SACRAMENTO, CA – Today, Assemblymember Gregg Hart (D-Santa Barbara) announced that Assembly Bill 1866 passed the Legislature and is on Governor Newsom's desk for his signature. The legislation addresses the urgent climate and public health crisis posed by idle oil wells by mandating that companies meet ambitious targets to plug the estimated 40,000 idle oil wells in California. The measure would have the greatest impact on larger operators, mandating them to plug 15% of their idle wells in the first year, with the requirement rising to 20% annually by 2030. The bill also requires operators to prioritize plugging wells within 3,200 feet of where communities live, play and work.
"I am deeply grateful to my broad coalition of supporters for helping move this bill to Governor Newsom's desk. This legislation will protect the communities most affected by the harmful health impacts of neighborhood oil drilling, shield taxpayers from cleanup costs, and create thousands of jobs," said Assemblymember Hart. "AB 1866 is necessary to solve the idle well crisis in California, and I look forward to earning the Governor's signature."
"We are thrilled that AB 1866 is heading to the Governor. This bill will hold the oil industry accountable for safely plugging and abandoning their oil and gas wells," said Linda Krop, Chief Counsel of the Environmental Defense Center. "Leaks from these wells cause air and water pollution, threatening public health, the environment, and our climate."
"AB 1866 is a crucial step forward in ensuring that the burden of cleaning up idle oil wells does not fall on the backs of taxpayers," says Fatima Iqbal-Zubair, Legislative Affairs Manager, California Environmental Voters. " It's now up to the Governor to ensure polluters pay to clean up and guarantee healthier communities, all while creating union jobs in the process. With AB 1866, communities that have historically suffered disproportionate harms from oil and gas pollution will benefit from better health and safety and reduced pollution. This bill is a win all around: for our environment, for justice, and for our economy."
"The legislature has spoken loud and clear that it's time for the oil industry to clean up its mess," said Jason Pfeifle, California strategist at the Center for Biological Diversity Action Fund. "Thanks to Assemblymember Hart and countless other champions of this bill, oil companies now have to get serious about plugging their dangerous idle oil and gas wells, which will create thousands of jobs and protect our health and environment. This victory shows the state is ready to take on Big Oil, and we're just getting started."
"The system meant to clean up idle oil wells is fundamentally broken and, as a result, California communities are paying a steep price," says Victoria Rome, Director of California Government Affairs at NRDC (Natural Resources Defense Council). "AB 1866 provides a comprehensive and proactive plan to address the urgent environmental and public health crises that these idling wells pose for Californians. We urge the Governor to sign this critical piece of legislation."
"Allowing the oil industry to pay nominal fees to delay its cleanup obligations has contributed to the orphan well crisis and enabled companies to further pollute and endanger frontline communities without any social benefit, and we urge Governor Newsom to sign this bill into law to end the practice," said Dan Ress, Senior Attorney at the Center on Race, Poverty & the Environment.
Nearly half of the 40,000 idle wells in California have not produced oil in decades. Many idle oil wells are at high risk of becoming orphan, which means taxpayers will be left responsible to cover the plugging costs. It is estimated that taxpayers could be liable for billions should these idle wells become orphan. In fact, California taxpayers have already paid $100 million in the last few years to plug orphan wells, and the existing taxpayer liability of orphan wells already exceeds $1 billion.
The benefits of AB 1866 extend beyond taxpayer protection. Plugging idle oil wells presents a significant opportunity to strengthen California's economy and create jobs. A recent study revealed that plugging these idle oil wells could create thousands of skilled and trained jobs statewide.
Idle oil wells in California act as a major source of methane gas emissions, ground water contamination and air pollution. By one estimate, about two-thirds of idle oil wells are leaking methane— a climate super-pollutant over 80 times stronger than carbon dioxide. Without a plan in place, these wells will continue to contribute to the climate crisis.
Gregg Hart represents the California Assembly's 37th Assembly District, which includes Santa Barbara, Goleta, Carpinteria, Montecito, Summerland, Buellton, Solvang, Lompoc, Guadalupe, Santa Maria, Orcutt, and Nipomo. He currently serves as the Chair of the Joint Legislative Audit Committee and Assembly Select Committee on the Nonprofit Sector.
CONTACT: Jimmy Wittrock, (916) 319-2037, jimmy.wittrock@asm.ca.gov