California Governor Signs Laws Limiting Oil and Gas Operations

California Governor, Gavin Newsom, signed a series of bills on September 25 that restrict oil and gas operations in the state. This move has drawn criticism from the fossil fuel industry, which argues that these measures will result in higher costs for Californians.

Protection for Public Health and Wildlife

The new laws are designed to protect public health and wildlife, and to give local communities more power to set additional protections against oil and gas activities in their areas. According to a statement from Newsom’s office, these laws are a further step in California’s ongoing efforts to reduce pollution and protect communities.

Details of the New Laws

One of the laws, AB 3233, gives cities and counties more authority to impose restrictions on oil and gas operations, including the ability to limit or ban new oil and gas developments in their jurisdictions. Another law, AB 1866, imposes higher fees on oil wells that are no longer active but have not been properly decommissioned. The governor’s office stated that such wells pose a significant risk to both the environment and nearby communities. This law also imposes stricter regulations on oil companies to ensure they are responsible for maintaining and safely plugging idle wells and preventing leaks and contamination. AB 2716 prohibits the operation of low-oil production and gas wells within the 1,000-acre Inglewood Oil Field and imposes a $10,000 per month penalty on these wells until they are permanently plugged and abandoned. The penalty funds will be used for community projects such as park creation.

Support and Criticism for the New Laws

Environmental groups, including the Center for Biological Diversity, which sponsored AB 3233, have supported the measures signed into law by Newsom. However, Catherine Reheis-Boyd, president of the Western States Petroleum Association, criticized the laws, stating they would increase costs for Californians and increase dependence on foreign oil.

California's Plans for Carbon Neutrality

The Newsom administration plans to phase out fossil-fuel-powered lawnmowers, cars, trucks, and trains as part of the state’s plans to achieve carbon neutrality by 2045. Last month, Newsom unveiled a plan authorizing the California Energy Commission to require petroleum refiners to maintain a minimum fuel reserve to avoid supply shortages that lead to higher prices for consumers. According to a 2023 analysis by the Sierra Club, an environmental nonprofit, 41,568 of California’s 100,696 wells are orphaned or idle and no longer producing oil. The report found that closing these wells could cost nearly $23 billion.

Bottom Line

The new laws signed by Governor Newsom represent a significant step in California's efforts to protect the environment and reduce reliance on fossil fuels. However, they have also sparked controversy, with critics arguing they could lead to increased costs and dependence on foreign oil. What is your take on these new laws? Do you think they will help protect the environment, or do you agree with the critics? Share your thoughts with your friends and sign up for the Daily Briefing, delivered every day at 6pm.