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California’s clean fuel policy faces legal roadblock

California’s effort to reduce fossil fuel use hit a setback after a state legal office rejected new fuel standards, citing a lack of clarity in the rules.

Alejandro Lazo reports for CalMatters.


In short:

  • The California Air Resources Board’s Low Carbon Fuel Standard was rejected by the Office of Administrative Law, which said the rule lacked clarity under state law.
  • The program, designed to promote cleaner fuels and cut emissions, has drawn criticism for potentially increasing gas prices, with estimates ranging from 47 to 85 cents per gallon.
  • The air board must revise and resubmit the rule within 120 days, but significant changes could trigger further delays and public comment periods.

Key quote:

“Families in this state are already grappling with soaring living costs, and a gas price hike of 65 cents or more will only deepen their financial strain.”

— State Sen. Rosilicie Ochoa Bogh, Republican from Redlands

Why this matters:
California leads the U.S. in climate policies, and its Low Carbon Fuel Standard is central to cutting transportation emissions. Supporters argue the rule is vital for meeting the state’s goal of net-zero emissions by 2045, while critics warn of financial strain for consumers already paying some of the highest gas prices in the country. The rejection underscores the challenge of balancing environmental goals with economic realities, as clean energy transitions often come with short-term costs. How the state revises and enforces these regulations could influence national fuel policies and industry practices.

Read more: California reduces emissions, but low-income communities still breathe dirty air

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