Starting July 1, fossil fuel suppliers will face increased costs to operate within California.
More than a decade ago, California adopted the Low Carbon Fuel Standard as part of its goal to reach net zero emissions by 2045. It’s a cap and trade-type program to limit greenhouse gas emissions from transportation.
Why transportation? In 2022 transportation accounted for nearly 40% percent of the state’s carbon footprint — nearly double industrial emissions.
Critics are worried the updated standards could pass on higher costs to drivers in California. There’s no mandated price hike, but estimates say that eventually the price of a gallon of gas could go up by 5 to 8 cents. In the near future, that difference is likely negligible.
