Holding the Line for California Oil in The Final Week of Session

As the Legislature barrels into its final week of session, the stakes for California’s independent producers, workers, and consumers could not be higher. At issue is nothing less than the future of in-state oil production, refining stability, and the critical pipelines that keep California moving.

For months, CIPA has been pressing lawmakers to understand what’s truly at risk: without immediate fixes, our pipelines and refineries face closure, gasoline prices will spike, and California will find itself fully dependent on tankers of foreign oil shipped from polluting regimes overseas.

The good news? We still have the power to keep California’s energy flowing safely and locally, but only if the Legislature acts now.

Governor’s Budget Bill: A Stabilizing Force

CIPA strongly supports Governor Newsom’s proposal to codify the Kern County Oil and Gas Ordinance and companion EIR. Increased domestic production is urgently needed to stabilize the energy sector and keep refineries open.

By increasing in-state sources of crude to refineries at the very moment when two major facilities are closing, the Kern County proposal signals a practical step toward preserving jobs, protecting tax revenues, and ensuring that supply disruptions don’t push Californians to the breaking point at the pump.

This is about more than numbers on a spreadsheet. It’s about keeping our economy resilient and our energy local. Left-leaning members of the legislature are pushing back hard against the proposal and trying to limit the number of wells that could utilize the Kern EIR.

Senate Bill 767: Protecting the Arteries of Energy

Equally critical is SB 767 (Richardson-D), legislation designed to spotlight the importance of California’s pipeline flows from oil fields to refineries. These pipelines are the hidden arteries of our economy, quietly delivering the crude oil that keeps gas stations stocked, supply chains humming, and families on the road. SB 767 is also the vehicle identified to solve the 1167 bonding issue that has caused all oil asset transactions to cease.

Our Broader Priorities: Before It’s Too Late

When the 2025 Legislative Session is over, it is CIPA’s goal to see the following achieved in the budget bill or SB 767 or a combination of these bills, which will begin immediately fixing California’s broken energy framework:

1. Codify Kern EIR: to restore a predictable permitting process and keep production local.

2. Bonding Fix: to ensure stronger companies can acquire distressed oil production companies.

3. Permit Timeline Fix: to guarantee fairness in state approvals.

4. Setback Modification: to allow producers to safely maintain existing wells without costly imports.
   

Without these reforms, more pipelines and refineries will shut down, gas prices will skyrocket, and California will surrender to foreign dependence. With them, we can keep energy local, protect jobs, and ensure families aren’t left paying the price for political missteps.

The Bottom Line

This final week of session is our moment to make clear: California must choose stability over scarcity, and practical solutions over political soundbites. By passing the Governor’s Budget Trailer Bill and SB 767, alongside long-overdue permitting and bonding reforms, the Legislature can safeguard affordable, reliable, and locally produced energy under the strictest environmental rules in the world.

Let’s finish strong, and let’s #ProduceItHere!