Latest news with #SB237
Politico
8 hours ago
- Business
- Politico
Breaking up with Big Oil is hard to do
IT'S COMPLICATED: California still wants to break up with Big Oil — but it needs a ride first. California Energy Commission Vice Chair Siva Gunda outlined his much-anticipated plan on Friday to keep gas prices from spiking as the state weans itself off of oil. TLDR: Support in-state crude oil production, boost imports of refined oil — and pause a profit cap on refineries passed by the Legislature and signed by Gov. Gavin Newsom in 2023. Newsom had already previewed the pivot when he asked Gunda to redouble efforts to keep in-state refineries operating profitably in April after two of them announced plans to close amid a long-term decline in demand. The recommendations on Friday not only mark a softening of the state's fight against the oil and gas industry, but also a recognition that attacks from Republicans on gas prices are sticking. 'The gist is, 'We get it,'' Natural Resources Secretary Wade Crowfoot told reporters Friday. California's climate officials are now on the tightest of political tightropes. For example, Gunda recommended the Legislature waive some environmental review rules to streamline further oil extraction from oilfields in Kern County — while also expanding limitations on new offshore oil and gas development and codifying a ban on well stimulation treatments. Meanwhile, the California Air Resources Board stuck by its hot-button emissions trading program for transportation fuels, announcing Friday that their changes to the low-carbon fuel standard will take effect early next week despite fears that tightening the restrictions on the carbon intensity of fuels could cause a spike in gas prices. Senate Democrats are already girding for a fight with the agency. They introduced a bill backed by Senate Pro Tem Mike McGuire on Tuesday to freeze credit prices that encourage the switch to electricity, hydrogen and other non-fossil fuels, cutting the legs out from under the program. For a deeper dive into the LCFS fight, read our exclusive Q&A with CARB Chair Liane Randolph below. — CvK, AN Did someone forward you this newsletter? Sign up here! CARB'S COUNTER: Randolph isn't taking Senate Democrats' attempt to weaken the LCFS quietly. The state's top air quality official pushed back against the bill, SB 237, in an interview Friday, saying the proposal 'is just irresponsible' after the Trump administration already revoked the state's power to enforce its electric car and heavy-duty truck mandates. POLITICO spoke with Randolph about the heated LCFS debate. Read the full interview on POLITICO Pro for her thoughts on California's climate disclosure law and what's next for discussions with automakers. This interview has been edited for length and clarity. What are you concerned about as the news of the LCFS changes taking effect becomes public, and what are you trying to get ahead of? It's super important to be proactive, to remind people about the importance of this program. It is designed to provide a cost-effective path to support the transition to lower-carbon fuels and to zero-ignition infrastructure that reduces greenhouse gas emissions, right? And so in all of this conversation about cost, I don't want people to forget about the incredible benefits of the program and the fact that it's generated $4 billion in annual private sector investment in the clean transportation sector. It attracts dollars. It attracts investment in the state. It delivers, under our estimate, $12 billion in health-related savings, and California businesses will see increased revenue of $6 to $8 billion from LCFS credit generation sales through the life of the program. It's really important to emphasize that this program has clear economic benefits. This news is coming against the backdrop of SB 237, a new bill that would weaken the LCFS program. Do you regret at all how the rulemaking was done and the initial estimate that LCFS would raise gas prices up to 47 cents? Has that put you in the crosshairs of lawmakers? The LCFS rulemaking was an incredibly robust process. There were multiple workshops, tons of stakeholder engagement, two public hearings in front of the board. So the idea that there was not a robust public discussion about all the pros and cons of all of the complexities of the program is just inaccurate. And we had multiple briefings with legislative staff, outreach from members that we responded to. So it was an absolutely robust public process. The second thing I'll say is that in this era, when the federal administration is literally taking away every tool that they can think of, the idea that we as a state would attempt to cripple programs that have been effective, that have resulted in economic development and better air quality, cleaner fuels, reduced greenhouse gas emissions, is just irresponsible. SB 237 is endorsed by Senate President Pro Tem Mike McGuire. How seriously do you take it, have you talked to the governor about this, and what could result from a proposal like this even if it doesn't move forward? It is a proposal that has the potential to set California back. And I think that it's really important for our elected leaders to be thinking about all the different aspects of how we achieve our air quality and climate goals, and to recognize that we as Californians really should control our own destiny as much as we possibly can. — AN SEE YA, CEQA: Newsom is asking lawmakers to approve an overhaul of one of California's landmark environmental laws before he signs off on this year's budget. A trailer bill introduced Friday carves out sweeping exemptions from the California Environmental Quality Act, which mandates environmental reviews of construction and has drawn the ire of pro-building and Republican voices accusing it of slowing down key projects. Under the bill, environmental review of housing projects would be limited, and many wildfire mitigation projects, including fuel breaks near homes and vegetation thinning near evacuation routes, would no longer need to be reviewed. Improvements to certain community water systems as well as some construction on the state's high-speed rail project would also be exempted. The exemptions got immediate praise from the California State Association of Counties on Friday. 'No longer will CEQA be leveraged to stall critical county wildfire, water and housing projects,' said CSAC President and Inyo County Supervisor Jeff Griffiths. They were panned, however, by environmental groups. 'The trailer bill 131 is the worst rollback of environmental and public health protections that we've seen in decades,' said Matthew Baker, the policy director at the Planning and Conservation League, in a press conference Friday. The bill is expected to be approved Monday in the statehouse and then signed into law by the governor. — CvK BYE BYE, LOCOMOTIVES: CARB officially repealed its rule to phase out diesel locomotives Thursday night. Board members voted unanimously to revoke the in-use locomotive rule, six months after the agency announced that it had withdrawn the emissions standard from consideration for an EPA waiver, once it became clear approval wouldn't happen before former President Joe Biden left office. The rule, approved in April 2023, was projected to reduce 386,300 tons of smog-forming nitrogen oxides by 2050, making it CARB's most impactful vehicle emissions standard. The loss compounds the blow from car and truck rules being axed, and means regions like Southern California and the Central Valley are all but guaranteed to be out of compliance and face the threat of federal sanctions. — AN BILLABLE HOURS: A Sacramento County Superior Court judge gave Attorney General Rob Bonta the green light late Thursday to keep his big climate lawsuit against oil and gas companies in the hands of an outside firm, Lesley Clark of POLITICO's E&E News reports. The decision to outsource the headline-grabbing lawsuit to the San Francisco law firm Lieff Cabraser Heimann & Bernstein got Bonta in a tussle with his own employees. Their union, the California Attorneys, Administrative Law Judges and Hearing Officers in State Employment sued over the decision, arguing in-house lawyers were capable of handling the complex work themselves. But Judge Shelleyanne Chang wrote in her preliminary ruling that there was not enough evidence of that and that hiring an outside firm was well within state law. As Lesley has previously reported, the state's contract with Lieff Cabraser Heimann & Bernstein lawyers shows its lawyers billing up to $1,241 an hour; lawyers with another outside firm, Sher Edling, hired to help with the work are making up to $625 an hour. — CvK — A California appeals court struck down one of the state's largest planned communities for not analyzing its greenhouse gas emissions impacts enough. — The San Diego region's water wholesaler approved a rate hike of 8 percent amid declining demand and high fixed costs. — Western states have had relatively cool temperatures this summer, but a national heat surge is coming.
Los Angeles Times
14 hours ago
- Automotive
- Los Angeles Times
California Democrats Push Reforms to Prevent Refinery Shutdowns
A group of California Democrats is looking to ease the state's gasoline standards and streamline permitting for refineries in a bid to prevent more fuelmakers from shutting down and raising costs for the state's drivers. A bill introduced by seven of the state's Democratic senators would require the energy commission to transition by 2027 to a less-stringent gasoline specification that's in line with other western states, replacing California's unique Carbob fuel. Nearer term, the measure would suspend rules requiring more environmentally friendly, but more expensive, fuel to be sold in the warmer months. The bill marks a reversal from years of regulatory scrutiny by Governor Gavin Newsom and the California Energy Commission that contributed to plans by Phillips 66 and Valero Energy Corp. to shut refineries that account for about one-fifth of the state's crude-processing capacity. The shutdowns prompted Newsom to adjust course in April and urge the state's energy regulator to collaborate with fuel makers to ensure affordable and reliable supply. 'Details of the policy are up for negotiation, but I will be fighting to ensure that we get needed change for Californians who are fed up with our fuel economy,' Senator Tim Grayson, one of the seven democrats who introduced the bill, said in an emailed statement. The limited number of refineries that can make California's artisan gasoline grade is one reason why the state's drivers pay more at the pump than the rest of the country. Among those were Phillips 66's Los Angeles refinery, which the company said in October that it would shut later this year, and Valero's San Francisco Bay Area plant, which the company said in April it is looking to close within a year. Bill SB 237 was introduced in January, passed the California Senate in May and is working its way through the state's assembly with a mid-September deadline of the current legislative session. If approved, it would pass to Newsom's desk to be signed into law. The bill would also establish a 'one-stop shop' for air, water and hazardous waste permitting for the state's refiners, who have long argued that a glacial permitting process and heavy regulation have raised costs and dissuaded companies from operating in the state. The bill's streamlined permitting process would be available to refiners only if they commit in a 'binding and enforceable agreement to continue to operate and to provide transportation fuels at an affordable price to consumers for the duration of the permits' issued through the process. To be sure, California's fuel makers are still making solid profits. The latest data from the California Energy Commission shows refiners made $1 a gallon gross margin in April, down from 2024 but well above the US average. Risser writes for Bloomberg.
Mint
15 hours ago
- Automotive
- Mint
California Democrats Push Reforms to Prevent Refinery Shutdowns
(Bloomberg) -- A group of California Democrats is looking to ease the state's gasoline standards and streamline permitting for refineries in a bid to prevent more fuelmakers from shutting down and raising costs for the state's drivers. A bill introduced by seven of the state's Democratic senators would require the energy commission to transition by 2027 to a less-stringent gasoline specification that's in line with other western states, replacing California's unique Carbob fuel. Nearer term, the measure would suspend rules requiring more environmentally friendly, but more expensive, fuel to be sold in the warmer months. The bill marks a reversal from years of regulatory scrutiny by Governor Gavin Newsom and the California Energy Commission that contributed to plans by Phillips 66 and Valero Energy Corp. to shut refineries that account for about one-fifth of the state's crude-processing capacity. The shutdowns prompted Newsom to adjust course in April and urge the state's energy regulator to collaborate with fuel makers to ensure affordable and reliable supply. 'Details of the policy are up for negotiation, but I will be fighting to ensure that we get needed change for Californians who are fed up with our fuel economy,' Senator Tim Grayson, one of the seven democrats who introduced the bill, said in an emailed statement. The limited number of refineries that can make California's artisan gasoline grade is one reason why the state's drivers pay more at the pump than the rest of the country. Among those were Phillips 66's Los Angeles refinery, which the company said in October that it would shut later this year, and Valero's San Francisco Bay Area plant, which the company said in April it is looking to close within a year. Bill SB 237 was introduced in January, passed the California Senate in May and is working its way through the state's assembly with a mid-September deadline of the current legislative session. If approved, it would pass to Newsom's desk to be signed into law. The bill would also establish a 'one-stop shop' for air, water and hazardous waste permitting for the state's refiners, who have long argued that a glacial permitting process and heavy regulation have raised costs and dissuaded companies from operating in the state. The bill's streamlined permitting process would be available to refiners only if they commit in a 'binding and enforceable agreement to continue to operate and to provide transportation fuels at an affordable price to consumers for the duration of the permits' issued through the process. To be sure, California's fuel makers are still making solid profits. The latest data from the California Energy Commission shows refiners made $1 a gallon gross margin in April, down from 2024 but well above the US average. More stories like this are available on
Politico
3 days ago
- Business
- Politico
California's signature climate policies face a new foe: Democrats
SACRAMENTO, California — President Donald Trump is threatening California's marquee carbon-trading program. But it's in-state Democrats who are taking aim at the state's other emissions market for transportation fuels. Credit prices in California's low-carbon fuels market dropped $4 per ton Tuesday morning on the recognition of a credible threat in SB 237, a bill introduced overnight that would cap prices instead of letting them rise as planned in service of encouraging refiners to sell more biofuels, electricity and other non-fossil fuels. This isn't some potshot from marginalized Republicans — it's a bill from seven Democratic senators during the thick of the state's legislative session, blessed by Senate President Pro Tem Mike McGuire. 'This critical legislation will reduce costs for drivers across the Golden State while continuing to move our climate and energy goals full steam ahead,' McGuire said in a statement. And it's not all moderate Democrats, either — besides Sens. Tim Grayson, Anna Caballero and Melissa Hurtado, Sen. Jesse Arreguín, a former Berkeley mayor, is signed on, as is Sen. Jerry McNerney, a freshman and eight-term U.S. House member who was known for being Congress' 'science guy.' The bill is a grab bag of measures to address gas prices, along the lines of another sprawling affordability bill this session, Sen. Josh Becker's SB 254. In addition to capping credit prices at roughly $75 per ton, with increases pegged to inflation, it would also push state officials to ditch California's unique, lower-emission gasoline blend in favor of a broader, West-wide standard. It would also offer refiners a 'one-stop shop' for environmental permitting and impose more state oversight of any future rules that affect retail fuel prices. It's already triggering some odd-bedfellows alliances. The petroleum industry's main trade group, the Western States Petroleum Association, supports it — but so do environmental justice advocates who have long opposed the fuel market's incentives for dairy farms that capture their methane emissions and sell it for electricity. So does at least one sitting member of the state agency that put the policy in place. 'This isn't a surrender,' said Dean Florez, a member of the California Air Resources Board and a former state lawmaker from Bakersfield. 'It's a reality check. When credit prices spike so high they quietly tack 85 cents onto a gallon of gas, people stop believing that the green future includes them.' But other environmentalists are concerned about losing another climate policy in the state's toolbox, right after Trump revoked the state's permission to enforce its nation-leading electric vehicle targets. 'Why would we handcuff ourselves by not using a key policy to address transportation, the single largest emitting sector in California?' asked Katelyn Roedner Sutter, California director for the Environmental Defense Fund. For Gov. Gavin Newsom — who's beat up on oil companies but then instructed his California Energy Commission to try to keep refiners from leaving after two of them subsequently announced departure plans — the bill could cut both ways. (Newsom's office didn't immediately respond to a request for comment.) It puts a spotlight on the state's perpetually high gas prices and reopens a wound from last year, when lawmakers hit CARB over its admission and subsequent walkback of its estimate that the program could raise gas prices by 47 cents per gallon. But it could also help close another wound from last year, when neighboring governors whose states depend on California gas publicly complained about Newsom's bill to have refiners keep more supplies on hand in the event of outages. There's surprisingly wide agreement that California's custom blend of gasoline, formulated to reduce smog in the summer, might not need to be so uniquely tailored. Dan Sperling, a former CARB board member and director of the University of California, Davis' Institute for Transportation Studies, said broadening the market to align with the fuel used in other Western states would bring down prices and reduce the impact of refinery closures, while having minimal impacts on emissions. 'If you can make some minor modifications and open up the market to more refiners outside California, then the concern about refiners leaving goes away,' he said. Grayson acknowledged things could change. 'Details of the policy are up for negotiation, but I will be fighting to ensure that we get needed change for Californians who are fed up with our fuel economy,' he said in a statement. But the mere fact of the bill is already juicing conversations about how it could interact with the ongoing negotiations to reauthorize the state's other carbon price, its cap-and-trade program. Environmental justice advocates are hoping it will count as a win for industry and moderate Democrats so they'll soften their opposition to proposed cap-and-trade changes like eliminating offsets. 'It's not really benefiting us and it is costing us, and we'd rather see that [price] go down than cap and trade go down,' said Katie Valenzuela, a consultant for environmental justice groups. Like this content? Consider signing up for POLITICO's California Climate newsletter.
Politico
3 days ago
- Business
- Politico
Democrats take on their problem climate policy
With help from Camille von Kaenel, Anne C. Mulkern and Chelsea Harvey CARBON CURVEBALL: President Donald Trump is threatening California's marquee carbon-trading program. But it's in-state Democrats who are taking aim at the state's other emissions market for transportation fuels. Credit prices in California's low-carbon fuels market dropped $4 per ton Tuesday morning on the recognition of a credible threat in SB 237, a bill introduced overnight that would cap prices instead of letting them rise as planned in service of encouraging refiners to sell more biofuels, electricity and other non-fossil fuels. This isn't some potshot from marginalized Republicans — it's a gut-and-amend bill from seven Democratic senators during the thick of the legislative session, blessed by Senate President Pro Tem Mike McGuire. 'This critical legislation will reduce costs for drivers across the Golden State while continuing to move our climate and energy goals full steam ahead,' McGuire said in a statement. And it's not all moderate Democrats, either — besides Sens. Tim Grayson, Anna Caballero and Melissa Hurtado, Sen. Jesse Arreguín, a former Berkeley mayor, is signed on, as is Sen. Jerry McNerney, a freshman and eight-term U.S. House member who was known for being Congress' 'science guy." The bill is a grab bag of measures to address gas prices, along the lines of another sprawling affordability bill this session, Sen. Josh Becker's SB 254. In addition to capping credit prices at roughly $75 per ton, with increases pegged to inflation, it would also push state officials to ditch California's unique, lower-emission gasoline blend in favor of a broader, West-wide standard. It would also offer refiners a 'one-stop shop' for environmental permitting and impose more state oversight of any future rules that affect retail fuel prices. The bill is already triggering some odd-bedfellows alliances. The petroleum industry's main trade group, the Western States Petroleum Association, supports it — but so do environmental justice advocates who have long opposed the fuel market's incentives for dairy farms that capture their methane emissions and sell it for electricity. So does at least one sitting member of the state agency that put the policy in place. 'This isn't a surrender,' said Dean Florez, a member of the California Air Resources Board and a former state lawmaker from Bakersfield. 'It's a reality check. When credit prices spike so high they quietly tack 85 cents onto a gallon of gas, people stop believing that the green future includes them.' But other environmentalists are concerned about losing another climate policy in the state's toolbox, right after Trump revoked the state's permission to enforce its nation-leading electric vehicle targets. 'Why would we handcuff ourselves by not using a key policy to address transportation, the single largest emitting sector in California?' asked Katelyn Roedner Sutter, California director for the Environmental Defense Fund. For Gov. Gavin Newsom — who's beat up on oil companies but then instructed his California Energy Commission to try to keep refiners from leaving after two of them subsequently announced departure plans — the bill could cut both ways. (Newsom's office didn't immediately respond to a request for comment.) It puts a spotlight on the state's perpetually high gas prices and reopens a wound from last year, when lawmakers hit CARB over its admission and subsequent walkback of its estimate that the program could raise gas prices by 47 cents per gallon. But it could also help close another wound from last year, when neighboring governors whose states depend on California gas publicly complained about Newsom's bill to have refiners keep more supplies on hand in the event of outages. There's surprisingly wide agreement that California's custom blend of gasoline, formulated to reduce smog in the summer, might not need to be so uniquely tailored. Dan Sperling, a former CARB board member and director of the University of California, Davis' Institute for Transportation Studies, said broadening the market to align with the fuel used in other Western states would bring down prices and reduce the impact of refinery closures, while having minimal effect on emissions. 'If you can make some minor modifications and open up the market to more refiners outside California, then the concern about refiners leaving goes away,' he said. Grayson acknowledged things could change. 'Details of the policy are up for negotiation, but I will be fighting to ensure that we get needed change for Californians who are fed up with our fuel economy,' he said in a statement. But the mere fact of the bill is already juicing conversations about how it could interact with the ongoing negotiations to reauthorize the state's other carbon price, its cap-and-trade program. Environmental justice advocates are hoping it will count as a win for industry and moderate Democrats so they'll soften their opposition to proposed cap-and-trade changes like eliminating offsets. 'It's not really benefiting us and it is costing us, and we'd rather see that [price] go down than cap and trade go down,' said Katie Valenzuela, a consultant for environmental justice groups. — DK, AN, CvK Did someone forward you this newsletter? Sign up here! SPEAKING OF CARBON MARKETS: Global carbon trading markets and tax policies are quickly expanding, thanks in large part to China. China, the world's largest greenhouse gas emitter, has recently extended its emissions-limiting program beyond the power sector to cover cement, steel and aluminum production. That move means that 40 percent of global industrial emissions are now taxed or regulated by carbon markets, according to a new World Bank report. Carbon markets are expected to see continued growth as Brazil, India and Turkey plan to add their own programs, Anne C. Mulkern reports for POLITICO's E&E News. The quality of those carbon markets, however, is questionable, according to Danny Cullenward, a carbon market economist at the Kleinman Center for Energy Policy and vice-chair of CARB's own Independent Emissions Market Advisory Committee. 'There are a lot of markets with low prices,' he said. 'There are very few programs that have a substantial impact in terms of either having a meaningful carbon price or contributing meaningfully to emission reductions.' — AN JUST SIGN HERE: Legislative leaders and Newsom decided to compromise on funding Cal Fire as part of their overall budget agreement released on Tuesday. Newsom had wanted to spend $1.5 billion of the revenues from the state's cap-and-trade program on backfilling a general fund cut to Cal Fire amid a wider state deficit; state lawmakers wanted to reduce that to only $500 million, arguing Cal Fire is too essential to be funded with sometimes fickle cap-and-trade revenues. Ultimately, they agreed to $1 billion. Still largely unresolved: Sen. Scott Wiener's proposal to exempt many types of urban housing projects from environmental review. Lawmakers are expected to fill in the details and take up the proposal later this week. — CvK MOSTLY GOOD NEWS ON GROUNDWATER: California's groundwater grew by 2.2 million acre-feet over the 2024 water year — about equivalent to half the storage capacity at Shasta Lake, the largest aboveground reservoir in the state. The new numbers come from the Department of Water Resources' semi-annual groundwater report published Tuesday. State water officials attribute the growth to two major reasons: First, California had about average precipitation levels over the 12 months from October 2023 to October 2024, avoiding the pressures of drought for a second year in a row. Second, farmers and local water officials have increased their efforts to send water underground and slow overpumping to meet a milestone law requiring groundwater levels to stabilize by 2040, the Sustainable Groundwater Management Act. For only the second time since the state started counting, more wells last fall had increases in their water levels over the past ten years than decreases (the first time was in the spring of 2024.) To be sure, California isn't out of the woods on groundwater yet. Farmers and individuals used 11.7 million acre-feet of groundwater last year to meet roughly 40 percent of the state's overall needs — far more than they used during the exceptionally wet 2023 water year, which saw groundwater grow by four times as much as in 2024, but far less than what they usually use during drought years. The first half of 2025 has been drier, especially in the southern part of the state where overpumping is most critical and still causing land subsidence. — CvK HEAT'S ON: A new dashboard launched Tuesday by the Latino Policy and Politics Institute at UCLA shows just how much more Latino neighborhoods face extreme heat and air pollution than their non-Latino White counterparts — and suffer worse health outcomes as a result, writes Chelsea Harvey of POLITICO's E&E News. In Los Angeles County, for instance, 25 percent of workers in Latino neighborhoods are employed in heat-exposed industries, such as agriculture or construction. That's compared with just 8 percent of workers in non-Latino White neighborhoods. And 13 percent of adults in Latino neighborhoods in Los Angeles County live with diabetes, compared with 8 percent of adults in non-Latino White neighborhoods. Adults with diabetes are at greater risk of complications from exposure to extreme heat. — California politicians harbor an implicit belief that producing movies is more important than producing food, opines Dan Walters in CalMatters. — Catherine Reheis-Boyd, departing CEO and President of the Western States Petroleum Association, does an exit interview with VerdeXchange News after 45 years in the industry. — Trump's bid to repeal the 'roadless rule' protecting national forests has a long road ahead indeed.
