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California Bill Aimed at Oil and Gas Companies Introduced01-31-25 | Legislation

California Bill Aimed at Oil and Gas Companies Introduced

Would Make Companies Responsible
by Rebecca Radtke, LASN

SB 222 would place blame on gas and oil companies for climate crises like electric companies and fire disasters.

A bill was introduced in the California state Legislature that would hold oil and gas companies responsible financially. The bill was introduced by State Sen. Scott Wiener on Monday and has been compared to how utility companies are held responsible for wildfires sparked by their equipment.

As California faces a $40 billion rebuild for 12,000 destroyed and damaged structures after fires ravaged Pacific Palisades, Altadena, and surrounding areas, it's bills like this that could make a change for future disasters.

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The bill, SB 222, would allow those affected by natural disasters, private insurance companies, and the FAIR plan - a state insurance program - to recover losses from natural disasters by being able to take oil companies to court. The bill would apply to companies that operate in California.

"Californians are paying a devastating price for the climate crisis, as escalating disasters destroy entire communities and drive insurance costs through the roof," Sen. Wiener said in a statement. "Containing these costs is critical to our recovery and to the future of our state. By forcing the fossil fuel companies driving the climate crisis to pay their fair share, we can help stabilize our insurance market and make the victims of climate disasters whole."

According to the Pasadena Star News, if SB 222 passes and is signed, the state's gas industry would be thrown into uncertainty pending court review that could take years. Further, this would deter the gas and oil industry from conducting business in the state and leave drivers feeling it even more so than they already do at the pump.

The bill is written to create a private right of action so that those that have faced damages by "climate disasters and extreme weather events will be able to recover their losses from the oil and gas companies that misled the public about the harm their products would cause. Defendants will be strictly liable for damages."

Chevron announced in August their move from San Ramon, California to Houston, Texas. Phillips 66, in response to AB X2 1, closed its Los Angeles refinery. If SB 222 passes there will be massive uncertainty. The bill will require a 2/3 vote but amid the supermajorities by the Democrats, it is expected to pass.

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