Transcript Highlights:

• Also, we'd also like to reexamine the ban on offshore production. Mr.
• in... ...to expand offshore drilling off California's coast, including in marine sanctuaries.
• It omits and weakens some important provisions, including state review of offshore lease assignments,
• No bans on fracking, no bans on fracking, and offshore should be brought back.
• the state against expanded offshore oil and gas drilling.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy, Transportation, and Natural Resources focused on California’s transportation fuels sector, especially the state’s response to refinery closures and the broader transition away from fossil fuels. Opening remarks emphasized the tension between climate and air-quality goals, fuel affordability, refinery jobs and local tax bases, and the need to avoid crisis-driven responses as Phillips 66 and Valero consider shutting refineries in Wilmington and Benicia. Professor Emily Grubert framed the issue as a long-term managed transition in which the public already bears much of the risk and should also capture benefits from a well-planned shift. CARB Chair Leanne Randolph reviewed the state’s emissions and fuel policies, including AB 32, the low-carbon fuel standard, clean vehicle programs, and the at-berth regulation for ocean-going vessels. She said California’s transportation sector remains the largest source of greenhouse gases and a major source of smog-forming pollution, but that the state has made substantial progress and still needs to reduce demand for fossil fuels while maintaining compliance with federal air-quality standards. Randolph also said CARB’s recent LCFS amendments had not caused the predicted spike in gas prices and explained that compliance pathways for the at-berth rule include emissions-reduction technologies or payments into a remediation fund. CEC Vice Chair Gunda described declining gasoline demand, shrinking in-state refining capacity, and growing dependence on imports, arguing that the state is in a “mid-transition” period that requires both support for legacy infrastructure and continued investment in cleaner alternatives. He outlined the administration’s petroleum market stabilization proposal, which aims to return California crude production to 125 million barrels a year through four components: codifying the ban on fracking, validating the Kern County oil-and-gas permitting ordinance, creating a temporary CEQA exemption paired with a two-for-one plug-and-drill framework, and strengthening pipeline and spill-safety requirements. Department of Conservation Director Jennifer Lucasey said the proposal is intended to stabilize crude supply and pipeline throughput while preserving health and environmental protections, and noted that CalGEM would still review permits and enforce other requirements. Mayor Steve Young of Benicia testified that a Valero closure would significantly reduce city revenue and leave the community facing years of cleanup and redevelopment challenges. He said the city supports environmental protection but is worried about the economic hit, the possibility that Benicia becomes a fuel-import terminal, and the lack of local influence over refinery decisions. Members pressed the panel on the CEQA exemption, tribal and habitat review, disclosure of closure liabilities, fuel-demand projections, and whether the proposal should include more demand-side measures. No formal votes were taken; the hearing was informational, and officials said some proposals, including a margin-cap pause and further transition planning, would be taken up later in the process.

Transcript Highlights:

• If you go offshore for some and decrease if you go inshore for others.
• In the springtime, the fish are offshore, and they just steadily move in.
• Fish come offshore in the evening time, go in in the morning most of the time.
• In the springtime, the fish are offshore, and they just steadily move in.
• Fish come offshore in the evening time, go in in the morning most of the time.

Committee: House Natural Resources & Environment

Transcript Highlights:

• most importantly, it removes the utilities as middlemen in large clean energy procurement such as offshore
• Additionally, we send ambitious yet attainable goals of procuring 10 gigawatts of offshore wind and 10
• most importantly, it removes the utilities as middlemen in large clean energy procurement such as offshore
• Additionally, we send ambitious yet attainable goals of procuring 10 gigawatts of offshore wind and 10
• made the point, we're reaching the tipping point where heat pumps and battery storage and solar and offshore

Transcript Highlights:

• It simply pushed it into the shadows, where college sports wagering already happens through offshore
• It's happening every day through offshore websites, illegal apps, and unregulated bookmakers.
• difficult for Washington residents to bet on sports only drives them toward black markets, such as offshore
• sportsbooks where they receive no consumer protection, or to neighboring states. ...offshore sportsbooks
• The American Gaming Association notes that Americans wager an estimated $64 billion with offshore operators

Summary: The committee began in executive session with staff briefing several bills and proposed amendments. House Bill 2206, concerning uniformed and overseas civilian voting standards, was discussed but ultimately pulled from consideration for the day. House Bill 2123, dealing with foreign national donor reporting, was amended to raise the certification threshold to $6,000 and then advanced from committee on a 5-2 vote. House Bill 2120, which would remove two JLARC reporting requirements, also passed unanimously. House Bill 2411, authorizing shared leave for state employees involved in immigration enforcement actions or who are victims of hate crimes, was amended and then reported out on a 5-2 vote after debate over eligibility and privacy-related language. The committee then held hearings on House Bill 2309 and House Bill 2205. HB 2309 would bar state civil service classifications from requiring a postgraduate degree unless required by law, with the sponsor and OFM saying it would reduce barriers to state employment and expand the applicant pool. Testimony in support emphasized workforce access, equity, and skill-based hiring. HB 2205 would expand tribal sports wagering to allow bets placed at any tribal gaming facility and permit wagering on Washington college teams, while continuing to prohibit bets on individual Washington student-athlete performance. Tribal leaders and casino operators supported the bill as a way to bring existing illegal betting into a regulated tribal system and improve integrity monitoring, while the University of Washington and Washington State University opposed it, warning of harassment, student-athlete safety concerns, and broader gambling harms. A taxpayer advocacy witness urged broader online sports betting options, arguing that limiting access drives bettors to offshore markets. The hearing on HB 2205 was left open and HB 2309 testimony concluded without further action.

Transcript Highlights:

• The clerk will read: Senate Joint Resolution 12 by Senator Laird and others relative to offshore drilling
• the plan proposed by the Federal Bureau of Ocean Energy Management, 34 permits would be issued for offshore
• the state's clean energy goals are met, we must defend California's coast from efforts to expand offshore
• our colleague from San Diego for agreeing with us that this administration is wrong for opening offshore
• appreciate the dialogue and the bipartisan supermajority consensus that exists in California that offshore

Transcript Highlights:

• A matter of fact, a 2022 comprehensive study on offshore wind development by the National Academy of
• </c><05:26:48.480><c> wind</c> comprehensive study on offshore wind comprehensive study on offshore wind
• </c><05:27:40.958><c> wind</c> 80% complete with um offshore wind 80% complete with um offshore wind
• </c> have delayed or ended their offshore have delayed or ended their offshore wind<05:30:55.120><c>
• wind facilities will be any of offshore wind facilities will be any less<05:34:56.240><c> rigorous.

Bills: HB3838 , HR682

Keywords: nuclear deterrence, space force, military personnel, healthcare, supply chain, energy security, environmental regulations, defense budget, military funding, defense activities, appropriations, immigration penalties, Department of Defense, Department of Energy

Transcript Highlights:

• Yes, the next resolution is SJR 12, which is opposition to offshore oil drilling.
• for election, I approached environmental activists and said, I would like to do an initiative on offshore
• This bipartisan resolution reaffirms the state's longstanding opposition to offshore drilling to protect
• Are there any persons in this hearing room in opposition to this resolution on offshore drilling?

Summary: The committee considered several coastal, climate, and air quality measures. Senator Laird presented SCR 136 marking the 50th anniversary of the Coastal Act and Coastal Conservancy Act, and SJR 12 opposing the federal offshore oil and gas leasing program; both drew broad support from environmental groups, local governments, and other advocates, with no opposition heard. Senator Padilla presented SB 10, requiring state climate plans to include gender impact assessments, with supporters arguing climate harms fall disproportionately on women and LGBTQ+ people; the bill also drew no opposition in the hearing. Senator Padilla also presented SB 675 to restructure the Imperial County Air Pollution Control District board and expand public transparency, while supporters cited severe air quality problems and opponents raised concerns about unfunded mandates, consultation, and impacts on local permitting and economic development. Senator Allen presented SB 1229 to limit disaster-rebuild coastal permit exemptions when replacement structures would newly impede coastal access or sensitive protections, with supporters saying it would prevent investor abuse of post-disaster rebuilding rules. After testimony, the committee took up the measures and recorded votes. SCR 136, SJR 12, SB 10, SB 675, and SB 1229 all advanced on party-line or near-party-line votes, with some members voting no on the more regulatory measures. The consent calendar was also approved, including ACR 157, SB 899, SB 949, SB 963, SB 1008, SB 1207, SB 1428, and SJR 5. All of the listed measures were sent onward, generally to Appropriations, and the committee concluded its hearing after the roll calls.

Transcript Highlights:

• Yes, the next resolution is SJR 12, which is opposition to offshore oil drilling.
• for election, I approached environmental activists and said, I would like to do an initiative on offshore
• This bipartisan resolution reaffirms the state's longstanding opposition to offshore drilling to protect
• Are there any persons in this hearing room in opposition to this resolution on offshore drilling?

Committee: House Natural Resources

Transcript Highlights:

• This scheme incentivizes shifting as much income as possible offshore.
• Our small California-grown businesses, they don't get to send money offshore and not pay taxes.
• They don't get to send money offshore and not pay taxes.
• The 61st Assembly District, our businesses, again, don't have offshore subsidies.
• They can't park their profits offshore, and they will be on a much more competitive basis with those

Committee: House Revenue and Taxation

Transcript Highlights:

• So SB 237 includes increased safety guards for offshore oil and gas pipelines and clarifies regulatory
• So SB 237 includes increased safety guards for offshore oil and gas pipelines and clarifies regulatory
• And that means managing both offshore and onshore oil drilling.
• Offshore, there's no such containment. The damage spreads and the consequences are catastrophic.
• Offshore, we're tightening oversight to prevent irreparable harm to our coast.

Summary: The chamber reconvened after a late-night session and first adopted the consent calendar, including ACR 107 on the Diablo Range, by a 48-0 vote. Members then took up several Senate bills and Assembly measures, with repeated remarks about the long hours and the need to respect staff and keep proceedings moving. A vote change was also announced for Assembly Member Patel on SB 414, changing from aye to not voting. The main policy debate centered on energy, climate, and affordability. SB 237, dealing with oil and gas policy, refinery closures, pipeline safety, Kern County permitting, gasoline blend flexibility, and regional fuel coordination, drew strong support from members who framed it as a managed transition to stabilize fuel supply and protect jobs, and strong opposition from members who called it a giveaway to oil interests and a setback for climate goals. The bill passed 59-0. SB 254, an energy affordability and wildfire package, included wildfire mitigation financing, a successor wildfire fund, transmission cost reductions, clean energy permitting changes, and energization timelines; members raised some concerns about local control, but the bill passed 58-0. SB 840 and AB 1207 advanced the cap-and-invest reauthorization package, with supporters emphasizing emissions reductions, housing, transit, wildfire prevention, and community air programs, while opponents argued it would raise costs and function as a tax-and-spend scheme. SB 840 passed 54-15 and AB 1207 passed 55-10, both with urgency and immediate transmittal. Members also approved SB 352, which makes the Bureau of Environmental Justice permanent and requires air quality monitoring and reporting on AB 617 implementation, by 43-19. AB 825, authorizing California to help establish a Westwide electricity market, was presented as a way to lower bills, improve reliability, and reduce emissions; it passed 67-2 and was sent to the Governor. Additional actions included concurrence in Senate amendments to AB 8 on cannabinoids and AB 383 on firearms cleanup, and the chamber began consideration of AB 764 on wildlife as the transcript ended.

Transcript Highlights:

• So SB 237 includes increased safety guards for offshore oil and gas pipelines and clarifies regulatory
• So SB 237 includes increased safety guards for offshore oil and gas pipelines and clarifies regulatory
• And that means managing both offshore and onshore oil drilling.
• Offshore, there's no such containment. The damage spreads and the consequences are catastrophic.
• Offshore, we're tightening oversight to prevent irreparable harm to our coast.

Summary: The meeting began with procedural announcements, a vote change on SB 414, and adoption of the consent calendar, including ACR 107 on the Diablo Range. Members also agreed to take several Senate messages up without reference to file. A point of order was raised urging members to respect staff by arriving on time after a late-night session. The main floor debate centered on SB 237, a major oil and gas measure. Supporters said it would help stabilize fuel supply and prices, address refinery closures, strengthen offshore pipeline safety, clarify Kern County oil permitting, and allow possible suspension of the summer gasoline blend. Opponents argued it was a giveaway to big oil and a setback for climate goals. The bill passed 59-0. The Assembly then passed SB 254, an energy affordability and wildfire package that would reduce ratepayer costs, strengthen the wildfire fund, and speed utility infrastructure and clean energy permitting; it passed 58-0. SB 840, the cap-and-invest reauthorization and spending framework, drew the most divided debate, with supporters emphasizing climate policy, transit, housing, and community investments, and opponents calling it a tax increase and slush fund; it passed 54-15 on the urgency and 54-15 on the measure. AB 1207, the Assembly’s cap-and-invest reauthorization bill, also passed, 55-10 on both urgency and the measure. Members also approved SB 352 to make the Bureau of Environmental Justice permanent and require more reporting on air quality and AB 825 to create a Westwide electricity market, which supporters said would lower costs, improve reliability, and reduce emissions; AB 825 passed 67-2. AB 8, a cannabinoids bill with Senate amendments, was concurred in 66-0, and AB 383, a firearms cleanup bill, was concurred in 66-0. The session ended with immediate transmittals of the major measures to the Senate or Governor as applicable.

Transcript Highlights:

• Leases, essentially threatening existing offshore wind leases—leases that in California alone generated
• Governor Burgum and I were able to discuss the importance of offshore wind to California's grid reliability
• ensure that California and the nation have a diverse abundance of energy storage sources, including offshore

Committee: Senate Energy and Natural Resources Committee

Transcript Highlights:

• Assembly Bill 1417 by Assembly Member Stephanie and relating to offshore wind and energy development
• Today I rise to present AB 1417, which ensures that as California leads the nation in offshore wind,
• The bill requires offshore wind developers to report to the California Energy Commission any funding
• In addition, AB 1417 expands the scope of the existing voluntary offshore wind and coastal resources
• In comparison, offshore oil and gas resources make only 4% of that $70 billion.

Summary: The Assembly convened with a quorum call, prayer, and Pledge of Allegiance, then moved through a long daily file of bills. Early procedural motions included a failed attempt to suspend the rules for AB 1219, followed by consideration of numerous measures on housing, veterans, education, elections, energy, wildfire prevention, public safety, and consumer affordability. Several bills drew bipartisan support and passed overwhelmingly, including AB 878 on safety accommodations for survivors of violence, AB 948 on school district facility maintenance, AB 81 and AB 88 on veterans’ mental health and student aid, AB 640 on school board fiscal training, AB 660 on housing permit timelines, AB 1048 on workers’ compensation billing disputes, AB 1119 on dual credentialing, AB 1172 on inhalable anti-seizure medication access, AB 1227 on wildfire prevention, AB 1285 and AB 696 on lithium-ion battery safety, AB 1417 on offshore wind transparency, AB 1530 on disaster recovery assistance, and AB 353 on affordable home internet. Some measures drew opposition or more divided votes, including AB 704 on sealing certain misdemeanor records, AB 1249 on early voting access, AB 1280 on thermal energy incentives, AB 1448 on offshore oil protections, AB 380 on price gouging, AB 402 on Cal Grant increases, AB 1074 on CalWORKs reunification, and AB 1084 on expedited gender-change and name-change court orders. The Assembly also granted reconsideration on AB 435, a child passenger safety bill, and passed it after debate on the five-step safety-seat standard. The floor debate featured recurring themes of affordability, housing, wildfire preparedness, election access, veterans’ services, and public safety. Supporters of the election bill AB 1249 argued it would simply add a Saturday early-voting option in non-VCA counties, while opponents raised concerns about verification and county staffing. AB 30, authorizing E15 gasoline in California, was presented as an urgency measure to lower fuel costs and passed unanimously on the urgency and the bill. AB 1466 on groundwater disputes was also taken up, with the author arguing it would reduce frivolous litigation and better represent all water users; the vote was 42 ayes and 17 noes. After completing the file, the Assembly recessed for lunch, later returned, and continued with additional file items, with many measures passing on strong bipartisan votes.

Transcript Highlights:

• This has pushed innovation, investment, and market activity offshore.
• enough enforcement provisions, three of the five largest dollar denominated stable coin issuers are offshore
• The lack of clear rules has stifled innovation and sent businesses offshore to date.
• the innovation, not slow, and bring this back to America, clearly having it onshore is better than offshore
• candidly believe, even while there's been this innovation abroad, that if we do this right, everybody offshore

Committee: Senate Subcommittee on Digital Assets

Keywords: Digital Assets, Bitcoin, Stablecoins, Legislation, Bipartisan, Consumer Protection, Regulatory Framework, Financial Innovation, Testimony

Summary: The inaugural meeting of the Digital Assets Subcommittee brought a wave of excitement and anticipation regarding the future of digital assets, including Bitcoin and stablecoins. Chair Lummis expressed gratitude towards Senator Scott for establishing the subcommittee, indicating a commitment to promote responsible innovation while safeguarding consumers. Members discussed the necessity for a bipartisan legislative framework to regulate digital asset markets effectively while outlining the potential benefits such legislation could have on enhancing financial inclusion and streamlining payments. The meeting featured expert testimonies from key figures in the digital asset industry, highlighting the importance of creating clear regulatory guidance for digital assets to foster innovation without compromising consumer protections.

Transcript Highlights:

• </c> They do not exist in the many offshore They do not exist in the many offshore and<00:58:12.680><
• It exists in the offshore, and I think the quote from earlier today was offshore sports books are a problem
• It exists in the offshore, and I think the quote from earlier today was offshore sports books are a problem
• </c> offshore sports books I'm showing you. offshore sports books I'm showing you.
• </c> many sports book do both in the offshore many sports book do both in the offshore and<01:16:51.080

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• Those are currently now being banked offshore.
• But right now, all of those funds are being held offshore outside of the U.S.
• But right now, all of those funds are being held offshore outside of the U.S.
• All of those funds are being held offshore outside of the U.S.
• Have offshore assets that they want to relocate into Missouri? What's stopping them?

Committee: House Budget

Transcript Highlights:

• I just wanted to point out that the State Energy Office currently has the authority to bring an offshore
• So we just need to be careful that, you know, we don’t have the SEO and PSC approving the offshore wind
• Approving the offshore wind project and then this other entity signing us up for a nuclear project.
• The authority to seek procurement of offshore wind is already in the statute. So we just...
• Offshore wind is already in the statute. So we just need to do our homework.

Transcript Highlights:

• Those industries are electric vehicles, building decarbonization technologies, and lastly, offshore wind
• We have powerful offshore winds, but lag behind countries with smaller populations and lower wind speeds
• a bill, AB 5, which was focused on the same things that I think this takes the next step on for offshore
• at what were the benefits to California if we actually had 50% and 65% of the component parts for offshore
• When you look at all of these battery technology and offshore wind, it has the capacity to both help

Committee: House Utilities and Energy

Summary: The committee heard a series of energy and utility bills, with most measures moving forward on party-line or near-party-line votes after extensive testimony. Early items included SB 613, which would direct state agencies to prioritize reducing methane emissions from imported fossil fuels, and SB 614, which would allow California to move ahead with safety rules for carbon dioxide pipelines and lift the current moratorium on new CO2 pipelines. Both bills drew support from industry and clean-energy advocates and no opposition testimony was offered at the hearing. A major portion of the hearing focused on SB 332, which would require a study of whether California should continue using investor-owned utilities, tie executive compensation to affordability metrics, and improve transparency around utility disconnections. Supporters argued the bill would put ratepayers first and examine safer, more affordable utility models, while opponents, including the Chamber of Commerce and major utilities, warned it would send a destabilizing signal to investors and was not a neutral study. Members raised concerns about the bill’s tone and market impacts, but the author said the study was intended to be even-handed; the bill later advanced on a 10-5 vote. The committee also approved SB 57, which creates a tariff framework for large energy users such as data centers to prevent cost shifts to other customers and to address stranded grid costs. Supporters said the bill would protect ratepayers and encourage clean energy use, while utilities and large energy users argued existing CPUC processes already address many of the issues and warned against overly rigid rules. SB 256, dealing with wildfire mitigation, emergency response coordination, undergrounding, and removal of abandoned lines, drew strong support from an Altadena community witness affected by the Eaton Fire, while utilities raised concerns about duplicative mandates and public disclosure of sensitive infrastructure information. SB 647, aimed at improving low-income energy program access and performance metrics, and SB 787, which would coordinate state clean-energy supply chain development for EVs, building decarbonization, and offshore wind, also advanced after supportive testimony from labor, environmental, and community groups. The committee later approved a consent calendar of additional bills and left several measures on call for absent members to add votes."}

Transcript Highlights:

• The other is a shift to the climate bond for funding related to offshore wind.
• condition, they are disappointed by the proposed $42 million cut and the proposal for backfill for offshore
• Beach, said they are disappointed by the proposed $42 million cut and the proposal for backfill for offshore
• comments with the Port of Long Beach and added that he is heartened to see continued support for the offshore

Summary: The Assembly Budget Subcommittee hearing focused on the governor’s May Revision, especially the proposed extension of the cap-and-trade program to 2045 as “cap-and-invest,” the related greenhouse gas reduction fund (GGRF) spending framework, and several trailer bill proposals. Department of Finance staff outlined budget solutions including a $1.5 billion annual General Fund-to-GGRF shift for Cal Fire that would grow to $1.9 billion by 2029-30, continued support for high-speed rail, climate bond implementation, and various environmental and water-related statutory changes. The administration also described proposals affecting the Delta Conveyance Project, water quality planning, groundwater bulletin timing, Exide cleanup funding, and other agency-specific items, though the chair repeatedly asked staff to keep the presentation high-level and save details for the next hearing. Members from both parties raised strong concerns about the cap-and-invest proposal, arguing that it could reduce or displace funding for transit, affordable housing, active transportation, wildfire prevention, zero-emission vehicles, and other previously committed programs. Several members questioned whether the administration was effectively shifting essential ongoing services like Cal Fire onto a temporary carbon market fund, how the General Fund backstop would work if auction revenues fall short, and whether the proposal would leave enough money for continuous appropriations and future awards. Members also criticized the inclusion of cap-and-invest reauthorization in the budget process and asked for clearer information on the impact to high-speed rail, transit, and other GGRF priorities. The Delta Conveyance Project and related trailer bill language drew significant opposition from members and public commenters, who argued the proposal would fast-track the project, weaken CEQA-related review, and authorize revenue bond financing without sufficient legislative oversight. Public testimony also included support for maintaining or expanding funding for transit, affordable housing, AB 617 community air protection, offshore wind infrastructure, and ignition interlock programs, while environmental and community groups opposed cuts to wildfire prevention, housing, and school climate-related programs. No votes were taken; the hearing was informational, and the chair said the committee would continue the discussion and receive more detailed responses at the follow-up hearing on Tuesday.

Transcript Highlights:

• We also have proposed offshore wind projects.
• We also have proposed offshore wind projects.
• For us, it really appears. also have proposed offshore wind projects.
• And, you know, we've had some discussion about the location of offshore wind and things like that.
• But, you know, it's quite possible that building offshore wind in one location might be more expensive

Committee: House Utilities and Energy