California Legislature Delays Oil Well Leak Detection Near Homes Until 2030

A new compromise reached in the California Legislature today will delay leak detection at oil wells near residential areas by more than three years. This decision comes just hours before the end of the legislative session.

In a separate vote, lawmakers also reinstated funding for three state agencies. These agencies are responsible for enforcing a law passed two years ago that requires oil companies to monitor operations within 3,200 feet of homes and schools for air and water leaks.

Both bills are now headed to Governor Gavin Newsom for approval.

Two weeks ago, Governor Newsom’s administration proposed extending the deadlines for leak detection by more than four years, citing the need for more time to implement the rules. Environmentalists supported a two-year delay, but the Legislature ultimately settled on a new deadline of July 2030, instead of the original January 2027.

The Assembly passed the budget bill with a 42 to 15 vote and the bill changing the deadlines with a 45 to 14 vote. The Senate passed them with votes of 31 to 9 and 30 to 9, respectively.

These two bills will provide nearly $15 million in this year’s budget to start enforcing the oil well rules.

“After thorough deliberation and negotiations, I am pleased to see a consensus reached on the implementation of this vital law to protect California families from the dangers of oil drilling pollution,” said State Senator Lena A. Gonzalez, who authored the law.

Over 2.5 million Californians live within 3,200 feet of an oil or gas well, mostly in low-income communities of color. Studies have linked living near these wells to health issues, including a higher risk of premature and low birthweight babies.

The 2022 law was initially put on hold for 18 months when the oil industry launched a campaign to overturn it through a ballot measure, which they later withdrew in June.

However, earlier this month, a Department of Finance official informed legislators that the original deadlines did not give state agencies enough time to hire staff and ensure the reliability of technologies needed to monitor air and water quality.

The Newsom administration’s plan to delay the monitoring requirements by four years faced strong opposition from environmental groups. Kassie Siegel, director of the Climate Law Institute at the Center for Biological Diversity, called the delay “indefensible” and a “huge gift to big oil.”

Last week, Newsom withdrew the proposal for the four-year delay but also withdrew the funding to implement the law. This led the Legislature to restore the funding today. The bills now await Newsom’s signature.

Oil company executives argue that the law will lead to job losses, higher gasoline prices, and increased dependence on imported oil. They estimate that complying with the law will cost about $40 million over the first two years.

Rock Zierman, CEO of the California Independent Petroleum Association, said the delays are reasonable because the ballot proposition process paused the law’s implementation, making a new starting point necessary. He also noted that a key part of the law, which prohibits new wells or work on existing wells within the buffer zone, is already in place.