California's controversial new fuel standard, a key part of its effort to replace fossil fuels, has been rejected by the state agency that reviews the legality of state regulations.

The rules were rejected by the State Office of Administrative Law, which informed the Air Resources Board that the rules do not conform with a provision in state code that requires clarity in rulemaking so that the meaning of regulations will be easily understood by those persons directly affected by them.

The fuel standard enacted by the Board last year was the subject of a rancorous debate, largely because it will potentially increase the price of gasoline and diesel fuels by an unknown amount.

We build homes, we fix roads, and we serve you when you dine out.

To do this, we must drive hours each day to work to put food on the table for our families.

This measure before you will cause us financial pain.

In an initial assessment released in 2023, the Air Board projected that the new rules would potentially raise the price of diesel by 59¢ per gallon and gasoline by 47¢.

Air Board officials later disavowed that estimate, saying that the analysis should not be misconstrued as a prediction of the future credit price, nor as a direct impact on prices at the pump.

A report by the University of Pennsylvania's Kleinman Center for Energy Policy predicted that the fuel standard changes could increase the cost of gas by 85¢ a gallon through 2030.

Supporters say the new rules are necessary to keep California on track for its ambitious climate goals, including net zero emissions by 2045.

Critics have warned that the new standards could push gas prices even higher in a state where drivers already pay some of the highest fuel costs in the nation.

The Air Board said it would review the order and then resubmit the rules, which would be required within 120 days.

Any substantial changes, however, would require a delay, including a public comment period.

For CalMatters, I'm Alejandro Lazo.