Even as gas prices rise because of the war in Iran, California’s transition away from fossil fuels is drawing scrutiny from several consumer and environmental groups.
On Tuesday, the groups voiced support for three bills moving through the California Legislature. One would extend a workforce development program for displaced oil and gas workers, such as those affected by the closure of the Valero Benicia Refinery. Two others address cleanup costs tied to decommissioning oil wells.
Assembly Bill 2157 would eliminate the 2027 sunset date for the Displaced Oil and Gas Workers Fund, a pilot program created in 2022. The $36.5 million program is administered by the California Employment Development Department and helps workers transition into new industries with comparable wages.
Introduced by Assemblymember Damon Connolly, D-San Rafael, and Assemblymember Isaac Bryan, D-Los Angeles, the bill also directs the EDD to work with the University of California, Berkeley Center for Labor Research and Education to develop recommendations for making the fund permanent.
“These are skilled workers, operators and tradespeople, technicians who are essential to safely shutdown and remediate facilities as we transition without a real plan,” said Marc Victoria, with the nonprofit the Climate Center. “Too many are left underemployed, struggling, or pushed out of the workforce entirely.”
In 2020 and 2021, the idling of the Marathon Petroleum Corporation in Martinez and the Santa Maria Refinery displaced more than 600 full-time workers and between 250 and 2,500 contract workers, according to a February statement from Connolly’s office. In January, Valero Refining Co. said it would idle its Benicia refinery by April and convert the site into an import terminal for refined gasoline from other markets, a move expected to affect more than 400 workers.
The other two bills are Senate Bill 1259, the Refinery Transparency Act, and Assembly Bill 2461, which would require oil and gas companies to provide financial assurance for the full cost of plugging and remediating wells.
“Oil and gas companies are legally obligated to pay to plug and remediate their wells, which is estimated to cost $21.5 billion statewide,” said Jason Pfeifle, with the Center for Biological Diversity, adding that many companies desert their wells and leave taxpayers with the bill.
Asian Pacific Environmental Network Action spokesperson Katherine Chu said Senate Bill 1259 does not set dates for closures, but it requires all refineries to disclose their estimated cleanup costs and timelines while they’re still operating.
“Without requirements for early planning, these companies can leave the overwhelming burden of figuring it out, and paying for it, to the public and to local communities,” Chu said.
“These are massive systems,” she said. “Although we suspect it may take tens of millions or even hundreds of millions of dollars and decades of time, we have no real insight into how much it will cost or how long it will take to decommission and clean up these large-scale facilities. Sharing a little bit of this information is all that SB 1259 asks for.”
Assembly Bill 2461 would require oil and gas companies to provide proof of funds or insurance-like coverage before or while they operate, so taxpayers are less likely to be left with cleanup costs.
The advocacy groups agreed that petroleum companies can afford to enact the stipulations of the bills, even as gas prices have been impacted by tariffs and the war in Iran.
“Average gas prices in California are nearly $6 a gallon as Trump’s illegal war on Iran drives a global oil shock,” said Woody Little with the clean energy advocacy nonprofit Last Chance Alliance, adding that preliminary data suggests that California refiners are making a killing due to a decrease in supply.
“The margins in March are $1.50 or more per gallon,” said Jamie Court of the nonprofit Consumer Watchdog. “This is what refiners take home in gross margins. Crude cost went up 60 cents because of the war. Refining margins went up a dollar. So, this is a pig-at-the-trough moment for the refiners.”
None of the three bills have reached a final floor vote in the California Assembly. The legislative session ends in August.
““The margins in March are $1.50 or more per gallon,” said Jamie Court of the nonprofit Consumer Watchdog. “This is what refiners take home in gross margins. Crude cost went up 60 cents because of the war. Refining margins went up a dollar. So, this is a pig-at-the-trough moment for the refiners.”
So What? The State is taking over $2 a gallon and we have nothing to show for it. This is just another “Red Herring” soon enough you will not be able to afford to buy Gas in California, and that is the Plan!
Idiots….. They caused the problem due to their lack of understanding of economic activities… Just focused on their “Agenda” … which shows little care for the average citizen…
The green-nazis in California ( which includes the supermajority democrates ruling things ) won’t be happy until they get rid of everything related to oil or gas including our personal lawn mowers, household appliances BBQs and cozy fireplaces. They want us all to be riding bicycles! They of course will continue to be shuttled around in huge SUVs.
More Taxes “yay!”… here is a thought, why not convince companies to stay in California rather than run away screaming and leaving the remnants behind? Simply saying “it’s their obligation to clean up” is a no brainier “duh” but it has always been their obligation to support the community by having jobs and promoting the economy in which they did but now you are chasing them away “but you fail to mention that”. I guess like you said “help workers transition into new industries with comparable wages” what a fallacy. When industry dies there are no competitive wage jobs.
Must be Trumps “illegal” war… what an idiot.
kinda goes right along with this
https://www.youtube.com/shorts/c-O5FbuoBSc
Would definitely like to see the math supporting “refiner’s margins”,
as well as qualifying credentials of those who were quoted. From
organizations whom would venture to guess average citizens have
never heard of. Seems politicians have little difficulty finding
“organizations” to support latest brain fart their pushing.
.
Anytime there is “transparency” in a bill from CA state legislature
take it for granted, it’ll be anything but. Rest assured they WILL
create more state government jobs in the process.
.
Those 600 skilled workers, operators and tradespeople, technicians
and contract workers, have what are known as a portable skill set.
Meaning they can move out of CA and will be able to find work
in their areas of expertise. When US Steel was forced out of
CA, software engineer I’d worked with for 14 years hopped on
a plane, interviewed and was offered a job at a higher wage.
He’s now working at a steel plant back in South Carolina and
tells me how happy he is to be out of California when we talk.
.
democrat politicians and their unelected unaccountable paperclip
minions have created a state that is vastly ANTI BUSINESS. An the
ONLY way to fix CA is to give democrats a swift kick in the teeth
by overwhelmingly voting them out of office at all levels of
government, city, state and most especially congress.
.
Lemme take a wild guess here, a bunch of tax payer dollars will
magically flow towards tree huggin’ non governmental entities.
Dang acid dropping hippies had kids . . . . . . just kidding
.
Seems like any time state legislature comes up with “their solution”
to any problem, it ends up negatively effects citizens of California.
Just did a search using first sentence of “press release”,
call it what is, a put together piece of PROPAGANDA failing
to provide math to back up claims. First page of search
results had ten returns which parroted press release.
.
Will wait for CA Globe to review situation and democrat’s
latest knee jerk fix, “bills”.
These non-profit advocacy groups are crawling out of the wood work! 1) the nonprofit the Climate Center, 2)the Center for Biological Diversity, 3) Asian Pacific Environmental Network Action, 4) the clean energy advocacy nonprofit Last Chance Alliance, 5) nonprofit Consumer Watchdog.
The advocacy groups agreed that petroleum companies can afford to enact the stipulations of the bills, even as gas prices have been impacted by tariffs and the war in Iran. LOL. Members of these groups donate to our elected officials to get their way, you know, cause they know so much. Democracy?
Woody Little?
No wonder he’s upset.
It’s those gas powered yard blowers – right? jk
Gas prices were caused by oil refinery closure, additional CA regulations, and idiots like Gavin Newsom. Gas prices are not up because of Iran….and for the folks who want to argue…fine, some of it is Iran. The bulk of this cost is from CA’s own stupidity, and Iran is a great propaganda piece to obfuscate the fact that this is a Crazy Progressive problem, not a “Trump is bad” problem
Yes, gas may be up a bit due to the strife caused by Iran (more like somebody finally addressing the problem that is from the nutjob leadership there), but gas is $2-3 more per gallon in California than Arizona, and that is not because of Iran. It is because of our own mullahs, nuisance and the legislature. So, the Valero refinery went the way more than a few billionaires have, a few major businesses. Well done to the party that has been running/ruining this state for the last couple decades.