FOR IMMEDIATE RELEASE

SACRAMENTO — The Center for Jobs and the Economy is proud to unveil its Low Carbon Fuel Standard (LCFS) Tracker, now featured in its monthly California Energy Price Data report. This innovative tool helps inform policymakers and businesses with clear, up-to-date insights into how LCFS-related costs are influencing fuel prices across the state.

“Our new LCFS Tracker shines a light on the tangible cost of regulatory change, right where Californians feel it most—at the gas pump,” said Brooke Armour, President of the Center for Jobs and the Economy. “The 5-cent rise in LCFS-related cost aligns almost exactly with the 4-cent statewide increase in gasoline—a clear signal that these policies are having immediate and measurable effects. The LCFS tracker is an invaluable tool to quantify the impacts of regulations on California residents, who are already faced with the highest cost-of-living in the nation.”

Key Highlights from August 2025 Energy Price Data

• Sharp Move in LCFS Costs: As a result of the new LCFS rules, charges integrated into gasoline prices rose by 5 cents per gallon in August. Diesel costs remained flat for LCFS, though marginal increases were observed due to Cap-and-Trade components.
• LCFS Costs Still Moderated by Banked Credits: While LCFS costs are moving higher, the full cost impact of the new regulations is being moderated by the 40+ million banked credits.  As this inventory is exhausted, LCFS costs are likely to go much higher. 
• Gas Prices Jump in California: Regular gasoline prices in California increased by 4 cents, compared with just a 1-cent uptick nationally.
• Premium Over Other States Widens: The average price for a gallon of regular gas in California hit $4.55, $1.49 higher than the $3.06 average in other states—a 48.6% premium. California maintained its rank as the most expensive contiguous state for gasoline, with a gap of $1.85 per gallon compared to Mississippi, the lowest-price state.
• Diesel Prices Also Leading the Nation: Diesel in California averaged $5.13 per gallon, making it the priciest in the contiguous U.S. The state-specific premium here was $1.53, or 42.6% above the non-California average.

What the LCFS Tracker Adds

The LCFS Tracker brings several advancements:

• Current LCFS pricing: Tracks LCFS charges separate from Cap-and-Trade components, helping isolate the direct influence of LCFS policy.
• Transparent monthly comparisons: Users can monitor how LCFS costs evolve over time, correlated against shifts in statewide fuel prices.
• Enhanced policy analysis: Policymakers, analysts, and the public now have a clearer understanding of how LCFS regulations translate into real-world consumer costs.