California Gov. Gavin Newsom signs a bill requiring oil and gas companies to allocate more funds to plug wells nearing the end of production, despite opposition from some within his administration. did.
Under a new law, companies acquiring gas or oil fields in California must secure a bond (a financial guarantee similar to insurance) to cover the full cost of sealing idle or low-producing wells. be.
As California’s oil production continues to decline, the measure was designed to properly seal unproductive wells and prevent the release of dangerous chemicals and global warming gases. The new financial obligations are intended to serve as a safety net for taxpayers if oil and gas companies go bankrupt and can’t pay to plug wells.
But the bill, authored by Rep. Wendy Carrillo, ran into unexpected opposition from Newsom’s Treasury Department, which argued the new guarantee requirements were too onerous and could put more energy companies out of business.
Environmentalists, including some who fear Mr. Newsom will veto the bill, say the governor’s decision to sign the bill will hold oil companies accountable for more than 100 years of drilling and environmental pollution. He praised this move as another extremely important move to question the future.
“This important reform sends a clear message to the oil and gas industry: You must pay for the cleanup and closure of old wells,” said Caitlin Rodner Sutter, California director of the Environmental Defense Fund. said. “By updating oil industry laws that date back nearly a century, this bill will help protect taxpayers from the costs of cleaning up orphan wells while paving the way for a more just transition away from fossil fuels.” Masu.”
The well plug bill was one of a series of new environmental bills Newsom signed this weekend in hopes of protecting fenced-in communities and moving California closer to higher climate goals.
Proactive and impactful reporting on climate change, the environment, health and science.
The most important of these is SB 253, a landmark bill that would require large U.S.-based companies operating in the Golden State to disclose their annual greenhouse gas emissions. , the first such request in the United States.
The Climate Change Corporate Data Responsibility Act, introduced by Sen. Scott Wiener (D-San Francisco), would, among other things, require the California Air Resources Board to provide more than $1 billion to companies doing business in California by 2025. will require the development and implementation of regulations requiring the provision of funding for Analyze your annual revenue to reveal your carbon footprint across three ‘ranges’.
The requirement would apply to an estimated 5,400 companies, including Walmart, Apple, ExxonMobil, and Chevron.
“This important policy transforms information transparency into climate action and demonstrates once again California’s continued leadership in boldly addressing the climate crisis,” Newsom said in his signature message. There is,” he said.
But the governor added that the implementation deadline is likely “not feasible” and that reporting protocols could result in inconsistent reporting among businesses. He said the administration will work with the bill’s authors and Congress next year to address these issues.
He also expressed concern about the financial impact on businesses and said he would direct the Air Resources Board to monitor cost effectiveness and make recommendations to streamline the program.
Supporters of SB 253 argue that the bill would strengthen state borders by forcing some of the world’s largest companies to disclose their emissions and encourage other states to adopt similar climate laws. I hope that it will reach beyond.
“Today is a historic moment for corporate transparency, risk management and responsible investing,” Mindy Lover, CEO and president of the nonprofit Ceres, said in a statement. “A dangerously warming climate poses untold risks to the economy and the well-being of people and the planet.
“On behalf of the world’s fifth-largest economy, California policymakers are taking this challenge seriously,” said Lover, whose organization is a co-sponsor of the bill. “By adopting a new climate disclosure framework, the state will provide unprecedented, actionable, economy-wide information to stakeholders across the country and around the world.”
Scope 1 emissions are defined by law as direct greenhouse gas emissions from a company and its branches. Scope 2 includes indirect emissions such as electricity purchased by a company. Scope 3 are emissions from a company’s supply chain, such as waste, water usage, business travel, and employee commuting. It accounts for approximately 75% of corporate greenhouse gas emissions in many industries.
Other notable environmental bills signed into law by Newsom include:
AB 631 establishes new penalties for oil and gas companies that violate state law and allows state regulators to prosecute some violations.
SB261 The law would require companies with annual revenues of more than $500 million doing business in California to report on climate-related financial risks every two years starting in 2026. This law is expected to apply to more than 10,000 companies.
SB 272 would require coastal local governments to develop and implement sea level rise plans and adaptation for the next 10 years.
AB 579 sets a statewide goal to require all new school buses leased or purchased after 2035 to be zero emissions.
SB 306 would require heatwave preparedness plans to be updated regularly and progress toward that goal to be better monitored.