Bill aims to help oil industry but limits offshore drilling

Amid concerns that refinery closures could send gas prices soaring, California legislative leaders Wednesday introduced a last-minute deal aimed at increasing oil production to shore up the struggling fossil-fuel industry while further restricting offshore drilling.

- BY LAURA J. NELSON AND GRACE TOOHEY

THE PHILLIPS 66 Los Angeles Refinery in Wilmington is one of two such facilities slated for closure.

The compromise, brokered by Gov. Gavin Newsom, Assembly Speaker Robert Rivas and Senate Pro Tem Mike McGuire, would streamline environmental approvals for new wells in oil-rich Kern County and increase oil production.

The bill also would make offshore drilling more difficult by tightening the safety and regulatory requirements for pipelines.

With support from Rivas and McGuire, Senate Bill 237 is expected to pass as part of a flurry of last-minute activity during the Legislature's final week. Newsom's office said the governor “looks forward to signing it when it reaches his desk.”

The late introduction of the measure may force the Legislature to extend its 2025 session, set to end Friday, by another day because bills must be in print for 72 hours before they can be voted on.

The bill was introduced Wednesday as part of a package of energy policies that aims to address growing concerns about affordability and the closure of California oil refineries.

Valero and Phillips 66 plan to close plants in the San Francisco Bay Area and Los Angeles County's South Bay, respectively, which would reduce California's instate oil refining capacity by an estimated 20%. Industry experts warn that losing refining capacity could lead to more volatile gas prices.

The closures have become a sore spot for Newsom and for state Democrats, pitting their longtime clean-energy goals against concerns about the rising cost of living-a major political liability.

The package tries to strike a balance between the oil industry and climate activists, but neither side seemed particularly pleased: Environmental groups panned the agreements, and industry groups said they were still reviewing the bill.