R-17 Correspondence – The Sierra Club
From: [email protected] [mailto:[email protected]]
Sent: Tuesday, May 23, 2023 11:44 AM
To: CityClerk <[email protected]>
Subject: Comments on Item 17, May 23, 2023 Council
-EXTERNAL-
17. 23-0533 Recommendation to request City Auditor to conduct a comprehensive audit on fiscal liabilities and economic impacts to the City of Long Beach stemming from California’s transition away from crude oil and natural gas production to assist in the City’s transition planning efforts, and refer findings to the Climate, Environment, and Coastal Protection Committee for input and discussion. 17. 23-0533 MAYOR REX RICHARDSON; COUNCILMEMBER KRISTINA DUGGAN, THIRD DISTRICT, CHAIR; CLIMATE, ENVIRONMENTAL, AND COASTAL PROTECTION COMMITTEE; COUNCILMAN AL AUSTIN, EIGHTH DISTRICT Office
Thank you, Mayor Richardson and Councilmember Duggan for bringing this forward.
The Sierra Club Los Cerritos Wetlands Task Force would like to ask that the first step in transitioning away from fossil fuel production would be to deny any new drilling anywhere in Long Beach.
We also urge you to consider the health effects oil production has upon the economy. Studies show that living near oil production can make people sick; sick people cannot work. Your audit should consider not only money that the City receives from oil and gas production, but what is spent on loss work time and other health costs for the City.
Thank you for your consideration.
Ann Cantrell and Anna Christsensen, co-chairs
Sierra Club Los Cerritos Wetlands Task Force
CityofLongBeach,CaliforniaHonorableMayorandCityCouncilMembers411WOceanBlvdLongBeach,CA90802,USA May23,2023
Re:ClimateTransitionImpactAudit-SUPPORT,contingentonConditionsStatedHerein DearMayorRichardsonandCouncilmembers:
TheClimateCouncilispleasedtosubmitthisletterinsupportofItem17,MayorRichardson’srequesttotheCityAuditortoconductaClimateTransitionImpactAudit[1].
WeappreciateMayorRichardsonandCouncilmembersDugganandAustinrequestingthisaudit,andunderstandthatthisisthefirstandveryimportantstepinreviewingtheeconomicimpactstoLongBeachfromoildrilling.However,theCityCouncilshoulddirectstafftoconductamorecomprehensiveanalysis. TheClimateCouncil’ssupportiscontingentonthefollowing:1. CityCouncilshoulddirectaspecifictimeframeforcompletion,andthatthereportbepresentedtoapublicmeetingoftheClimate,Environment,andCoastalProtectionCommittee,andtheinformationshouldbeconsideredbythefullCityCouncil.2. CityCouncilshoulddirectthattheAuditReportteamincludestheCity’sHealthDepartment,asrequiredbytheStateLandsCommission(SLC)onApril12,2023[2].TheHealthDepartmenthasdomainexpertiseonhealthimpactsofalltypes,thecostsoftreatingillnesses,andthefinancialburdenthesecostsplaceontheCityandStatebudgetsfortreatingtheunder-insured.TheAuditReportshouldincludepublishedstudiesonimpactssuchasasthma,birthdefects,respiratoryandcardiovascularillnesses,andcancersknowntoberelatedtooildrillingchemicals.Itshouldincludethesocialcostofcarbon,asrequestedbytheSLC,andassumesuchillnessesarecausedbyoiloperations,inproportiontothefindingsofrecentscientificresearch.3. Upontimelyreceiptoftheauditresults,CityCouncilshoulddirectEnergyResourcestocomplywiththelanguageof SB1137[3]startingimmediately,eventhoughthat2022statelawisstayedpendingaballotreferenduminNovember2024.4. Upontimelyreceiptoftheauditresults,CityCouncilshoulddirectthattherevisedLongBeachUnit Planreduceproductionsteadilyyearoveryear,notincreaseit;anddirectafiveyeartimelineforphaseoutofoilproduction.TheCity’splansalreadycallfor“aggressiveprojectionstofullyfundallabandonmentliabilityfortheCityby2035,afull10yearsaheadoftheState‘s2045”[4];but“aggressive”ringshollowsincerecentEnergyResourcespresentationsprojectthat2035isthedatebywhichtheoilfieldswillloseproductivityanyway[5].5. Inadditiontothedirectcostsandrevenuesmentionedinthememo,CityCouncilshouldofferandapproveafriendlyamendment toalsoaddressindirect costssuchasschooldaysmissedbychildrenwithasthmaand TheClimateCouncil@fiercecourageconsulting.com
increasedrateofcancerandheartdisease,aswellaslowerpropertyvalues,asrequiredbytheStateLandsCommissionmemo.6. TheAuditReportshouldincludeindependent projectionsof total costsofabandonmenttoincludeplugging,decommissioning,remediation,andsubsidencecontrol,allbasedonrecentanalyseswhichconcludethattheoilindustry’sestimatesaretoolow,andthattaxpayersarelikelytoshouldermuchlargerburdensthanforecastbyoiloperatorsstatewide.Operationstobeaddressedshouldspecificallyincludeatminimumreworks,welldeepening,newwells,andenhancedoilrecovery(EOR),sincethattechniqueismentionedintheLongBeachUnitProgramPlan.[6]7. TheAuditReportshouldaddressfindingsfromthenewCarbonTrackerreport,“ThereWillBeBlood:DecommissioningCalifornia’sOilfields”[7],whichprojectsthatoilcompanieswillbehavemuchascoalcompanieshaveoverthelasttwodecades,declaringbankruptcyassoonasoperationsarenolongerprofitable,andleavingCaliforniataxpayersresponsiblefordecommissioningthewellstheydrilledandprofitedfrom.Theseabandonedwellswillbecomestrandedassets,andthecycleofrepeatedbankruptciesintheoilandgasindustrywillfollowthesamepatternashappenedtothecoalindustry.Thiscyclehasbeendescribedas“vulturecapitalism”:asoperationsbecomeunprofitable,onecompanydeclaresbankruptcy,shiftingobligationsfromshareholderstocreditorsandtaxpayers;andanothercompanybuystheremainingvaluableparts,squeezingafewmorequartersofprofit,thendeclaringbankruptcyanewandtransferringmoreobligationstotaxpayers.8. TheAuditReportshouldincludeconsiderationof MeasureUS[8],whosefundswereintendedtoaddressclimateandracialequityissues.Themostrecentbudgetonlyincluded$25KforclimatefromMeasureUSfunds.
OutsideoftheAudit,thecitymustcontinuetoplanforclimateaction.WeencouragetheCounciltodirectstafftoprovideajobsreportfortheClimateActionPlan[9],identifyinghighyieldingindustriesandcareerpipelines,inadditiontoidentifyinghowmanylocaljobswouldbecreatedfromoilabatement.WealsoencouragetheMayortoworkwiththeGovernorandtheLegislaturetoamendthelawsandcontractsthatrequireLongBeachtomaximizeproduction,asdiscussedduringtheMarch21,2023Councilmeeting.
Sincerely,
SierraClubBeyondDirtyFuelsCampaign,NicoleLevinTheClimateCouncil,LongBeachCoalitionforCleanAir,ChrisChavez,CouncilDistrict7CenterforBiologicalDiversity,EmilyJeffersJeanninePearce,LongBeachCouncilwomanEmeritaRobandAshleyCraig,LongBeachResidentsBillNash,LongBeach,CouncilDistrict4NaidaTushnet,P.h.D,WomenofLongBeach,CommissionerCouncilDistrict3PeteandGailMarsh,LongBeach,CouncilDistrict2ConstanceMay,LongBeach,CouncilDistrict2SonaCoffee,CouncilDistrict3,SustainableCityCommissionMichaelClemson,CouncilDistrict3JuanPauloPanaligan,LongBeach,CouncilDistrict6 Endnotes:● [1]RexRichardson,“ClimateTransitionImpactAudittoPrepareforLongBeach’sTransitionfromFossilFuelProductionandPreserveCriticalInfrastructureandCityServices,”MemotoMembersoftheCityCouncilfromLongBeachMayor,May23,2023.
TheClimateCouncil@fiercecourageconsulting.com
https://longbeach.legistar.com/View.ashx?M=F&ID=11977403&GUID=B4FE94FD-53CD-47D4-99F4-5E42A488D0D2(accessedMay22,2023).● [2]PeterRegan,“OrderedRevisionoftheLongBeachUnitProgramPlan(July1,2023throughJune30,2028)andAnnualPlan(July1,2023throughJune30,2024),”StateLandsCommission,memoFileRef:W17166,April12,2023.● [3]LenaGonzalezandMoniqueLimón,“SB-1137Oilandgas:operations:locationrestrictions:noticeofintention:healthprotectionzone:sensitivereceptors.”CaliforniaStateLegislature,https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB1137(accessedMay22,2023).● [4][10]CityofLongBeachCityManager,“RecommendationfromtheSustainableCityCommission,”MemotoMayorandMembersoftheCityCouncil,March15,2022.https://www.longbeach.gov/globalassets/city-manager/media-library/documents/memos-to-the-mayor-tabbed-file-list-folders/2022/march-15--2022---recommendation-from-the-sustainable-city-commission(accesssedMay23,2023).● [5][10]CityofLongBeachEnergyResourcesDepartment,“FundingOilFieldAbandonment,”PresentationtoLongBeachSustainableCityCommission,December3,2021.http://longbeach.legistar.com/LegislationDetail.aspx?ID=5343042&GUID=D42D95AF-AF2A-46CC-B302-ABD866F7A629&Options=&Search=(accessedMay23,2023).● [6]MarkOlalde,“ItWillCostUpto$21.5BilliontoCleanUpCalifornia’sOilSites.TheIndustryWon’tMakeEnoughMoneytoPayforIt.,”ProPublica,May18,2023.https://www.propublica.org/article/cost-of-california-oil-cleanup-exceeds-industry-profits(accessedMay22,2023).● [7]DwaynePurvis,“ThereWillBeBlood:DecommissioningCalifornia’sOilfields,”CarbonTracker,May18,2023.https://carbontracker.org/reports/there-will-be-blood(accessedMay22,2023).● [8]CityofLongBeach,“MeasureUS.”https://www.longbeach.gov/citymanager/measure-us/(accessedMay23,2023).● [9]CityofLongBeachDevelopmentServicesDepartment,“ClimateActionPlan”(CAP),August2022,https://longbeach.gov/globalassets/lbds/media-library/documents/planning/lb-cap/adopted-lb-cap_-aug-2022(accessedMay22,2023).
TheClimateCouncil@fiercecourageconsulting.com
R-17 Correspondence – Sona Coffee
From: Sona Coffee [mailto:[email protected]]
Sent: Tuesday, May 23, 2023 1:41 PM
To: Rex Richardson <[email protected]>; Kristina Duggan <[email protected]>; Al Austin <[email protected]>; Mary Zendejas <[email protected]>; Cindy Allen <[email protected]>; Megan Kerr <[email protected]>; Suely Saro <[email protected]>; Roberto Uranga <[email protected]>; Council District 9 <[email protected]> Cc: Paul Monge <[email protected]>; Connor Lock <[email protected]>; Council District 3 <[email protected]>; CityClerk <[email protected]> Subject: Support for Audit of Financial Liabilities from Fossil Fuel Transition - Item 17
-EXTERNAL-
Honorable Mayor Richardson and City Councilmembers,
I am writing in support of Mayor Richardson’s request of an audit of the financial liabilities and economic impacts to the City from transitioning away from fossil fuel production. Having a clear understanding of the financial liabilities will help the City in planning for this transition, and I really appreciate the time Mayor Richardson took to meet with constituents and hear the concerns around oil operations from the community.
As a member of the Sustainable City Commission, I have had the opportunity to receive briefings and public presentations from the Energy Resources Department on the status of oil drilling and production in Long Beach. However, even though requested by former Mayor Garcia, we have not yet seen the plans to transition the City away from fossil fuel production, only summaries highlighting lost revenue from a decrease in oil production. Further, though a 2035 phaseout is referred to by the City and Department, we have not seen a plan to decrease production within that timeframe. Instead, what was recently submitted to the State Lands Commission was a plan that increases oil operations.
For Long Beach to live up to the Grow Long Beach and other initiatives around economic development, a strong plan of action to scale back oil operations as rapidly as is feasible, and replace that effort with continued maintenance and the growth of the clean tech and green jobs sectors, is needed.
I also request that City Council add on to the recommended action in the memo, and direct the Health Department to provide information on the other liabilities to oil operations in Long Beach – the impacts to the health and well-being of our communities, especially front-line neighborhoods. This action was also directed by the State Lands Commission action for the City to respond to.
Please direct City staff to return in a timely manner with the results of the financial audit and additional health information, and make those results available to the public at the City’ Climate, Environment, and Coastal Protection Committee as requested by Mayor Richardson, and Councilmembers Duggan and Austin.
Thank you for your consideration.
Sincerely,
Sona Coffee
Sona Kalapura Coffee, MPP
(she, her, hers)
Sustainable City Commissioner
City of Long Beach
linkedin.com/in/sona-coffee