Senate Enviro Committee Kills Bill to Repeal 65¢ Gas Tax Increase, and Low-Carbon Fuel  Regs

A Senate bill that would have repealed the Low Carbon Fuel Standard (LCFS) gas tax increase of 65 cents a gallon and end the new LCFS Low-Carbon Fuel  regulations that were adopted last year, was killed in the Senate Environmental Quality Committee on Wednesday despite bipartisan support for the legislation.

Senate Bill 2, by Senate Leader Brian Jones (R-San Diego), would have voided specified amendments to the Low-Carbon Fuel Standard regulations adopted by the California Air Resources Board (CARB) on November 8, 2024.  Specifically, they would end the amendments that would create a new blend of gasoline that is designed to help meet California’s emission goals in the coming decades to help meet California’s emission goals in the coming decades, as well and end the 65 cents per gallon increase in gas prices that it would bring.

Senate Leader Jones wrote SB 2 shortly after the CARB decision in November with the goal of restoring the LCFS regulatory program to its status prior to the November 8, 2024 CARB vote, and void entirely the updates enacted by CARB. The goal of the bill from day one was to stop the gas tax from increasing, because of the burden that the tax put on Californians who have already been paying over $1.50 more than the national average.

“SB 2 protects the integrity of the previously existing LCFS program and its revenue streams while alleviating the consequences of the recent haphazard and
opaque regulatory updates and the potentially devastating economic impacts the updates will have on California consumers,” read Jones’ fact sheet. “This bill does not eliminate the LCFS program and does not affect CARB’s clean air initiatives, but rather simply cancels the LCFS updates enacted on November 8, 2024, restoring the program to its previous regulations.”

Going into the Senate Committees this month, SB 2 came in with bipartisan support and was expected to make it to at least a Senate vote. However, the bill failed to pass on Wednesday thanks to some Democrats still opposing it and a few other Democrats not willing to vote on the matter.

In a 2-3 vote, SB 2 was two votes shy on passing the committee. Senators Suzette Martinez Valladares (R-Santa Clarita), Megan Dahle (R-Bieber), and Melissa Hurtado (D-Fresno) all voted in favor of SB 2, citing already high gas prices and the equally high cost of living in the state. Senators Lena Gonzalez (D-Long Beach) and Steve Padilla (D-Chula Vista) voted against the bill. However, most critical was the abstentions by Senators Catherine Blakespear (D-Encinitas), Caroline Menjivar (D-Burbank), and Sasha Perez (D-Pasadena). As only two of them were needed for a bill passage, their unwillingness to vote wound up dooming SB 2.

Hope for ending gas tax increase stays alive

“Today, gas prices in California are $1.55 higher per gallon than the national average because greedy, lame duck Governor Gavin Newsom and some Democrat lawmakers are price gouging us with high taxes, costly regulations, and arbitrary market interference,” said Leader Jones on Wednesday. “By blocking our measure, radical environmentalist Senate Democrats are now complicit in this scheme to raise gas prices 65 cents per gallon in an effort to force Californians into expensive EVs.

“Californians already pay the highest gas prices in the nation, and Democrats’ political agenda is driving them even higher. The Air Resources Board’s 65-cent gas price hike is a direct assault on hardworking Californians. This unelected group of wealthy bureaucrats, handpicked and directed by Governor Newsom, is shamelessly increasing gas prices so Californians are forced into electric vehicles against their will. SB 2 would have stopped their plan and kept costs stable for Californians. While it’s frustrating that a small group of radical environmentalist Democrats blocked our repeal, the measure did receive bipartisan support, signaling a sentiment shift in the majority party on this issue.”

Despite the veto on Wednesday, there are still two ways for the price hike and new regulations to be ended permanently. One of which is reconsideration of SB 2, which was granted following the vote on Wednesday. SB 2 now has to be brought back and passed out of the committee by May 2nd, which means the Leader Jones and other supporters needs to convince at least of the two Democrats who didn’t vote or voted against SB 2 the first time around to support it by May.

The second is through legal challenges. Last month, the halting of the CARB amendments by the Office of Administrative Law showed how legally vulnerable the new regulations were. Currently, the tax hike is temporarily halted until June because of issues over the amendments. Should more legal troubles arise, especially in the wake of the Trump Administration going after so many California environmental laws and regulations already, the amendments and tax hike could simply be ended legally rather than through SB 2.

For supporters of ending the regulations and tax hike, they aren’t banking on one or another and are still pushing from both ways to increase their chances of stopping the hike.

“SB 2 still has a shot, as does other ways of ending this gas tax increase for good,” explained environmental lawyer Megan Lucas to the Globe on Wednesday. “But it needs to happen soon. Time is very much of the essence here.”