In a recent blow to California’s oil sector, Governor Gavin Newsom signed a new law on Wednesday that empowers cities, counties, and local voters to prevent the construction of new oil and gas wells in their areas.

The legislation, AB 3233, introduced by Assemblywoman Dawn Addis (D-Monterey), faced strong opposition from the industry. It reverses a state Supreme Court decision from last fall, which favored Chevron and invalidated a ballot initiative passed by Monterey County voters in 2016 aimed at banning new oil and gas wells due to pollution concerns, stating that state regulations took precedence.

Environmental advocates vigorously supported the new law, which could impact numerous communities that have enacted local oil drilling restrictions over the past decade, including Antioch and Brentwood in Contra Costa County, Santa Cruz County, and Los Angeles.

Newsom, who recently called a special legislative session to tackle gas prices, expressed strong criticism of oil companies, with whom he has had increasing conflicts over pollution and climate change.

“They represent the polluted heart of this climate crisis,” Newsom declared. “They have deceived us for decades. It is time to hold big oil accountable.”

Earlier this month, a judge in Los Angeles County invalidated an ordinance unanimously passed by the city council in 2022, which prohibited new oil and gas extraction and mandated that all existing operations cease within 20 years, citing the state Supreme Court ruling. On the same day, Newsom signed two additional bills imposing stricter regulations on the oil industry. “We will hold the oil industry accountable for their pollution and public health impacts,” Hart stated on Wednesday.

Opponents, led by the Western States Petroleum Association, a powerful industry trade group representing companies like Chevron, ExxonMobil, Shell, and Valero, argue that the new bills are excessive.

In a statement last month, the association claimed the legislation would “impose impractical limits on oil and gas operations, creating a fragmented system.” They also pointed out that California imports about 75% of its oil, stating that this reliance increases fuel prices for consumers and undermines environmental objectives by circumventing the state’s strict standards.

“These bills could severely disrupt California’s capacity to provide affordable and reliable fuels, affecting everyone from individual consumers to entire industries,” the association asserted.

Environmental groups welcomed the new law.

“This legislation confirms that cities and counties can address residents’ concerns regarding oil and gas pollution,” said Hollin Kretzmann, an attorney with the Center for Biological Diversity in Oakland. “The oil industry has resorted to threats and intimidation to undermine crucial local protections against pollution. We now have the legal assurance that local governments can restrict oil and gas operations to safeguard communities and the climate.”

The other two bills signed include AB 1866, introduced by Assemblyman Gregg Hart (D-Santa Barbara), which enhances requirements for the oil industry to plug and remediate idle wells, and AB 2716, by Assemblyman Isaac Bryan (D-Los Angeles), which bans the operation of oil and gas wells located in the Baldwin Hills Conservancy in Inglewood.