Existing law, the Petroleum Industry Information Reporting Act of 1980, requires refiners, as described, to report monthly to the State Energy Resources Conservation and Development Commission (Energy Commission), for each of their refineries, specified information, including the origin of petroleum receipts and the source of imports of finished petroleum products.

This bill would express the intent of the Legislature that the Energy Commission monitor foreign countries that export oil to California and identify on its internet website which of those countries have demonstrated human rights abuses, as documented by the United States Department of State, and which of those countries have lower environmental standards for the production of oil than California.

Existing law imposes various limitations on the emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law requires the State Air Resources Board to post on its internet website information on air quality conditions and trends statewide and to develop and conduct a program of monitoring airborne fine particles smaller than 2.5 microns in diameter (PM 2.5).

This bill would require the state board to annually produce an assessment of the greenhouse gas emissions associated with the transportation of oil in California, as specified, and to include that assessment on the state boards internet website. The bill would also require the Energy Commission to annually provide data collected pursuant to the Petroleum Industry Information Reporting Act of 1980 to the state board for the purposes of the assessment. The bill would require the data to comply with specified existing confidentiality requirements. The bill would prohibit the commission from using any funds from electric ratepayers to implement these requirements, as provided. The bill would also require the state board to post on its internet website a report on the air quality impact of potentially importing 5% to 10% of the states gasoline supply using tanker ships.

Existing law, the Petroleum Industry Information Reporting Act of 1980, requires refiners, as described, to report monthly to the State Energy Resources Conservation and Development Commission (Energy Commission), for each of their refineries, specified information, including the origin of petroleum receipts and the source of imports of finished petroleum products.

This bill would express the intent of the Legislature that the Energy Commission monitor foreign countries that export oil to California and identify on its internet website which of those countries have demonstrated human rights abuses, as documented by the United States Department of State, and which of those countries have lower environmental standards for the production of oil than California.

Existing law imposes various limitations on the emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law requires the State Air Resources Board to post on its internet website information on air quality conditions and trends statewide and to develop and conduct a program of monitoring airborne fine particles smaller than 2.5 microns in diameter (PM 2.5).

This bill would require the state board to annually produce an assessment of the greenhouse gas emissions associated with the transportation of oil in California, as specified, and to include that assessment on the state boards internet website. The bill would also require the Energy Commission to annually provide data collected pursuant to the Petroleum Industry Information Reporting Act of 1980 to the state board for the purposes of the assessment. The bill would require the data to comply with specified existing confidentiality requirements. The bill would prohibit the commission from using any funds from electric ratepayers to implement these requirements, as provided.

Under existing law, the Geologic Energy Management Division in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state.

This bill would require the division to provide a link on its internet website to air quality emissions data associated with the transportation of oil imported into the state.

Existing law vests the Energy Commission with various responsibilities for developing and implementing the states energy policies.

This bill would require the Energy Commission to prominently display on the front page of its internet website a report on the air quality impact of potentially importing 5% to 10% of the states gasoline supply using tanker ships and a report describing the refinery storage costs as determined by the Energy Commission, as specified. The bill would also require a report produced by the Energy Commission estimating gasoline price breakdowns and margins to include the cost of shipping oil. The bill would prohibit the commission from using any funds from electric ratepayers to implement these requirements.

Existing law, the Petroleum Industry Information Reporting Act of 1980, requires refiners, as described, to report monthly to the State Energy Resources Conservation and Development Commission (Energy Commission), for each of their refineries, specified information, including the origin of petroleum receipts and the source of imports of finished petroleum products.

This bill would express the intent of the Legislature that the Energy Commission monitor foreign countries that export oil to California and identify on its internet website which of those countries have demonstrated human rights abuses, as documented by the United States Department of State, and which of those countries have lower environmental standards for the production of oil than California.

Existing law imposes various limitations on the emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law requires the State Air Resources Board to post on its internet website information on air quality conditions and trends statewide and to develop and conduct a program of monitoring airborne fine particles smaller than 2.5 microns in diameter (PM 2.5).

This bill would require the state board to annually produce an assessment of the greenhouse gas emissions associated with the transportation of oil in California, as specified, and to include that assessment on the state boards internet website. The bill would also require the Energy Commission to annually provide data collected pursuant to the Petroleum Industry Information Reporting Act of 1980 to the state board for the purposes of the assessment. The bill would require the data to comply with specified existing confidentiality requirements.

Under existing law, the Geologic Energy Management Division in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state.

This bill would require the division to provide a link on its internet website to air quality emissions data associated with the transportation of oil imported into the state.

Existing law vests the Energy Commission with various responsibilities for developing and implementing the states energy policies.

This bill would require the Energy Commission to prominently display on the front page of its internet website a report on the air quality impact of potentially importing 5% to 10% of the states gasoline supply using tanker ships and a report describing the refinery storage costs as determined by the Energy Commission, as specified. The bill would also require a report produced by the Energy Commission estimating gasoline price breakdowns and margins to include the cost of shipping oil.

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

SB 13 (Grove) - Oil and gas

Bill Summary:

This bill would require the California Air Resources Board (CARB) and the California Energy Commission (CEC) to provide specified information regarding air quality and oil refinery impacts associated with imported crude oil, as specified.

Fiscal Impact:

• CARB estimates ongoing costs of about $456,000 annually (Oil, Gas, and Geothermal Administrative Fund [OGGAF]) for 2 positions to calculate GHG and criteria emissions factors associated with the import, production, and export of oil in California; determine and revise pathway differences and emission rates for various countries; collaborate with the U.S. Environmental Protection Agency (EPA), the CEC, and stakeholders; and develop and publish a report, among other things.
• The CEC estimates ongoing costs of about $317,000 annually (Energy Resources Programs Account [ERPA]) for 2 positions to monitor other countries documented human rights abuses and environmental standards.

Background:

California is increasingly reliant on international sources of crude oil. While Texas and a number of other states are well-known for their oil and gas reserves, California has historically had substantial proven oil resources. In terms of cumulative oil production, California is the site of several of the most productive oil fields in the United States. Los Angeles and Kern Counties remain the site of substantial oil operations in the state. Despite this history, California primarily sources its oil from overseas. California crude comprised 23.4 percent of the total number of barrels received by in-state refineries in 2023 while over 60 percent of oil supplied to California’s refineries come from international sources. CEC data regarding the international sources of crude oil imported into California in 2023 show that Iraq is the largest source of crude oil imports to California, followed by Saudi Arabia, Brazil, Ecuador, and Guyana. Collectively, these countries supply over 75 percent of California’s imported crude oil. California’s reliance on imported oil is shaped by a number of factors, including the lack of domestic oil pipelines from other states, the costs associated with procuring oil by rail or truck, global commodity prices for crude oil, and limited in-state oil and gas extraction.

While in-state oil extraction has declined over several decades, agencies have recently adopted policies to accelerate the phase out of both petroleum use in the transportation sector and oil extraction in California. Executive Order N-79-20 established a goal that 100 percent of in-state sales of new passenger cars and trucks will be zero-emission by 2035. This executive order also established a goal that 100 percent of medium- and heavy-duty vehicles in the state will be zero-emission by 2045. In response to this Executive Order, ARB has adopted regulations aimed at phasing out the sale of petroleum-fueled vehicles. In 2021, Governor Newsom followed this Executive Order by directing CalGEM to cease issuing permits for fracking in 2024 and ordering ARB to explore pathways to end in-state oil extraction by 2045. An end to in-state oil extraction without a cessation of oil use would likely result in California sourcing all its oil from imports.

Proposed Law:

This bill would require CARB and the CEC to provide specified information regarding air quality and oil refinery impacts associated with imported crude oil, as specified. In particular, it would:

1. Require CARB to annually asses the greenhouse gas (GHG) emissions associated with transporting oil in California from its point of origin to its destination in California. Require CARB to post this assessment on its website and include all of the following in the assessment:
   1. An estimate of the GHG emissions associated with oil transportation in the state for oil imported into the state during the prior year, broken down by the country of origin.
   2. An estimate of the GHG emissions associated with the in-state transportation of oil produced within the state during the previous year.
   3. A description of the methodology and assumptions used to make the assessment.
   4. A citation or link to the data used to create the assessment.
2. Require CARB to post on its internet website a report on the air quality impact of potentially importing 5 percent to 10 percent of the state’s gasoline supply using tanker ships.
3. Require the CEC to provide CARB with information about the state’s oil supply. Specify that the disclosure of this data must comply with existing confidentiality protections regarding oil and refinery data.
4. Prohibit the CEC from using ratepayer funds to carry out its duties pursuant to this bill.

Related Legislation:

SB 1087 (Grove) of 2024, contained provisions substantially similar to those in this bill. The bill was held in on the Suspense File in this committee.

SBX2 1 (Hart, Chapter 1, Statutes of 2024) among other requirements, authorized the CEC to develop requirements on petroleum refiners to maintain resupply plans to cover production loss during maintenance events and to maintain minimum levels of supply inventories.

SBX1 2 (Skinner, Chapter 1, Statutes of 2023) modified PIIRA to require refineries to submit specified data regarding their economic performance to the CEC. The bill also required the CEC to assess the reliability of transportation fuels and retail outlets for those fuels.

SB 15 (Grove) of 2023, contained provisions substantially similar to those in this bill. The bill was held on the Suspense File in the Assembly Appropriations Committee.

SB 1319 (Grove) of 2022, was substantially similar to this bill and required CARB to annually assess emissions associated with oil transportation in California. The bill was held on the Suspense File in the Assembly Appropriations Committee.

SB 1322 (Allen, Chapter 374, Statutes of 2022) modified PIIRA to require refiners with multiple refineries operating in the state to submit certain data about their economic performance to the CEC. The bill also increased public access to data about refiners.

Staff Comments:

The main funding source supporting CEC is ERPA, which was established to provide funds for ongoing energy programs and energy as established to provide funds for ongoing energy programs and energy projects, including the operations of the CEC. ERPA is supported by a statutory surcharge on electricity consumption. According to the CEC, as building and appliance energy efficiency and the increase of behind-the-meter solar produce customer savings and flatten statewide electricity consumption, ERPA revenues have decreased, and the costs have been borne by fewer and fewer customers. Even as revenues drop, ERPA is repeatedly tapped to support new programs and must cover increases in employee compensation and benefit contributions.

As part of the 2022-23 budget, the Legislature passed trailer bill language that raised the statutory cap on the ERPA surcharge, tied the statutory cap to the Consumer Price Index, and extended the surcharge to behind-the-meter electricity consumption. Using ERPA to fund implementation of this bill would increase ERPA expenditures thereby exacerbating the structural deficit. A better funding source may need to be identified.

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SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Josh Becker, Chair

2025 - 2026 Regular

Bill No: SB 13 Hearing Date: 4/7/2025

SUBJECT: Oil and gas

DIGEST: This bill requires the California Air Resources Board (CARB) and the California Energy Commission (CEC) to report specified information regarding air quality and oil refinery impacts associated with imported crude oil. This bill also requires the Geologic Energy Management Division in the Department of Conservation (CalGEM) to post specified information about emissions associated with imported oil on CalGEM’s website.

ANALYSIS:

Existing law:

1. Establishes the CEC as a five-member commission within the Natural Resources Agency and tasks the CEC with monitoring, analyzing, and making recommendations on statewide trends in the energy sector, including fuel supply and demand. (Public Resources Code §25200 et. seq.)
2. Establishes the Petroleum Industry Information Reporting Act of 1980 (PIIRA), which establishes requirements for oil refiners and marketers to submit specified data to the CEC and requires the CEC to analyze this data to identify trends in demand and supply for petroleum, including factors influencing gasoline price changes. Existing law requires retail transportation fueling stations to report specified information about their sales of gasoline, diesel, and other fuels to the CEC. (Public Resources Code §25350 et. seq.)
3. Establishes various confidentiality protections within PIIRA, including specifying that the CEC may disclose certain confidential information received under PIIRA to CARB or the Attorney General if CARB or the Attorney General agree to keep the information confidential. (Public Resources Code §25350 et. seq.)
4. Establishes CalGEM for the purposes of overseeing the drilling, operation, maintenance, and removal of oil and gas wells. Existing law specifies the duties of CalGEM regarding authorization of oil and gas exploration within California. (Public Resources Code §3000 et. seq.)

This bill:

1. Requires CARB to annually asses the greenhouse gas (GHG) emissions associated with transporting oil in California from its point of origin to its destination in California. This bill requires CARB to post this assessment on its website and include all of the following in the assessment:
   1. An estimate of the GHG emissions associated with oil transportation in the state for oil imported into the state during the prior year, broken down by the country of origin.
   2. An estimate of the GHG emissions associated with the in-state transportation of oil produced within the state during the previous year.
   3. A description of the methodology and assumptions used to make the assessment.
   4. A citation or link to the data used to create the assessment.
2. Requires the CEC to provide CARB with information about the state’s oil supply. This bill specifies that the disclosure of this data must comply with existing confidentiality protections regarding oil and refinery data.
3. Requires the CEC to post both of the following reports on its website:

• 1. A report on the air quality impact of importing five percent to 10% of the state’s gasoline supply using tanker ships.
  2. A report describing refinery storage costs, as determined by the CEC.

1. Requires a report issued by the CEC on gasoline price breakdowns and margins to include the cost of shipping oil.
2. Requires CalGEM to post a link on its website to data regarding air quality impacts associated with the transportation of imported oil in California.
3. Prohibits the CEC from using ratepayer funds to carry out its duties pursuant to this bill.

Background

Not in My Backyard: California largely relies on foreign sources for crude oil. California has substantial proven oil resources. In terms of cumulative oil production, California is the site of several of the most historically productive oil fields in the United States. Los Angeles and Kern Counties remain the site of substantial oil operations in the state. Despite this history, California primarily sources its oil from overseas. California crude oil comprised 23.3% of the total number of barrels received by in-state refineries in 2024 while over 60% of oil supplied to California’s refineries come from international sources. CEC data regarding the international sources of crude oil imported into California in 2024 show that Iraq is the largest source of crude oil imports to California, followed by Brazil, Guyana, Ecuador, and Canada. Collectively, these countries supply over 75% of California’s imported crude oil. California’s reliance on imported oil is shaped by a number of factors, including the lack of oil pipelines from other states, the costs associated with procuring oil by rail or truck, global commodity prices for crude oil, and limited in-state oil and gas extraction.

While in-state oil extraction has declined over several decades, agencies have recently adopted policies to accelerate the phase out of both petroleum use in the transportation sector and oil extraction in California. Executive Order N-79-20 established a goal that 100% of in-state sales of new passenger cars and trucks will be zero-emission by 2035. This executive order also established a goal that 100% of medium- and heavy-duty vehicles in the state will be zero-emission by 2045. In response to this Executive Order, CARB has adopted regulations aimed at phasing out the sale of petroleum-fueled vehicles. In 2021, Governor Newsom followed this Executive Order by directing CalGEM to cease issuing permits for fracking in 2024 and ordering CARB to explore pathways to end in-state oil extraction by 2045.

Meaningful emissions reductions will depend on reducing overall oil reliance. California’s reliance on crude oil has steadily declined since the 1980s; however, oil consumption recently increased from pandemic lows in 2020. While California may avoid some local emissions from ceasing fracking and oil extraction, the cessation of these practices within the state do not necessarily contribute to a reduction in total global emissions. As long as demand for petroleum remains consistent, oil will be procured from other mechanisms and locations, which may be associated with higher global emissions. In 2015, the California Natural Resources Agency commissioned an independent assessment of oil and gas extraction methods with the California Council on Science and Technology and researchers at the Lawrence Berkeley National Laboratory. The assessment identified a number of risks associated with fracking, including potential water contamination, which could have catastrophic consequences for drinking and agricultural water. The report also stated that fracking in California produced fewer overall emissions than sourcing oil from other methods. The report states: “Oil produced in California using hydraulic fracturing also emits less greenhouse gas per barrel than the average barrel imported to California.” Emissions impacts may be only one part of the overall environmental and public health concerns associated with fracking, but the tendency to shift emissions without achieving meaningful reductions in petroleum remains a challenge to slowing global warming. Even when California ceases domestic oil extraction, our demand for oil will contribute to extraction in other regions. As a result, more meaningful global emissions reductions may largely depend on efforts to reduce the overall use of these resources. To the extent that we continue to largely rely on imported oil, this bill may provide more detailed information about the overall emissions impacts associated with that continued reliance.

Need for amendments. As currently written, sections 3 and 4 of this bill extend emissions reporting duties to state agencies that do not have authority over air quality. Additionally, section 4 of this bill contains reporting requirements for the CEC that are vague and do not appear to be related to emissions from imported oil. As a result, the author and committee may wish to amend this bill to delete sections 3 and 4 of this bill.

Dual referral. This bill passed out of the Senate Environmental Quality Committee on March 19, 2025 with a vote of 8-0.

Prior/Related Legislation

SB 1097 (Grove) of 2024, contained provisions substantially similar to those in this bill. The bill was held in the Senate Appropriations Committee.

SBX2 1 (Hart, Chapter 1, Statutes of 2024) among other requirements, authorized the CEC to develop requirements on petroleum refiners to maintain resupply plans to cover production loss during maintenance events and to maintain minimum levels of supply inventories.

SBX1 2 (Skinner, Chapter 1, Statutes of 2023) modified PIIRA to require refineries to submit specified data regarding their economic performance to the CEC. The bill also required the CEC to assess the reliability of transportation fuels and retail outlets for those fuels.

SB 15 (Grove) of 2023, contained provisions substantially similar to those in this bill. The bill was held in the Assembly Appropriations Committee.

SB 1319 (Grove) of 2022, was substantially similar to this bill and required CARB to annually assess emissions associated with oil transportation in California. The bill was held in the Assembly Appropriations Committee.

SB 1322 (Allen, Chapter 374, Statutes of 2022) modified PIIRA to require refiners with multiple refineries operating in the state to submit certain data about their economic performance to the CEC. The bill also increased public access to data about refiners.

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

SUPPORT:

Supervisor Jeff Flores, Kern County Third District
Associated Builders and Contractors - Central California Chapter
BizFed Central Valley
California Independent Petroleum Association
Greater Bakersfield Chamber of Commerce
Kern Citizens for Energy
Kern County Hispanic Chamber of Commerce
Kern County Taxpayers Association
Tehachapi Republican Women Federated
Trio Petroleum, Inc.
Valid Energy Group Inc.

34 Individuals

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Author:

SB 13 simply asks whether California should be importing its oil from countries that do not share our values on human rights and environmental standards. The bill expresses the intent of the Legislature that the California Energy Commission report on the human rights records and environmental standards of the countries that we buy oil from. The measure would also require the Air Resources Board to report on its website the amount of particulate matter released into the air from tanker ship emissions from oil imported into the state. The bill is a recognition that California should not be importing oil from countries that do not share our California values, and that by importing so much oil we are actually harming, not helping, the environment. We can produce the oil we use, and keep the jobs and revenues inside our Golden State while protecting our environment.

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SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Blakespear, Chair

2025 - 2026 Regular

Bill No: SB 13

SUBJECT: Oil and gas

DIGEST: This bill would express the intent of the Legislature that the California Energy Commission (CEC, formerly the State Energy Resources Conservation and Development Commission) monitor countries that export oil to California and identify human rights abuses and lower environmental standards for oil production than California. It would require the California Air Resources Board (CARB) to report greenhouse gas (GHG) emissions data associated with oil transported in California and the Geologic Energy Management Division (CalGEM) to make available air quality emissions data associated with the transportation of imported oil.

ANALYSIS:

Existing law:

1. Establishes CalGEM in the Department of Conservation as the regulator of the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. (Public Resources Code (PRC) § 3100 et seq., PRC § 690)
2. Requires, under the Petroleum Industry Information Reporting Act of 1980, refiners, as defined, to report monthly to the CEC, for each of their refineries, specified information, including petroleum sales volumes and prices, and the origin of petroleum and finished petroleum products receipts. (PRC § 25350 et seq.)
3. Establishes CARB as the state agency charged with monitoring and regulating sources of GHG emissions and other air pollutants. Existing law requires CARB to make available, and update at least annually, on its internet website the emissions of GHGs, criteria pollutants, and toxic air contaminants for certain facilities in the state, and to annually present an informational report to a specific legislative committee on the reported emissions of GHGs, criteria pollutants, and toxic air contaminants from certain energy and industry sectors, as prescribed. (Health and Safety Code § 39500 et seq.)

This bill:

1. Expresses the intent of the Legislature that the CEC monitor foreign countries that export oil to California and identify on its internet website which of those countries have demonstrated human rights abuses, as documented by the United States Department of State or by human rights organizations, and which of those countries have lower environmental standards for oil production than California.
   
2. Requires CARB to annually produce an assessment of the GHG emissions associated with the transportation of oil in California, both oil imported to and produced in California and to include that assessment on the Board’s internet website.
3. Requires the CEC to annually provide data to CARB for the purposes of this assessment pursuant to the Petroleum Industry Information Reporting Act of 1980.
   
4. Requires CalGEM to provide a link on its internet website to air quality emissions data associated with the transportation of oil imported into the state.
   

Background

1. Climate change and fossil fuels. The burning of fossil fuels is the main source of GHGs causing climate change. California’s statutory emission reduction goals dictate that GHG emissions be reduced to 40% below the 1990 level by 2030 (updated to 48% in CARB’s 2022 Scoping Plan) and reduced to at least 85% below 1990 levels by 2045. Net zero emissions (carbon neutrality) are to be achieved by 2045.
   
   Due to initiatives to meet these goals such as the Advanced Clean Car Standards, Low Carbon Fuel Standard requirements, and improved land-use planning, California’s demand for crude oil has declined. Oil demand is likely to continue to fall as a result of these and additional policies, such as the Governor’s Executive Order N-79-20 which calls for the elimination of new internal combustion passenger vehicles by 2035. Not importing oil into California can cut emissions, but, ultimately, any credible plan to meet California’s climate goals will lean heavily on phasing out oil production and consumption.
2. Oil production poses environmental risk. All oil production poses environmental risk no matter where it is produced. The largest portion of imported oil to California comes from Ecuador. Much of this oil is sourced from the Amazon rainforest, which is home to the highest biodiversity on the planet and functions as a significant climate-stabilizing carbon sink. Oil extraction continues to encroach into the Amazon including in Ecuador’s Yasuní National Park, a United Nations Educational, Scientific and Cultural Organization (UNESCO) recognized site home to several indigenous communities including two uncontacted tribes. The Ecuadoran Heavy Crude Oil Pipeline has ruptured twice in the last three years, causing extensive environmental damage. However, environmental damage related to oil extraction occurs in California as well, despite stringent environmental regulations. For example, an oil spill off the coast of Orange County in October 2021 leaked almost 25,000 gallons of oil and triggered the Governor to declare a state of emergency. Over 750 miles of shoreline underwent cleanup efforts. Sadly, this was a relatively small spill: in 2015, a pipeline ruptured in Santa Barbara and spilled 126,000 gallons of oil, much of which flowed to the ocean and caused extensive ecological damage. Spills of up to 3 million gallons checker California’s oil history.
3. Oil production in California. California has about four percent of the nation's total crude oil reserves and produced almost 131 million barrels of crude oil in 2021. There are about 100,000 oil wells in California, mostly in Kern and Los Angeles counties. While California is a top-10 oil-producing state, production has been declining since the mid-1980s, with California having dropped from third to seventh among oil-producing states (as of 2021). The oil and gas sector is a major employer in some areas. According to the American Petroleum Institute, the oil and gas industry in California supported 1,059,000 total jobs (164,600 direct and 894,400 indirect), or 4.3% of California’s total employment, and contributed $199.3 billion to California’s gross domestic product ($85.3 billion direct and $114 billion indirect), 6.4% of the state’s total in 2019.
4. Magnitude of foreign oil imports to California. California produces only about 2% of its daily oil consumption; it produces about 391,000 barrels of oil per day and consumes 1.8 million barrels of oil per day. California’s dependence on foreign oil has grown as Californian supply has dropped and Alaskan imports have fallen. According to the most recent data available from the CEC, in 2021, California’s refineries used 28.9% Californian oil, 14.9% Alaskan oil, and 56.2% foreign oil. The top three sources of foreign oil were Ecuador, Saudi Arabia, and Iraq, each accounting for approximately 20% of oil imports.
5. Human rights violations in countries providing oil to California. The United States Department of State issues annual Country Reports on Human Rights Practices for countries receiving U.S. assistance and all United Nations member states. These reports cover internationally recognized individual, civil, political, and worker rights, as set forth in the Universal Declaration of Human Rights and other international agreements.
   
   The most recent Department of State reports covering 2021 qualitatively document some human rights transgressions in Ecuador, Saudi Arabia, and Iraq, the top oil exporters to California. None of these abuses were specifically linked to the oil industry, though scattered examples linked to oil extraction exist from previous years.
6. However, Californian oil production also has social and equity concerns. In California, 5.4 million people live within a mile of an oil or gas well (14% of the state’s population). Of these, 1.8 million, 92% people of color, live in an area heavily burdened by environmental pollution. Oil and gas extraction operations release harmful airborne chemicals, such as volatile organic compounds, hydrogen sulfide, particulate matter (PM_2.5), and ozone, damaging the environment and human health. Health risks include respiratory damage (e.g. asthma, reduced lung function, symptoms such as wheezing), perinatal consequences (e.g. preterm birth, low birth weight, heart defects, and other developmental problems), cardiovascular disease, and cancer. These ultimately lead to developmental problems, chronic health issues, and increased mortality. Previous legislation has recognized and attempted to mitigate the health risks of the oil and gas industry to Californians. AB 1647 (Muratsuchi, Chapter 589, Statutes of 2017) required refinery-related fenceline air monitoring systems starting in 2020, though environmental justice concerns remain regarding disproportionate impacts still affecting disadvantaged communities in proximity to oil and gas operations. SB 1137 (Gonzalez, Chapter 365, Statutes of 2022) establishes a health protection zone of 3,200 feet of a sensitive receptor, which includes residences, healthcare facilities, and schools. It prohibits CalGEM from approving new oil or gas development within this health protection zone. The impacts of oil extraction on people within the state should not be discounted.

Comments

1. Purpose of Bill. According to the author, “SB 1087 simply asks whether California should be importing its oil from countries that do not share our values on human rights and environmental standards. The bill expresses the intent of the Legislature that the California Energy Commission report on the human rights records and environmental standards of the countries that we buy oil from. The measure would also require the Air Resources Board to report on its website the amount of particulate matter released into the air from tanker ship emissions from oil imported into the state. The bill is a recognition that California should not be importing oil from countries that do not share our California values. We can produce the oil we use, and keep the jobs and revenues inside our Golden State while protecting our environment.”
2. This looks familiar. In 2022, SB 1319 (Grove) went through the Senate Committees on Natural Resources and Water and Environmental Quality and the Assembly Natural Resources Committee. Suggested amendments made by these committees are reflected in 2023’s SB 15 (Grove). In turn, SB 15 proceeded through the legislative process before being held in the Assembly Appropriations Committee, as SB 1319 had been. SB 1087 (Grove, 2024) was identical to SB 15, which this committee previously passed out on consent, which then died in the Senate Appropriations Committee.
   
   This bill is nearly identical to SB 1087, save for the fact that it now explicitly states that the work required by CEC not use any ratepayer funds to implement the measure.
   
   Meeting California’s statutorily required emission reduction goals necessitates a rapid movement away from oil production and consumption, both domestic and imported. This bill does not advance that goal. If the Committee decides to advance this proposal, the following comments provide suggestions to further the completeness and transparency of oil transportation emissions, environmental impact, and human rights reporting required by this bill.
3. Agency separation of reporting requirements makes comparison challenging. This bill gives CalGEM and CARB slightly different reporting requirements. It directs CARB to provide an estimate of GHG emissions associated with (1) the transportation of imported oil in California and (2) the transportation of Californian oil in California. This bill directs CalGEM, meanwhile, to provide references on its website to “air quality emissions data associated with transportation of oil imported into the state.” It is unclear if this means the GHG emissions associated with moving oil from its country of origin into California and not within California. The separation of these emission reports makes it challenging to directly compare the climate-warming impacts of transporting Californian oil and foreign oil. The two agencies are not tasked with collecting and presenting emissions data in a consistent way: “air quality emissions data” and “GHG emissions” are not necessarily equivalent. Further, CalGEM is responsible for regulating oil extraction within the state, not regulating oil imports, so it is not clear whether emissions from moving oil internationally are within its purview. Mobile emissions sources within the state fall under the purview of CARB. Moving forward, the author may wish to consider more effective reporting requirements that achieve the desired air quality comparisons by specifying pollutants to report and appropriately designating agency responsibility, especially as it pertains to any emissions occurring outside of California.
4. California is increasing its oil exports as in-state demand falls. According to a report by Communities for a Better Environment using data from CEC and CARB, California refiners exported nearly 1.1 billion barrels, or 34%, of their total liquid petroleum fuels production during 2015–2019, an increase of 29% over the previous 5 years. Exporting oil also emits GHGs and other air pollutants. The question arises whether oil exports could be reduced to partially ameliorate the environmental and social concerns of imported oil. Reporting emissions associated with transporting Californian oil out of the state would be an important component to complete the picture this policy is trying to shed light on.
5. No clear path forward to monitor environmental standards of oil production in foreign countries. This bill specifies that the CEC should use the U.S. Department of State’s human rights abuses reports or those of other human rights organizations to assess the countries from which California is sourcing its oil. However, the bill does not specify a data source to evaluate the environmental impacts of oil production in foreign countries. Moving forward, the author may wish to consider providing more specificity for data sources documenting environmental standards for oil production in other countries.
   

DOUBLE REFERRAL:

If this measure is approved by the Senate Environmental Quality Committee, the do pass motion must include the action to re-refer the bill to the Senate Energy, Utilities, and Communications Committee.

Related/Prior Legislation

SB 1087 (Grove, 2024) was a previous version of this bill. This bill died in the Senate Rules Committee.

SBX1 3 (Grove, 2023) was a previous version of this bill. This bill died in the Assembly Appropriations Committee.

SB 15 (Grove, 2023) was a previous version of this bill. This bill died in the Assembly Appropriations Committee.

SB 1319 (Grove, 2022) was a previous version of this bill. This bill died in the Assembly Appropriations Committee.

AB 3217 (Gloria, 2020) would have required, no later than December 31, 2023, CARB, in cooperation with CalGEM and CEC, to complete and publish an analysis of the life-cycle GHG emissions associated with crude oil produced in the state, as prescribed. This bill died in the Assembly Natural Resources Committee.

SR 98 (Wilk, 2022) would have resolved the environmental, human rights, and political disadvantages of importing oil from the Amazon region over using Californian oil. This resolution died in the Senate Rules Committee.

SB 1137 (Gonzalez, Chapter 365, Statutes of 2022) established a health protection zone of 3,200 feet of a sensitive receptor, which includes residences, healthcare facilities, and schools. This bill prohibits CalGEM from approving new oil or gas development within this health protection zone.

SOURCE:

Author

SUPPORT:

Associated Builders and Contractors - Central California Chapter
California Independent Petroleum Association (CIPA)
Californians for Energy and Science
Greater Bakersfield Chamber of Commerce
Kern County Hispanic Chamber of Commerce
Kern County Supervisor Jeff Flores
Kern County Taxpayers Association
Premier Resource Management, LLC
Pros Incorporated
Tehachapi Republican Women Federated
TRB Oilfield Services
Trio Petroleum
Valid Energy Group INC.
Venator Resources, LLC

4 Individuals

OPPOSITION:

None received

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