Hurtado asks for analysis into potential $0.47 gas price increase 

The Bakersfield Democrat is pushing the state to provide impartial analysis into a regulatory vote next week that could drastically raise gas prices in California.

With California regulators scheduled to vote next week on new fuel standards that could potentially raise the price of gas by $0.47 per gallon, Sen. Melissa Hurtado (D–Bakersfield) is asking the nonpartisan Legislative Analyst’s Office (LAO) for more information. 

Hurtado sent a letter to the LAO asking for a report on the economic impacts of the Low Carbon Fuel Standard (LCFS) on retail gas prices. 

The backstory: The California Air Resources Board’s (CARB) vote on new restrictions on the carbon intensity of fuels is set for Nov. 8. 

  • Last year, the board estimated that gas prices would increase by $0.47 per gallon in California if the new standards are adopted. 
  • The increase could be even greater, though, as the LA Times reported earlier this year that the standards could actually hike prices by $0.65 per gallon. 
  • The Independent Emissions Market Advisory Committee also projected that fuel costs could increase by as much as $0.85 per gallon by 2030. 
  • The board has yet to publicize an updated price increase number ahead of the vote. 

The big picture: Hurtado requested the LAO focus on projected consumer costs, economic disparities and regional effects, impact on small businesses and supply chains, as well as regulatory interaction and market stability. 

  • Hurtado specifically asked for the anticipated impacts of a possible $0.47 per gallon price increase on household fuel expenses across all income levels. 
  • She also asked how the cost increases would affect low- and middle-income households in regions with limited access to alternative transportation or with a higher dependency on private vehicles. 
  • “Given the complexity of these issues and their potential consequences for California’s economy, it is imperative that we have a clear, nonpartisan analysis to guide future regulatory decisions,” the letter reads. “Your office’s findings will play a critical role in ensuring that policymakers have the necessary information to make informed decisions that balance environmental goals with economic sustainability.” 
  • Hurtado asked for a response to her letter by Nov. 8. 

Driving the news: Hurtado’s letter came after Congressional Republicans asked Gov. Gavin Newsom to delay the vote. 

  • It also came as Assembly Republican Leader James Gallagher (Yuba City) and Asm. Joe Patterson (R–Rocklin) sent a letter to Newsom asking him to reconsider his new oil mandate that was recently passed and to delay the vote. 

What they’re saying: “The fallout from Gov. Newsom’s attacks on our energy industry has been swift and severe,” Patterson said. “California drivers are already paying some of the highest gas prices in the country – they can’t afford any more disruptions to our fuel supply. It’s time to make affordability a priority.”

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