State Air Resources Board: Low Carbon Fuel Standard.

Senator Hurtado's proposal to revise California's Low Carbon Fuel Standard (LCFS) directs the State Air Resources Board to evaluate and modify the program's impact on drivers' costs by January 2026. The legislation requires the Board to conduct a comprehensive analysis of how carbon credit costs affect fuel prices and compare this assessment with previous methodological approaches.

The bill outlines specific requirements for the Board's review process, including an examination of carbon credit structures and potential adjustments to benefit individual drivers. The Board must evaluate opportunities to prioritize in-state projects while remaining compliant with state and federal law, and analyze how modifications to the Credit Clearance Market's price cap would affect program costs and investment capabilities.

This directive builds upon existing greenhouse gas reduction frameworks established by the California Global Warming Solutions Act of 2006, which designated the Air Resources Board as the primary authority for monitoring and regulating emissions sources. The Legislature's findings note California's role in addressing climate change through programs like the LCFS while acknowledging the need to consider consumer costs in policy implementation.