Image by Engin Akyurt from Pixabay

September 14, 2025 - The California Legislature has given the greenlight to SB 237, groundbreaking legislation that is designed to stabilize gasoline prices as the state transitions away from fossil fuels.

SB 237 includes a suite of strategies to ensure that California maintains a stable fuel supply to meet demand and prevent price spikes as consumers increasingly buy electric cars and fuel-efficient vehicles.

SB 237 is joint authored by Sens. Tim Grayson (D-Concord), Jerry McNerney (D-Pleasanton), Melissa Hurtado (D-Bakersfield), Laura Richardson (D-Torrance), and Assemblywoman Lori D. Wilson (Suisun City).

“Over the last months, we have brought everyone to the table, rolled up our sleeves, and hammered out an agreement between the Administration and both houses of the Legislature to get needed change for Californians who are fed up with our fuel economy,” Sen. Grayson said. “SB 237 will help to ensure that California continues to meet its bold climate standards, create sorely needed market stabilization to minimize historic gasoline price spikes, and provide the state with the energy supply it needs to grow and thrive as we transition away from fossil fuels.”

“California gas prices are still  too high. And with the recent announcements of two planned refinery closures, it’s clear that we must do more to protect California motorists from additional price hikes,” Sen. McNerney said. “As we transition to zero emission vehicles and ZEV sales continue to grow — with nearly a quarter of new cars sold in California being ZEV — we have the obligation to explore new policies to keep gas prices low. SB 237 includes commonsense strategies that will help California smooth the transition to a zero emission future by ensuring a stable gasoline supply as we move away from fossil fuels.”

SB 237 won approval in the state Senate today on a vote of 28-0 after the Assembly passed the bill on a vote of 59-4. The legislation now goes to the governor’s desk for consideration.

Over the past decade, California has led the nation in adopting some of the country’s most aggressive climate policies aimed at reducing reliance on fossil fuels. But as demand for gasoline slowly declines as the state transitions to EVs and other fuel efficient vehicles, California must ensure a stable fuel supply to meet the needs of California’s existing vehicle fleet and prevent undue hardship on consumers.

SB 237 is first-in-the-nation climate legislation designed to effectively manage the transition away from fossil fuels. It would:

• Allow for expanded oil drilling in Kern County to help ensure a stable supply of gas in exchange for tougher restrictions on offshore oil drilling.
• Enable the governor to suspend the state’s special — and more costly — summer fuel blend if the governor determines it’s in the best interest of the state.
• Examine the potential of creating a regional fuel blend to expand the supply of gasoline available and protect against price spikes when a refinery goes down.
• Formalize the work of the California Energy Commission to stabilize fuel supply in the near term.
  
  Source: Senator Jerry McNerney