Amendments to California’s hot-button emissions trading program for transportation fuels will take effect early next week, state regulators announced Friday, following approval by the state Office of Administrative Law.
What happened: The California Air Resources Board said that the Office of Administrative Law has approved changes to the low-carbon fuel standard, days before they’re set to take effect and days after state Democratic lawmakers introduced a bill to roll the program back.
Why it matters: The program — which requires fuel producers to reduce the carbon intensity of their products or buy credits from other companies that generate them by producing cleaner fuels — has become a political hot potato in Sacramento over its impact on gasoline prices.
The amendments set to take effect July 1 are aimed at increasing the program’s stringency and driving up credit prices for lower-carbon fuels that had fallen to record lows since a glut of renewable diesel started flooding the market in 2021.
