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SB 567

TO AMEND AND MODERNIZE THE LAW CONCERNING THE APPORTIONMENT OF INCOME DERIVED FROM MULTISTATE OPERATIONS; AND TO CHANGE THE METHOD FOR SOURCING OF RECEIPTS FOR SERVICES AND INTANGIBLES.

2025 Regular Session Introduced by Rebecca Burkes and 1 co-sponsor

SB 567 allows California to convert up to 250 oil wells into gravity-based energy storage, promoting renewable energy while ensuring environmental safety and community transparency.

Notification that SB567 is now Act 719
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WeVote Research Nonpartisan
Bill Summary · SB 567

Summary of SB 567: Gravity-Based Energy Storage Well Pilot Program

Purpose and Intent

SB 567, introduced by Senator Limón, establishes the Gravity-Based Energy Storage Well Pilot Program in California. The primary goal of this legislation is to evaluate the feasibility and safety of converting existing oil and gas wells into gravity-based energy storage wells. This initiative aims to explore innovative energy storage solutions that can contribute to California's renewable energy goals while ensuring environmental protection.

Key Provisions

  • Pilot Program Duration: The program is set to run until January 1, 2035.

  • Well Conversion: The State Oil and Gas Supervisor is authorized to convert up to 250 existing wells into gravity-based energy storage wells. These wells must meet specific criteria, including:

    • Being plugged with all perforations sealed.
    • Isolated from hydrocarbon reservoirs.
    • Demonstrating mechanical integrity.
    • Not serving as conduits for fluid migration into aquifers.
    • Exclusively used for energy storage by raising or lowering weights within the well casing.

  • Suitability Assessment: Before conversion, operators must provide information demonstrating the well's suitability, including chemical composition analysis and various tests (e.g., total dissolved solids, hydrocarbons, pH levels).

  • Monitoring and Reporting:

    • Operators must conduct annual mechanical integrity testing and continuously monitor for leaks.
    • In case of mechanical integrity loss or environmental leaks, operators are required to notify relevant authorities and cease operations until issues are resolved.

  • Idle Wells Management: Idle wells converted for energy storage must be identified in management plans submitted to the supervisor.

  • Evaluation and Recommendations: By January 1, 2033, the Geologic Energy Management Division must evaluate the pilot program and recommend a framework for a permanent Gravity-Based Energy Storage Well Program.

  • Annual Charges: An annual charge will be imposed on operators to cover regulatory costs associated with the program.

Impact

  • Environmental Protection: The bill emphasizes the importance of preventing environmental damage during the conversion and operation of gravity-based energy storage wells.
  • Community Notification: Operators must inform nearby communities (within 3,200 feet) of any mechanical integrity issues or leaks, enhancing public safety and transparency.
  • Regulatory Framework: The pilot program will help establish a regulatory framework for future energy storage initiatives, potentially leading to broader adoption of gravity-based energy storage technologies.

Procedural Aspects

  • Legislative Status: SB 567 was approved by the Governor on October 6, 2025, and is now chaptered as Chapter 419, Statutes of 2025.
  • Fiscal Considerations: The bill does not require state reimbursement for local agencies or school districts for costs mandated by the state.

This legislation represents a significant step towards integrating innovative energy storage solutions into California's energy landscape while ensuring environmental and community safety.

Compiled from official sources — confirm details with the bill’s official record.

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