AMENDED IN SENATE AUGUST 20, 2026

AMENDED IN ASSEMBLY MAY 18, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Assembly Members Connolly and Bryan

February 18, 2026

An act to amend Section 9921 of, and to repeal and add Section 9925 of of, the Unemployment Insurance Code, relating to workforce development.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes, until July 1, 2027, the Displaced Oil and Gas Worker Pilot Program, to be administered by the Employment Development Department (department), for the purpose of addressing employment dislocations associated with oil, gas, and related industries. That program requires the department, using funds to be appropriated by the Legislature for purposes of the program, to award grants on a competitive basis to qualified applicants, as specified, for specified eligible activities.

This bill would extend the program indefinitely by removing the July 1, 2027, repeal date. The bill would require the department to implement and administer the program only to the extent that funding is appropriated by the Legislature, as specified.

The people of the State of California do enact as follows:

SECTION 1.

(a) The Legislature finds and declares all of the following:

(1) The economic threats facing oil and gas workers are immense as refineries shut down across the state.

(2) In 2020 and 2021, the closure of Marathon’s Martinez Refinery and the closure of the Phillips 66 Santa Maria Refinery displaced over 600 full-time workers and between 250 and 2,500 contract workers.

(3) More than 300 full-time workers experienced layoffs after the Phillips 66 refinery closure in Los Angeles at the end of 2025.

(4) Additionally, the Valero Benicia refinery closure in 2026 stands to impact hundreds of additional workers.

(5) Surveys of impacted workers reveal that, more than a year after their layoffs, many remain unemployed or underemployed and struggle to pay basic bills.

(6) Oil and gas workers are best positioned to understand the needs of impacted communities and craft effective responses.

(b) Therefore, it is the intent of the Legislature to do both of the following:

(1) Provide urgent and practical solutions for oil and gas workers to remain full and active participants in California’s economy as an increasing number face industry closure and layoffs.

(2) Establish a program that will provide the comprehensive approach needed to successfully transition workers into new, secure, high-skill careers, while maintaining economic stability for workers, their families, and their communities.

SEC. 2.

Section 9921 of the Unemployment Insurance Code is amended to read:

9921.

(a) There is hereby established the Displaced Oil and Gas Worker Pilot Program, to be administered by the department, subject to an appropriation by the Legislature for purposes of this article, for the purpose of addressing employment dislocations associated with oil, gas, and related industries.

(b) For purposes of this article:

(1) “Department” means the Employment Development Department.

(2) “Program” means the Displaced Oil and Gas Worker Pilot Program.

(3) “Qualified applicant” means a public or private nonprofit organization, local workforce development area, education and training provider, tribal organization, faith-based organization, or community-based organization. “Qualified applicant” does not include an individual applicant.

(4) “Target population” means individuals who are transitioning or have been displaced from the oil, gas, and related industries.

SEC. 2. SEC. 3.

Section 9925 of the Unemployment Insurance Code is repealed.

SEC. 4.

Section 9925 is added to the Unemployment Insurance Code, to read: