California gasoline prices to rise

SAN FRANCISCO, California (CNN) -- Federal environmental rules will require Californians to pay more for gasoline -- in the same year they've been forced to pay record prices for electricity.

VIDEO CNN's Rusty Dornin reviews the policy and talks with detractors (July 2) Play video (QuickTime, Real or Windows Media)

A gasoline additive called ethanol, which reduces air pollution, could add as much as 50 cents to the cost of each gallon of gasoline in California, depending on supply and demand.

Ethanol is made in the Midwest -- far away from California -- and is more expensive to send there, so it's more costly than regular gasoline.

-- CNN Correspondent Rusty Dornin reports on the cause and effect of California's gasoline troubles.