On September 6, 2024, a California Superior Court ruled that state law preempted the City of Los Angeles’s ban on new oil drilling. The Los Angeles ordinance also required the discontinuance of existing drilling operations after 20 years. The court found that the Los Angeles ordinance and related guidance “contradict and are implicitly limited by” Public Resources Code § 3106. The court cited a California Supreme Court opinion holding that Section 3106 preempted a local measure prohibiting certain oil production methods altogether because the provision expressly provides that the State Oil and Gas Supervisor “shall approve” all production methods that they deem suitable for “increasing the ultimate recovery of underground hydrocarbons.” The Superior Court further found that the home rule doctrine did not apply to the ordinance because Section 3106 addressed a matter of statewide concern and was “an appropriately tailored means to further the State’s interest in protecting the environment and health of citizens while meeting the energy needs of the State.” On September 25, Governor Gavin Newsom signed <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB3233">AB 3233</a>, which gave localities greater authority to restrict oil and gas operations.

Oil companies' challenge to Los Angeles ban on drilling.

Warren E&P, Inc. v. City of Los Angeles

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After Court Said California Law Preempted Los Angeles Oil Drilling Ban, Governor Signed Law Authorizing Local Restrictions on Oil and Gas Production

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

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Area of the economy in which actors engage in identical or related activities.

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Heat extracted from the ground, usually in the form of hot water or steam and typically referred to as hydrothermal fluid.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

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After Court Said California Law Preempted Los Angeles Oil Drilling Ban, Governor Signed Law Authorizing Local Restrictions on Oil and Gas Production

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Greenhouse gas

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Finance