Senate Bill 237

California's Senate Bill 237 (SB 237) was enacted in 2025 in response to concerns about fuel price volatility, declining in-state oil production, refinery closures, and the need to maintain a reliable supply of transportation fuels during California’s broader clean energy transition. SB 237 establishes a new framework regarding CEQA approvals for permitting oil and gas production operations in Kern County.

The Statute:

Until January 1, 2036, prohibits the California Geologic Energy Management Division (CalGEM) from approving more than 2,000 new well drilling permits annually, in reliance on the Kern County Second Supplemental Recirculated Environmental Impact Assessment Report (SSREIR), unless the State Energy Resources Conservation and Development Commission makes a formal finding that additional permit issuance is necessary for in-state crude oil production to supply 25% of in-state refinery feedstock demand, and that such production would likely help reduce costs for retail consumers of gasoline in the state.
Deems the Kern County SSREIR sufficient for CEQA compliance for covered projects, with specific exceptions (including Health Protection Zones (HPZ) and projects outside the SSREIR scope).
Clarifies the roles of Kern County (lead agency) and CalGEM (responsible agency) under CEQA for most Kern County oil and gas projects, while preserving CalGEM's lead agency role in certain circumstances (e.g., HPZs).

Updates & Announcements

Dec 16, 2025 - A virtual roundtable was held for Kern County tribes. The purpose was to engage with tribes in Kern County to provide an overview of Senate Bill 237 and discuss how potential changes may affect tribal communities and interests. The roundtable served as an opportunity to share information, hear tribal perspectives, and identify potential impacts, considerations, and next steps related to SB 237. If Kern County tribes would like more information, please reach out to the Department's Office of Tribal Affairs at TribalAffairs@conservation.ca.gov.

Nov 3, 2025 – Notice to Operators on SB 237 Implementation
CalGEM issued a Notice to Operators (NTO) describing interim CEQA procedures prior to January 1, 2026, and updated procedures that apply once SB 237 takes effect. The notice explains when Kern County or CalGEM will serve as CEQA lead agency, how operators should reference the SSREIR, and what documentation must be included with Notices of Intention (NOIs) submitted to CalGEM.

Implementation Timeline

October 2025: Governor signs SB 237 into law.
November 3, 2025: CalGEM issues Notice to Operators outlining interim CEQA procedures and transition steps prior to SB 237 taking effect.
January 1, 2026: SB 237 becomes effective. Kern County begins serving as CEQA lead agency for covered projects within its SSREIR boundary. CalGEM becomes a responsible agency for those projects and will rely on Kern's SSREIR and permit record for CEQA compliance.

Operator Resources

Operators must comply with SB 237 and all applicable CalGEM and Kern County requirements. Non-compliance may result in delays, permit returns, or enforcement action.

Implementation Guidelines

Notice to Operators

Guidance for Oil and Gas Operations Affected by the Enactment of Senate Bill 237 (https://www.conservation.ca.gov/calgem/Documents/SB237%20NTO%20-%20ADA.pdf)
Guidance for CEQA Compliance and Submission of Notices of Intention (https://www.conservation.ca.gov/calgem/Documents/NTO%202025-01_CEQA%20NOI%20Compliance%20and%20Submission_ADA.pdf)

WellSTAR Information & Guidance

WellSTAR (Well Statewide Tracking & Reporting System) – CalGEM Operator Page (https://www.conservation.ca.gov/calgem/for_operators/Pages/WellSTAR.aspx)

SB 237 Quarterly Data Tables (coming soon)

Questions?