SACRAMENTO, Calif. — A study by Stonebridge Associates Inc. has found that fuel policies being pushed by the California Air Resources Board will drive up the price of diesel fuel in California to $6.69 a gallon. The study says that CARB’s Low Carbon Fuel Standard, in combination with AB 32 Cap-and-Trade program, could increase the price of diesel fuel by 50%, or about $2.20, by the year 2020.
According to the study, higher “California-only” diesel costs between 2015 and 2020 will result in the loss of thousands of jobs, $68.5 billion in lost state domestic product, $21.7 billion in lost income, and $5.3 billion in lost state and local taxes. The study also says that CARB’s program design will put California’s transportation sector at a significant competitive disadvantage.
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Source: Bus & Motorcoach News; Michael Campos, LCT associate editor