April 13, 2026
Orange County Business Council (OCBC) opposes SB 1359 (Stern), which would significantly alter the state’s approach to natural gas service obligations and accelerate electrification policies in ways that raise concerns for energy reliability, affordability and regulatory certainty across California.
At a high level, SB 1359 would require gas utilities to align service obligations with evolving greenhouse gas reduction mandates and authorize the retirement of natural gas infrastructure based on broad “public interest” determinations. While OCBC supports the state’s long-term environmental goals, this approach introduces substantial uncertainty into the energy system and risks premature decommissioning of critical infrastructure without fully developed or reliable replacement systems in place.
Natural gas continues to play a vital role for many households and key industries, including manufacturing, healthcare, logistics and food service, which depend on consistent, affordable and reliable energy to operate. Accelerating the phase-out of this infrastructure without ensuring adequate alternatives could lead to increased energy costs, reduced system reliability and disproportionate impacts on small businesses and working families already facing significant cost pressures.
Additionally, SB 1359 could undermine long-term planning and investment in California’s energy infrastructure by creating uncertainty around future system needs and regulatory expectations. A lack of clear, stable policy direction may discourage the investments necessary to maintain grid reliability during the transition to a lower-carbon economy.
OCBC believes California’s energy transition should be balanced, technology-neutral and grounded in reliability, affordability and system stability. For these reasons, OCBC respectfully opposes SB 1359 and encourages a more measured approach that achieves emissions reductions while maintaining a strong and dependable energy system.
For questions, please email Amanda Walsh, Vice President of Government Affairs.
