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    SB-237
    Energy & Environment

    Oil spill prevention: gasoline specifications: suspension: California Environmental Quality Act: exemptions: County of Kern: transportation fuels assessment: coastal resources.

    Enrolled
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Requires public posting of financial responsibility applications with volumes and dollar amounts.
    • Imposes spike hydrostatic testing for idle pipelines six inches or larger before restart.
    • Authorizes suspension of gasoline vapor pressure rules during price spikes.
    • Establishes Kern County CEQA framework deeming local zoning EIR sufficient.

    Summary

    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.

    Key Dates

    Next Step
    Referred to the Assembly Standing Committee on Natural Resources
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Natural Resources
    Hearing has not been scheduled yet
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    W/O REF. TO FILE SB237 Grayson
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    SB 237 Grayson Senate Third Reading By WILSON
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    W/O REF. TO FILE SB237 Grayson
    Assembly Committee
    Do pass
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Consent Calendar 2nd SB237 Grayson
    Senate Judiciary Hearing
    Senate Committee
    Senate Judiciary Hearing
    Do pass as amended, and be ordered to the Consent Calendar
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Al MuratsuchiD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 23 row(s) selected.
    Page 1 of 5
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Bill Author
    Profile
    Al MuratsuchiD
    Assemblymember
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Profile
    Buffy WicksD
    Assemblymember
    Committee Member
    Profile
    Melissa HurtadoD
    Senator
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Committee Member
    Profile
    Lori WilsonD
    Assemblymember
    Bill Author
    Profile
    Matt HaneyD
    Assemblymember
    Committee Member
    Profile
    Juan AlanisR
    Assemblymember
    Committee Member
    Profile
    Damon ConnollyD
    Assemblymember
    Committee Member
    Profile
    Josh HooverR
    Assemblymember
    Committee Member
    Profile
    Gail PellerinD
    Assemblymember
    Committee Member
    Profile
    Rick ZburD
    Assemblymember
    Committee Member
    Profile
    Robert GarciaD
    Assemblymember
    Committee Member
    Profile
    Alexandra MacedoR
    Assemblymember
    Committee Member
    Profile
    Rhodesia RansomD
    Assemblymember
    Committee Member
    Profile
    Nick SchultzD
    Assemblymember
    Committee Member
    Profile
    Jesse ArreguinD
    Senator
    Bill Author
    Profile
    Christopher CabaldonD
    Senator
    Bill Author
    Profile
    Jerry McNerneyD
    Senator
    Bill Author
    Profile
    Laura RichardsonD
    Senator
    Bill Author

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Tim Grayson
    Tim GraysonD
    California State Senator
    Melissa Hurtado
    Melissa HurtadoD
    California State Senator
    Jerry McNerney
    Jerry McNerneyD
    California State Senator
    Laura Richardson
    Laura RichardsonD
    California State Senator
    Anna Caballero
    Anna CaballeroD
    California State Senator
    Co-Authors
    Jesse Arreguin
    Jesse ArreguinD
    California State Senator
    Lori Wilson
    Lori WilsonD
    California State Assembly Member
    Christopher Cabaldon
    Christopher CabaldonD
    California State Senator
    70% progression
    Bill has passed both houses in identical form and is being prepared for the Governor (9/13/2025)

    Latest Voting History

    View History
    September 13, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    6641080PASS

    Key Takeaways

    • Requires public posting of financial responsibility applications with volumes and dollar amounts.
    • Imposes spike hydrostatic testing for idle pipelines six inches or larger before restart.
    • Authorizes suspension of gasoline vapor pressure rules during price spikes.
    • Establishes Kern County CEQA framework deeming local zoning EIR sufficient.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Tim Grayson
    Tim GraysonD
    California State Senator
    Melissa Hurtado
    Melissa HurtadoD
    California State Senator
    Jerry McNerney
    Jerry McNerneyD
    California State Senator
    Laura Richardson
    Laura RichardsonD
    California State Senator
    Anna Caballero
    Anna CaballeroD
    California State Senator
    Co-Authors
    Jesse Arreguin
    Jesse ArreguinD
    California State Senator
    Lori Wilson
    Lori WilsonD
    California State Assembly Member
    Christopher Cabaldon
    Christopher CabaldonD
    California State Senator

    Summary

    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.

    70% progression
    Bill has passed both houses in identical form and is being prepared for the Governor (9/13/2025)

    Key Dates

    Next Step
    Referred to the Assembly Standing Committee on Natural Resources
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Natural Resources
    Hearing has not been scheduled yet
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    W/O REF. TO FILE SB237 Grayson
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    SB 237 Grayson Senate Third Reading By WILSON
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    W/O REF. TO FILE SB237 Grayson
    Assembly Committee
    Do pass
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Consent Calendar 2nd SB237 Grayson
    Senate Judiciary Hearing
    Senate Committee
    Senate Judiciary Hearing
    Do pass as amended, and be ordered to the Consent Calendar
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Latest Voting History

    View History
    September 13, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    6641080PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Al MuratsuchiD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 23 row(s) selected.
    Page 1 of 5
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Bill Author
    Profile
    Al MuratsuchiD
    Assemblymember
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Committee Member
    Profile
    Heath FloraR
    Assemblymember
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Profile
    Buffy WicksD
    Assemblymember
    Committee Member
    Profile
    Melissa HurtadoD
    Senator
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Committee Member
    Profile
    Lori WilsonD
    Assemblymember
    Bill Author
    Profile
    Matt HaneyD
    Assemblymember
    Committee Member
    Profile
    Juan AlanisR
    Assemblymember
    Committee Member
    Profile
    Damon ConnollyD
    Assemblymember
    Committee Member
    Profile
    Josh HooverR
    Assemblymember
    Committee Member
    Profile
    Gail PellerinD
    Assemblymember
    Committee Member
    Profile
    Rick ZburD
    Assemblymember
    Committee Member
    Profile
    Robert GarciaD
    Assemblymember
    Committee Member
    Profile
    Alexandra MacedoR
    Assemblymember
    Committee Member
    Profile
    Rhodesia RansomD
    Assemblymember
    Committee Member
    Profile
    Nick SchultzD
    Assemblymember
    Committee Member
    Profile
    Jesse ArreguinD
    Senator
    Bill Author
    Profile
    Christopher CabaldonD
    Senator
    Bill Author
    Profile
    Jerry McNerneyD
    Senator
    Bill Author
    Profile
    Laura RichardsonD
    Senator
    Bill Author