By Alexei Koseff

WHAT THE BILL WOULD DO

Drill, baby, drill! Senate Bill 237 by state Sen. Tim Grayson, an Orinda Democrat, could get oil pumping again in California by granting blanket approval for environmental reviews of Kern County wells — a strategy to sidestep litigation that has long been sought by local producers. But the measure would also create new standards for restarting idle pipelines that could block a controversial offshore drilling project in Santa Barbara County. Other provisions would allow the governor to suspend California’s summer gasoline blend, a specially formulated fuel to reduce air pollution, to protect consumers against price spikes and to direct state regulators to study the feasibility of developing a Western regional gas formulation.

WHO SUPPORTS IT

The oil industry has been pleading for years for relief from California’s strict environmental rules, which it blames for driving up gasoline prices in the state to among the highest in the country. At the top of its wish list was unleashing domestic production, a cheaper way to meet demand than importing crude oil from foreign countries. With at least two of California’s last remaining fuel refineries now closing sooner than expected, potentially raising costs at the pump even further, Gov. Gavin Newsom and other Democrats who previously saw the oil industry as a political enemy were suddenly willing to come to the negotiating table.

WHO IS OPPOSED

Environmental groups feel betrayed. California has been a leader in climate action for decades, fast-tracking a transition to clean energy that phases out a reliance on fossil fuels. Opponents see this deal as a major step backward and an industry giveaway. They argue that oil companies falsely linked the refinery closures to drilling, creating urgency for the state to adopt a policy that will pad their profits without actually reducing gasoline prices.

WHY IT MATTERS
Affordability was the buzzword this legislative session, and nowhere is the cost of living more immediately visible to Californians than in the rise and fall of gasoline prices. Unthinkable even a few years ago, this olive branch to the oil industry was Newsom’s bid to stave off a politically toxic surge in what drivers pay at the pump. It could also mark a significant turning point in California’s relationship with an industry that had become a favorite political boogeyman for Democrats. Oil refiners are likely to seek further changes next year to avoid a doom spiral in the market.

GOVERNOR’S CALL ✅