California’s controversial new fuel standards, a key component in its strategy to reduce fossil fuel use, have been rejected by the state’s Office of Administrative Law, which reviews the legality of regulations.
The Air Resources Board enacted the fuel standards last year, sparking heated debate over concerns that they would significantly increase gasoline and diesel prices. The law office rejected the rules, citing their lack of clarity and failure to meet the state’s legal requirement for regulations to be easily understood by those affected.
The air board has been ordered to review the decision and resubmit the rules within 120 days. Any major revisions would require public feedback, potentially delaying implementation.
The low-carbon fuel program, which began in 2011, encourages companies to produce cleaner transportation fuels by offering financial incentives. This system aims to phase out fossil fuels, which contribute to pollution and climate change.
An initial assessment by the air board projected that the rules could raise diesel prices by 59 cents per gallon and gasoline by 47 cents, though these estimates were later retracted. A separate study from the University of Pennsylvania predicted a potential 85-cent increase in gas prices by 2030.
Republican lawmakers, who opposed the new rules and proposed a repeal, praised the rejection. “Families are already struggling with rising living costs,” said Sen. Rosilicie Ochoa Bogh, a Republican from Redlands, adding that further price hikes would worsen financial strain.
Supporters argue the rules are vital for meeting California’s climate goals, including achieving net-zero emissions by 2045, though critics fear they could further drive up fuel prices in a state already burdened with some of the highest costs in the nation.
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