Fuel Smarts

The Impact of the Low Carbon Fuel Standard and Cap and Trade Programs on California Retail Diesel Prices

California has embarked upon a Greenhouse Gas Reduction policy path that may have large negative impacts on the state’s diesel market and the diesel prices California consumers and businesses may face. The impacts are associated with possible outcomes of the California Air Resources Board’s Low Carbon Fuel Standard CARB’s Cap and Trade program. The California Trucking Association estimates that the combined effect of the two programs could increase California-only retail diesel prices by $2.22/gallon by 2020, raising diesel prices by 50% to $6.69/gallon.

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