Sacramento – To stabilize the struggling crude oil refinery, state lawmakers passed on Saturday Last minute bill This will allow 2,000 new oil wells to be built each year in the San Joaquin Valley, while further limiting drilling along California’s iconic coastline.
measure, Senate Bill 237This is part of climate and environmental issues established behind closed doors by Gov. Gavin Newsom, State Senate President Pro Tem Mike McGuire (D-Healdsburg) and Parliament Speaker Robert Rivas (D-Hollister). The agreement is designed to address growing concerns about affordability, mainly the price of natural gas and the closure of two of the state’s 13 refineries.
Industry experts say California now has enough refining capacity to meet demand, but the closure could reduce the state’s refining capacity by about 20% and lead to higher gasoline prices.
Democrats voted Saturday as a painful but essential pill to stabilize the energy market in the short term, even as the state moves forward through the transition from fossil fuels to clean energy.
McGuire called the bills “the most influential affordable, climate and energy packages in our state’s history.”
“We continue to map the future, which will put more money into the pockets of hardworking Californians and keep the air clean while providing us with a transition to a more sustainable economy,” McGuire said.
The General Assembly illustrations represent the region and co-authored SB 237, which plans to close Valero’s refinery in Benicia in April 2026, will result in a loss of $1.6 billion in wages and drag down local government budgets.
Wilson acknowledged that the bill would not help Benicia refineries, but said: “Straight increase domestic crude oil production and reduce our reliance on imports will help stabilize the market, which will help create and save jobs.”
Analysts said this week that California crude oil production is about 15%, down about 50% from the state’s most aggressive gasoline demand.
The bill approved by lawmakers on Saturday would grant statutory approval in Kern County, California’s Petroleum National Center, up to 2,000 new wells per year.
The legislative revision, which began in 2036, will actually avoid the decade-long legal challenge of environmental organizations to drill in the county, which produces about three-quarters of the state’s crude oil.
“Kern County knows how to generate energy,” said state Sen. Shannon Grove (R-Bakersfield). “If allowed, we produce 80% of California oil, 70% of the state’s wind and solar energy, and 80% of the state’s storage capacity in the battery. We are experts. We are not enemies. We can help ensure that all Californians are affordable while enjoying the benefits of increasing employment and economic prosperity.”
Environmentalists burned a rule on this trade-off and a rule that would allow the governor to suspend the state’s summer gasoline-mixed fuel standards, thereby reducing vehicle emissions, but if prices soar for more than 30 days, or it seems likely to increase the price of pumps.
Some progressive Democrats voted against the bill, including parliamentary director Alex Lee (D-San José), chair of the legislative progress caucus. Lee said the bill was a “regulatory giveaway for big oil” and that would not help stabilize gasoline prices or refineries because demand for oil is falling, which is a struggle.
“We need to continue to focus on the future, not the past,” Lee said.
The bill also makes offshore drilling more difficult by tightening the safety and regulatory requirements of pipelines.
Members also vote to extend Hats and dealsIt is an ambitious climate plan that sets restrictions on greenhouse gas emissions and allows large polluters to buy and sell unused emission allowances at quarterly auctions. Legislators signed a 15-year extension of the plan, which has been renamed “CAP and INVEST” until 2045.
The program is crucial for California to adhere to its climate goals – including achieving Carbon neutrality by 2045 – Billions of dollars in revenue have also been brought in, which helps fund climate efforts, including high-speed rail and safe drinking water programs.
Packaging also includes AB 825which creates avenues for California to participate in the regional electricity market. If passed, the bill would expand the state’s ability to buy and sell cleaning capabilities with other Western states to move, proponents say that this would improve grid reliability and save money for taxpayers.
Opponents fear that California could provide control over the power grid for out-of-state authorities, including the federal government.
