Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.

Existing law requires the plugging and abandoning of all wells located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.

Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2¹/₂ miles of the identified low-production wells, as provided.

This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account, after accounting for appropriations made for administrative purposes, to the County of Los Angeles to establish a program to disburse in direct cash assistance in equal amounts to households located within 2¹/₂ miles of the identified low production wells who have at least one member with respiratory or reproductive health impacts. The bill would, among other things, require the county to establish processes for households to verify that they meet the residency and health-impact requirements, as provided. The bill would require the application process for direct cash assistance to be noninvasive, simple, and standardized. The bill would limit the disbursement of direct cash assistance to 1,000 households and would require the county to select recipient households by randomized lottery if the number of applications from verified eligible households exceeds 1,000. The bill would exclude this direct cash assistance from income or resource considerations for purposes of determining any member of the households eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as provided. The bill would require the department, subject to an appropriation by the Legislature, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation. By imposing new duties on the County of Los Angeles, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.

Existing law requires the plugging and abandoning of all wells located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.

Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2¹/₂ miles of the identified low-production wells, as provided.

This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account, after accounting for appropriations made for administrative purposes, to the County of Los Angeles to establish a program to disburse in direct cash assistance in equal amounts to households located within 2¹/₂ miles of the identified low production wells who have at least one member with respiratory or reproductive health impacts. The bill would, among other things, require the county to establish processes for households to verify that they meet the residency and health-impact requirements, as provided. The bill would require the application process for direct cash assistance to be noninvasive, simple, and standardized. The bill would limit the disbursement of direct cash assistance to 1,000 households and would require the county to select recipient households by randomized lottery if the number of applications from verified eligible households exceeds 1,000. The bill would exclude this direct cash assistance from income or resource considerations for purposes of determining any member of the households eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as provided. The bill would require the department, subject to an appropriation by the Legislature, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation. By imposing new duties on the County of Los Angeles, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.

Existing law requires the plugging and abandoning of all wells located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.

Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2¹/₂ miles of the identified low-production wells, as provided.

This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account, after accounting for appropriations made for administrative purposes, to be allocated to the County of Los Angeles to establish a program to disburse in direct cash assistance in equal amounts to individuals living households located within 2¹/₂ miles of the identified low production wells who have at least one member with respiratory or reproductive health impacts. The bill would would, among other things, require the county to establish processes for individuals households to verify that they meet the residency and health-impact requirements, as provided. The bill would require the application process for direct cash assistance to be noninvasive, simple, and standardized. The bill would limit the disbursement of direct cash assistance to 1,000 households and would require the county to select recipient households by randomized lottery if the number of applications from verified eligible households exceeds 1,000. The bill would exclude this direct cash assistance from income or resource considerations for purposes of determining any member of the households eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as provided. The bill would require the department, subject to an appropriation by the Legislature, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation. By imposing new duties on the County of Los Angeles, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.

Existing law requires the plugging and abandoning of all wells located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.

Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2¹/₂ miles of the identified low-production wells, as provided.

This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account Account, after accounting for appropriations made for administrative purposes, to be allocated to the County of Los Angeles to disburse in direct cash assistance in equal amounts to families individuals living within 2¹/₂ miles of the identified low production wells whose children who have respiratory or reproductive health conditions. impacts. The bill would require the county to establish processes for individuals to verify that they meet the residency and health-impact requirements, as provided. The bill would require the application process for direct cash assistance to be noninvasive, simple, and standardized. The bill would require the department, subject to an appropriation by the Legislature, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation. By imposing new duties on the County of Los Angeles, the bill would impose a state-mandated local program.

Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.

Existing law requires the plugging and abandoning of all wells located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.

Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2¹/₂ miles of the identified low-production wells, as provided.

This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account to be allocated to the County of Los Angeles to disburse in direct cash assistance to families living within 2¹/₂ miles of the identified low production wells whose children have respiratory health conditions.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1661

Author:(Bryan)

As Amended Ver:August 13, 2026

Majority vote

SUMMARY

Expands the uses of the Equitable Community Repair and Reinvestment Account (Account) and requires direct cash assistance to be made available to certain families living within 2-1/2 miles of the identified low production oil or gas wells located in the Inglewood Oil Field (IOF) in Los Angeles (LA) County, as provided.

Senate Amendments

1. Limit the disbursement of direct cash assistance to 1,000 households.
2. Clarify the direct cash assistance is distributed in one lump sum.
3. Require LA County to select recipient households by randomized lottery if the number of applications from verified eligible households exceeds 1,000.
4. Exclude direct cash assistance from income or resource considerations for purposes of determining any member of the household's eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as provided.
5. Explicitly require LA County to design and administer the application process to ensure equitable access for all eligible households, including households whose preferred language is not English and households that include members with disabilities or other limitations, including limited access to technology.
6. Provide that nothing in the bill shall be construed to require the Department of Conservation (DOC) to establish a program in coordination with, or monitor a program established by, LA County.

COMMENTS

AB 2716 (Bryan), Chapter 549, Statutes of 2024, prohibits the operation of low-production oil and gas wells located in the IOF and imposes a $10,000 per month penalty upon these wells if they remain in low-production for more than 12 months until they are plugged and abandoned. All penalty revenue is deposited into the Account to fund projects, such as park creation and

The IOF is surrounded by residential areas, schools, and homes and, according to the LA Times, more than one million people live within 5 miles of the IOF. Residents living near oil fields have long reported adverse health effects such as respiratory, reproductive and cardiovascular issues. In the LA area, many of these risks disproportionately affect low-income communities and communities of color.

This bill requires DOC, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5 million deposited into the Account to LA County for direct cash assistance to families living within 2¹/₂ miles of the identified low-production wells whose children have respiratory health conditions and can verify their residence to LA County.

According to the Author

Communities living next to active oil fields continue to experience disproportionately high rates of respiratory illness. Families in these neighborhoods are routinely exposed to harmful air pollutants, as well as chronic noise and vibration associated with oil drilling operations. This targeted support recognizes the immense harm these communities have endured and provides environmental reparations for families who continue to experience the health impacts of neighborhood oil drilling.

Arguments in Support

A group of public health and environmental justice groups write that the communities surrounding the IOF are predominantly Black and Latine. Black people are 75% more likely to live in communities near toxic facilities like chemical plants and oil refineries. This applies to the mostly Black communities close to the IOF. The health and safety of residents living near the field are top concerns for our organizations and the communities we represent. AB 1661 is an opportunity to hold polluters accountable for the decades of harm they have caused to frontline communities. This can serve as a meaningful example of environmental reparations and position California as a leader in addressing past harm from the oil and gas industry. For these reasons, we respectfully request your support for AB 1661.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee:

1. By requiring a set-aside for direct cash assistance from the Account, this bill would create a one-time cost pressure of $5 million on the Account, the General Fund, or some other potential funding source to the extent there is insufficient funding for all eligible families.
2. To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs, which could have a General Fund impact.

VOTES:

ASM NATURAL RESOURCES: 10-1-3

YES: Bryan, Connolly, Garcia, Haney, Kalra, Boerner, Pellerin, Schultz, Wicks, Zbur

NO: Macedo

ABS, ABST OR NV: Ellis, Alanis, Hoover

ASM APPROPRIATIONS: 11-2-2

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Dixon, Tangipa

ABS, ABST OR NV: Hoover, Ta

ASSEMBLY FLOOR: 58-14-8

YES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO: Chen, Davies, DeMaio, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Johnson, Macedo, Patterson, Sanchez, Tangipa

ABS, ABST OR NV: Alanis, Castillo, Hoover, Lackey, Muratsuchi, Celeste Rodriguez, Ta, Wallis

UPDATED

VERSION: August 13, 2026

CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0004149

 THIRD READING  

Bill No: AB 1661

Author: Bryan (D)

Amended: 8/13/26 in Senate

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 5-2, 6/23/26

AYES: Becker, Allen, Cabaldon, Laird, Stern

NOES: Seyarto, Grove

SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/13/26

AYES: Cervantes, Cabaldon, Grayson, Richardson, Wahab

NOES: Seyarto, Dahle

ASSEMBLY FLOOR: 58-14, 5/26/26 - See last page for vote

SUBJECT: Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account: health impacts

SOURCE: Black Women for Wellness

Strategic Concepts in Organizing and Policy Education

DIGEST:

This bill expands the uses of the Equitable Community Repair and Reinvestment Account and requires direct cash assistance to be made available to certain families living within 2-1/2 miles of the identified low production oil or gas wells located in the Inglewood Oil Field in Los Angeles County, as provided.

ANALYSIS:

Existing law:

1. Establishes the Geologic Energy Management Division (CalGEM) in the Department of Conservation (department).. The State Oil and Gas Supervisor (supervisor) leads CalGEM.
2. Directs the supervisor to so supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, as specified, so as to prevent, as far as possible, damage to life, health, property, and natural resources, as provided. (Public Resources Code (PRC) §3106)
3. Prohibits, on or after March 1, 2026, an oil well located in a county of the first class (defined as a county with a population of more than 4 million, which currently only applies to Los Angeles County) in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, from being a low-production well, as defined, for more than 12 months.
   1. Requires the supervisor to charge an administrative penalty of $10,000 per month to a low-production well owner in violation of the time limit on low-production well status until the low-production well is plugged and abandoned. Requires penalties to be remitted annually on a schedule determined by the supervisor.
   2. Requires all funds collected to be deposited in the Equitable Community Repair and Reinvestment Account (Account).
   3. Requires funds from the Account to be available, upon appropriation by the Legislature, to the department for allocation to a county of the first class (Los Angeles County) for the following:
      1. Park creation or explanation and maintenance of new outdoor amenities in park-poor neighborhoods.
      2. Urban greening.
      3. Affordable housing needed to accommodate community needs.
      4. Climate mitigation and resilience. or
      5. Community benefit projects with environmental cobenefits.
   4. Caps the Account from accruing more than $20 million. (PRC §3206.1.5)

This bill:

1. Requires the funds from the Account to be available, upon appropriation, to the department for allocation to a county of the first class (county).
2. Requires the department, upon appropriation and subject to the terms of the appropriation, to distribute the first $5 million deposited in the Account, after accounting for funds appropriated for the county’s administrative costs, to the county, to disburse direct cash assistance to households located within 2-1/2 miles of the identified low production oil or gas wells in the Inglewood Oil Field that request direct cash assistance where at least one (household) member has respiratory or reproductive health impacts and the household meets the residency requirement, as provided.
   1. Requires the county to establish a program to distribute the assistance as a one-time lump sum per verified household in an equal amount to each household. Requires that no more than 1,000 households are eligible for assistance. Requires the county to select recipient households by randomized lottery if the number of applications from verified households exceeds 1,000.
   2. Requires the county to require a household requesting direct cash assistance to verify the residency of its members through various means including voter registration and utility billing records, among others.
   3. Requires the county to establish a process to verify that a household has one member who has respiratory or reproductive health impacts, including via self-attestation.
   4. Requires the application process for direct cash assistance to be noninvasive, simple, and standardized. Requires the county to design and administer the application process to ensure equitable access for all eligible households, as provided. Prohibits a person who assists an applicant with completing or submitting their application from charging, demanding, receiving, or collecting any amount of the applicant’s direct cash assistance.
   5. Requires the county to disburse payments within 60 days of recipient selection, as provided.
   6. Provides that none of the distributed direct cash assistance is income or resources for purposes of determining eligibility for benefits or assistance, as provided.
   7. Provides immunity for the county, its officers, employees, and agents from any liability resulting from implementation of the direct cash assistance program, as specified.
3. Requires the department, subject to an appropriation from the Account for administrative purposes, to distribute to the county for the county to expend for administrative purposes an amount that does not exceed 10% of the amount appropriated for programmatic purposes (e.g. up to $500,000 if the $5 million is appropriated), as specified. Requires the source of this appropriation to be the initial money deposited into the Account.
4. Directly authorizes Los Angeles County, instead of requiring the department to make an allocation to the county, upon appropriation and subject to the terms of the appropriation, to contract with entities within its jurisdiction including cities and nonprofit organizations, among others, to use funds for certain projects within 2-1/2 miles of the identified low-production oil or gas wells in the Inglewood Oil Field provided that no funds will be disbursed for these projects until the first $5 million has been distributed per (2) above.
5. Provides that reimbursement to local agencies and school districts is required if the Commission on State Mandates determines there are state-mandated costs, and make minor, technical changes.

Comment

No funds have yet been distributed as penalties from identified low-production oil or gas wells in the Inglewood Oil Field. Due to the timelines established in existing law, no penalties for violations would be possible prior to April 2027. Therefore, the Account has no moneys in it.

[NOTE: Additional information regarding this bill can be found in the Senate Natural Resources and Water Committee’s analysis.]

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee:

• The Department of Conservation (DOC) estimates ongoing costs of $477,000 in the first year and $441,000 annually thereafter (Oil, Gas, and Geothermal Administrative Fund [OGGAF]) to develop program guidelines, including defining criteria for fund eligibility, provide support to the county in form of answering questions and provide policy guidance in relation to fund use, and audit the county’s compliance in following the developed guidelines.
• By requiring a set-aside for direct cash assistance from the Account, this bill would create a one-time cost pressure of $5 million on the Account, the General Fund, or some other potential funding source to the extent there is insufficient funding for all eligible families or DOC is unable to allocate this funding to other authorized project categories, such as park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods, urban greening, affordable housing needed to accommodate community needs, climate mitigation and resilience, and community benefit projects with environmental cobenefits.
• To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs, which could have a General Fund impact. By requiring the county to establish processes for individuals to verify that they meet the residency and health-impact requirements, this bill would imposing new duties on the County of Los Angeles. The bill would require DOC, subject to an appropriation, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation.

SUPPORT: (Verified 8/14/26)

Black Women for Wellness (co-sponsor)

Strategic Concepts in Organizing and Policy Education (co-sponsor)

350 Bay Area Action

350 Conejo/ San Fernando Valley

350 South Bay Los Angeles

Access Reproductive

All Things Bayview

Alliance of Nurses for Healthy Environments

APEN Action

Asian Pacific Islander Forward Movement

California Environmental Voters

Consumer Watchdog

Esperanza Community Housing

Extinction Rebellion Los Angeles

Food & Water Watch

Greenpeace USA

Holman United Methodist Church

Long Beach Alliance for Clean Energy

Los Angeles Neighborhood Land Trust

National Association for the Advancement of Colored People

California-Hawaii State Conference

Parents Against Santa Susana Field Lab

Physicians for Social Responsibility LA

Protect Playa Now

Redeemer Community Partnership

San Francisco Bay Physicians for Social Responsibility

Sierra Club

Sierra Club Clean Break

South Asian Network

South Coast Air Quality Management District

STAND-LA

Sunflower Alliance

Valley Improvement Project

West Berkeley Alliance for Clean Air and Safe Jobs

OPPOSITION: (Verified 8/14/26)

None received

ARGUMENTS IN SUPPORT: According to the author, “Communities living next to active oil fields continue to experience disproportionately high rates of respiratory illness. Families in these neighborhoods are routinely exposed to harmful air pollutants, as well as chronic noise and vibration associated with oil drilling operations. AB 1661 ensures that the first $5 million deposited into the Equitable Community Repair and Reinvestment Account, established under AB 2716, will be given as direct cash assistance to families living within 2.5 miles of the Inglewood Oil Field who have a child with a respiratory health condition. This targeted support recognizes the immense harm these communities have endured and provides environmental reparations for families who continue to experience the health impacts of neighborhood oil drilling.”

ASSEMBLY FLOOR: 58-14, 5/26/26

AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Chen, Davies, DeMaio, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Johnson, Macedo, Patterson, Sanchez, Tangipa

NO VOTE RECORDED: Alanis, Castillo, Hoover, Lackey, Muratsuchi, Celeste Rodriguez, Ta, Wallis

Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116

8/17/26 10:38:07

**** END ****

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 1661 (Bryan) - Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account: health impacts

Bill Summary:

This bill would expand the uses of the Equitable Community Repair and Reinvestment Account (Account) and require direct cash assistance to be made available to certain families living within 2-1/2 miles of the identified low production oil or gas wells located in the Inglewood Oil Field in Los Angeles County, as provided.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on August 13, 2026

Fiscal Impact:

• The Department of Conservation (DOC) estimates ongoing costs of $477,000 in the first year and $441,000 annually thereafter (Oil, Gas, and Geothermal Administrative Fund [OGGAF]) to develop program guidelines, including defining criteria for fund eligibility, provide support to the county in form of answering questions and provide policy guidance in relation to fund use, and audit the county’s compliance in following the developed guidelines.
• By requiring a set-aside for direct cash assistance from the Account, this bill would create a one-time cost pressure of $5 million on the Account, the General Fund, or some other potential funding source to the extent there is insufficient funding for all eligible families or DOC is unable to allocate this funding to other authorized project categories, such as park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods, urban greening, affordable housing needed to accommodate community needs, climate mitigation and resilience, and community benefit projects with environmental cobenefits.
• To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs, which could have a General Fund impact. By requiring the county to establish processes for individuals to verify that they meet the residency and health-impact requirements, this bill would imposing new duties on the County of Los Angeles. The bill would require DOC, subject to an appropriation, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation.

Author Amendments:

Author amendments would limit the disbursement of direct cash assistance to 1,000 households and would require the county to select recipient households by randomized lottery if the number of applications from verified eligible households exceeds 1,000. Amendments would also exclude direct cash assistance from income or resource considerations for purposes of determining any member of the household’s eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as provided.

-- END --

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 1661 (Bryan) - Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account: health impacts

Bill Summary:

This bill would expand the uses of the Equitable Community Repair and Reinvestment Account (Account) and require direct cash assistance to be made available to certain families living within 2-1/2 miles of the identified low production oil or gas wells located in the Inglewood Oil Field in Los Angeles County, as provided.

Fiscal Impact:

• The Department of Conservation (DOC) estimates ongoing costs of $477,000 in the first year and $441,000 annually thereafter (Oil, Gas, and Geothermal Administrative Fund [OGGAF]) to develop program guidelines, including defining criteria for fund eligibility, provide support to the county in form of answering questions and provide policy guidance in relation to fund use, and audit the county’s compliance in following the developed guidelines.
• By requiring a set-aside for direct cash assistance from the Account, this bill would create a one-time cost pressure of $5 million on the Account, the General Fund, or some other potential funding source to the extent there is insufficient funding for all eligible families or DOC is unable to allocate this funding to other authorized project categories, such as park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods, urban greening, affordable housing needed to accommodate community needs, climate mitigation and resilience, and community benefit projects with environmental cobenefits.
• To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs, which could have a General Fund impact. By requiring the county to establish processes for individuals to verify that they meet the residency and health-impact requirements, this bill would imposing new duties on the County of Los Angeles. The bill would require DOC, subject to an appropriation, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation.

Background:

Oil in California. California remains a significant oil and gas producer, ranking 8th among the 50 states for oil production and 15th for marketed natural gas according to the U.S. Energy Information Administration. Exploration and production began in the 1800s. Output reached roughly 105 million barrels in 2025 and continues its decline from the 1985 peak. Many California fields have operated for decades or longer and now depend on expensive enhanced recovery techniques such as steam injection to keep producing. Many wells also sit within or near urban areas.

The Inglewood Oil Field. Located in the Baldwin Hills in Los Angeles County next to a state recreation area and a state park, the Inglewood Oil Field has seen 1,600 wells drilled since oil was discovered there in 1924. At roughly 1,000 acres today, it ranks among the largest contiguous urban oil fields in the country. Residential neighborhoods, schools, and homes surround the field, and the Los Angeles Times reports that more than a million people live within five miles of it. Residents near oil fields have long described respiratory, reproductive, and cardiovascular health problems, and in the Los Angeles area these burdens fall disproportionately on low-income communities and communities of color.

Wells impacting communities. The California Oil and Gas Public Health Rulemaking Scientific Advisory Panel, which advises the DOC's Geologic Energy Management Division (CalGEM) — the state's oil and gas well regulator — has found that living close to oil and gas development produces significant adverse health effects, including poor birth outcomes, asthma, and diminished lung function. Hazardous air pollutants known to come from these sites include benzene, toluene, ethylbenzene, xylenes, hexane, and formaldehyde, many of which are known, probable, or possible carcinogens or teratogens with additional harmful effects. That body of science supported the creation of health protection zones extending 3,200 feet around oil and gas wells to shield designated sensitive receptors such as schools. Within those zones, drilling new wells and reworking existing ones is prohibited, subject to narrow exceptions.

Phase-out of oil production in the Inglewood Oil Field. A settlement agreement between Culver City and Sentinel Peak Resources, LLC (Sentinel) requires Sentinel to plug and abandon at least 15 wells by December 31, 2027, at a minimum pace of three wells per calendar year across the 2023–2027 period. Sentinel must plug and abandon all remaining wells and complete closure of the field by December 31, 2029, though a conditional extension may be granted under special circumstances for no longer than December 31, 2032. Culver City has expressed support for redeveloping the field for compatible land uses.

AB 2716 (Bryan, Chapter 549, Statutes of 2024) bars operation of low-production wells in the Inglewood Oil Field — those yielding fewer than 15 barrels per day over any 12 consecutive months, or an equivalent volume of natural gas — and imposes a $10,000 monthly penalty on wells that stay in low production beyond 12 months until they are plugged and abandoned. Penalty revenue goes to the Equitable Community Repair and Reinvestment Account, which funds community benefit projects such as parks and affordable housing.

The field's most recent new well was drilled in June 2014. CalGEM reports that annual production over the past decade reached as much as 2 million barrels, though recent years have run closer to 1.2–1.3 million barrels. The field currently has 641 active wells — 419 oil and gas wells and 222 water injection wells — along with 182 idle wells, nearly all of them Sentinel's, with 8 belonging to other operators. During 2025 Sentinel filed 12 plug-and-abandon Notices of Intention and 2 rework NOIs for the field. No additional wells are planned.

Proposed Law:

Existing law also provides that, beginning March 1, 2026, an oil well cannot remain a low-production well for more than 12 months if it sits in a county of the first class — meaning a county of more than 4 million people, currently only Los Angeles County — in an oil field adjacent to a state recreation area or state park and located at least partly within the Baldwin Hills Conservancy boundary. The supervisor must charge the owner of a violating well a $10,000 monthly administrative penalty until the well is plugged and abandoned, with penalties remitted annually on a schedule the supervisor sets. Collected funds go into the Equitable Community Repair and Reinvestment Account and, upon appropriation, are available to DOC for allocation to Los Angeles County for park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods, urban greening, affordable housing to meet community needs, climate mitigation and resilience, or community benefit projects with environmental cobenefits. The Account may not accrue more than $20 million (PRC §3206.1.5).

This bill would:

1. Require the funds from the Account to be available, upon appropriation, to the DOC for allocation to a county of the first class.
2. Require the DOC, upon appropriation and subject to the terms of the appropriation, distribute the first $5 million deposited in the Account, after accounting for funds appropriated for the county’s administrative costs, to the county to disburse in direct cash assistance to individuals living within 2-1/2 miles of the identified low production oil or gas wells in the Inglewood Oil Field who request direct cash assistance, have respiratory or reproductive health impacts, and meet the residency requirement, as provided.
   1. Require the county to require an individual requesting direct cash assistance to verify their residence through various means including voter registration and utility billing records, among others.
   2. Require the county to establish a process to verify that any individual has respiratory or reproductive health impacts, including via self-attestation.
   3. Require the application process for direct cash assistance to be noninvasive, simple, and standardized.
3. Require the DOC, subject to an appropriation from the Account for administrative purposes, distribute to the county for the county to expend for administrative purposes an amount that does not exceed 10% of the amount appropriated for programmatic purposes (e.g. up to $500,000 if the $5 million is appropriated). Require the source of this appropriation to be the initial money deposited into the Account.
4. Require the county to distribute direct cash assistance to the extent funds are available in an equal amount to each verified program participant.
5. Directly authorize Los Angeles County, instead of requiring the DOC to make an allocation to the county, upon appropriation and subject to the terms of the appropriation, to contract with entities within its jurisdiction including cities and nonprofit organizations, among others, to use funds for certain projects within 2-1/2 miles of the identified low-production oil or gas wells in the Inglewood Oil Field provided that no funds will be disbursed for these projects until the first $5 million has been distributed per (2) above.
6. Provide that reimbursement to local agencies and school districts is required if the Commission on State Mandates determines there are state-mandated costs, and make minor, technical changes.

Related Legislation:

AB 2716 (Bryan, Chapter 549, Statutes of 2024) prohibits the operation of low-production wells (producing fewer than15 barrels per day during any 12 consecutive month period or an equivalent amount of natural gas) in the Inglewood Oil Field and imposes a $10,000 per month penalty upon those wells if they remain in low-production for more than 12 months prior to being plugged and abandoned. All penalty revenue is deposited into the Account to fund projects, such as park creation and affordable housing to benefit the nearby community.

Staff Comments:

No funds have yet been distributed as penalties from identified low-production oil or gas wells in the Inglewood Oil Field. Due to the timelines in AB 2716, no penalties for violations would be possible prior to April 2027. Therefore, the Account has no moneys in it.

Direct payments. The state has some precedents for direct cash assistance to residents. Most residential utility customers automatically receive a California Climate Credit – a direct rebate applied to their electricity and natural gas bills. Every resident with a qualifying utility account receives it automatically. The direct cash assistance provided by this bill will be on a first-come, first-served basis, although this means that funds may not be available for those most in need.

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SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Josh Becker, Chair

2025 - 2026 Regular

Bill No: AB Hearing Date: June 23, 2026

Subject: Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account: health impacts

SUMMARY

This bill would expand the uses of the Equitable Community Repair and Reinvestment Account and require direct cash assistance to be made available to certain families living within 2-1/2 miles of the identified low production oil or gas wells located in the Inglewood Oil Field in Los Angeles County, as provided.

BACKGROUND AND EXISTING LAW

Oil in California

California is a major oil and gas producing state. According to the U.S. Energy Information Administration, the state was 8^th and 15^th for oil and marketed natural gas production, respectively, among the 50 states^[1]. Oil exploration and production in California started in the 19^th century. Production of oil was about 105 million barrels in 2025^[2], and continues to decline from the 1985 peak. Many of the state’s oil and gas fields have been in operation for decades, if not longer, and require costly enhanced oil recovery methods, such as steam injection, to continue to produce oil. Additionally, many oil and gas wells are located in or in close proximity to urban locations.

The Inglewood Oil Field

The Inglewood Oil Field is adjacent to a state recreation area and a state park in the Baldwin Hills in Los Angeles County. Oil was discovered in 1924, and 1,600 oil wells have since been drilled in the Inglewood Oil Field. The existing oil field is approximately 1,000 acres currently and it is one of the largest contiguous urban oil fields in the country. The Inglewood Oil Field is surrounded by residential areas, schools, and homes, and, according to the Los Angeles Times, more than one million people live within 5 miles of the Inglewood Oil Field. Residents living near oil fields have long reported adverse health effects such as respiratory, reproductive and cardiovascular issues. In the Los Angeles area, many of these risks disproportionately affect low-income communities and communities of color.

Wells impacting communities

The California Oil and Gas Public Health Rulemaking Scientific Advisory Panel, an advisory body to Geologic Energy Management Division in the Department of Conservation (CalGEM), the state’s oil and gas well regulator, has noted that close proximity to oil and gas development causes significant adverse health effects, including poor birth outcomes, asthma, and reduced lung function. Hazardous air pollutants that are known to be emitted from oil and gas development sites include benzene, toluene, ethylbenzene, xylenes, hexane and formaldehyde – many of which are known, probable, or possible carcinogens and/or teratogens and which have other adverse health effects. This scientific effort informed the establishment of health protection zones of a radius of 3,200 feet around oil and gas wells to protect designated sensitive receptors, such as schools. Drilling new wells and the re-working of existing wells is prohibited in health protection zones with limited exception.

Phase-out of oil production in the Inglewood Oil Field

Under a settlement agreement between Culver City and Sentinel Peak Resources, LLC (Sentinel), Sentinel must plug and abandon a minimum of 15 wells by December 31, 2027, at a rate of a minimum of three wells per calendar year over a five year period between 2023 – 2027. Sentinel must plug and abandon all remaining wells and complete the overall closure of the Inglewood Oil Field by December 31, 2029. An extension may be conditionally authorized under special circumstances, but is limited to up to December 31, 2032, only. Culver City has acknowledged support for the redevelopment of the Inglewood Oil Field to transition to compatible land uses.

AB 2716 (Bryan, Chapter 549, Statutes of 2024) prohibits the operation of low-production wells (producing fewer than 15 barrels per day during any 12 consecutive month period or an equivalent amount of natural gas) in the Inglewood Oil Field and imposes a $10,000 per month penalty upon those wells if they remain in low-production for more than 12 months, until they are plugged and abandoned. All penalty revenue is deposited into the Equitable Community Repair and Reinvestment Account (Account) to fund projects, such as park creation and affordable housing, to benefit the nearby community.

The last new well drilled in the Inglewood Oil Field was in June 2014. According to CalGEM, over the last 10 years as much as 2 million barrels of oil were produced from the Inglewood Oil Field annually, although more recently annual production is in the range of 1.2 – 1.3 million barrels of oil. There are 641 active wells (419 oil and gas and 222 active water injection wells) and 182 idle wells. Almost all of the idle wells are Sentinel’s, although 8 are owned by other operators. In 2025, Sentinel applied for 12 plug-and-abandon Notices of Intention (NOIs), and 2 re-work NOIs for the Inglewood Oil Field. There are no current plans to dig additional wells.

Existing law:

1. Establishes CalGEM. The State Oil and Gas Supervisor (supervisor) leads CalGEM.
2. Directs the supervisor to so supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, as specified, so as to prevent, as far as possible, damage to life, health, property, and natural resources, as provided. (Public Resources Code (PRC) §3106)
3. Prohibits, on or after March 1, 2026, an oil well located in a county of the first class (defined as a county with a population of more than 4 million, which currently only applies to Los Angeles County) in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, from being a low-production well, as defined, for more than 12 months.
   1. Requires the supervisor to charge an administrative penalty of $10,000 per month to a low-production well owner in violation of the time limit on low-production well status until the low-production well is plugged and abandoned. Requires penalties to be remitted annually on a schedule determined by the supervisor.
   2. Requires all funds collected to be deposited in the Equitable Community Repair and Reinvestment Account.
   3. Requires funds from the Account to be available, upon appropriation by the Legislature, to the Department of Conservation for allocation to a county of the first class (Los Angeles County) for the following:
      1. Park creation or explanation and maintenance of new outdoor amenities in park-poor neighborhoods.
      2. Urban greening.
      3. Affordable housing needed to accommodate community needs.
      4. Climate mitigation and resilience. or
      5. Community benefit projects with environmental cobenefits.
   4. Caps the Account from accruing more than $20 million. (PRC §3206.1.5)

PROPOSED LAW

This bill would:

1. Require the funds from the Account to be available, upon appropriation, to the Department of Conservation for allocation to a county of the first class.
2. Require the Department of Conservation, upon appropriation and subject to the terms of the appropriation, distribute the first $5 million deposited in the Account, after accounting for funds appropriated for the county’s administrative costs, to the county to disburse in direct cash assistance to individuals living within 2-1/2 miles of the identified low production oil or gas wells in the Inglewood Oil Field who request direct cash assistance, have respiratory or reproductive health impacts, and meet the residency requirement, as provided.
   1. Require the county to require an individual requesting direct cash assistance to verify their residence through various means including voter registration and utility billing records, among others.
   2. Require the county to establish a process to verify that any individual has respiratory or reproductive health impacts, including via self-attestation.
   3. Require the application process for direct cash assistance to be noninvasive, simple, and standardized.
3. Require the Department of Conservation, subject to an appropriation from the Account for administrative purposes, distribute to the county for the county to expend for administrative purposes an amount that does not exceed 10% of the amount appropriated for programmatic purposes (e.g. up to $500,000 if the $5 million is appropriated). Require the source of this appropriation to be the initial money deposited into the Account.
4. Require the county to distribute direct cash assistance to the extent funds are available in an equal amount to each verified program participant.
5. Directly authorize Los Angeles County, instead of requiring the Department of Conservation to make an allocation to the county, upon appropriation and subject to the terms of the appropriation, to contract with entities within its jurisdiction including cities and nonprofit organizations, among others, to use funds for certain projects within 2-1/2 miles of the identified low-production oil or gas wells in the Inglewood Oil Field provided that no funds will be disbursed for these projects until the first $5 million has been distributed per (2) above.
6. Provide that reimbursement to local agencies and school districts is required if the Commission on State Mandates determines there are state-mandated costs, and make minor, technical changes.

ARGUMENTS IN SUPPORT

According to the author, “Communities living next to active oil fields continue to experience disproportionately high rates of respiratory illness. Families in these neighborhoods are routinely exposed to harmful air pollutants, as well as chronic noise and vibration associated with oil drilling operations. AB 1661 ensures that the first $5 million deposited into the Equitable Community Repair and Reinvestment Account, established under AB 2716, will be given as direct cash assistance to families living within 2.5 miles of the Inglewood Oil Field who have a child with a respiratory health condition. This targeted support recognizes the immense harm these communities have endured and provides environmental reparations for families who continue to experience the health impacts of neighborhood oil drilling.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

No funds have yet been distributed as penalties from identified low-production oil or gas wells in the Inglewood Oil Field. Due to the timelines in AB 2716, no penalties for violations would be possible prior to April 2027. Therefore, the Account has no moneys in it.

Direct payments. The state has some precedents for direct cash assistance to residents. Most residential utility customers automatically receive a California Climate Credit – a direct rebate applied to their electricity and natural gas bills. Every resident with a qualifying utility account receives it automatically. The direct cash assistance provided by this bill will be on a first-come, first-served basis, although this means that funds may not be available for those most in need.

As the bill moves forward and the author continues to refine the direct cash assistance program, the Committee may wish to direct staff to continue working with the author’s office as needed.

Los Angeles area phase-out of oil production. In December 2025, Los Angeles County filed a lawsuit against Sentinel for failing to plug and abandon 227 idle^[3] or exhausted wells in the Inglewood oil field. In filing the lawsuit, the County relied on the term “exhausted” well to mean those that yield on average of two barrels per day or less. This lawsuit is part of a larger effort by the county to phase out oil drilling within its boundaries. A 2022 LA City Council ordinance to phase out all oil drilling in Los Angeles over 20 years and ban new wells was successfully challenged and blocked in 2024.

Recent related legislation

AB 2716 (Bryan, Chapter 549, Statutes of 2024) prohibits the operation of low-production wells (producing fewer than15 barrels per day during any 12 consecutive month period or an equivalent amount of natural gas) in the Inglewood Oil Field and imposes a $10,000 per month penalty upon those wells if they remain in low-production for more than 12 months prior to being plugged and abandoned. All penalty revenue is deposited into the Account to fund projects, such as park creation and affordable housing to benefit the nearby community.

SUGGESTED AMENDMENTS: none

SUPPORT

Black Women for Wellness (co-sponsor)

Strategic Concepts in Organizing and Policy Education (SCOPE) (co-sponsor)

350 Bay Area Action

350 Conejo/ San Fernando Valley

350 South Bay Los Angeles

Access Reproductive

All Things Bayview

Alliance of Nurses for Healthy Environments

APEN Action

Asian Pacific Islander Forward Movement

California Environmental Voters

Consumer Watchdog

Esperanza Community Housing

Extinction Rebellion Los Angeles

Food & Water Watch

Greenpeace USA

Holman United Methodist Church

Long Beach Alliance for Clean Energy

Los Angeles Neighborhood Land Trust

National Association for the Advancement of Colored People (NAACP) California-Hawaii State Conference

Parents Against Santa Susana Field Lab

Physicians for Social Responsibility LA

Protect Playa Now

Redeemer Community Partnership

San Francisco Bay Physicians for Social Responsibility

Sierra Club

Sierra Club Clean Break

South Asian Network

South Coast Air Quality Management District

STAND-LA

Sunflower Alliance

Valley Improvement Project

West Berkeley Alliance for Clean Air and Safe Jobs

OPPOSITION

None received

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1. Ranking based upon 2024 data. ↑

2. According to the WellSTAR data dashboard (accessed May 31, 2026) ↑

3. An idle well is one that has not produced oil or gas for 24 consecutive months. (PRC §3008) ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1661

Author:(Bryan)

As Introduced Ver:January 29, 2026

Majority vote

SUMMARY

Requires the Department of Conservation (DOC) to allocate the first $5 million deposited in the Equitable Community Repair and Reinvestment Account (Account) to Los Angeles (LA) County to provide cash assistance to families living near the Inglewood Oil Field (IOF).

Major Provisions

1. Requires DOC to, upon appropriation by the Legislature and subject to the terms of the appropriation, distribute the first $5 million deposited into the Account to LA County to disburse in direct cash assistance to families living within 2 ½ miles of the identified low-production oil wells who have children with respiratory health conditions.
2. Prohibits funds from the Account from being distributed to other project categories authorized under existing law until the $5 million in cash assistance has been distributed

COMMENTS

AB 2716 (Bryan), Chapter 549, Statutes of 2024, prohibits the operation of low-production oil and gas wells located in the IOF and imposes a $10,000 per month penalty upon these wells if they remain in low-production for more than 12 months until they are plugged and abandoned. All penalty revenue is deposited into the Account to fund projects, such as park creation and

The IOF is surrounded by residential areas, schools, and homes and, according to the LA Times, more than one million people live within 5 miles of the IOF. Residents living near oil fields have long reported adverse health effects such as respiratory, reproductive and cardiovascular issues. In the LA area, many of these risks disproportionately affect low-income communities and communities of color.

This bill requires DOC, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5 million deposited into the Account to LA County for direct cash assistance to families living within 2¹/₂ miles of the identified low-production wells whose children have respiratory health conditions and can verify their residence to LA County.

According to the Author

Communities living next to active oil fields continue to experience disproportionately high rates of respiratory illness. Families in these neighborhoods are routinely exposed to harmful air pollutants, as well as chronic noise and vibration associated with oil drilling operations. AB 1661 ensures that the first $5 million deposited into the Equitable Community Repair and Reinvestment Account, established under AB 2716, will be given as direct cash assistance to families living within 2.5 miles of the IOF who have a child with a respiratory health condition.

Arguments in Support

A group of public health and environmental justice groups write that the communities surrounding the IOF are predominantly Black and Latine. Black people are 75% more likely to live in communities near toxic facilities like chemical plants and oil refineries. This applies to the mostly Black communities close to the IOF. The health and safety of residents living near the field are top concerns for our organizations and the communities we represent. AB 1661 is an opportunity to hold polluters accountable for the decades of harm they have caused to frontline communities. This can serve as a meaningful example of environmental reparations and position California as a leader in addressing past harm from the oil and gas industry. For these reasons, we respectfully request your support for AB 1661.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee, DOC estimates costs of approximately $477,000 in year one followed by $441,000 in ongoing annual costs (Oil, Gas, and Geothermal Administrative Fund) to hire one supervisor and two analysts to develop program guidelines (including defining criteria for fund eligibility), provide support and guidance to LA County, and audit the county's compliance with state guidelines.

By requiring a set-aside for direct cash assistance from the Account, this bill creates a one-time cost pressure of $5 million on the Account, the General Fund, or some other potential funding source to the extent there is insufficient funding for all eligible families or DOC is unable to allocate this funding to other authorized project categories, such as park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods, urban greening, affordable housing needed to accommodate community needs, climate mitigation and resilience, and community benefit projects with environmental co-benefits.

VOTES

ASM NATURAL RESOURCES: 10-1-3

YES: Bryan, Connolly, Garcia, Haney, Kalra, Boerner, Pellerin, Schultz, Wicks, Zbur

NO: Macedo

ABS, ABST OR NV: Ellis, Alanis, Hoover

ASM APPROPRIATIONS: 11-2-2

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Dixon, Tangipa

ABS, ABST OR NV: Hoover, Ta

UPDATED

VERSION: January 29, 2026

CONSULTANT: Paige Brokaw / NAT. RES. / (916)319-2092 FN: 0002598

Date of Hearing: April 22, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1661

Author:(Bryan) – As Introduced Ver:January 29, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Department of Conservation (DOC) to allocate the first $5 million deposited in the Equitable Community Repair and Reinvestment Account (Account) to Los Angeles (LA) County to provide cash assistance to families living near the Inglewood Oil Field (IOF).

Specifically, this bill:

1) Requires DOC to, upon appropriation by the Legislature and subject to the terms of the appropriation, distribute the first $5 million deposited into the Account to LA County to disburse in direct cash assistance to families living within 2 ½ miles of the identified low-production oil wells who have children with respiratory health conditions.

2) Prohibits funds from the Account from being distributed to other project categories authorized under existing law until the $5 million in cash assistance has been distributed.

FISCAL EFFECT:

1) DOC estimates costs of approximately $477,000 in year one followed by $441,000 in ongoing annual costs (Oil, Gas, and Geothermal Administrative Fund) to hire one supervisor and two analysts to develop program guidelines (including defining criteria for fund eligibility), provide support and guidance to LA County, and audit the county’s compliance with state guidelines. It is not clear to the committee whether or why DOC would require ongoing resources once the $5 million has been fully allocated to and disbursed by the county.

2) By requiring a set-aside for direct cash assistance from the Account, this bill creates a one-time cost pressure of $5 million on the Account, the General Fund, or some other potential funding source to the extent there is insufficient funding for all eligible families or DOC is unable to allocate this funding to other authorized project categories, such as park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods, urban greening, affordable housing needed to accommodate community needs, climate mitigation and resilience, and community benefit projects with environmental co-benefits.

COMMENTS:

1) Purpose. According to the author:

Communities living next to active oil fields continue to experience disproportionately high rates of respiratory illness. Families in these neighborhoods are routinely exposed to harmful air pollutants, as well as chronic noise and vibration associated with oil drilling operations. AB 1661 ensures that the first $5 million deposited into the Equitable Community Repair and Reinvestment Account, established under AB 2716, will be given as direct cash assistance to families living within 2.5 miles of the Inglewood Oil Field who have a child with a respiratory health condition.

2) Background. IOF. According to LA County, more than one million people live within five miles of the IOF – one of the largest contiguous urban oil fields in the nation. According to Sentinel Peak Resources, LLC (Sentinel), owner of the IOF, of the wells in the IOF, 414 are active and 162 are idle. Under a settlement agreement with Culver City and Sentinel, Sentinel must plug and abandon a minimum of 15 wells by December 31, 2027, and plug and abandon all remaining wells and complete the overall closure of the IOF by December 31, 2029. LA County may conditionally authorize an extension under special circumstances, not extending beyond December 31, 2032. In December 2025, LA County filed a lawsuit against Sentinel for failing to plug and abandon 227 idle or exhausted wells in the IOF, “thereby causing toxic pollutants to leak into the air, land and water, leading to significant environmental harms and health risks to communities surrounding the IOF.”

Low-Production Wells. A low-production well means an oil or gas well that produced, on average, fewer than 15 barrels of oil per day during the past 12 consecutive months, or a natural gas well whose maximum daily average gas production did not exceed 60,000 cubic feet of gas, per day, during the past 12 consecutive months. AB 2716 (Bryan), Chapter 549, Statutes of 2024, prohibits the operation of low-production oil and gas wells located in the IOF and imposes a $10,000 per month penalty upon these wells if they remain in low production for more than 12 months until they are plugged and abandoned. All penalty revenue is to be deposited into the Account to fund specified projects. Based on the timelines in AB 2716, the soonest a penalty could be assessed for a violation would be April 2027; therefore, there are currently no funds in the Account.

Assistance for Impacted Communities. Residents living near oil fields have long reported adverse health effects such as respiratory, reproductive, and cardiovascular issues. In the LA area, many of these risks disproportionately affect low-income communities and communities of color. Supporters of this bill contend this bill is an “opportunity to hold polluters accountable for the decades of harm they have caused to frontline communities,” and that this bill can serve as a “meaningful example of environmental reparations and position California as a leader in addressing past harm from the oil and gas industry.”

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 6, 2026

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Isaac G. Bryan, Chair

ABPCA Bill Id:AB 1661 (

Author:Bryan) – As Introduced Ver:January 29, 2026

SUBJECT: Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account

SUMMARY: Expands the uses for the Equitable Community Repair and Reinvestment Account (Account) and requires direct cash assistance to be made available to families living near the Inglewood Oil Field (IOF) in Los Angeles (LA) County.

EXISTING LAW, pursuant to Public Resources Code 3206.1.5:

1. Prohibits, on and after March 1, 2026, an oil well located in a county of the first class (defined as a county with a population > 4 million, which currently only applies to LA County) in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, from being a low-production well, as defined, for more than 12 months.
2. Requires the State Oil and Gas Supervisor (supervisor), to charge an administrative penalty of $10,000 per month to a low-production well owner in violation of the time limit on low-production well status until the low-production well is plugged and abandoned. Requires penalties to be remitted annually on a schedule determined by the supervisor.
3. Requires all funds collected to be deposited into the Account.
4. Requires funds from the Account to be available, upon appropriation by the Legislature, to the Department of Conservation (DOC) for allocation to a county of the first class for the following:
   1. Park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods;
   2. Urban greening;
   3. Affordable housing needed to accommodate community needs;
   4. Climate mitigation and resilience; or,
   5. Community benefit projects with environmental cobenefits.
5. Caps the Account from accruing more than $20 million.

THIS BILL:

1. Requires DOC, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the $5 million deposited into the Account to LA County to disburse in direct cash assistance to families living within 2 ½ miles of the identified low-production oil wells who have children with respiratory health conditions.
2. Prohibits funds from being distributed for the projects in (a)-(e) listed above from receiving funding until the $5 million in direct cash assistance has been distributed first.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

Communities living next to active oil fields continue to experience disproportionately high rates of respiratory illness. Families in these neighborhoods are routinely exposed to harmful air pollutants, as well as chronic noise and vibration associated with oil drilling operations. AB 1661 ensures that the first $5 million deposited into the Equitable Community Repair and Reinvestment Account, established under AB 2716, will be given as direct cash assistance to families living within 2.5 miles of the Inglewood Oil Field who have a child with a respiratory health condition. This targeted support recognizes the immense harm these communities have endured and provides environmental reparations for families who continue to experience the health impacts of neighborhood oil drilling.

1. Inglewood Oil Field. The IOF, located in LA County adjacent to a state recreation area and state park, and is within the Baldwin Hills. Since oil was discovered in 1924, 1,600 oil wells have been drilled in the IOF. Today, the oil field’s boundary covers approximately 1,000 acres, making it one of the largest contiguous urban oil fields in the United States. The last well drilled in the IOF was in June of 2014; there currently are no plans for new wells.

According to Sentinel Peak Resources, LLC (Sentinel), owner of the IOF, production at the field has averaged between 2.5 – 3.1 million barrels a year for the past ten years. According to Sentinel data, of the wells in the IOF, 414 oil wells are active; 162 are idle.

Under a settlement agreement with Culver City and Sentinel, Sentinel must plug and abandon a minimum of 15 wells by December 31, 2027, at a rate of a minimum of three wells per calendar year over the five-year period between 2023-2027. Sentinel must plug and abandon all remaining wells and complete the overall closure of the IOF by December 31, 2029. An extension may be conditionally authorized under special circumstances, but not to extend beyond December 31, 2032. Culver City has acknowledged support for the redevelopment of the IOF to transition to certain compatible land uses.

Last December, LA County filed a lawsuit against Sentinel for failing to plug and abandon 227 idle or exhausted wells in the IOF. State law defines a well as “idle” if it has not produced oil or natural gas for 24 consecutive months. The County’s lawsuit uses the term “exhausted wells” more conservatively than “low-production,” defining “exhausted” as those that yield an average of two barrels of oil or less daily.

The lawsuit is part of LA County’s larger effort to phase out oil drilling. A 2022 LA City Council ordinance to phase out all oil drilling in LA over 20 years and ban new wells was successfully challenged and blocked in 2024.

1. Low-production wells. Low-production oil and gas wells are defined as producing fewer than 15 barrels of oil a day (BOE/D) during any 12-month consecutive time period, or a natural gas well whose maximum daily average gas production does not exceed 60 thousand cubic feet of gas (Mcf), per day, during any 12-month consecutive time period. Low-production wells can be reworked to drill deeper for more oil, or reworked for enhanced oil recovery, like hydraulic fracturing, many active wells may be nearing the end of their productive lifespans and sit on the cusp of needing to be plugged.

DOC data also show that approximately 80% of the state’s active wells are low-production. While low-production wells can be reworked or injection wells added to the field or reworked to help boost oil and gas production, the expense of these efforts would be weighed against potential revenue from future production. Many of the state’s active oil and gas wells may be nearing the end of their economic productivity, particularly in view of the state’s goals to achieve carbon neutrality by 2045 that includes phasing out fossil fuels and requiring all new cars to be zero-emission by 2035.

AB 2716 (Bryan), Chapter 549, Statutes of 2024, prohibits the operation of low-production oil and gas wells located in the IOF and imposes a $10,000 per month penalty upon these wells if they remain in low-production for more than 12 months until they are plugged and abandoned. All penalty revenue is deposited into the Account to fund projects, such as park creation and affordable housing, to benefit the nearby community.

Based on the timelines in AB 2716, the soonest a penalty could be assessed for a violation would be April 2027; therefore, there are currently no funds in the Account.

1. Direct cash assistance. The IOF is surrounded by residential areas, schools, and homes and, according to the LA Times, more than one million people live within 5 miles of the IOF. Residents living near oil fields have long reported adverse health effects such as respiratory, reproductive and cardiovascular issues. In the LA area, many of these risks disproportionately affect low-income communities and communities of color.

This bill requires DOC, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5 million deposited into the Account to LA County for direct cash assistance to families living within 2¹/₂ miles of the identified low-production wells whose children have respiratory health conditions and can verify their residence to LA County.

The state does have a precedent for direct cash assistance to residents. For example, under the state’s climate policy framework, most residential utility customers automatically receive a California Climate Credit – a direct rebate applied to their electricity and natural gas bills. Every resident with a qualifying utility account receives it without application, income test, or special eligibility requirements. Also, in 2021-22, the state issued stimulus payments (~$ 600-$1,200) to millions of residents as part of COVID relief efforts. These cash payments, however, required tax filing or income criteria, so they were not purely universal unconditional payments.

The cash assistance under this bill would be provided without discrimination or substantiation of a claim (i.e. no proof is required to demonstrate health concerns). The advantages of this approach include low application burden, low fraud risk due to limited qualification criteria (geography only), and provision of direct support to the most impacted communities without discriminating against competing claims (no proof of harm required). Because the funds will be dispensed on a first-come, first-served basis, a drawback of this approach is potentially providing cash assistance to those who may not need it over those who do.

The author may wish to consider working with LA County to amend the bill to require LA County to distribute direct cash assistance in an equal amount to each verified family to the extent funds are available, and consider requiring applicants requesting direct cash assistance to verify their residence through utility bills or other relevant records.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Paige Brokaw / NAT. RES. /