New law requires increased pace to plug idle wells and increases fees on operators statewide

SACRAMENTO, Calif. – Governor Newsom signed Assembly Bill 1866 into law last week requiring companies to meet more ambitious requirements to plug idle oil wells in the state.

"This is a landmark victory for taxpayers and communities most affected by the harmful health impacts of neighborhood oil drilling," said Assemblymember Hart who authored the bill. "I am proud of this decisive action we are taking today to hold the oil industry responsible for plugging over 40,000 idle oil wells across California. I want to thank Governor Newsom for recognizing the urgency of solving the idle oil well crisis in the state."

The bill would increase the fees for idle wells, impose additional filings for all idle wells, and prioritize the capping of wells within 3,200 feet of communities.

"The health of our communities always comes first," said Governor Gavin Newsom. "These new laws allow local leaders to limit dangerous oil and gas activities near homes, schools, and other areas as they see fit for their communities, and give the state more tools to make sure that idle and low-producing wells get plugged sooner."

The bill would also require larger operators to meet a higher standard of capping 15 percent of their idle wells in the first year and 20 percent annually by 2030.

According to Assemblymember Hart's Office, almost half of California's 40,000 idle wells have not produced oil in over a decade and some of those idle wells are at risk of becoming orphaned, leaving the responsibility of plugging left to taxpayers.

"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," explained Fatima Iqbal-Zubair, Legislative Affairs Manager for California Environmental Voters. "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."

Indeed, California taxpayers have already paid $100 million in the last few years to plug orphaned wells and the existing taxpayer liability for already orphaned wells exceeds $1 billion detailed Assemblymember Hart's Office.

"The system meant to clean up idle oil wells is fundamentally broken and, as a result, California communities are paying a steep price," said Victoria Rome, Director of California Government Affairs at the 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. With this legislation, Governor Newsom has taken a critical step toward a healthier California."

Idle wells are also a notable source of methane emissions, groundwater contamination, and air pollution as they degrade explained the California Department of Conservation in a 2018 report on idle wells.