Oil and gas lobby spending in California hits new high as climate bills loom
Fossil fuel interests poured more than $17 million into California lobbying in the first half of 2026, with a record $10.3 million spent in the first quarter alone. The spending targeted legislation that would impose new costs on the industry, including a bill to make companies pay for rebuilding after climate-driven disasters. Top spenders included the Western States Petroleum Association and Chevron, according to a coalition of environmental groups.
The spending surge coincides with regulatory decisions that could reshape California's cap-and-invest program, potentially allowing a large pool of free emissions permits for fossil fuel companies. Environmental groups have filed legal challenges, and some Democratic lawmakers have objected, warning the state could lose billions in revenue designated for public transit and housing projects.
The industry also opposed extending the $30 million Displaced Oil and Gas Workers Fund, which has reportedly helped 600 workers transition to new careers. Additional lobbying targets included bills addressing refinery safety staffing, methane-leaking well abandonment, offshore pipeline oversight, and requiring formal retirement plans before refinery closures.
This record lobbying could influence how aggressively California pursues its climate commitments. If industry spending weakens emissions pricing or worker protections, residents may face slower progress on carbon reduction goals and reduced funding for public programs. Conversely, the scale of spending may heighten public scrutiny of industry influence, potentially strengthening support for stricter transparency rules and regulatory oversight in future legislative cycles.