Senate Bill to Repeal Gas Tax Increase Fails Amid Bipartisan Support

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A Senate bill that would have repealed the Low Carbon Fuel Standard (LCFS) gas tax increase of 65 cents a gallon and end the new LCFS Low-Carbon Fuel  regulations that were adopted last year, was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 on Wednesday following a forced floor vote.

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 in December 2024 as a response to CARB’s November decision and Governor Gavin Newsom’s support of the increased gas tax.. 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. However, despite bipartisan support, the bill barely made it past Senate Committees. In March, it even lost a committee vote and was considered killed until reconsideration was given for the bill.

However, after several months, the bill remained stagnant. With the budget deadline looming and the summer ahead likely to bring higher gas prices, many Senators were frustrated by the lack of progress. Even worse, CARB Chair Liane Randolph admitted last week that the Board does not consider how its regulations affect prices at the pump, essentially confirming that there was little consideration for the economic consequences when LCFS regulations were adopted.

“That admission is stunning,” said Senate Leader Jones. “CARB is making billion-dollar decisions that hit every family at the pump, and they’re doing it without even asking what it will cost. That level of arrogance and detachment from reality is exactly why we need SB 2.”

Fed up, Senator Jones forced a floor vote on SB 2 on Wednesday. However, the vote was blocked in a 10-23 vote, with Democrats unanimously voting to halt the bill instead.

“I forced a Senate Floor vote to repeal Governor Newsom’s 65-cent gas price hike,” added Leader Jones on Wednesday. “Senate Democrats unanimously opposed it. They had a chance to stand with California drivers, but instead, they chose to defend the highest gas prices in the nation.”

While the 65 cent a gallon increase is now all but set to hurt drivers in California in July, a vote by the California Department of Tax and Fee Administration announced earlier on Wednesday increased state’s gas excise tax to 61.2 cents per gallon, with it going into effect on July 1. The excise tax increase, along with the new 65 cent LCFS regulations, will now bring about a huge rise in gas prices in July, hurting California drivers at a time when many are facing difficult economic hardships. As the Globe previously pointed out, these increases, plus with a lower gas supply thanks to recent refinery closures, could lead to gas being as high as over $8 a gallon by the end of 2026.

“Democrats love to talk about affordability until they actually have to vote on it,” continued Jones. “Senate Republicans will keep fighting to stop these reckless gas hikes and force real accountability from the Governor and his regulators.”

As of Wednesday afternoon, Democratic leaders have yet to comment on the SB 2 vote.