Newsom, lawmakers strike deal to streamline oil permitting in Kern County

The Legislature is pushing through a bill at the 11th hour to boost oil production in Kern County amid refinery closures across California.

A new last-minute bill in the California Legislature will increase oil production in Kern County. 

The bill comes as a gut-and-amend to Senate Bill 237, authored in part by Sen. Melissa Hurtado (D–Bakersfield). 

Driving the news: Hurtado and three other Senators initially introduced SB 237 into the Legislature earlier this year to require sellers of single-family properties to disclose the names and license numbers of any contractors and third parties that worked on the property. 

The big picture: With the Legislature scheduled to end its current session on Friday, Gov. Gavin Newsom, Assembly Speaker Robert Rivas (D–Hollister) and Senate Pro Tem Mike McGuire (D–Healdsburg) cut a deal that will streamline environmental approvals for new wells in Kern County. 

  • On the other hand, SB 237 will also make offshore drilling more difficult by increasing certain regulatory requirements. 

Zoom out: SB 237 was introduced on Wednesday as part of a package of bills regarding energy issues: SB 352, SB 254, AB 825, SB 840 and AB 1207. 

  • The other bills would create an air pollution monitoring program, replenish the state’s wildfire liability fund, regionalize California’s electricity grid and extend the Cap-and-Trade program. 

State of play: The proposal comes after two major oil refiners – Valero and Phillips 66 – announced plans to close their plants in California. 

  • Those two plants produce around 18% of California’s entire oil capacity. 

Go deeper: Kern County has long pushed for Newsom to increase the number of new oil well permits approved by his administration in order to boost energy production. 

  • Under SB 237, up to 2,000 new wells per year in Kern County would be granted statutory approval. 
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