California's Low Carbon Fuel Standard has been revised to intensify fuel cleanliness requirements and expand the credit market aimed at emission reductions. Although no immediate gas price hike is anticipated, experts note that future costs depend on the oil industry's actions regarding credit purchases. Previous standards raised gas prices by 9 cents per gallon; this new one could increase costs by 5 to 8 cents. Political fallout includes Republican criticism and Democratic efforts to cap credit prices to protect consumers while achieving climate goals.
California's revamped Low Carbon Fuel Standard, now in effect, aims to cut climate-warming gases through stricter fuel requirements and a broader credit market.
The new standard is estimated to add 5 to 8 cents per gallon to gas prices. The impact depends on oil industry spending on credits.
Governor Newsom's administration faces criticism from Republicans who claim the new rules could harm California's economy and raise gas prices.
Democratic lawmakers have proposed legislation to cap fuel credit prices to mitigate potential price spikes at the gas pump.
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