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California wants to fund green jet fuel — by raiding your road repair budget

Governor Gavin Newsom is advancing a plan to redirect funds from Caltrans highway maintenance, local street programs, and competitive freight grants toward tax credits for sustainable aviation fuel producers.
Phillips 66, which lost $380 million on renewable fuels in 2025, lobbied the Governor's Office on the proposal, claiming its Rodeo refinery in Contra Costa County faces closure without state support.
Berkeley economists warn the plan could cost up to $2,700 per ton of emissions reduced and potentially cause diesel tax receipts to fall by 75%, according to Aaron Smith, who co-authored the analysis.
A final legislative hearing is scheduled for Thursday, following a bipartisan push by Assemblymember Anamarie Ávila Farías, while environmentalists argue the state should prioritize proven solutions like mass transit.
California faces a $74 billion funding gap for local streets and roads while current revenue covers only about 61% of highway needs; Matthew Botill, California Air Resources Board division chief, warns aviation emissions will rise without stronger incentives.

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California wants to fund green jet fuel — by raiding your road repair budget

Gov. Gavin Newsom is advancing a plan that could funnel hundreds of millions in road dollars to a struggling oil refinery — pitching it as a cleaner jet fuel initiative.

1 day ago·United States

Read Full Article