California policymakers led by Senators Grayson, Hurtado, McNerney, and Richardson and Assembly Member Wilson propose a coordinated set of changes to oil spill financing, pipeline safety, coastal development, and fuel-supply policy that would unfold over several years. At the heart of the package is enhanced transparency around financial responsibility for potential oil spills: the administrator would publicly post online a list of all applications for certificates of financial responsibility, including the applicant’s name, the facility covered, the facility’s stated worst‑case spill volume, the amount of financial assurance demonstrated, and the type of evidence provided, with postings occurring within seven business days of receipt. Beginning in early 2027 and at least every decade thereafter, the administrator would solicit public input on the appropriateness of worst‑case spill volumes and the financial‑responsibility requirements, and would adjust the criteria and formulas for calculating these figures through rulemaking.
The measure would tighten safety standards for pipelines and expand permit requirements in ways tied to that safety focus. Idle intrastate pipelines six inches or larger that have been out of service for five years or more would not be restarted without passing a hydrostatic spike test conducted by a qualified testing company under rules promulgated by the State Fire Marshal; results and test parameters would be publicly characterized and posted online by the Fire Marshal, with a requirement for an extended hydrostatic test following a short spike test. The package also tightens coastal-regulatory oversight by requiring new coastal development permits for the repair, reactivation, or maintenance of oil and gas facilities or pipelines idle for five years or more, and directs the Geologic Energy Management Division to lead related project reviews within affected health-protection zones. In parallel, the bill would restrict reliance on a county’s existing environmental review by deeming a Kern County environmental impact review sufficient for certain revisions to local oil and gas permitting ordinances, while imposing a cap on the number of annual drilling notices unless a state finding justifies additional issuance; the provisions are structured to apply prospectively and retroactively as described.
Beyond safety and local permitting, the proposal seeks to influence the state’s transportation-fuels ecosystem and price-management toolkit. It would require a comprehensive fuels assessment process to be carried out by the energy commission, including evaluation of reserve levels, refinery maintenance dynamics, and scenarios for alternative fuel specifications, with particular attention to potential westwide gasoline specifications and regional market stability. The energy commission would explore strategies to facilitate the sale of gasoline with alternative specifications, including mechanisms such as triggers tied to market conditions, the existing variance process, and the possible use of fees to offset emissions, and would conduct outreach to western states to examine a unified or harmonized approach. A separate timetable directs an assessment to address potential permitting changes or a “one‑stop” approach to enable a reliable, equitable transition away from petroleum fuels, with a preliminary report due in 2026. The governor would also have authority to suspend certain regulatory periods governing gasoline Reid vapor pressure limits during price spikes, subject to consultation with the energy commission and air-regulation authorities and consideration of air-quality implications and mitigation options.
![]() Anna CaballeroD Senator | Bill Author | Not Contacted | |
![]() Al MuratsuchiD Assemblymember | Committee Member | Not Contacted | |
![]() Ash KalraD Assemblymember | Committee Member | Not Contacted | |
![]() Heath FloraR Assemblymember | Committee Member | Not Contacted | |
![]() Tim GraysonD Senator | Bill Author | Not Contacted |
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California policymakers led by Senators Grayson, Hurtado, McNerney, and Richardson and Assembly Member Wilson propose a coordinated set of changes to oil spill financing, pipeline safety, coastal development, and fuel-supply policy that would unfold over several years. At the heart of the package is enhanced transparency around financial responsibility for potential oil spills: the administrator would publicly post online a list of all applications for certificates of financial responsibility, including the applicant’s name, the facility covered, the facility’s stated worst‑case spill volume, the amount of financial assurance demonstrated, and the type of evidence provided, with postings occurring within seven business days of receipt. Beginning in early 2027 and at least every decade thereafter, the administrator would solicit public input on the appropriateness of worst‑case spill volumes and the financial‑responsibility requirements, and would adjust the criteria and formulas for calculating these figures through rulemaking.
The measure would tighten safety standards for pipelines and expand permit requirements in ways tied to that safety focus. Idle intrastate pipelines six inches or larger that have been out of service for five years or more would not be restarted without passing a hydrostatic spike test conducted by a qualified testing company under rules promulgated by the State Fire Marshal; results and test parameters would be publicly characterized and posted online by the Fire Marshal, with a requirement for an extended hydrostatic test following a short spike test. The package also tightens coastal-regulatory oversight by requiring new coastal development permits for the repair, reactivation, or maintenance of oil and gas facilities or pipelines idle for five years or more, and directs the Geologic Energy Management Division to lead related project reviews within affected health-protection zones. In parallel, the bill would restrict reliance on a county’s existing environmental review by deeming a Kern County environmental impact review sufficient for certain revisions to local oil and gas permitting ordinances, while imposing a cap on the number of annual drilling notices unless a state finding justifies additional issuance; the provisions are structured to apply prospectively and retroactively as described.
Beyond safety and local permitting, the proposal seeks to influence the state’s transportation-fuels ecosystem and price-management toolkit. It would require a comprehensive fuels assessment process to be carried out by the energy commission, including evaluation of reserve levels, refinery maintenance dynamics, and scenarios for alternative fuel specifications, with particular attention to potential westwide gasoline specifications and regional market stability. The energy commission would explore strategies to facilitate the sale of gasoline with alternative specifications, including mechanisms such as triggers tied to market conditions, the existing variance process, and the possible use of fees to offset emissions, and would conduct outreach to western states to examine a unified or harmonized approach. A separate timetable directs an assessment to address potential permitting changes or a “one‑stop” approach to enable a reliable, equitable transition away from petroleum fuels, with a preliminary report due in 2026. The governor would also have authority to suspend certain regulatory periods governing gasoline Reid vapor pressure limits during price spikes, subject to consultation with the energy commission and air-regulation authorities and consideration of air-quality implications and mitigation options.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
66 | 4 | 10 | 80 | PASS |
![]() Anna CaballeroD Senator | Bill Author | Not Contacted | |
![]() Al MuratsuchiD Assemblymember | Committee Member | Not Contacted | |
![]() Ash KalraD Assemblymember | Committee Member | Not Contacted | |
![]() Heath FloraR Assemblymember | Committee Member | Not Contacted | |
![]() Tim GraysonD Senator | Bill Author | Not Contacted |