The directive issued Friday calls on The California Air Resources Board to study the implementation of increased ethanol blending in gas.
AAA shows gas prices in California are almost a $1.50 higher than the U.S. average.
The Governor's Office claims this could help to lower prices up to 20 cents per gallon.
According to a study by the University of California, Berkeley and the U.S. Naval Academy, the blending would have little to no impact on the environment.
However, the study says changes may be needed for the industry and current infrastructure.