A lifeline for thousands of California oil workers is running out of time. The state’s Displaced Oil and Gas Worker Pilot Program is set to expire in 2027, and lawmakers still have not agreed on what comes next. For workers already losing their jobs to refinery shutdowns, the clock is ticking fast.

What the Program Does for Displaced Workers

California lawmakers created the Displaced Oil and Gas Worker Fund in 2022 to help oil and gas workers find new careers as the state moves away from fossil fuels. Since then, the state has awarded nearly $30 million to several organizations spanning regions from oil-rich Kern County all the way to Contra Costa County in the Bay Area. The program is administered by the California Employment Development Department. It connects displaced workers with career training, job placement services, and educational grants to help them enter new industries with wages similar to what they earned before. **Workers use the funding to earn certificates in sectors like renewable energy, construction, advanced manufacturing, and high technology.** Advisers also help workers translate their hands-on field experience into language that resonates with new employers. A pipeline technician becomes a skilled mechanical specialist. A rig supervisor becomes a project manager. The kinds of support the fund covers include:

• Short-term certification courses and community college programs
• Resume building, interview coaching, and job placement assistance
• Connections to apprenticeships in growing trade sectors
• Wage support for on-the-job training and tuition reimbursement
  

  California displaced oil workers career retraining program expiring 2027

Refinery Closures Are Pushing Thousands Out

The pressure on oil workers in California is not theoretical. It is happening right now. The Phillips 66 refinery complex in Wilmington, Los Angeles, completed crude processing in mid-October 2025 and shut down fully, displacing roughly 900 workers and contractors. The Valero refinery in Benicia also idled by April 2026, affecting more than 400 employees. Together, these closures removed approximately 17 to 20 percent of California’s total oil refining capacity. **The fossil fuel industry employs roughly 94,000 people in California, and one study estimated the state could lose nearly 58,000 workers in oil and gas between 2021 and 2030.** About 56 percent of those workers will need new jobs because they are not retiring. The broader U.S. oil industry is also shedding workers. Major companies including ExxonMobil, Chevron, Shell, and BP have announced large-scale layoffs. Chevron plans to reduce its workforce by 15 to 20 percent globally by the end of 2026. ConocoPhillips is cutting 20 to 25 percent of its workforce. The trend is nationwide.

The Wage Gap No One Talks About

Here is where the story gets painful. Finding a new job is one challenge. Finding a job that pays as well is a completely different battle. Refinery workers with only a high school diploma can earn more than $100,000 a year. Union workers at the Phillips 66 refinery complex earned about $115,000 annually, plus a pension and an 8 percent 401k match. These are not just good jobs. They are life-changing jobs. Research tracking workers laid off from a Northern California refinery found that those who found new work experienced a median hourly wage loss of 24 percent. A separate study of workers after the Marathon Martinez refinery closure found that one year later, one-quarter of workers were still unemployed, and those who did land new jobs dropped from a median wage of $50 an hour to just $38 an hour.

Wilfredo Cruz, a pipe fitter at the Phillips 66 refinery who earned a base salary of $118,000 a year, put it plainly. He enrolled in an online cybersecurity program at UC San Diego using state funds to cover the $4,000 tuition. But he said, “There’s not really a real clear plan to be able to get workers from this oil industry into these new fields. So, you feel kind of forgotten.” That sentence captures what thousands of families are living right now.

A New Bill Wants to Keep the Program Alive

There is a legislative effort to change course. Assembly Bill 2157, introduced by Assemblymember Damon Connolly of San Rafael and Assemblymember Isaac Bryan of Los Angeles, would remove the July 1, 2027, sunset date and make the Displaced Oil and Gas Worker Pilot Program a permanent part of California law. **The bill passed through a legislative committee in April 2026 by a vote of 5 to 1 and was referred to the Appropriations Committee for further review.** It has the backing of the United Steelworkers union. The legislation also directs the EDD to work with the UC Berkeley Center for Labor Research and Education to assess the program’s success and build a blueprint for making it a permanent statewide initiative. One union worker who benefited from the fund made the human stakes crystal clear. Laurie Wallace, a United Steelworkers member who worked at Phillips 66 for over 20 years, said the fund “was a lifeline, allowing me to finish my associate degree and prepare my transition into a new field” after she received a layoff notice along with 600 coworkers.

What Happens If Nothing Changes Before 2027

If AB 2157 stalls or the program simply expires without a replacement, the fallout will be real and measurable. Thousands of workers who have not yet enrolled will lose access to training slots just as mass layoffs from the recent refinery closures accelerate. Communities in Kern County and the Bay Area will face rising unemployment without a safety net designed to catch these specific workers. **The state’s own data shows 46 oil refineries in California closed between 2018 and 2024 alone, and the pace is not slowing down.** Surveys of impacted workers already reveal that more than a year after their layoffs, many remain unemployed or underemployed and are struggling to pay basic bills. These are workers who spent decades building skills that are highly specific to the fossil fuel sector and that do not always translate cleanly to other industries. Labor advocates argue the fix is straightforward: extend the program, fund it adequately, and make sure workers know where and how to apply before their options disappear. Employers in construction, utilities, logistics, and advanced manufacturing are actively hiring people with the mechanical and safety skills that oil field veterans already possess. The question is whether California will bridge that gap with the support workers actually need, or leave them to figure it out alone. As energy policy shifts and refinery gates close across the state, the workers left on the other side deserve more than a promise. They deserve a real plan. The 2027 deadline is not far away, and for families counting on this fund, every month without action is another month of uncertainty they cannot afford. What do you think about this? Should California make the Displaced Oil and Gas Worker Fund permanent? Drop your thoughts in the comments below and share this story with someone who works in the energy sector.