California Raises Gas Prices, Raising Grocery Prices for All

The California Air Resources Board (CARB) voted on changes to the state’s Low Carbon Fuel Standard (LCFS), which could increase gas prices by as much as 65 cents a gallon by 2025.

In this instance, what happens in California doesn’t stay in California. Higher gas prices in the Golden State means increased agricultural costs, which means all of us will see higher prices at the grocery store.

“Over a third of the country’s vegetables and over three-quarters of the country’s fruits and nuts are grown in California,” the California Department of Food and Agriculture reported.

That’s the reason California is called “the land of fruits and nuts,” in this native-Californian’s opinion, and certainly not because of the people born there.

California already has some of the highest gas prices in the nation, reported the Contra Costa News, stating, “On Saturday morning [Nov. 9], the average gallon of gas in California costs $4.14 compared to the $3.09 national average. In Contra Costa County, the average is $4.60 per gallon.”

The CARB explained the increased restrictions on fossil fuels:

The LCFS reduces air pollution and greenhouse gas emissions by setting a declining carbon intensity target for transportation fuels used in California; producers that don’t meet established benchmarks buy credits from those that do. …

The updates set targets to reduce the carbon intensity of California’s transportation fuel pool by 30% by 2030 and by 90% by 2045. The amendments also increase support for zero-emissions infrastructure, including for medium- and heavy-duty vehicles, and make more transit agencies eligible to generate credits.

These updates set targets to reduce the carbon intensity of California’s transportation fuel pool by 30% by 2030 and by 90% by 2045. The amendments also increase support for zero-emissions infrastructure, including for medium- and heavy-duty vehicles, and make more transit agencies eligible to generate credits.

It’s all part of a state plan to “pursue actions necessary to combat the climate crisis,” wrote California Governor Gavin Newsom in an executive order in 2020. The order stated:

It shall be a goal of the State that 100 percent of in-state sales of new passenger cars and trucks will be zero-emission by 2035.

It shall be a goal of the State that 100 percent of in-state sales of new passenger cars and trucks will be zero-emission by 2035.

CARB was created in 1967 and signed into law by Governor Ronald Reagan “to address serious air pollution issues on a statewide basis.” But in recent years, the Board has turned more toward lowering “greenhouse gas emissions,” like carbon dioxide, methane, and nitrous oxide.

The board has been debating the standards for a year; they were finally approved with a 12-2 vote. Dean Florez, who opposed the measure, said:

For Californians already stretched thin by escalating rents and inflation, these additional costs could become overwhelming, pushing many into deeper financial insecurity.

Twelve CARB board members are appointed by the governor and confirmed by the California Senate, with two non-voting members appointed for legislative oversight, and two representing “environmental justice communities,” based on the idea that certain communities are “disproportionately impacted by pollution.”

Much of the country’s produce comes from California. The Salinas Valley, south of the San Francisco Bay, has been dubbed “America’s Salad Bowl” as it “grows almost half of the nation’s lettuce (including head, leaf and romaine) and a third of its spinach,” writes Aaron Smith at U.C. Davis.

He adds, “It also produces half the nation’s broccoli and cauliflower and over 80% of its artichokes.”

In addition, California’s Central Valley, about 18,000 square miles running from Redding in the North down past Bakersfield in the south, produces “one-fourth of the Nation’s food, including 40% of the Nation’s fruits, nuts, and other table foods,” reports the U.S. Geological Survey.

But, as the U.S. Department of Agriculture’s Economic Research Service explains, this food production takes energy:

Agricultural production consumes large amounts of energy, either directly through combustion of fossil fuels, or indirectly through use of energy-intensive inputs, especially fertilizer. [From] 2005-08, expenses from direct energy use averaged about 6.7 percent of total production expenses in the U.S. farm sector, while fertilizer expenses represented another 6.6 percent.

However, these sector averages mask much greater energy intensities for major field crops. Agricultural production is therefore sensitive to changes in energy prices, whether the changes are caused by world oil markets, policies to achieve environmental goals, or policies to enhance energy security.

In addition, gas and diesel are required for the transportation, processing, distribution, and marketing of food products. Driving up costs for these affects consumers across the country.

To check out Focus on the Family resources on the topic of Managing Money, click here.

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Families Are Being Hit Hard by Tough Economic Headwinds, Economist Says

Independence Day Barbecue Cost – 17% Increase From Last Year

Inflation Accelerates to 3.2%, Adding to Cost-of-Living for Families

Inflation Hits Another Four Decade High of 9.1%, Hitting Struggling Families the Hardest

Inflation Rate Accelerates Again, Increasing Cost-of-Living for Families

Inflation Rate Hits Four-Decade High of 8.5%, Harming Poor and Middle-Class Families the Most

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