Gov. Gavin Newsom expects the process to take until October, according to a new report from the Bay Area News Group.
Newsom and Democrats in the legislature must still determine if everyone will be eligible for the money or just people in certain income levels.
Those eligible will receive up to $400 per vehicle to offset the high price of gas.
READ MORE | California lawmakers propose $400 gas rebate to help drivers with soaring gasoline prices
The state average for a gallon on Saturday was $5.80. In Los Angeles, the average was $5.86.