California's new clean-fuel rules may raise gas prices and hinder EV progress

1 week ago 11



New amendments to California’s Low Carbon Fuel Standard are drawing criticism for potentially raising gas prices while favoring biofuels over electric vehicles, risking backlash from both consumers and environmental advocates.

Jeff St. John reports for Canary Media.


In short:

  • California's revised clean-fuel rules could increase gas prices as oil companies pass costs onto consumers, which may erode public support for the program.
  • The updated regulations continue subsidies for biofuels derived from crops and dairy methane, which critics say worsen emissions, deforestation and food prices.
  • Environmental advocates argue the policy favors biofuel credits over EV infrastructure, limiting the state's transition to cleaner electric transportation.

Key quote:

“If this money was actually directed in the right way, to support electric vehicles to clean up the air and improve people’s lives, that would be very different.”

— Matt Vespa, senior attorney at Earthjustice

Why this matters:

California’s Low Carbon Fuel Standard is a model for other states, but critics say its design flaws risk setting back clean energy goals. The program’s continued support for biofuels benefits fossil fuel companies and may shift costs to drivers, hindering the state’s EV and air quality objectives.

Read more: California's biofuel incentives face scrutiny amid environmental concerns

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