Overview

• Senate Bill 237 authorizes up to 2,000 new onshore wells per year in Kern County through 2036 and tightens pipeline rules that further limit offshore drilling.
• The deal allows the governor to suspend California’s summer‑blend gasoline requirement if pump prices surge for more than 30 days or are likely to do so.
• The cap‑and‑trade program, rebranded as cap‑and‑invest, is extended through 2045 with revenues continuing to fund state climate efforts.
• AB 825 sets a path for California to join a regional electricity market, which backers say will lower costs and improve reliability as opponents warn about governance concerns.
• The package follows warnings that Valero’s planned April 2026 Benicia shutdown could tighten supply and increase price volatility, and separate reports not officially confirmed describe talks on potential state assistance.