California blocks legislation that would hold oil companies accountable for health issues

California lawmakers blocked a bill earlier this week that would have made oil companies liable for some health issues of people who live near oil wells under certain conditions. 

California Democratic Gov. Gavin Newsom signed a bill last year which bans drilling new oil wells within 3,200 feet of sensitive areas such as homes and schools. 

Last year's bill has not gone into effect because just days after the bill passed, a law firm representing the California Independent Petroleum Association (CIPA) filed a referendum to block the law from going into effect until the voters have a chance to decide in the next general election, which is November 2024. CIPA had to get enough signatures for the referendum to qualify to be put on the ballot. They succeeded in doing so with more than 600,000 signatures, according to The Associated Press.

That referendum resulted in those in support of the bill pushing for another law making it easier for oil companies to be held liable for certain health problems of people who live near wells.

The bill was authored by Democrat Sen. Lena Gonzalez and would have required oil companies to pay up to $1 million to people who have cancer or other health problems caused by the environmental effects of the oil wells. 

The Senate Appropriations Committee blocked the bill from getting a vote in the full Senate.

“Today, we missed a key opportunity to advance legislation that would hold polluters accountable and prevent further harm to families who are just trying to stay healthy and have a better quality of life,” Gonzalez said in a statement at the state Senate. 

“Today’s decision in the Appropriations Committee on the fate of SB 556, The Oil and Gas Pollution Accountability Act, is extremely disappointing," the statement added. "Over 7 million people in California live within a mile of oil and gas wells, and nearly 2.2 million within 2,500 feet. Many of those affected by the toxic chemicals emitted by oil drilling pollution are people of color and low-income communities."

A spokesperson for the Western States Petroleum Association said the bill, if passed, would have done more harm than good.

“The billions of dollars and the fiscal mess that this bill would have caused to the State and local governments from their own liabilities, the fiscal responsibility of inherited wells, and the cost to the court system, would be substantial,” the spokesperson said in a statement.