The California Chamber of Commerce today announced that it has added SB 1137 (Gonzalez; D-Long Beach) as amended on August 24, 2022 to the Job Killer list.
SB 1137 will completely undermine the Governor’s own three-year process to enact rules for health and safety around oil and gas extraction facilities. The bill proposes a 3,200 foot minimum setback, prohibiting oil and gas activities within a specified proximity of homes, schools, and parks, and pollution controls surrounding active oil wells.
An economic analysis indicates that SB 1137 places approximately 8,000 jobs including 3,000 high-paying jobs in the oil and gas industry at risk, as well as another 5,000 jobs in supplying industries, such as construction and trades.
“The approach offered in SB 1137 will do nothing to reduce California’s oil and gas energy demands,” said CalChamber President and CEO Jennifer Barrera. “Instead, it will drive production out of California and force the state to rely on even more foreign oil imports that are produced in locations with less environmental protections than California.”
Arbitrary minimum setback requirements and pollution controls prescribed in the bill would impact 15,338 active and idle wells in California located within 3,200 feet of specified receptors in California. According to an Assembly Appropriations Committee analysis of a previous setback bill, AB 345 (Muratsuchi; D-Torrance), it could cost up to $4 billion in lost state revenue and subjects the state to significant risk of legal liability under the takings clause of the U.S. Constitution. AB 345 was similar to SB 1137 and was stopped by the Legislature in 2020.
The Department of Conservation, Geologic Energy Management Division (CalGEM) has a current process underway—where they have conducted seven local and virtual workshops across the state and received 45,000 public comments. The Governor and CalGEM have repeatedly said they want to rely on the best available science to determine any potential setback and ensure all stakeholders have input into the process. This bill forces CalGEM to adopt arbitrary setback requirements, with very little legislative input, at the detriment of good jobs and California’s energy needs.
The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California’s economy and create jobs. Please visit our website at www.calchamber.com