Senate Democrats Block Strickland Gas Tax Relief Bill as California Prices Hit $5.50 a Gallon

SB 1035 would have suspended the state gas tax and LCFS fees for one year, saving drivers an estimated $1.08 per gallon

State Senator Tony Strickland's bill to temporarily suspend California's gas tax and Low Carbon Fuel Standard fees died in committee last week, as drivers in Orange County pay roughly $5.53 a gallon — about $1.57 more than the national average.

State Senator Tony Strickland's effort to give California drivers a break at the pump died in the Senate Environmental Quality Committee on March 18, killed on a party-line vote by the Democratic majority.

Senate Bill 1035, called the Gas Tax Relief Act, would have suspended three things for one year: the state gas tax, the Low Carbon Fuel Standard, and the LCFS cap-and-invest compliance mechanism. Together, Strickland's office estimated those suspensions would have lowered the price of a gallon of regular unleaded by about $1.08.

For a household with two drivers, that works out to somewhere between $900 and $1,100 in annual savings.

The bill also included a transparency requirement: gas station receipts would have shown the amount of tax that would have been charged, so drivers could see exactly what the state adds to every gallon. A protection clause would have temporarily backfilled transportation project funding from the General Fund.

None of that mattered to the committee's Democratic members.

Committee Chair Catherine Blakespear called the LCFS and cap-and-trade fees "relatively small" at about 38 cents per gallon and warned that suspending them would cause "irreparable damage" to California's climate programs.

Strickland, a Republican who represents the 36th Senate District covering Huntington Beach, Westminster, Fountain Valley, and other parts of Orange County, did not take the result quietly.

"To say I'm disappointed is an understatement. I'm frustrated because we have an opportunity to help working families at a time when we have an affordability crisis," Strickland said. "Democrats in Sacramento refused to help struggling Californians."

The numbers back up the frustration. California drivers are currently paying around $5.50 per gallon for regular gas. In Orange County, the average sits at about $5.53. The national average is $3.84. That gap — roughly $1.57 per gallon — is not new, but it has been widening since January, when prices in California were closer to $4.00.

USC public policy professor Michael Mische, who testified in support of the bill, pointed to structural problems beyond the immediate spike.

"Today's vote against lowering gasoline prices for Californians was predictable and unfortunate," Mische said. "California gasoline will continue to increase simply due to the taxes and environmental programs that support initiatives such as the high-speed rail project. Regrettably, because of today's actions, Californians will still be paying the highest gasoline prices in the nation."

Adding pressure to the supply side: Valero and Phillips 66 have announced plans to close California refineries, which will reduce the state's refining capacity over time. Strickland argued his bill was meant to provide breathing room while the Legislature works on longer-term fixes, and called on Governor Newsom to convene an emergency session.

That call has not been answered.

For drivers in Westminster, Garden Grove, and Fountain Valley filling up their tanks this week, the math is simple. They are paying more than $5.50 a gallon, the Legislature had a bill on the table to bring that down by a dollar, and the majority party said no.