"In a bid to stabilize struggling crude-oil refineries, state lawmakers on Saturday passed a last-minute bill that would allow the construction of 2,000 new oil wells annually in the San Joaquin Valley while further restricting drilling along California's iconic coastline. The measure, Senate Bill 237, was part of a deal on climate and environmental issues brokered behind closed doors by Gov. Gavin Newsom, state Senate President Pro Tem Mike McGuire (D-Healdsburg) and Assembly Speaker Robert Rivas (D-Hollister)."
"The planned April 2026 closure of Valero's refinery in Benicia will lead to a loss of $1.6 billion in wages and drag down local government budgets, said Assemblymember Lori D. Wilson (D-Suisun City), who represents the area and co-authored SB 237. Wilson acknowledged that the bill won't help the Benicia refinery, but said that "directly increasing domestic production of crude oil and lowering our reliance on imports will help stabilize the market - it will help create and save jobs.""
State lawmakers passed Senate Bill 237 to allow up to 2,000 new oil wells annually in the San Joaquin Valley while imposing further restrictions on coastal drilling. The measure emerged from a negotiated climate and environmental package involving Governor Gavin Newsom and legislative leaders. The law aims to stabilize crude-oil refineries and address affordability concerns amid planned refinery closures and potential fuel-price volatility. California currently has enough refining capacity, but two refinery closures could cut capacity by roughly 20 percent. The April 2026 closure of Valero's Benicia refinery is projected to cost $1.6 billion in wages and hurt local budgets. Proponents contend increased domestic crude production will stabilize markets and preserve jobs during the energy transition.
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