Governor Gavin Newsom’s administration has withdrawn its request for funding for over 100 new staffers at CalGEM, CARB, and the Water Board to work exclusively on Senate Bill 1137 (SB 1137), the new 3,200-foot oil setback law.
However, it is crucial to highlight that the prohibition on new wells remains in place.
As the California legislature considers budget trailer bills SB 178 and SB 157, it is important to understand the FACTS about how these bills will not impact Senate Bill 1137 (SB 1137), the oil setback bill of 2022 and the steps that oil producers are already taking to comply with leak detections and repair. Claims that these bills delay the enforcement of SB 1137 or weaken its requirements are categorically FALSE.
Fiction: These budget trailer bills will delay the implementation of SB 1137
Fact: There is no delay. The bill is already in effect and California Geologic Energy Management Division (CalGEM) is implementing SB 1137. Oil companies are not permitted to drill or obtain a Notice of Intent (NOI) without compliance. The setback is fully implemented TODAY. SB 157 only pertains to the hiring of over 100 additional staff.
Fiction: These bills will reduce the oversight and safety measures required of oil companies.
Fact: The safety and environmental standards set by SB 1137 remain fully intact and enforceable. This staff hiring change does not alter or reduce any of the rigorous safety and environmental protections currently required by law.
Fiction: Oil Companies do not have to detect and repair leaks.
Fact: Oil companies MUST detect and repair ALL leaks TODAY in the following manner:
State-owned drones regularly fly over oil facilities to detect leaks. If any possible leaks are found, operators must repair them IMMEDIATELY.
Air districts like the South Coast Air Quality Management District (SCAQMD) conduct surprise inspections at facilities and inspect every joint and pipeline to ensure there are no leaks. Again, any leaks detected must be repaired IMMEDIATELY.
CARB maintains a methane rule that requires LDAR (Leak Detection and Repair).
The Office of Spill Prevention and Response (OSPR) requires operators to have a spill plan, respond immediately to any spills, and have an annual “spill drill” to practice spill response.
CalEPA requires Accidental Release Prevention plans to ensure gas processing facilities do not have fugitive emissions and are operated in a safe manner.
Department of Transportation requires a Facility Response Plan for all pipelines, wellheads, and tanks.
Nuisance Reporting and Compliance Procedures: Local air districts and CalGEM have established nuisance reporting procedures to address any community concerns promptly.
The proposed administrative change does not delay or weaken SB 1137. The rigorous safety and environmental standards set by the bill are already being met and exceeded by oil producers, who are committed to operating responsibly and transparently.
The California Independent Petroleum Association (CIPA) has been leading the opposition to SB 1137, arguing that the law was hastily crafted and failed to consider its real-world implications for California’s economy and energy sector.
As we continue discussions with the administration and legislators about SB 1137's real-life impacts, we must remember that we are in the legislative session's final days. CIPA remains committed to fighting against bills that unfairly target California’s energy industry.
We are actively working to oppose and amend Assembly Bill 1866 and Assembly Bill 3233 and 2716, which further threaten the state’s energy industry and economic stability.
CIPA will also continue its efforts to secure a decisive legal resolution on SB 1137, allowing California's oil producers to continue their vital work, supplying the world’s only climate-compliant oil and meeting the state’s energy demands.
We urge you to remain vigilant and continue advocating against these shortsighted and politically motivated bills. As the situation evolves, CIPA will provide updates and mobilize efforts to protect the interests of California’s hard-working oil producers and the broader energy sector.
Your support and commitment as a CIPA member are crucial in these times. Together, we will continue to fight for a fair and balanced approach that ensures California's energy future and economic well-being.