‘Pump the Brakes on High Gas Prices’: Sen. Strickland Introduces One-Year Gas Tax Holiday to Deliver Immediate Relief

SACRAMENTO, Calif. – While gas prices across the rest of the nation are declining, prices in California continue to climb, prompting Senator Tony Strickland (R-Huntington Beach) to introduce Senate Bill 1035. The measure is designed to provide immediate financial relief to families, drivers, and small businesses across California by suspending the state gas tax and other fuel-related regulations for one year.

“Californians are being crushed by high gas prices and rising inflation,” said Senator Strickland. “While families are tightening their belts, Sacramento Democrats are turning a blind eye to the rise in gas prices. My measure pumps the brakes on high gas prices and puts money back where it belongs -- in the pockets of hardworking Californians.”

SB 1035 would temporarily suspend the state’s gas tax, the Low Carbon Fuel Standard (LCFS), and the LCFS cap-and-invest compliance system for one year. These state-imposed costs have contributed to California’s fuel prices remaining consistently higher than the national average.

By removing state taxes, the state excise tax, the Low Carbon Fuel Standard, and Cap-and-Trade costs, California drivers would save $1.08 per gallon of regular unleaded gas. A household of two drivers can expect to save between $900 to $1100 per year.

“Buying time for the state to figure out long-term solutions to this serious problem is a first step,” Senator Strickland stated.

SB 1035 contains an urgency clause, meaning it would take effect immediately upon the Governor’s signature.

“Government’s first responsibility is to the people,” Senator Strickland added. “When families are struggling to afford necessities, we must act. Senate Bill 1035 provides immediate, responsible relief while protecting essential transportation funding.”

Additional Background on Senate Bill 1035: 

  • Includes strong consumer protections under existing unfair competition laws, ensuring that savings are passed directly to drivers at the pump. 

  • Requires gas receipts to clearly show the amount of fuel tax that would have applied before the suspension, ensuring full transparency.

  • Maintains funding for transportation infrastructure and maintenance by allowing the temporary use of General Fund dollars to offset losses to the Greenhouse Gas Reduction Fund during the suspension period.