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Controversial Climate Rule, Which Could Raise Gas Prices, About To Go Into Effect

  • California's revamped Low Carbon Fuel Standard took effect on Tuesday, enforcing stricter requirements for cleaner fuels and expanding a $2 billion credit market.
  • The update builds on a 2011 standard that added 9 cents per gallon and follows over a decade of climate policies including cap-and-trade and emissions disclosures.
  • Over the course of 13 years, the program has replaced 25 billion gallons of petroleum-based fuels and is recognized for cutting emissions comparable to those produced annually by more than 120 million cars.
  • Critics estimate the new standard could raise gas prices by up to 65 cents per gallon, while a UC Davis study projects a 5 to 8 cent increase; Newsom's office says impacts are exaggerated.
  • Political debate remains intense with calls for audits and legislation to cap credit prices, while supporters say the standard advances climate goals despite economic concerns.
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abc10 News broke the news in Poway, United States on Monday, June 30, 2025.
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