State Air Resources Board: Low Carbon Fuel Standard.

Senator Hurtado's proposal to revise California's Low Carbon Fuel Standard (LCFS) program directs the State Air Resources Board to evaluate and adjust the program's financial impact on drivers while maintaining the state's environmental objectives.

The legislation requires the Air Resources Board to conduct a comprehensive analysis of how carbon credit costs affect California drivers and implement changes to the LCFS program by January 31, 2026. Under the bill, the Board must examine how carbon credit costs are passed through to consumers, modify carbon credit structures to benefit individual drivers, and ensure program revisions align environmental goals with economic considerations. The measure also mandates that any future Board policies or regulations affecting drivers' costs undergo thorough financial impact analysis.

The bill builds upon existing greenhouse gas reduction requirements established by the California Global Warming Solutions Act of 2006, which tasks the Air Resources Board with reducing statewide emissions to 40% below specified limits by 2030. The LCFS program, created under this authority, currently regulates the carbon intensity of transportation fuels used in California. According to the bill's findings, while California leads in addressing climate change through programs like LCFS, evolving technology, market conditions, and economic factors necessitate periodic program updates.