The Western States Petroleum Association launched a provocative ad campaign on January 8, suggesting that efforts to compel oil companies to finance climate disaster relief would lead to increased oil prices. This development comes as California seeks to hold major polluters accountable through new legislation. The state aims to identify the biggest greenhouse gas emitters, approximately 40 companies, that released over 1 billion metric tons of emissions between 2000 and 2020.
Big oil companies, including Chevron, which posted $30 billion in profits in 2023, have fiercely opposed this legislative move. Chevron's recent $75 billion stock buyback program, aimed at enhancing executive and investor wealth, underscores the financial stakes involved. The industry has lobbied intensively against the "polluter pay" bill progressing through the California senate, which would have mandated that fossil fuel companies help offset the costs of climate disasters.
The lobbying effort was formidable. Last year, the bill appeared in 76% of filings from two of California's top lobbying entities: Chevron and the Western States Petroleum Association. Other contributors to this lobbying blitz included at least 34 major oil producers, industry trade groups, and various greenhouse gas-emitting companies. Lobbying expenditures in California reached unprecedented levels during the 2023-24 legislative session. Chevron and Western States spent over $30 million on filings related to the polluter pay initiative.
The proposed legislation, named the Polluters Pay Climate Cost Recovery Act of 2024, gained renewed attention following a catastrophic event in Los Angeles. Despite this, the bill required a two-thirds majority in the legislature to pass, as it constitutes a tax measure. Unfortunately, it never reached the floor for a vote due to insufficient support.
State senator Henry Stern, a co-author of the bill, described the lobbying pressure on lawmakers as intense. He noted that big oil's top producers and trade groups expended more than $80 million lobbying in California during the last session. The state of New York's enactment of a similar "climate superfund" bill provided significant momentum to California's efforts, according to Kassie Siegel of the Center for Biological Diversity.
In response to the situation, Duncan Meisel from Clean Creatives described the ad campaign as "gobsmacking."
"I’m normally pretty measured about this stuff because I understand that it’s hard to run an agency, but this is despicable. It’s absolutely wrong" – Duncan Meisel
The bill aimed to address a fundamental issue highlighted by Meghan Sahli-Wells.
"Accountability is an existential threat to their business model, and their business model is an existential threat to all of us, and that’s the bottom line" – Meghan Sahli-Wells
The necessity for such legislation becomes clearer in light of recent events.
"The latest fire shows exactly how Californians are paying for climate destruction, not just with budget dollars, but with their lives, and it shows exactly why we need … to put the cost back on polluters" – Kassie Siegel
However, the Western States Petroleum Association's ad campaign argued for a different perspective.
"California needs energy policies that balance affordability, reliability, and sustainability – not ones that make life harder" – Western States (ad campaign)
The proposed legislation's failure to advance reflects a broader struggle between environmental accountability and economic interests. While California pushes for measures to hold polluters financially responsible for climate-related damages, powerful industry forces continue to resist such efforts.