On September 25, 2024, Governor Gavin Newsom signed three bills into law that uplift the ability of communities to regulate oil drilling and help the state address polluting idle wells. The legislation aims to protect public health and the environment while empowering local communities to establish stronger protections around oil and gas activities. Our region’s local representatives sponsored both bills. Assemblymember Dawn Addis (D-Morro Bay) sponsored AB 3233 and Assemblymember Gregg Hart (D-Santa Barbara) sponsored AB 1866. ForestWatch is proud to have supported both AB 1866 and AB 3233 throughout the legislative process and thanks these assemblymembers for their leadership.
Photo: Governor Gavin Newsom website
Why are these bills necessary?
In recent years, we have seen a shift away from fossil fuels, with individuals becoming more aware of the effects of climate change. The oil and gas industry has spent millions of dollars lobbying to continue polluting, and often challenges sensible regulations by cities and counties in court, arguing that only the state government, not local jurisdictions, have the authority to regulate oil drilling. For example, the argument has been used to stop efforts in Ventura County to update permits authorized in the 1940s to 1960s, and programs to require oil companies to ensure they have enough insurance and bonding to cover the cost of spill cleanup, plugging defunct oil wells, and remediating and reclaiming old drilling sites to natural condition.
Summary of signed legislation
AB 3233 by Assemblymember Dawn Addis empowers local governments and residents to have a stronger voice on proposed oil and gas operations in their community, ensuring that decisions impacting the environment and public health reflect the priorities of their communities. AB 3233 helps address the imbalance of power between local communities and major oil corporations, which have historically driven land use decisions at the expense of the residents’ health, safety, and environmental wellbeing.
AB 1866 by Assemblymember Gregg Hart requires oil operators to develop a comprehensive plan to expeditiously plug the estimated 40,000 idle oil wells in California within the next decade. Many of these wells are in Los Padres National Forest and Carrizo Plain National Monument. Others have sat dormant near neighborhoods, schools, and other sensitive receptor sites. The bill also requires operators to prioritize plugging wells within 3,200 feet of where people live, play and work.
What this means for public lands and local communities
Without the signed legislation, at the current pace, it is estimated to take between 75-100 years to plug the majority of idle oil wells in California. The estimated cost to properly plug and remediate all idle and orphan oil and gas wells statewide is $21.5 billion. Currently, California holds $153.3 million in surety and insurance bonds, which is less than 1% of the estimated statewide cost. The efforts made by our elected officials are commendable and necessary to have thriving communities. This legislation should also make it easier for localities like the Ventura County Board of Supervisors to pass bonding and surety measures to hold oil and gas accountable.
Unfortunately, on May 21, 2024, the Ventura County Board of Supervisors (BOS) voted–to suspend further work on the Non-Coastal Zoning Ordinance (NCZO) and Coastal Zoning Ordinance (CZO) amendments that would:
- Limit new discretionary Conditional Use Permits for oil and gas operations to 15 years,
- Increase current County surety and insurance amounts for oil and gas compliance and restoration, and
- Incorporate measures to promote timely permanent plugging and restoration of oil and gas wells idle for 15 years or more.
However, current regulations allow major companies to pay only $10,000 in blanket bonds for hundreds of wells across our region, which is insufficient to cover the cost of plugging even one well. Consequently, taxpayers bear the financial burden of cleanup efforts due to these loopholes. The ordinance amendments face significant opposition from Aera (located in Ventura), Carbon California (which operates most wells in the Sespe Oil Field in Los Padres National Forest), ABA Energy, Western States Petroleum Association, Coalition of Labor Agriculture and Business (CoLAB), Renaissance Petroleum, Ventura County Taxpayers Association, and Ventura Chamber of Commerce.
ForestWatch and CFROG have been working to get these amendments back on the Planning Division’s 2023-2026 Work Plan after they were removed. Earlier this summer, we circulated a sign-on letter demonstrating broad support for county action on these items, reflecting significant outreach and community backing on this issue. We look forward to seeing the effort get back on track, now that the legislature has affirmed the power of local governments to hold the oil and gas industry accountable and implement proactive measures that better protect communities.
AB 1866 & AB 3233 will take effect on January 1, 2025.
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