November 9th 2024.
In a late meeting on Friday, California's air quality regulators approved a plan to tighten restrictions on the emissions from gasoline and diesel fuels. This move is expected to result in higher gas prices, but it also brings significant benefits to public health.
The California Air Resources Board met in Riverside for an 11-hour session, with numerous speakers addressing the board. After much discussion, twelve of the board members voted in favor of the amendments, while two voted against. The new regulations will set lower limits for the carbon intensity of transportation fuels, without facing any penalties in the state.
According to estimates by the board, these stricter regulations will have a positive impact on the lives of over 70,000 Californians who suffer from asthma. Additionally, it is expected to attract $100 billion in investments towards clean energy infrastructure over the next 20 years. Board chair Liane Randolph emphasized that this will not only help reduce air pollution and climate-related disasters, but also prevent gas companies from increasing prices.
However, this change has been met with controversy. State Republicans have criticized Governor Gavin Newsom and the board, accusing them of driving up gas prices. This is a contentious issue in California, which currently has the second-highest gas prices in the country, only behind Hawaii, according to AAA.
The vote took place during a time of intense political debate about inflation, which may have influenced the results of Tuesday's election. It also comes after a special legislative session where Democrats passed a plan to create a state fuel reserve. The California Air Resources Board is responsible for deciding air pollution and climate policies for the state, and its decisions often influence other states as well. Out of the 16 members on the board, 12 were appointed by Governor Newsom and confirmed by the state Senate, while the remaining members were appointed by state lawmakers.
Last year, the board estimated that the proposed changes could result in a 47-cent increase in gas prices by 2025, and up to 79 cents by 2035, as refineries pass on the costs to customers. However, the executive officer of CARB, Steven Cliff, and board staff now say that it is impossible to predict the impact on gas prices.
Currently, the fuel standard adds an additional 8 cents per gallon of gas, according to economics professor Aaron Smith from the University of California, Davis. He estimates that the stricter regulations could lead to an increase of 20 to 84 cents per gallon by 2030, depending on the regulatory market.
During the public comment section of the meeting on Friday, California resident Melanie Arace expressed her opposition to the changes, stating that the state does not need lower CARB emissions, and that the increase in gas prices is burdensome for taxpayers. However, environmentalists and economists also pointed out flaws in the program's design. Many parents of children with lung diseases and environmental justice activists argued that the standard does not go far enough in reducing air pollution and addressing climate change.
Despite California's efforts to promote the adoption of electric vehicles, the majority of the $22 billion in private investments generated by the fuel standard have benefited biofuel companies. Critics argue that this is funding deforestation and large-scale dairy farms, as these companies primarily use palm oil and soybean oil from deforested areas abroad.
San Bernardino resident and member of the People's Collective for Environmental Justice, Jose Avalos, urged the board to prioritize clean air and consider the detrimental effects of these fuels on people's health. However, biofuel companies, such as Nebraska's Green Plains and Brazil's Raízen, supported the new standard and urged the board to approve it.
Under the fuel standard, companies must adhere to a limit for the carbon intensity of fuels. If they exceed this limit, they must purchase credits from companies that comply with the standard. Over time, this limit decreases. The new standard will accelerate the decrease in carbon intensity limits, with a 10% increase in 2030 and a 90% decrease by 2045.
The board claims that the standard has already brought significant changes to the state's fuel market, particularly in the rapid adoption of renewable diesel made from vegetable oil. Two petroleum refineries in the Bay Area are currently being converted to produce renewable diesel. However, the rapid adoption of this fuel has led to an excess of credits, reducing the incentives under the program. This is one reason why the board has decided to lower the standard.
While renewable diesel is considered a lower-carbon alternative to traditional diesel, it is increasingly produced from palm oil and soybean oil from deforested areas abroad. Loss of forest globally is a major threat to biodiversity and contributes to climate change. In response, the board has implemented measures to limit the use of these oils in renewable diesel produced through the standard. However, experts argue that this will not be enough to prevent deforestation, as the international market for these oils continues to grow.
The board also postponed a hearing on fuel standards for gas-powered motorcycles and the nation's first regulations for the sale of electric motorcycles.
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