Economic reports and analyses from California state agencies and independent economic research organizations

California Air Resources Board Votes 12-2 to Increase Gas Prices by 85 Cents with New Fuel Regulations

Nov 8, 2024, 11:40 PM

The California Air Resources Board (CARB) has voted to implement stricter regulations on low carbon fuels, a move expected to significantly increase gas prices in the state by up to 85 cents per gallon. The decision, made after a 12-hour meeting, has faced criticism for its potential economic impact on working-class families and a lack of transparency. Governor Gavin Newsom's appointed board voted 12-2 in favor of the new mandates, which aim to reduce planet-warming emissions from transportation fuels. Critics argue that the policy, which could raise gas prices by 10%, will disproportionately affect those who can least afford higher fuel costs, while supporters believe it will incentivize the use of electric vehicles and help combat climate change. Board Member Hector De La Torre criticized the media and elected officials for questioning the program's impacts on gas prices.