California's gas prices could have major increase with passing of new fuel standards

SAN FRANCISCO (KGO) -- Gas prices are going down, but maybe not for long. The national average is $3.09, down 10 cents from a month ago.

In California, the average is $4.68, down 16 cents from a month ago. San Francisco is the most expensive in the Bay Area, but it's down nearly a quarter from last month.

California's gas prices are on the verge of a major increase.

"We know that in order to be successful in addressing climate change, we must continue to reduce our fossil fuel consumption," said Liane Randolph, chair of California Air Resources Board.

On Friday, the California Air Resources Board approved updates to the Low Carbon Fuel Standard (LCFS).

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The board's goal is to accelerate "the deployment of zero-emission infrastructure and keeping the state on track to meet legislatively mandated air quality and climate targets."

According to a report by Kleinman Center for Energy Policy, California's gas prices could be on the verge of a 65-cent per gallon increase.

"If LCFS credit prices reach their maximum allowed levels, as has occurred in the past, then retail gasoline price impacts could be $0.65 per gallon in the near term, $0.85 per gallon by 2030, and nearly $1.50 per gallon by 2035."

In an email to ABC7 news, Lys Mendes, CARB's communications director expanded on the potential piece change.

"How oil producers pass through compliance costs for required pollution reductions is a business decision they make and there have several options to meet targets. Current self-reported data from fuel producers points to a pass-through cost of $.08 - $.10 a gallon due to LCFS," said Mendes.

In a press release, CARB expanded on their decision. "The LCFS reduces air pollution and greenhouse gas emissions by setting a declining carbon intensity target for transportation fuels used in California; producers that don't meet established benchmarks buy credits from those that do. This system has generated $4 billion in annual private sector investment toward a cleaner transportation sector."

"To vote on it, to make it higher just doesn't make sense, because we are already kind of getting by. A lot of people live paycheck to paycheck," said Tanner Ramsey, a Bay Area driver.

Ahead of the vote, California Senate Republicans submitted a petition with nearly 13,000 signatures urging this board to postpone the vote.

"This is going to really negatively impact many millions of people here in California," said Sen. Brian Jones. "And for this unelected board made up by a group of millionaires to even be considering raising our gas prices right now while Californians are struggling under the cost of living here in California, is unbelievable to me that we are even having this discussion."

Senate Minority Leader Brian Jones is proposing a different path.

"Right now, California has waivers from the federal government on the regulation of fuel production, fuel supply and the EPA lets California do whatever it wants to do with these waivers," said Sen. Jones. "I want to look into how the federal government can remove these waivers and begin to bring some accountability to these unelected bureaucrats."

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The board said its goal is to address climate change and reduce the use of fossil fuels.

"Lays out a plan to achieve carbon neutrality by 2045 that would also result in a 94% reduction in petroleum demand by 2045," said Liane Randolph, chair of California Air Resources Board.

Some Californians view this as the state pushing them to drive electric vehicles something not everyone can afford or in some cases want.

"I'm kind of old school. I just like the gasoline better. Also range anxiety. I don't want to have to worry about if I'm going on a trip six hours away, how many times I have to stop to charge when I can just fill up and be gone in five minutes," Ramsey said.