Senate Bill 222: A Threat to California Residents and Their Wallets
California residents could soon be facing even higher gas prices thanks to Senate Bill 222, a bill that aims to hold oil companies accountable for climate-related disasters. While the bill claims to target climate change, its real consequences will likely hurt everyday residents, pushing gas prices even higher and adding uncertainty to the state's oil industry.
SB 222, introduced by state Sen. Scott Weiner, D-San Francisco, would allow individuals or insurance companies to sue those they believe are responsible for “climate disasters or extreme weather.” This means that oil companies could be held liable for their role in climate change, accused of “misleading and deceptive practices” about how fossil fuels contribute to global warming. A person who lost as little as $10,000 due to a wildfire could sue an oil company, as the bill sets no minimum threshold for claims.
This bill comes after a U.S. Supreme Court ruling in January that allowed lawsuits against oil companies to continue. States like California and Hawaii are seeking damages for the effects of climate change they believe were caused by the actions of these companies. But passing SB 222 would open the floodgates to similar lawsuits, creating massive legal costs and uncertainty for the oil industry.
If this bill passes and Governor Gavin Newsom signs it into law, the result could be higher prices at the gas pump. Legal battles surrounding the bill could drag on for years, slowing down investment in the state's oil production and distribution. With the oil industry in limbo, the cost of gas would inevitably rise, placing more financial strain on residents already grappling with high prices.
Currently, California's gas prices are already among the highest in the nation. As of Wednesday, the average price for regular gas was $4.45 per gallon, compared to the national average of $3.12. If SB 222 becomes law, it could drive these prices even higher as uncertainty about the state's petroleum industry grows.
Rock Zierman, CEO of the California Independent Petroleum Association, believes SB 222 is simply a distraction from the real causes of California's wildfire devastation. He pointed to factors such as arson, environmental lawsuits blocking essential forest management, and budget cuts that weakened firefighting efforts as the real culprits. Zierman argues that this bill unfairly places the blame on oil companies instead of addressing these critical issues.
This bill also follows Chevron’s decision to move its headquarters out of California last year and the closure of Phillips 66’s Los Angeles refinery. Both events reflect the growing pressure on the state’s oil industry, which is already facing new regulations, such as Assembly Bill X2 1, which requires oil companies to keep extra reserves to prevent price hikes. These regulations, while intended to protect consumers, are placing additional costs on the oil industry that may be passed on to consumers.
Adrian Moore, vice president of policy at the Reason Foundation, warns that SB 222 would shift responsibility for California’s wildfires away from local governments and property owners and place it squarely on the shoulders of oil companies. He argues that the bill, rather than addressing the real causes of wildfires, simply serves to push the agenda of climate change activists. For residents, the consequences would be felt in the form of higher gas prices and electricity costs. While those with insurance might see some reduction in premiums, others especially those who can’t afford insurance would bear the brunt of higher costs at the pump.
SB 222 requires a two-thirds vote to pass, and with both the Senate and Assembly having supermajorities of Democratic lawmakers, it’s likely to pass unless Republicans can unite to oppose it. Democrats should take note of the backlash against anti-consumer policies that was evident in last November’s elections. Meanwhile, Republicans need to get organized to block this bill and other similar proposals. Ultimately, it’s up to moderate Democrats to stand firm and demand that the state focus on real, practical solutions to California’s issues rather than pursuing costly and misguided policies that harm residents.
