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CARB Stands by Cap-and-Invest Update After Warnings of Higher Gas Prices

Regulators plan a May vote, saying refinery allocations stay unchanged with substantial statewide health gains projected.

Overview

  • CARB says the proposed amendments are not expected to add new costs for fuel providers, citing unchanged allowance allocations and projecting $180.7 billion in statewide benefits including $123 billion in avoided health costs.
  • Chevron, Marathon and the Western States Petroleum Association warn the changes would add billions in costs, raise gasoline prices by more than $1 per gallon by 2030, and could prompt refineries to reconsider California operations.
  • Fifteen Democratic Assembly members who backed last year’s reauthorization urged CARB to revisit provisions affecting fuels and electricity, citing affordability concerns and risks to energy-market stability.
  • Nevada Gov. Joe Lombardo warned Gov. Gavin Newsom that 88% of Nevada’s transportation fuels come from California refineries via the CALNEV pipeline, arguing tighter rules could threaten regional supply.
  • CARB expects to finalize the rule in May for implementation next year; California’s program currently adds about 23–30 cents per gallon to gasoline, while the separate Low Carbon Fuel Standard is estimated at another 10–20 cents.