Office of Senator Blakespear
SB 1259 Factsheet | Updated March 20, 2026
SB 1259 : Transparency for Refinery
Asset Retirement Obligations
SUMMARY
This bill would create transparency for oil
refinery cleanup costs by establishing
standard guidelines for all refiners to
follow in assessing and reporting what
their costs will likely be should their
refineries close.
BACKGROUND
California’s refineries are aging, with
some operating for over a century, long
before modern environmental laws
existed. While other energy sectors (such
as nuclear, wind, and solar) are required
to plan , set aside funds, and submit
advanced disclosures to the U.S.
Securities and Exchange Commission for
their eventual closure, refineries are not
required to until they know when they will
close.
Although refineries significantly pollute
the local air, water, and soil, they also
provide high -paying jobs, substantial
local tax revenues, and fuels that are
currently essential to the state's
economy. Due to forces at play both in
and outside of California, it is becoming
increasingly clear we must plan for a
future with fewer refineries in California.
In recent years, a number of U.S.
refineries have consolidated capacity,
shifting operations away from the coasts
to inland and Gulf Coast states. The
average capacity of a refinery in
California has doubled since the 1980s,
at the same time as many have closed.
Although communities are aware there
are financial impacts of losing a refinery,
they are not privy to the extent of
cleanup necessary, who is liable to cover
it, and how long it is expected to take.
PROBLEM
Refineries often sit on top of a century’s
worth of toxic spills and buried waste,
creating massive underground "lakes" of
oil and carcinogenic chemicals, such as
the one found under the Phillips 66 Los
Angeles Refinery. Without a clear plan for
cleanup, these sites remain a public
health hazard long after the refinery itself
has stopped operating.
Refining companies withhold the true
cost of cleaning up toxic sites by
claiming their facilities will operate in
perpetuity right up until they announce
their imminent closure . Without clear
cleanup cost estimates and timelines,
local communities also cannot
proactively and effectively plan for a
future without these facilities.
SOLUTION
SB 1259 will protect taxpayers and
communities by mandating that
refineries share how they calculate their
anticipated asset retirement obligations
(AROs), as well as timelines for how long
cleanup will take . Those ARO estimates
will be evaluated based on consistent
technical standards developed by the
State Water Board. By daylighting these
obligations and plans before refineries
actively start to close, California can
hold polluters responsible while acquiring
the data necessary to plan for a safe
Office of Senator Catherine Blakespear
SB XX Factsheet | Updated March 20, 2026
and stable transition away from fossil
fuels.
SUPPORT
Asian Pacific Environmental Network
(co-sponsor)
California Environmental Justice Alliance
(co-sponsor)
Communities for a Better Environment
(co-sponsor)
STAFF CONTACT
Sam Samuelsen | Legislative Director
Office of Senator Catherine Blakespear
[email protected] | 916-
651-4038
Heather Walters | Staff Director
Sen. Environmental Quality Committee
[email protected] | 916-651-
4108