In the battle for control over California's energy policy, it's Tom Steyer vs. Xavier Becerra. Becerra has experienced a rapid climb in California's governor's race and is drawing a surge of big-money support from major fossil-fuel corporations — a sign of how much is at stake for the state's climate and energy future.

As Becerra gains ground in recent polling, outside groups aligned with powerful gas industries are spending millions to boost him and slow the rise of rival Democrat Tom Steyer, a longtime climate activist.

What's happening?

A pro-Becerra committee recently pulled in large donations from major companies, including $500,000 from McDonald's and $950,000 from Meta, along with millions more from realtors, the California Medical Association, and tribes. Energy companies have also moved in as Becerra's standing ahead of the June 2 primary has improved, according to a San Francisco Standard article.

Steyer has pointed to a $500,000 Chevron donation to that committee, on top of a separate $39,200 gift from the company to Becerra's campaign in June 2025. At the same time, an anti-Steyer committee has collected about $33 million, with more than $13 million coming from Pacific Gas and Electric and a union for electrical workers.

Another pro-business committee opposing Steyer has brought in close to $12 million, including roughly $7 million from PG&E, Sempra Energy, Edison, and Chevron. The wave of donations comes as Becerra has become the top Democrat in recent surveys, with Steyer and Republican Steve Hilton still close behind.

Why does it matter?

California's governor holds enormous power over climate policy, utility regulation, state spending, and appointments to agencies that oversee energy companies. The money pouring into this race could help determine how aggressively the state moves on oil drilling, utility reform, and clean energy.

The fossil fuel industry affects people and communities in direct ways. Its extraction, production, and combustion intensify extreme weather disasters that destroy homes, livelihoods, and local economies. It also contributes to air and water pollution linked to asthma, heart disease, cancer, and premature death, while keeping household energy costs high even as corporate profits grow. Industry lobbying can also delay cleaner, cheaper energy alternatives, affecting utility bills and community resilience.

Steyer has tried to frame the race around that argument, saying he would reject fossil fuel money and confront oil companies while seeking to break up the state's major utilities. 

Becerra's critics say the corporate support behind him raises doubts about whether he would pursue climate action boldly enough. His supporters counter that Steyer has put more than $210 million of his own wealth into the race. While Becerra points out that Steyer made that fortune through Farallon Capital, a hedge fund with fossil fuel investments.

What's being done?

Both campaigns are now battling to define what climate accountability should look like. Steyer's team argues that fossil fuel money in politics should be disqualifying in a state that has branded itself as a climate leader. Becerra's allies, meanwhile, point to his record as California attorney general, including legal fights involving fossil fuel companies and the Trump administration's Environmental Protection Agency.

Becerra's campaign also says it has raised more than $3 million from small-dollar donors, arguing that he is not relying solely on corporate backing. But environmental advocates supporting Steyer say the next governor needs a clear and ambitious plan to speed the shift to cleaner energy and curb the power of oil and utility giants.

"Big Oil didn't spend millions on Becerra by accident," Steyer spokesperson Danni Wang said. Meanwhile, California Environmental Voters' Matt Abularach-Macias said of Becerra: "What is his climate agenda? What use is his record if he does not have a plan for what he would do as governor?"

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.