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The fossil fuel sector is not only enjoying record profits amid the conflict with Iran but is also pouring significant resources into defeating climate and worker-safety regulations in California.
According to research conducted by the Last Chance Alliance, a coalition of environmental organizations, oil and gas companies expended over $17 million on lobbying efforts in California during the first half of 2026. This total includes $10.3 million spent in the first quarter—a record high for the industry—followed by another $6.8 million in Q2.
A substantial portion of this spending targeted bills introducing new costs and responsibilities for the fossil fuel sector, such as a legislative proposal mandating companies to pay for restoration after climate-related natural disasters. Other targeted bills aimed at merely clarifying existing workplace-safety regulations and ensuring more comprehensive reporting of cleanup costs when oil firms wish to shut down operations.
Faraz Rizvi, campaign and policy director for the Asian Pacific Environmental Network—a participant in the Last Chance Alliance—condemned the companies for “aggressively lobbying” against simple measures intended to protect communities and enhance transparency. “They are not interested in the well-being of consumers or communities,” he expressed to Grist.
The Last Chance Alliance gathered the information from obligatory reports submitted to the California secretary of state. Leading spenders in the oil and gas lobbying realm comprised the Western States Petroleum Association at $4.3 million for the first half of the year; Chevron, contributing $3.7 million; and Phillips 66, which, as a refiner, allocated just over half a million dollars. A considerable amount of this funding was channeled to consultants and purported “front groups” that appear as grassroots entities but are actually financed by the fossil fuel sector, such as Californians for Energy Independence.
A major focus of the industry’s lobbying efforts has been California’s cap-and-invest program, which requires companies to purchase a limited—yet decreasing—number of emissions permits each year. This program encompasses about 80 percent of California’s economy and is deemed essential for reaching the state’s climate objectives, including carbon neutrality by 2045. Earlier this year, oil and gas representatives successfully advocated for a mechanism to introduce a large quantity of free pollution permits for fossil fuel companies. If implemented, this initiative could rob the state of billions intended for public transportation and housing projects. The alteration currently faces a legal challenge from environmental organizations along with opposition from several Democratic legislators.
The sector also opposed a bill, now pending in the state Senate, aimed at extending California’s Displaced Oil and Gas Workers Fund. Initiated under a 2022 law, this $30 million fund allocates grants for helping oil and gas workers transition to new careers. Reports indicate that the fund has already assisted 600 individuals in securing new employment, and proponents are exploring new support options, such as wage replacement during transition periods and financial aid during apprenticeships.
Other proposed legislation faced opposition from oil companies, including the formation of a task force on safe staffing norms for oil refineries; measures preventing fossil fuel companies from abandoning methane-emitting oil wells; and creating new safety and public feedback regulations for offshore pipelines. Another bill proposed requiring companies to submit formal retirement strategies prior to closing their refineries. This follows the shutting down of a Phillips 66 refinery in L.A. County, which environmental groups claim was poorly managed.
Several targeted bills have been rejected, granting the oil and gas sector a series of victories. These include SB 1245, which aimed to stabilize California’s gas supply, and SB 982, which addressed California’s home insurance crisis. The latter proposal would have empowered the state attorney general to pursue damages from fossil fuel firms following climate-related catastrophes like wildfires. It was intended to help mitigate soaring property insurance costs, disaster management, and other financial strains on the state’s insurer of last resort. Additionally, oil industry lobbying contributed to the defeat of a measure making it more difficult for companies to abandon methane-leaking oil wells. There are over 100,000 such wells in California, often leaving companies able to evade responsibility for plugging them.
Hollin Kretzmann, deputy political director at the Center for Biological Diversity Action Fund, remarked that it has been a largely disappointing year for climate policy in California. “This legislative session was a significant missed opportunity for the state. We failed to demonstrate what the world’s fourth-largest economy could achieve regarding economic and health protection.”
The lobbying efforts seem particularly egregious in light of the recent earnings of the oil and gas industry. Last month, Chevron reported $12 billion in net profits during Q2, nearly quintuple what it earned during the same quarter in 2025. Exxon Mobil reported $14.5 billion, more than doubling its second-quarter earnings from the previous year. These record profits are attributed to oil supply interruptions linked to the U.S.-Israel conflict with Iran, specifically the months-long closure of the Strait of Hormuz. Supply shortages and increased oil prices have favored oil producers not reliant on the strait for export, as well as companies with refineries located in the West.
Nevertheless, Chevron CEO Mike Wirth has expressed that disruptions to oil supplies are exerting pressure on his company. “Every day that passes, the situation becomes more challenging,” he stated to CNBC in late July. Chevron has also blamed California’s energy policies for elevated gasoline prices, shifting focus away from accusations of price manipulation. Chevron, Phillips 66, and Californians for Energy Independence did not respond to Grist’s requests for comments, and a representative for the Western States Petroleum Association declined to make a statement.
Ryan Schleeter, communications director for The Climate Center, emphasized the need to reduce Big Oil’s influence over the California Legislature moving forward. He proposed beginning with the elimination of public subsidies—including those from the cap-and-invest program’s free allocations and tax loopholes allowing companies to report only a fraction of their global profits to the state. “Essentially, we are subsidizing their profit margins,” he mentioned to Grist.
Kretzmann echoed the sentiment for more measures targeting both the number of lobbyists in Sacramento and the expenditure limits for their activities; otherwise, lawmakers and environmental advocates will encounter persistent challenges annually. “This issue touches on why California’s policies do not resonate with public sentiment,” he remarked. “I lack an easy solution, but we need our legislators to prioritize the public’s voice over oil industry lobbyists.”
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