Last-minute bill aimed at boosting California oil production introduced

Rob Nikolewski, The San Diego Union-Tribune on Sep 10, 2025

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SAN DIEGO — Legislation aimed at boosting in-state oil production is one of a slew of energy-related bills introduced Wednesday, as lawmakers in Sacramento race to pass legislation before the 2025 session comes to what figures to be a frantic conclusion.

The session for both the chambers of the Legislature is scheduled to wrap up by midnight Friday.

Senate Bill 237, published shortly after 7 a.m. Wednesday, calls for instituting some recent recommendations made by the California Energy Commission in the wake of pending closures of two major oil refineries in the state.

Phillips 66 last fall announced plans to shut down its twin refineries in Carson and Wilmington by the end of 2025. In April of this year, Valero gave notice it will shut down operations at its refinery in the Northern California city of Benicia by 2026.

The Valero and Phillips 66 facilities combine to account for roughly 18% of the state’s crude oil capacity, raising concerns that the closures will strain supplies of the specially blended gasoline that is sold to California drivers and drive up prices at the pump.

Among its provisions, SB 237 includes language aimed at increasing output in Kern County, which is the heart of California’s oil patch, to stabilize the fuels market.

Petroleum industry officials said Wednesday they were still reviewing SB 237 but environmental groups came out against it.

“Big Oil is using the threat of refinery closures as a bargaining chip to pressure lawmakers into approving more drilling,” said the Campaign for a Safe and Healthy California, adding that legislators “must safeguard public health and plan for a managed transition to clean energy that doesn’t leave Californians living near oil production paying the price.”

SB 237 also includes provisions its supporters say will protect safety requirements on idle petroleum pipelines.

Another late addition to the legislative docket was Assembly Bill 825, which would pave the way for California to join a regional transmission grid with other states in the West.

Published shortly before 6 a.m. Wednesday, AB 825 was originally known as Senate Bill 540. Newsom and the bill’s proponents say it will enable California utilities to more easily tap into power from neighboring states, which they say would lead to lower energy costs for customers.

“This proposal clears the way to stand up energy markets that can save Californians real money,” said Alex Jackson, director of American Clean Power-California. “It means we can work with our neighbors to ensure the West has the affordable, reliable, clean power needed to meet surging demand.”

But opponents say joining a regional grid could obviate California’s autonomy regarding its clean energy goals and link the Golden State with states that burn coal.

“Shame on the legislature and governor for participating in this eleventh hour power grab that rewrites the state’s electricity laws to give a blank check to the energy traders that control the regional organization to charge whatever the market will bear and use whatever polluting power source they want,” said Jamie Court, president of Los Angeles-based Consumer Watchdog.

Other energy-related bills that dropped include:

—Senate Bill 840 and Assembly Bill 1207, which would extend the state’s cap and trade program — that Newsom is now calling “cap and invest.” The bills would also change how the tens of billions of dollars of program’s money is used.

—Senate Bill 254 that aims to improve utility wildfire oversight, create an expanded wildfire fund, while touting greater oversight of the business practices of power companies in the state.

California Republicans criticized the bills coming so late in the session.

“Gavin Newsom and Capitol Democrats spent the year promising affordability, but here we are — days from the deadline — with no public plan, no real relief and no transparency,” Assembly Minority Leader James Gallagher told KCRA-TV. “Now they’re floating all-nighters to ram through secret energy deals and budget gimmicks that Californians haven’t seen and can’t weigh in on.”

But Newsom, in a statement, said that he and legislative leaders “have agreed to historic reforms that will save money on your electric bills, stabilize gas supply, and slash toxic air pollution — all while fast-tracking California’s transition to a clean, green job-creating economy.”

Democrats hold supermajorities of 60-19 in the Assembly and a 30-10 advantage in the Senate.

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