Despite New Law, Fuel Supply Challenges Remain

Governor Gavin Newsom last week signed into law a measure aimed at boosting in-state oil production and stabilizing fuel supplies. While the move has been welcomed as a step in the right direction, industry leaders caution that California’s energy crisis will not be solved with a single bill.

The measure comes at a time when California drivers face some of the nation’s highest gasoline prices, due in part to refinery constraints, increased reliance on foreign imports, and a hostile regulatory climate. The legislation is intended to provide more certainty for local production in Kern County, but independent producers warn that more reforms are needed to avoid supply disruptions.

Rock Zierman, CEO of the California Independent Petroleum Association, stressed the point:

“This bill alone cannot fix California’s energy crisis. Without additional action to streamline permitting, protect pipelines, and ensure regulatory stability, California will continue to face risks of fuel shortages and price spikes. Independent producers stand ready to provide the reliable crude oil our state needs, but we need a durable framework that allows us to do so.”

For years, CIPA has pushed for practical solutions:

• Kern County’s EIR (SB 237) fought to establish and keep the EIR, then had to push it into State Law to stop endless lawsuits and restore predictability.

• Protecting crude supply pipelines (SB 767) to ensure oil producers continue to have off takers for crude oil and refineries can keep operating their pipelines and facilities.

• Addressing bonding and setback laws that threaten the survival of independent producers, including SB 1167, permit timelines, and SB 1137.
  

The new Kern EIR law is a signal that Sacramento is beginning to recognize the importance of in-state production. But unless it is followed by broader reforms, as mentioned in the third bullet above, California risks remaining dependent on foreign tankers that increase costs, emissions, and vulnerability.

CIPA will continue to press lawmakers and regulators to align policy with reality: Californians need fuel, and local producers are the best positioned to supply it safely, reliably, and under the strictest environmental standards in the world.at a time when demand continues to rise.