4.51, according to AAA. In October the average was $4.68, and at this time last year it was $5.11.
