SB 1337 (2025) — State Energy Resources Conservation and Development Commission: air districts and local governments: transportation fuels refining facilities: memoranda of understanding.

AMENDED IN ASSEMBLY AUGUST 13, 2026

AMENDED IN ASSEMBLY JUNE 29, 2026

AMENDED IN SENATE APRIL 13, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

SENATE BILLNo. 1337

Introduced by Senator Richardson

February 20, 2026

An act to add Section 25370.5 to the Public Resources Code, relating to energy.

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

LEGISLATIVE COUNSEL’S DIGEST

Existing law requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2024, and every 3 years thereafter, to submit an assessment to the Legislature that, among other things, identifies methods to ensure a reliable supply of affordable and safe transportation fuels in California and evaluates the price of transportation fuels, including branded and unbranded retail prices, alternate formulations of gasoline with lower carbon impact, and other products suitable for production from refineries in California, as provided.

Existing law establishes the Division of Petroleum Market Oversight within the commission to, among other things, provide independent oversight and analysis of the transportation fuels market for the protection of consumers by identifying market design flaws, market power abuses, and any other manner by which market participants act to harm competition or act contrary to the best interests of the consumers in the state. Existing law requires the director of the division, when requested, to appear before the appropriate policy committees of the Legislature to provide an update on the division’s performance as compared to its objectives, the status of competition in the transportation fuels markets, and other information the committees request.

This bill would require the commission, on or before January 31, 2029, to seek to enter into memoranda of understanding with relevant air districts and local governments with transportation fuels refining facilities within their ~~jurisdictions~~ jurisdictions, as identified by the commission, to enable the further coordination that is needed to support management of the transportation fuels sector and to ensure the transportation fuels sector is successfully managed and maintains environmental, public health, labor, economic, and consumer protections.

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

SECTION 1.

The Legislature finds and declares all of the following:

(a) California’s pioneering climate and air quality policies are critical to protecting our communities’ health, which has led to a rapid evolution of California’s petroleum market.

(b) Decreasing demand, economic factors, and volatility of the international petroleum market introduces uncertainty to the petroleum industry that impacts consumers, the workforce, and fence-line communities.

(c) Successfully managing the state’s longstanding leadership in addressing climate, air quality, health, and environmental issues will require coordinated actions by, and strategic alignment of, state, regional, and local jurisdictions.

(d) An abrupt loss of refinery capacity and the resulting increased need for imported fuel to compensate for that loss is likely to create new risks for stable fuel prices and supply.

(e) Sudden and unmanaged exits of critical legacy energy infrastructure can have significant negative impacts on energy security, local governments, worker safety, consumer prices, public health, environmental protection, and the communities that depend on jobs and revenue from those industries.

(f) The State Energy Resources Conservation and Development Commission continues to engage with a wide range of impacted stakeholders and communities to develop a holistic view of the petroleum value chain and to establish solutions that best protect consumers.

SEC. 2.

Section 25370.5 is added to the Public Resources Code, to read:

25370.5.

On or before January 31, 2029, the commission shall seek to enter into memoranda of understanding with relevant air districts and local governments with transportation fuels refining facilities within their ~~jurisdictions~~ jurisdictions, as identified by the commission, to enable the further coordination that is needed to support management of the transportation fuels sector and to ensure the transportation fuels sector is successfully managed and maintains environmental, public health, labor, economic, and consumer protections.