When the clock strikes midnight and the calendar turns to 2025, some Americans will start paying more for gas or other energy needs. Several states are enacting tax hikes that take effect on January 1, causing higher energy costs. Even electric vehicle (E.V.) owners won't be spared.
California will see significant increases at the gas pump in the coming year. In November, the California Air Resources Board (CARB) amended the Low Carbon Fuel Standard, a state program designed to decrease greenhouse gas emissions from the transportation sector. The agency accelerated carbon dioxide reduction targets, created new credits for zero-emission vehicles, and placed caps on biofuels qualifying for Low Carbon Fuel Standard credits. An assessment from CARB estimated that these changes will increase the cost of gasoline by 47 cents per gallon and the price of diesel by 59 cents per gallon in 2025.
