- Home
- >>News
- >>Nation and World
Nation and World
A car is shown at a gas pump, Friday, Jan. 21, 2022, at a gas station. (AP Photo/Wilfredo Lee)
More Stories
Kenneth Schrupp The Center Square
May 16, 2024 - 5:36 am
California gas prices could rise by at least $1.11 per gallon by 2026 if the California Air Resources Board adopts amendments to its low carbon fuel standard program, CARB says. The LCFS amendments proposed at the end of 2023 would phase-out credits for turning manure into renewable natural gas, ending that business, and add jet fuel to LCFS purview, increasing flying costs for every flight that starts or ends in California even if the fuel was purchased elsewhere. Because so much of America’s imports come in through California, the LCFS amendments would raise the costs of goods for every American.
LCFS uses a system of credits and deficits to reward or punish producers that make fuel better or worse than the rising “clean” standard.” Current LCFS guidelines call for a 20% reduction in carbon intensity by 2030 compared to 2010, while the proposed amendments call for a 90% reduction by 2045, including significant step-downs starting in 2025 that would result in major fuel cost increases starting that year.
That’s why LCFS estimated pass-through costs increase gasoline and diesel costs per gallon by 12 cents and 14 cents respectively in 2024, while jumping to 47 cents and 59 cents in 2025. 2025 would also mark the introduction of a new LCFS tax on jet fuel that would make flying in and out of California more expensive and add an estimated 44 cents per gallon for jet fuel not only purchased in California, but also used in flights that go to California.
Because fuel costs are about 20-30% of airline operating expenditures, an increase in fuel costs can have a major impact on ticket costs, as airlines must budget for profit. LCFS says it aims to drive adoption of “sustainable” aviation fuel by taxing standard jet fuel more. The new fuel costs approximately 40% more than fossil jet fuel.
“With respect to policies increasing the cost of intra-state air travel, this is especially unfortunate given the state’s failure to complete high-speed rail in 2020, as originally expected,” said Cato Institute policy analyst Marc Joffe to The Center Square. “It might be one thing to ‘nudge’ travelers onto less carbon intensive travel modes, but the state has nothing to nudge them to for the foreseeable future.”
Given that transportation accounts for approximately 7% of a typical good’s cost, significantly increasing diesel, jet fuel, and gasoline costs would likely result in higher prices for most goods being transported through California. The Port of Los Angeles alone accounts for 37% of all American imports, and the flow of goods from Mexico via NAFTA/USMCA.
CARB staff note “this potential price increase may impact low-income, disadvantaged, and rural communities more than other consumers of fossil fuels, because individuals living in these communities traditionally spend a larger share of their income on transportation fuels,” but say this can be mitigated by subsidizing alternative energy vehicles.
Another California rule being considered by the California Energy Commission, which would place a cap on profits by in-state refineries, could make fuel in the state even more expensive. California politicians say refiner “greed” is to blame for spikes in fuel costs when one of the state’s nine refineries goes down for maintenance, while refineries note they operate at 99.7% of operating capacity and have little incentive to expand capacity due to the state’s costs of compliance and phase out of fossil fuels. CARB estimates the new LCFS amendments could add over $1 billion in new operating costs per refinery starting in 2025.
When combined with the proposed refinery profit cap, gas produces prices will, ironically, have nowhere to go but up as supply goes down.
“We do not believe this policy would lower the price of gasoline at any link in the supply chain,” wrote Chevron in opposition to the rule under consideration. “Rather, it would likely reduce gasoline supply and discourage refiner investment in California – resulting in higher prices, a decreased and less reliable fuel supply, and increased reliance on imports.”
“At Chevron, we are deeply concerned the state is threatening energy affordability and reliability by pursuing misguided, command-and-control rules that would make living and driving in California even more expensive,” continued Chevron staff member Ross Allen to The Center Square.”
Joffe warned that these high costs for transporting goods in California could lead to further outmigration of individuals from the state. With outgoing residents more likely to be net tax payers, and newcomers more likely to be net government beneficiaries, a rising cost of living could worsen the state’s up to $80 billion budget deficit.
“California has suffered heavy outmigration in large part due to the high cost of living,” Joffe continued. “Putting refineries out of business through price controls and increased costs will just make it more expensive for middle income residents to continue living here.”
CARB was supposed to have a public hearing on the proposed LCFS amendments in March, but that hearing has since been postponed without a new hearing date set. There is no CEC vote currently set for the refinery profit cap rule.
MOST READ
'; html += '
'; html += '
'; html += ''; html += 'READ MORE'; html += 'LIVE WELL'; html += ''; html += ''; html += ''; html += ''; html += ''; html += 'STORIES LIKE THIS'; html += 'CLICK HERE FOR MORE'; html += ''; html += ''; html += '
'; html += '
'; $('.nlsm-small').addClass('livewell').html(html); return; } if ($('.rj-story-sponsored-full').length>0) { return; } if ($('.rj-story-full').hasClass('tag-2023-year-in-review')) { html = ''; html += '
'; html += '
'; html += '2023 YEAR IN REVIEW'; html += 'CLICK HERE FOR MORE'; html += ''; html += '
'; $('.nlsm-small').addClass('2023-year-in-review').html(html); return; } if ($('.rj-story-full').hasClass('tag-msg-sphere')) { html = ''; html += '
'; html += ''; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('tag-msg-sphere').html(html); return; } if ($('.rj-story-full').hasClass('tag-jeff-german-murder') || $('.rj-story-full').hasClass('tag-remembering-jeff-german')) { html = ''; html += '
'; html += ''; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('jeff_german').html(html); return; } if ($('.rj-story-full').hasClass('tag-911-anniversary')) { html = ''; html += '
'; html += '
'; html += 'REMEMBERING 9/11: 20 YEARS LATER'; html += 'Looking back at the 2001 terror attacks and how they affected Las Vegas and the world.'; html += 'Read more'; html += ''; html += '
'; $('.nlsm-small').addClass('anniversary-911').html(html); return; } if ($('.rj-story-full').hasClass('tag-class-of-2021')) { html = ''; html += '
'; html += '
'; html += 'MEET THE UNFORGETTABLE CLASS'; html += ''; html += ''; html += ''; html += ''; html += '2021'; html += ''; html += ''; html += ''; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('class-2021').html(html); return; } if ($('.rj-story-full').hasClass('tag-2022-election')) { html = ''; html += '
'; html += '
'; html += '
'; html += 'ELECTION 2022'; html += 'Read more'; html += ''; html += '
'; html += ''; html += '
'; html += '
'; html += 'ELECTION RESULTS'; html += 'Click here'; html += ''; html += '
'; html += '
'; $('.nlsm-small').addClass('election-2022').html(html); return; } if ($('.rj-story-full').hasClass('tag-harry-reid-1939-2021')) { html = ''; html += '
'; html += '
'; html += ''; html += 'Harry Reid(1939-2021)'; html += ''; html += ''; html += ''; html += ''; html += ''; html += 'Senate leader and Nevada political titan'; html += 'Read more'; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('harry-reid').html(html); return; } if ($('.rj-story-full').hasClass('tag-henry-ruggs')) { html = ''; html += '
'; html += '
'; html += ''; html += 'HENRY RUGGSDEADLY CRASH'; html += ''; html += ''; html += ''; html += ''; html += ''; html += 'CLICK FOR MORE'; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('henry-ruggs').html(html); return; } if ($('.rj-story-full').hasClass('category-homicides')) { html = ''; html += '
'; html += '
'; html += '
'; html += ''; html += 'HOMICIDE'; html += 'A STORY BEHIND EVERY NAME'; html += ''; html += ''; html += ''; html += ''; html += ''; html += 'TRACKER'; html += 'CLICK HERE FOR MORE'; html += ''; html += ''; html += '
'; html += '
'; $('.nlsm-small').addClass('homicides').html(html); return; } if ($('.rj-story-full').hasClass('tag-sheldon-adelson')) { html = ''; html += '
'; html += '
'; html += ''; html += 'Sheldon Adelson(1933-2021)'; html += ''; html += ''; html += ''; html += ''; html += ''; html += 'Las Vegas visionary and Philanthropist.'; html += 'Read more'; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('sheldon-adelson').html(html); return; } if ($('.rj-story-full').hasClass('tag-tony-hsieh')) { html = ''; html += '
'; html += '
'; html += ''; html += 'Tony Hsieh(1973-2020)'; html += ''; html += ''; html += ''; html += ''; html += ''; html += 'Ex-Zappos and Downtown Project CEO left a lasting impression on Las Vegas.'; html += 'Read more'; html += ''; html += ''; html += '
'; $('.nlsm-small').addClass('tony-hsieh').html(html); return; } if ($('.rj-story-full').hasClass('tag-vegas-weekend')) { //vegas-reawakening html = ''; html += '
'; html += '
'; html += 'VEGAS REAWAKENING'; html += 'A year after the pandemic began, the first weekend of spring showed a perfect storm of promise for Las Vegas’ recovery and brought optimism that visitors would indeed return to the city'; html += 'Read more'; html += ''; html += '
'; $('.nlsm-small').addClass('vegas-reawakening').html(html); return; } //add newsletters embed var default_category_to_show = ['News', 'Local', 'Life', 'Crime']; var newsletter_1st_lv = []; newsletter_1st_lv['default'] = {'id':'starting_point,pm_update', 'track_name':'StartingPoint', 'title':'LOCAL NEWS YOUR WAY', 'subtitle':'Sign up for our free daily Morning and Afternoon Update newsletters.'}; newsletter_1st_lv['Sports'] = {'id':'sports', 'track_name':'Sports', 'title':'SPORTS NEWS YOUR WAY', 'subtitle':'Sign up for our free daily Sports Update newsletter.'}; newsletter_1st_lv['Business'] = {'id':'business', 'track_name':'Business', 'title':'BUSINESS NEWS YOUR WAY', 'subtitle':'Sign up for our free Business Update newsletter.'}; newsletter_1st_lv['Entertainment'] = {'id':'','alert_id':'entertainment', 'track_name':'Entertainment', 'title':'WANT THE LATEST ON LAS VEGAS ENTERTAINMENT?', 'subtitle':'Sign up for free entertainment email alerts'}; //newsletter_1st_lv['Nevada Preps'] = {'id':'nevada_preps', 'title':'HIGH SCHOOL SPORTS YOUR WAY', 'subtitle':'Stay up to date with our free Nevada Preps newsletter.'}; //newsletter_1st_lv['Investigations'] = {'id':'rj_investigates', 'title':'INVESTIGATIVE NEWS YOUR WAY', 'subtitle':'Sign up for our free RJ Investigates newsletter.'}; var cat_has_subcat = ['News','Business','Entertainment','Sports', 'Opinion']; var newsletter_2nd_lv = []; newsletter_2nd_lv['Politics and Government'] = {'id':'','alert_id':'political', 'track_name':'Political', 'title':'LOCAL, REGIONAL AND NATIONAL POLITICS COVERAGE', 'subtitle':'
Sign up for our free RJ politics email alerts.
'}; //newsletter_2nd_lv['Politics and Government'] = {'id':'political', 'title':'ELECTION 2020: BE INFORMED', 'subtitle':'
FULL COVERAGE | ELECTION RESULTS
Sign up for our free RJ Politics newsletter.
'}; //newsletter_2nd_lv['Debra J. Saunders'] = {'id':'44', 'title':'YOUR WEEKLY POLITICAL FIX', 'subtitle':'Sign up for our free DC-LV newsletter with political stories from the swamp to the Strip.'}; //newsletter_2nd_lv['CES 2021'] = {'id':'ces', 'title':'CES 2021: STAY IN THE KNOW', 'subtitle':'
The Review-Journal is a media partner with the CTA. Click here for full coverage and live video from CES 2021
Sign up for our free newsletter below.'}; //newsletter_2nd_lv['TV'] = {'id':'tv_briefing', 'title':'GET YOUR TV LISTINGS', 'subtitle':'Your Weekly TV Briefing.'}; //newsletter_2nd_lv['UNLV'] = {'id':'unlv_rebel_news', 'title':'UNLV SPORTS YOUR WAY', 'subtitle':'Stay up to date on the Rebels with our free newsletter.'}; newsletter_2nd_lv['Rodeo'] = {'id':'rodeo_nfr', 'track_name':'RodeoNFR', 'title':'RODEO NEWS YOUR WAY', 'subtitle':'Don\'t miss any of the action! Click here for full NFR coverage or Sign up for our free newsletter below'}; newsletter_2nd_lv['Raiders News'] = {'id':'vegasnation', 'track_name':'VegasNation', 'title':'WANT EVEN MORE RAIDERS NEWS?', 'subtitle':'Sign up for our free Vegas Nation newsletter.'}; newsletter_2nd_lv['Golden Knights'] = {'id':'','alert_id':'golden_knights', 'track_name':'GoldenKnights', 'title':'WANT MORE KNIGHTS IN YOUR DAY?', 'subtitle':'Sign up for free Golden Knights email alerts for all the latest updates'}; var main_cat = ''; var m_hierarchy = []; var m_cat = []; var m_hl_cat = ''; if (window.dataLayer[0].metrics) { main_cat = window.dataLayer[0].metrics.section; //National Finals Rodeo m_hierarchy = window.dataLayer[0].metrics.hierarchy.split(' | '); //"Sports | Rodeo | National Finals Rodeo" m_cat = window.dataLayer[0].metrics.categories; //["National Finals Rodeo","Rodeo","Sports"] m_hl_cat = window.dataLayer[0].metrics['hl-category']; //Sports } var i, k, found, newsletter; newsletter = false; found = false; if (default_category_to_show.includes(m_hl_cat)) { newsletter = newsletter_1st_lv['default']; } if (newsletter_1st_lv.hasOwnProperty(m_hl_cat)) { newsletter = newsletter_1st_lv[m_hl_cat]; } // check main category if (newsletter_2nd_lv.hasOwnProperty(main_cat)) { found = true; newsletter = newsletter_2nd_lv[main_cat]; } if (!found) { // check in hierarchy (main category hierarchy) i = m_hierarchy.length; while (!found && i >= 0) { i--; if (i > 0) { if (newsletter_2nd_lv.hasOwnProperty(m_hierarchy[i])) { found = true; newsletter = newsletter_2nd_lv[m_hierarchy[i]]; } } else { // i=0, check first level if (newsletter_1st_lv.hasOwnProperty(m_hierarchy[i])) { found = true; newsletter = newsletter_1st_lv[m_hierarchy[i]]; } } } } if (!found) { // check in category i = m_cat.length; while (!found && i > 0 && cat_has_subcat.includes(m_hl_cat)) { i--; if (newsletter_2nd_lv.hasOwnProperty(m_cat[i])) { found = true; newsletter = newsletter_2nd_lv[m_cat[i]]; } } } if (newsletter !== false && !$('.rj-story-full').hasClass('tag-hide-newsletter') && !$('.rj-story-full').hasClass(' rj-story-sponsored-full')) { var alert_id = ''; if (newsletter.alert_id) { alert_id = newsletter.alert_id; } html = ''; html += '
'; html += '
'; html += '
'+newsletter.title+'
'; html += '
'+newsletter.subtitle+'
'; html += '
'; html += '
'; html += '
'; html += 'By signing up you agree to our Privacy Policy and '; html += 'Terms of Service. Unsubscribe at any time.'; html += '
'; html += '
'; html += 'This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.'; html += '
'; html += '
'; $('.nlsm-small').html(html); } //});})(jQuery);
Don't miss the big stories. Like us on Facebook.
THE LATEST
U.N.-Israeli relations worsen with court order to halt Rafah offensive
By Mike Corder The Associated Press
The United Nations’ top court ordered Israel to immediately halt its military offensive in the southern Gaza city of Rafah, but stopped short of ordering a cease-fire for the enclave.
IDF: 3 more hostages’ bodies recovered; Egypt to permit aid trucks through Gaza entry
By Sam Mednick, Lee Keath and Samy Magdy The Associated Press
Egypt said it has agreed to send U.N. humanitarian aid trucks through Israel’s main crossing into Gaza, but it remained unclear if they will be able to enter the territory.
Memorial Day travel expected to break 20-year record, AAA says
By David Koenig The Associated Press
TSA predicted Friday will be the busiest day for air travel over Memorial Day weekend, with nearly 3 million people expected to pass through airport checkpoints.
Federal data shows Americans are feeling the pain of inflation
Casey Harper Franklin-National
Americans are feeling the pain of high prices, according to new federal data.
Brandeis Center files lawsuit alleging ‘antisemitic’ discrimination, harassment at Harvard
By Grace Zokovitch Boston Herald
The Louis D. Brandeis Center for Human Rights Under Law has filed a lawsuit against Harvard alleging the university has not adequately addressed harassment and discrimination on campus they describe as antisemitic.
Group of graduates walk out of Harvard commencement chanting ‘Free, free Palestine’
By Steve LeBlanc The Associated Press
Hundreds of students in graduation robes walked out of the Harvard commencement on Thursday chanting “Free, Free Palestine” after weeks of protests on campus.
Pro-Palestinian protestors clear out of Drexel encampment
The Associated Press
Protesters packed up their belongings and left after the Philadelphia university’s president announced a decision to have police clear the encampment.
Israel to restart Gaza talks after hostage video sparks outrage
By Julia Frankel The Associated Press
Israel said it would revive stalled cease-fire talks with Hamas after social media video showing female Israeli soldiers being abducted by the terrorists on Oct. 7 sparked a public outcry.
Iowa tornado toll: 5 dead, 35 injured — VIDEO
By Hannah Fingerhut and Margery A. Beck The Associated Press
The Greenfield tornado left a wide swath of obliterated homes, splintered trees and crumpled cars in the town of 2,000 about 55 miles southwest of Des Moines.
Mariachis, flame-swallower fight in Mexico
By The Associated Press
Mexico’s often violent disputes between street performers reached a new level this week when a group of guitar-toting mariachis attacked a flame-swallower.
MORE STORIES
'; html += '
' html += '
'+d['title']+'
'; html += '
'; $('.rjp-related .base-'+base+' .field-story').append(html); } }});})(jQuery);