In a surprising twist, California's controversial new fuel standard -- a key part of its effort to replace fossil fuels -- has been rejected by the state agency that reviews the legality of state regulations.
The fuel standard enacted by the Air Resources Board last year was the subject of a rancorous debate, largely because it will potentially increase the price of gasoline and diesel fuels by an unknown amount.
CalMatters reports the rules were rejected by the state Office of Administrative Law, a state agency whose mandate is to ensure "regulations are clear, necessary, legally valid, and available to the public."
The law office informed the air board that the rule does not conform with a provision in state code that requires "clarity" in rulemaking. "so that the meaning of regulations will be easily understood by those persons directly affected by them."
The air board said it would review the order and then resubmit the rules, which would be required within 120 days. Any substantial changes, however, would require a delay, including a public comment period.
The low carbon fuels program offers financial incentives to companies to produce cleaner transportation fuels. The goal is to help transition the state away from fossil fuels that contribute to smog and other air pollution and greenhouse gases that warm the planet.
The two-billion dollar credit trading system has been around since 2011. It requires fuels sold in California to become progressively cleaner, by providing companies financial incentives to produce less-polluting fuels, such as biofuels made from soybeans or cow manure.
In an initial assessment released in 2023, the air board projected that the new rules could potentially raise the price of diesel by 59 cents per gallon and gasoline by 47 cents. But air board officials later disavowed that estimate, saying that the analysis "should not be misconstrued as a prediction of the future credit price nor as a direct impact on prices at the pump."
