The Shakedown

The 100 biggest oil and gas companies have collectively raked in an extra $30 million per hour since the war on Iran began. In just the first month of the conflict, Big Oil made $23 billion in windfall profits, and the industry is projected to haul in an additional $234 billion by year’s end if oil prices stay high.

Rather than share any of this windfall with Californians paying for it at the pump, Big Oil is spending record amounts lobbying our elected officials to roll back climate programs and give them even more handouts.

Now, Governor Newsom’s top air regulators voted for changes to the state’s biggest climate program that would eliminate critical funding for clean air, clean water, public transit, and affordable housing — and hand billions of dollars to Big Oil.

CARB’s Proposal

In April, the California Air Resources Board (CARB) quietly released a proposal that dramatically expanded a new subsidy: the Manufacturing Decarbonization Incentive (MDI), which hands out additional free allowances to industrial facilities — essentially free permits to pollute. In a significant concession to Big Oil, CARB expanded MDI eligibility to include refiners, who had been explicitly excluded from the program when it was introduced in January.

CARB’s April proposal also raises the share of oil refinery emissions covered by free allowances from 58% under the January proposal to 78%. Combined with MDI access, this means oil refineries could get 156% of their greenhouse gas emissions covered through free allowances. 

While Big Oil pockets the credits, communities lose $4 BILLION.  

This eliminates critical funding for clean air, clean water, transit, and affordable housing — in the communities that need it most.

TAKE ACTION

Together, we can stop the oil shakedown. The legislature can act now to protect these investments and say NO to handouts for Big Oil.

Please join us in contacting Assembly Speaker Rivas and Governor Newsom using the form below or by calling (866) 932-1358.