Assembly Backs Long-Overdue Permitting Reform

California's independent oil producers scored another significant legislative victory this week as AB 2711 (Ellis) Floor Vote Results passed the State Assembly by a bipartisan 47-4 vote, with 29 members not voting.

For an industry that has spent the better part of seven years struggling under an increasingly dysfunctional permitting system, the Assembly's overwhelming support for AB 2711 sends a powerful message: regulators should be required to make decisions, not simply leave permit applications in bureaucratic limbo.

CIPA strongly supported AB 2711 throughout the legislative process, providing committee testimony, formal letters of support, and direct advocacy with lawmakers. CIPA Vice President of Government Affairs Sean Wallentine submitted support letters and worked with legislative offices as the bill advanced through policy and fiscal committees and ultimately reached the Assembly Floor.

The bill's author, Assemblymember Stan Ellis, identified a problem that every California oil producer knows all too well.

Since 2019, when the Newsom administration assumed control of state energy policy from the Brown administration, permitting delays have become one of the single greatest challenges facing California's oil and gas industry. Operators routinely submit Notices of Intention (NOIs) to drill, rework, or conduct other well activities, only to wait months or even years without receiving a final decision.

In many cases, applicants receive nothing more than an automated acknowledgment from the Geologic Energy Management Division (CalGEM), which the agency treats as its required response under existing law. Meanwhile, the actual permit remains stuck in administrative purgatory.

AB 2711 closes that loophole.

Under the bill, CalGEM would be required to issue an approval or denial within 30 working days of receiving a Notice of Intention. If a permit is denied, the agency must provide a detailed explanation identifying the reasons for the denial.

The concept is remarkably simple: government should answer applications.

The bill does not eliminate environmental review, waive existing laws, or reduce regulatory oversight. It merely requires regulators to make decisions within a reasonable timeframe and explain those decisions when they say no. As CIPA noted in its support letter, regulated parties deserve decisions, not indefinite delay.

The need for reform is obvious.

According to Assemblymember Ellis' fact sheet, only 17 new drilling permits were approved in California during 2025, while the average approval time ballooned to approximately 240 days.

These delays have real-world consequences.

California's in-state oil production continues to decline while demand for transportation fuels remains substantial. The state now imports approximately 64 percent of the crude oil processed by California refineries, often from countries with environmental, labor, and safety standards far below those required of California producers.

At the same time, California faces mounting concerns regarding refinery closures, fuel supply reliability, military fuel readiness, and rising gasoline prices. Delaying permits for in-state production only exacerbates these challenges.

What makes AB 2711 particularly noteworthy is that it comes from a legislator who has chosen not to seek another term in office.

Assemblymember Stan Ellis is serving his final year in the Legislature after deciding not to run for reelection. During his time in Sacramento, Ellis has spoken candidly about the dysfunction he believes exists within the legislative process and has publicly expressed frustration with a system that too often prioritizes ideology and bureaucracy over practical problem-solving.

AB 2711 reflects a fundamentally straightforward principle: when citizens and businesses submit applications to government, government has an obligation to provide timely answers. AB 2711 now advances to the State Senate, where CIPA will continue advocating for its passage.