California’s Air Resources Board is meeting days after the election to consider proposals that could raise gas prices by as much as 47 cents next year.
California state lawmakers, including more than two dozen Republicans, challenged the state’s Air Resources Board in an Oct. 15 letter to Chair Liane Randolph, requesting details about how proposed regulations could see the price of gas increase if they are ultimately approved and take effect in January.
“Families are already struggling with high gas prices, and they shouldn’t be left in the dark about the financial impact of new policies,” Sen. Rosilicie Ochoa Bogh said in a press release about the lawmaker concerns. “Californians deserve transparency and the chance to voice their concerns. The state’s priority must be to shield families from rising costs, not quietly advancing policies that make it harder for them to make ends meet.”
Some members of the Legislature said in the press release that the body needs to “reclaim some of its policy-making authority from unelected boards like [the 14-member Air Resources Board] that do not have to answer to Californians.”
Board members are appointed by Gov. Gavin Newsom, the Senate Rules Committee, and Assembly Speaker Robert Rivas.
Regulators are meeting on Nov. 7 and 8 to consider a proposal regarding the state’s low-carbon fuel standards, which are meant to incentivize the production of electricity, hydrogen, and biofuels to displace traditional fossil fuel sources of energy.
“[Considering] the significant health and economic benefits of phasing down fossil fuel use, and the introduction of federal funding for alternative fuels and clean energy, now is the time to update and strengthen the [low carbon fuel standards] regulation,” the board wrote in a September 2023 assessment.
The proposal aims to increase stringency to reduce carbon emissions, strengthen investments in disadvantaged communities, and facilitate the expansion of the hydrogen fuel market while incentivizing low-carbon fuel production.
Critics point to calculations showing that, if approved, the changes will increase gas prices.
The Air Resources Board’s assessment last year estimated pass-through costs of between 37 cents and 47 cents a gallon by 2025, and potentially from $1.15 to $1.50 per gallon by 2031.
Another report—authored by Danny Cullenward, attorney and vice chair of California’s Independent Emissions Market Advisory Committee and published on Oct. 7 by the University of Pennsylvania’s Kleinman Center for Energy Policy—forecast additional costs as high as 65 cents in the near-term to 85 cents per gallon of gas by 2030, as well as anticipated pass-through costs of up to $1.50 per gallon by 2035.
Californians pay on average $4.67 per gallon compared to $3.20 nationwide, as of Oct. 16, according to the motoring club AAA.
“It is with this in mind that we write [to] you again with serious concerns about the proposed amendments … that will drive up fuel prices,” lawmakers wrote in the letter. “We regret that the California Air Resources Board refuses to release any analysis of how its proposed [fuel standards] amendments will affect gas prices in California.”
A letter signed by every Republican state representative was sent to the agency in May requesting the information. But the response—received on Sept. 23—from the Air Resources Board failed to answer their questions, according to the most recent request.
“[The response] continued to advance the narrative that the [fuel standards] program has minimal impact on gas prices,” the lawmakers wrote. “It is absurd that [the Air Resources Board] takes such a position when its own Initial Statement of Reasons Assessment predicted an increase in costs to consumers.”
Legislators said regulators owe it to the public to provide all relevant information regarding the potential impacts of their decisions.
“The state’s refusal to disclose the real cost of these changes is irresponsible,” Assemblyman Greg Wallis said in the press release. “Californians deserve transparency before any vote that will increase the price at the pump.”
Lawmakers are asking for details about how the amendments could affect gas prices and an analysis of direct and indirect impacts, while also urging the board to delay and reschedule the vote.
“The right thing for [the board] to do is to postpone the [fuel standards] hearing on the proposed amendments and immediately disclose the actual benefits and true costs to Californians and facilitate public participation in these important policy decisions,” the letter reads.
Spokespersons for the Air Resources Board have repeatedly advised representatives in committee hearings in recent years that the agency values providing complete data on all proposals, and Newsom said as much on Oct. 14 during a press conference after signing Assembly Bill X2-1—which will regulate oil refiners with a goal of reducing gas prices.
“I’ve been very supportive of being as transparent as possible with taxpayers about what the [low carbon fuel standards] may contribute,” Newsom said in response to a question from The Epoch Times.
While debating the merits of AB X2-1 in the special session called by the governor on Aug. 31, lawmakers on both sides of the aisle expressed concern about the impact the fuel standards regulations could have on gas prices.
“I am concerned over the additional [clean air] regulations that will increase the gas prices,” Democratic Assemblywoman Blanca Rubio, member of the Assembly’s Petroleum and Gasoline Supply Committee, said during a hearing on Sept. 26. “Because if we’re doing all of this so we say, ‘This is going to lower gas prices by 7 to 10 cents,’ and then come January and our other regulations increase it by 45 cents, then we’re all going to look like fools.”