A plan to boost jet fuel in California's budget is causing warnings of higher gas prices and a potential loss of another refinery. The proposal would allow fuel producers to reduce their diesel tax payments in exchange for refining more non-petroleum jet fuel. However, the state's nonpartisan Legislative Analyst’s Office has urged lawmakers to reject the idea, arguing it would divert funding away from transportation projects that rely on diesel tax revenue. A study by the University of California, Berkeley, estimated that the tax credit could inadvertently increase gas prices by 11 to 14 cents per gallon and diesel prices by 12 cents. A bipartisan group of lawmakers, including Phillips 66's Rodeo Renewable Energy Complex, are supporting the proposal. The oil industry has also voiced opposition, arguing that maintaining traditional refineries should focus on preserving and protecting remaining refineries.