California Oil and Gas Well Regulations Referendum (2024)

California Oil and Gas Well Regulations Referendum
Election date November 5, 2024
Topic Energy and Business regulation
Status Qualified for the ballot
Type Referendum	Origin Citizens

The California Oil and Gas Well Regulations Referendum is on the ballot in California as a veto referendum on November 5, 2024.

A vote to "keep the law" is to uphold Senate Bill 1137 (SB 1137), which would prohibit new oil and gas wells within 3,200 feet of homes, schools, nursing homes, and hospitals and require companies to adopt health, safety, and environmental requirements.

A vote to "overturn the law" is to repeal Senate Bill 1137 (SB 1137), thus keeping the law from taking effect.

Overview

What would Senate Bill 1137 change about oil and gas well regulations in California?

See also: Measure design

Senate Bill 1137 (SB 1137), which was passed during the 2022 legislative session, would enact several new regulations on the oil and gas industry in California. The law is on hold until the veto referendum is decided at the election. SB 1137 would require all oil or gas production facilities or wells within a health protection zone to comply with new regulations. Health protection zones are defined in the bill as areas within 3,200 feet of a sensitive receptor. Sensitive receptors include residences, education facilities, daycare centers, colleges and universities, community resource centers, health care facilities, live-in housing, prisons and detention centers, and any building housing a business open to the public.

SB 1137 would also require operators with a production facility or well with a wellhead in a health protection zone to develop a leak detection system for certain chemicals and detailed response plans. The law would require the Air Resources Board (ARB) and the State Water Board to adopt performance standards for the emissions detection system. The facilities would also be required to post contact information to receive complaints, limit sound levels, limit light generation, institute dust prevention measures, abide by vehicle speed limits, comply with air district requirements, and submit a chemical analysis of produced water to California Geologic Energy Management Division (CalGEM).

Who supports and opposes the repeal of Senate Bill 1137?

See also: Support for 'Yes' vote and Support for 'No' vote

California Independent Petroleum Association (CIPA) is leading Stop the Energy Shutdown campaign, which qualified the veto referendum for the ballot, and supports a 'no' vote on the referendum. The committee reported over $20 million in contributions as of March 31, 2023. It has received endorsements from the California Independent Petroleum Association (CIPA), E & B Natural Resources Management Corp., Macpherson Oil Company LLC, Sentinel Peak Resources California LLC, Signal Hill Petroleum, Inc., and State Building and Construction Trades Council of California. California Independent Petroleum Association (CIPA) said, "If implemented, SB 1137 would increase CA's already high gas prices by decreasing our energy supply and replacing it with expensive imported foreign oil that tankers must transport from counties that do not uphold the same environmental or labor standards."

Ballotpedia has not identified a campaign in support of a 'yes' vote. Supporters of a 'yes' vote on the referendum, who seek to uphold SB 1137 as passed, include Central California Environmental Justice Network, Earthjustice, Sierra Club California, and Voices in Solidarity Against Oil in Neighborhoods (VISION). Gov. Gavin Newsom (D), who signed the law, said, "I proudly signed SB 1137 last year to stop new oil drilling in our neighborhoods and protect California families. Big Oil knows that California is moving beyond fossil fuels, so on their way out these corporations are doing everything they can to squeeze out profits as they pollute our communities. We’re not standing for it."

Who is funding the campaigns surrounding the veto referendum?

See also: Campaign finance

One ballot measure committee, Stop the Energy Shutdown, is leading the campaign to support a 'no' vote on the referendum. The committee reported over $20 million in contributions. The top three donors to the campaign were Sentinel Peak Resources California LLC ($4.5 million), Signal Hill Petroleum, Inc. ($3.2 million), and E & B Natural Resources Management Corp. ($2.9 million).

Ballotpedia has not identified any committees registered in opposition to the veto referendum. Please send any information on committees to editor@ballotpedia.org.

Measure design

See also: Text of measure

The veto referendum would repeal Senate Bill 1137 (SB 1137), which was signed by Gov. Gavin Newsom (D) on September 16, 2022.

Health protection zones

The law if upheld would require all oil or gas production facilities or wells within a health protection zone to comply with new regulations. Health protection zones as defined by the bill would be areas within 3,200 feet of a sensitive receptor. Sensitive receptors include residences, education facilities, daycare centers, colleges and universities, community resource centers, health care facilities, live-in housing, prisons and detention centers, and any building housing a business open to the public.

Beginning on January 1, 2023, the law would prohibit the California Geologic Energy Management Division (CalGEM) from approving a notice of intention (NOI) to drill or rework an intercept well within a health protection zone, except for any of the following:

• to prevent or respond to public health, safety, or the environment;
• to comply with a court order finding that the denial of the NOI results in the taking of property; or
• to plug and abandon or reabandon a well.

The new law would require the NOI applicant to include a sensitive receptor inventory map of the area within the 3,200-foot radius of the wellhead. CalGEM would be required to review at least 30% of the inventories and maps annually for accuracy and make them available to the public. If the NOI is approved, operators would be required to provide an individual indemnity bond to cover the costs of plugging and abandoning the operator's well or wells in the health protection zone. The new regulations would not apply to underground gas storage wells and related production facilities.

Beginning on January 1, 2027, CalGEM would be required to report to the state legislature on the implementation of health protection zones.

Oil and gas production regulations

Beginning on January 1, 2025, oil and gas production facilities with a wellhead in a health protection zone to meet local, state, and federal permit requirements. The facilities would also be required to post contact information to receive complaints, limit sound levels, limit light generation, institute dust prevention measures, abide by vehicle speed limits, comply with air district requirements, and submit a chemical analysis of produced water to CalGEM.

SB 1137 would also require operators with a production facility or well with a wellhead in a health protection zone to develop a leak detection system for certain chemicals and detailed response plans. The law would also require the Air Resources Board (ARB) and the State Water Board to adopt performance standards for the emissions detection system. The law would also authorize CalGEM, ARB, and State Water Board to adopt regulations under an emergency rulemaking process. Beginning on July 1, 2023, and every six months after, the law would require the State Oil and Gas Supervisor to report to the legislature on the leak detection systems and response plans.

SB 1137 would require operators to submit annual reports to CalGEM beginning on January 1, 2027, that includes the amount of time the emissions detection system was not operating; the number of validated alarms; the number of leaks and time to repair; the number of times the surrounding community was notified of a leak that persisted for 48 hours; the amount of time production was suspended due to a leak; and any baseline and postdrilling groundwater testing performed by location.

Text of measure

Ballot title

The official ballot title is as follows:

“

Referendum challenging 2022 law prohibiting new oil and gas wells near homes, schools, and hospitals.

”

Petition summary

The summary provided for inclusion on signature petition sheets is as follows:

“

If the required number of registered voters sign this petition and it is timely filed, a 2022 law will not take effect unless approved at the next statewide general or special election after November 8, 2022. The challenged law: Prohibits most new or modified oil and gas wells within 3,200 feet of specified locations, including housing, schools, daycares, parks, healthcare facilities, community resource centers, detention facilities, and businesses open to the public. Requires existing wells in these areas to meet specified health, safety, and environmental requirements by January 1, 2025.

”

Full text

The full text of the ballot measure is below:

Support for 'Keep the law' vote

Supporters of SB 1137

Officials

• U.S. Sen. Bernie Sanders (Independent)
• Gov. Gavin Newsom (D)
• State Sen. Lena Gonzalez (D)

Political Parties

• California Democratic Party

Organizations

• Central California Environmental Justice Network
• Earthjustice
• Greenpeace
• Sierra Club California
• Voices in Solidarity Against Oil in Neighborhoods (VISION)

Arguments

• Brandon Dawson, director of the Sierra Club of California: "The oil and gas industry knows no bounds when it comes to putting profits over people and subverting the democratic process. California frontline communities have been fighting for protections from toxic oil and gas pollution for decades, and the setbacks mandated by SB 1137 will go a long way towards preserving those communities’ air quality and ecosystems."
• Kobie Naseck, coalition coordinator of Voices in Solidarity Against Oil in Neighborhoods: "Big Oil has created this referendum to undo setbacks as the law of the land, a law that was passed democratically and with broad support from both the legislature and the governor. It's Big Business and their millions of dollars vs. public health."
• Gov. Gavin Newsom (D): "I proudly signed SB 1137 last year to stop new oil drilling in our neighborhoods and protect California families. Big Oil knows that California is moving beyond fossil fuels, so on their way out these corporations are doing everything they can to squeeze out profits as they pollute our communities. We’re not standing for it."

Support for 'Overturn the law' vote

California Independent Petroleum Association (CIPA) filed the veto referendum. CIPA is leading the Stop the Energy Shutdown campaign in support of overturning the law.

Supporters of the veto referendum

Corporations

• E & B Natural Resources Management Corp.
• Macpherson Oil Company LLC
• Sentinel Peak Resources California LLC
• Signal Hill Petroleum, Inc.

Unions

• State Building and Construction Trades Council of California

Arguments

• California Independent Petroleum Association (CIPA): "If implemented, SB 1137 would increase CA's already high gas prices by decreasing our energy supply and replacing it with expensive imported foreign oil that tankers must transport from counties that do not uphold the same environmental or labor standards."
• State Building and Construction Trades Council of California: "SB 1137 would eliminate thousands of high wage industrial manufacturing union jobs in California’s most disadvantaged and underserved communities …. The production of oil in California is under the strongest environmental and labor standards in the world. Extraction operations are regulated by more than two dozen federal, state, and local regulatory agencies that enforce these standards. We believe in strong environmental regulations and support responsible oil producers that upgrade facilities with the latest technology to improve the safety, reliability, and efficiency of oil production."
• Ed Hazard, president of the National Association of Royally Owners of California: "In such cases, where elected officials disregard the interests of the people they represent, risk thousands of jobs, harm the environment, and create unintended consequences due to personal political agendas, referendums become an essential tool for pushing back. They offer a platform for voicing opinions, fostering dialogue, and allowing for the review and evaluation of facts. The 'Stop the Energy Shutdown' referendum gained one million signatures in record time, demonstrating Californians’ desire for lower gas prices and their call for elected officials to take notice."

Campaign finance

The campaign finance information on this page reflects the most recently scheduled reports processed by Ballotpedia, which covered through March 31, 2024. The deadline for the next scheduled reports is July 31, 2024.

See also: Campaign finance requirements for California ballot measures

There is one ballot measure committee, Stop the Energy Shutdown, registered to sponsor the veto referendum. The committee reported over $20.1 million in contributions.

Sponsors of the veto referendum

The following table includes contribution and expenditure totals for the committee sponsoring the veto referendum.

Committees in opposition to Oil and Gas Well Regulations Referendum
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Stop the Energy Shutdown	$20,130,338.00	$0.00	$20,130,338.00	$19,977,614.54	$19,977,614.54
Total	$20,130,338.00	$0.00	$20,130,338.00	$19,977,614.54	$19,977,614.54

Donors

The following table shows the top donors to the committee.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Sentinel Peak Resources California LLC	$4,500,000.00	$0.00	$4,500,000.00
Signal Hill Petroleum, Inc.	$3,200,000.00	$0.00	$3,200,000.00
E & B Natural Resources Management Corp.	$2,950,000.00	$0.00	$2,950,000.00
Macpherson Oil Company LLC	$1,486,000.00	$0.00	$1,486,000.00
California Independent Petroleum Association	$1,000,000.00	$0.00	$1,000,000.00

Polls

See also: 2024 ballot measure polls

Are you aware of a poll on this ballot measure that should be included below? You can share ballot measure polls, along with source links, with us at editor@ballotpedia.org.

California Oil and Gas Well Regulations Referendum (2024)
Poll	Dates	Sample size	Margin of error	Support	Oppose	Undecided

University of Southern California Dornsife/Price, Center for Urban Politics and Policy, CSU Long Beach, and Cal Poly Pomona	1/21/2023-1/29/2024	1,416 LV	± 2.6%	71%	20%	9%
	Question: "There is a ballot initiative that would eliminate an existing state law. This existing state law prohibits new oil and gas wells near schools, homes, or hospitals. Would you vote to get rid of the law prohibiting oil and gas wells near schools, or would you vote to keep the law prohibiting oil and gas wells near schools?"
Note: LV is likely voters, RV is registered voters, and EV is eligible voters.

Background

Senate Bill 1137 (2022)

On August 30, 2022, SB 1137 passed the California State Assembly by a vote of 46-24 with 10 not voting. On August 31, it passed the California State Senate by a vote of 25-10 with five not voting. It was signed by Gov. Gavin Newsom (D) on September 16, 2022.

Vote in the California State Assembly August 30, 2022
Requirement: Simple majority of all members in each chamber
Number of yes votes required: 41  a
	Yes	No	Not voting
Total	46	24	10
Total percent	57.5%	30.0%	12.5%
Democrat	46	5	9
Republican	0	19	0
Independent	0	0	1

Vote in the California State Senate August 31, 2022
Requirement: Simple majority of all members in each chamber
Number of yes votes required: 21  a
	Yes	No	Not voting
Total	25	10	5
Total percent	62.5%	25.0%	12.5%
Democrat	25	1	5
Republican	0	9	0

Ventura County 2022 local oil and gas well regulation referendums

See also: Ventura County Measure A and Measure B

In 2022, Chevron, Aera, and the California Independent Petroleum Association (CIPA) sponsored two veto referendums on ordinances enacted by the county board of supervisors designed to regulate the exploration and production of oil and gas. The referendums asked voters whether they wanted to adopt the county's proposed regulations. Both measures were defeated with about 52% of the vote, meaning the ordinances were not adopted.

California Geologic Energy Management Division (CalGEM)

California law established the state Geologic Energy Management Division within the state Department of Conservation in 1915. As of 2022, CalGEM had jurisdiction over 242,000 wells, including nearly 101,300 defined as active or idle oil producers. Its authority includes onshore and offshore drilling within three miles of the coast.

California veto referendum ballot measures

See also: List of California veto referendum ballot measures

A veto referendum is a type of citizen-initiated ballot measure that asks voters whether to uphold or repeal a law passed by the state legislature. Opponents of the law collect signatures to place the veto referendum on the ballot, with the aim of voters deciding to repeal the law. In California, voters have voted on 50 veto referendums, upholding laws 21 times (42%) and repealing laws 29 times (58%).

In 1912, Californians voted on a statewide veto referendum for the first time. The most recent veto referendum was on the ballot in 2022.

Number of California veto referendums
Total veto referendums	Laws upheld	Laws repealed	Year of last measure
50	21	29	2022

The veto referendum ballot measure is also known as a popular referendum, people's veto, or citizen's veto. There are 23 states that have a process for veto referendums. Voters in California approved a constitutional amendment that enacted processes for ballot initiative and veto referendum in 1911.

Path to the ballot

See also: Laws governing the initiative process in California

The state process

In California, the number of signatures required for a veto referendum is equal to 5 percent of the votes cast in the preceding gubernatorial election. Petitions are allowed to circulate for 90 days from the date the targeted bill was signed. Signatures for referendums need to be certified at least 31 days before the general election. As the verification process can take multiple months, the secretary of state recommends submitting signatures before the certification deadline.

The requirements to get veto referendums certified for the 2024 ballot:

• Signatures: 623,212 valid signatures
• Deadline: December 15, 2022

Signatures are first filed with local election officials, who determine the total number of signatures submitted. If the total number is equal to at least 100 percent of the required signatures, then local election officials perform a random check of signatures submitted in their counties. If the random sample estimates that more than 110 percent of the required number of signatures are valid, the referendum is eligible for the ballot. If the random sample estimates that between 95 and 110 percent of the required number of signatures are valid, a full check of signatures is done to determine the total number of valid signatures. If less than 95 percent are estimated to be valid, the referendum does not make the ballot.

Details about this initiative

• The referendum was filed on September 19, 2022, by Jerome Reedy.
• On September 29, 2022, the secretary of state cleared the referendum for signature gathering.
• On December 13, 2022, California Independent Petroleum Association (CIPA) announced that over 978,000 voters had signed the referendum petition.
• On February 3, 2023, the secretary of state announced that the initiative had qualified for the ballot. The random sample count found that at least 687,058 of the 978,610 signatures submitted were valid.

How to cast a vote

See also: Voting in California

Click "Show" to learn more about current voter registration rules, identification requirements, and poll times in California.

How to cast a vote in California

Poll times All polls in California are open from 7:00 a.m. to 8:00 p.m. Pacific Time. An individual who is in line at the time polls close must be allowed to vote. Registration Check your voter registration status here. To vote in California, an individual must be a U.S. citizen and California resident. A voter must be at least 18 years of age on Election Day. Pre-registration is available at 16 years of age. Pre-registration automatically registers voters when they turn 18. On October 10, 2015, California Governor Jerry Brown (D) signed into law Assembly Bill No. 1461, also known as the New Motor Voter Act. The legislation, which took effect in 2016, authorized automatic voter registration in California for any individuals who visit the Department of Motor Vehicles to acquire or renew a driver's license. Automatic registration California automatically registers eligible individuals to vote when they complete a driver's license, identification (ID) card, or change of address transaction through the Department of Motor Vehicles. Online registration See also: Online voter registration California has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration California allows same-day voter registration. Californians must be registered to vote at least 15 days before Election Day. If the registration deadline has passed for an upcoming election, voters may visit a location designated by their county elections official during the 14 days prior to, and including Election Day to conditionally register to vote and vote a provisional ballot. The state refers to this process as Same Day Voter Registration. Residency requirements To register to vote in California, you must be a resident of the state. State law does not specify a length of time for which you must have been a resident to be eligible. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States California's constitution requires that voters be U.S. citizens. When registering to vote, proof of citizenship is not required. Individuals who become U.S. citizens less than 15 days before an election must bring proof of citizenship to their county elections office to register to vote in that election. Verifying your registration The site Voter Status, run by the California Secretary of State's office, allows residents to check their voter registration status online. Voter ID requirements California does not require voters to present photo identification. However, some voters may be asked to show a form of identification when voting if they are voting for the first time after registering to vote by mail and did not provide a driver license number, California identification number, or the last four digits of their social security number. The following list of accepted ID was current as of March 2023. Click here for the California Secretary of State page to ensure you have the most current information. “ Current and valid photo identification provided by a third party in the ordinary course of business that includes the name and photograph of the individual presenting it. Examples of photo identification include, but are not limited to, the following documents: driver's license or identification card of any state; passport; employee identification card; identification card provided by a commercial establishment; credit or debit card; military identification card; student identification card; health club identification card; insurance plan identification card; or public housing identification card. Any of the following documents, provided that the document includes the name and address of the individual presenting it, and is dated since the date of the last general election…: utility bill; bank statement; government check; government paycheck; document issued by a governmental agency; sample ballot or other official elections document issued by a governmental, agency dated for the election in which the individual is providing it as proof, of residency or identity; voter notification card issued by a governmental agency; public housing identification card issued by a governmental agency; lease or rental statement or agreement issued by a governmental agency; student identification card issued by a governmental agency; tuition statement or bill issued by a governmental agency; insurance plan card or drug discount card issued by a governmental agency; discharge certificates, pardons, or other official documents issued to the individual by a governmental agency in connection with the resolution of a criminal case, indictment, sentence, or other matter; public transportation authority senior citizen and disabled discount cards issued by a governmental agency; identification documents issued by governmental disability agencies; identification documents issued by government homeless shelters and other government temporary or transitional facilities; drug prescription issued by a government doctor or other governmental health care provider; (R) property tax statement issued by a governmental agency; vehicle registration issued by a governmental agency; or vehicle certificate of ownership issued by a governmental agency. ”

See also

2024 measures

• 2024 ballot measures
• Natural resources on the ballot
• Business regulation on the ballot
• 2024 petition deadlines

California

• California ballot measures
• California initiative laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls
• Ballot measure signature costs

External links

• Full text