Business
The Fallout From the End of the U.S. Steel Deal
The end of a troubled takeover bid
President Biden is set to officially block Nippon Steel’s $14 billion takeover of U.S. Steel as soon as Friday, most likely putting an end to an industrial megadeal that ran up against widespread political opposition.
But the decision could set off a cascade of consequences, including whether it would dissuade foreign investment in key industries, even from crucial U.S. allies like Japan. There’s one near-certainty: Expect a lot of litigation.
The deal’s demise seemed increasingly inevitable. In March, Biden said it was “vital” that U.S. Steel remained American-owned. The United Steelworkers’ union opposed the transaction from the start, questioning Nippon Steel’s commitment to maintaining the American company’s production and unionized employment levels. (That U.S. Steel is headquartered in Pennsylvania, a crucial election battleground state, escaped no one’s notice.)
Last month, the federal government panel, known as CFIUS, that reviewed the deal on national security grounds expressed concern that the Japanese suitor’s global business considerations could eventually outweigh any commitments it made to preserve U.S. Steel production levels.
President-elect Donald Trump also pledged to block the takeover once he took office.
Others have worried that blocking the deal could chill foreign investment. In recent days, some senior Biden advisers warned that rejecting the transaction could damage relations with Japan, The Washington Post reported.
Japanese officials pressed Biden to approve the deal. Rejecting it “will send a stark message that investment from Japan, regardless of lack of security concerns, is not welcome in the U.S.,” Takehiko Matsuo, a senior trade minister, wrote to Biden administration officials last month.
The matter will probably head to court. Nippon Steel has complained of the White House’s “impermissible influence” in the CFIUS process. That lays the groundwork for the Japanese company or U.S. Steel to sue over Biden’s expected move.
DealBook also wonders whether the companies would sue each other, perhaps citing a failure to do enough to win approval. (The deal agreement requires Nippon Steel to pay its American counterpart $565 million if regulators block the transaction.)
What next for U.S. Steel? The company’s C.E.O., David Burritt, has warned that the steel maker needs investment to upgrade its aging plants. Even CFIUS acknowledged that the company had a “history of inadequate attempts to improve its competitiveness.”
One possibility is another bidder — such as Cleveland-Cliffs, which had been previously rebuffed by U.S. Steel and whose stock has been under pressure — could swoop in. But there’s bad blood between Burritt and his Cleveland-Cliffs counterpart, raising the question of whether U.S. Steel investors would need to heap on the pressure to get a deal done.
HERE’S WHAT’S HAPPENING
Mike Johnson faces a nail-biter vote on Friday for House speaker. Johnson has the backing of President-elect Donald Trump and Elon Musk, but is hampered by a razor-thin majority and a fractious House Republican conference. Corporate America will closely watch the vote’s outcome for what it says about the chamber’s ability to pass legislation once Trump takes office.
The authorities identify the driver of the Las Vegas Cybertruck explosion. The man was an Army master sergeant on leave from active duty, who killed himself immediately before the rented Tesla detonated outside a Trump hotel in Las Vegas on New Year’s Day. The F.B.I. said it had found no link between the incident and the deadly New Orleans rampage hours earlier involving an Army veteran.
China places trade restrictions on dozens of U.S. companies. The Ministry of Commerce announced on Thursday that export-control limits would be put on 28 companies, including Boeing and Lockheed Martin. The move comes just weeks before Trump takes office, and will probably escalate a trade war between Washington and Beijing. More shots could be fired soon: The Biden administration is weighing a ban on Chinese-made drones.
Does Tesla sales stall matter?
At any other car company, the sales numbers announced by Tesla on Thursday would have been a catastrophe. Deliveries for the year fell slightly in a growing market, the first annual decline in the company’s history.
Yet the reaction on Wall Street was relatively muted when compared to the huge rally in Tesla’s share price in recent months, The Times’s Jack Ewing writes for DealBook. That reflects how much Elon Musk has sold investors on the idea that the cars are a piece of a much bigger vision that includes self-driving taxis and humanoid robots — and his close ties to President-elect Donald Trump.
Shares closed down but the stock is up more than 55 percent since Election Day. Musk’s relationship with Trump has given him a direct line to the White House that he can use to promote his business interests.
“Investors have shifted,” Erik Gordon, a professor at the Ross School of Business at the University of Michigan, told DealBook. “They thought of it as an E.V. company. Now they think of it as a technology platform. ‘What will Elon think of next?’”
Musk has revealed little detail about his plans. During conference calls with investors and analysts, he has focused on what he says will be trillions of dollars in revenue from self-driving taxis that are probably years away from mass production.
Yet Musk may find it difficult to realize his grand visions if the company keeps losing market share to rivals such as General Motors, BMW and BYD. (The Chinese car maker reported record sales in 2024.)
Does Musk need to accelerate plans for a lower-cost Tesla? He told investors in October that the company would begin selling a car this year that would cost substantially less than a Model 3 sedan, which starts at $42,500 before state and federal incentives.
But Musk has sounded ambivalent about the new vehicle, calling it “pointless” unless it’s capable of driving autonomously. And Tesla has not displayed a prototype yet.
That has led to speculation that Musk is not that interested in mass-market cars anymore. “What excites Musk is the technology for the day after tomorrow,” Gordon said. “An econobox E.V. just doesn’t ring his bell.”
One thing to watch in 2025: Musk’s reaction if car sales remain tepid and Tesla shares fall further. Would that prompt him to deploy more of the skills he used to build Tesla into the world’s largest maker of electric cars?
A blow to net neutrality
A federal appeals court has knocked down one of President Biden’s biggest tech policy accomplishments: the F.C.C.’s net neutrality rules on broadband internet providers that sought to safeguard consumers’ access to online content.
The dismantling comes as companies brace for the incoming Trump administration to usher in a new era of deregulation, and further limit regulatory reach.
The decision is a win for cable and telecom companies such as AT&T and Comcast, ending a two-decade effort to regulate them like utilities. It also shows the impact of a recent Supreme Court ruling that is expected to limit federal agencies’ power.
A recap: The regulations, which have been championed by Google, Facebook and Netflix, were put in place under the Obama administration amid concern that internet service providers could become de facto gatekeepers with the power to slow or block access to content. The rules were revoked during the first Trump term, only to be reinstated by the F.C.C. in April.
Brendan Carr, President-elect Donald Trump’s pick to lead the F.C.C., has been a vocal critic of the rules.
The ruling could inspire other legal challenges. It relies on the Supreme Court’s upending last year of the Chevron doctrine requiring courts to defer to federal agencies’ interpretation of ambiguous statutes. “The F.C.C.,” Judge Richard Allen Griffin wrote, “lacks the statutory authority to impose its desired net-neutrality policies.”
Tim Wu, a former Biden administration official who coined the term “net neutrality,” slammed the decision, calling it “blatant judicial activism that puts corporate interests over American democracy.”
What’s next? The fight over net neutrality isn’t over: The decision doesn’t affect state laws, including those in California, Washington and Colorado. And Democrats at the F.C.C. called on Congress to enshrine net neutrality into law. Still, many commentators note that net neutrality isn’t the hot-button consumer issue it had once been.
“The market no longer thinks it’s a big deal and hasn’t for a while,” Blair Levin, a former chief of staff to the F.C.C., told The Times.
A big reshuffle at Meta
In the latest sign of how Big Tech is repositioning itself for the new Trump administration, Meta has tapped a prominent Republican to head its global policy team.
Joel Kaplan, a longtime Meta employee and a deputy chief of staff under former President George W. Bush, will take over from Nick Clegg, as first reported by Semafor.
Meta has tried to take itself out of the political spotlight. Clegg, a former deputy prime minister of Britain, joined the tech giant when the company was facing fierce blowback, including for its handling of disinformation on its platform during the 2016 election.
He’s credited with smoothing relations with regulators, especially in Washington and Brussels.
Could his leftish politics have become a liability? Clegg may have been planning his exit before the election, but he didn’t hide his opinions. Last month, he warned that Elon Musk, whose X and xAI compete with Meta, could become a “political puppet master” and criticized Musk’s stewardship of X.
The remarks came as many businesses worry about retribution from President-elect Donald Trump and Musk — and as Big Tech C.E.O.s have gone out of their way to curry favor with them.
Kaplan’s deep Republican roots could help Meta in the new Trump era. He joined Facebook in 2011, and later served as Clegg’s deputy. Before that, he clerked for Justice Antonin Scalia on the Supreme Court and is a close friend of Justice Brett Kavanaugh. (He appeared at Kavanaugh’s contentious confirmation hearings, and later apologized to Meta employees who thought his presence showed a political preference).
He has also been one of the loudest voices inside Meta pushing against restrictions on political content.
Mark Zuckerberg has largely turned away from politics. For years, the tech mogul publicly campaigned for liberal causes but has shifted after coming under sustained fire. Trump criticized Zuckerberg and threatened to put him in jail after accusing Meta of censoring conservative views.
But Zuckerberg, like other Big Tech leaders, has made efforts to court Trump, having traveled to Mar-a-Lago to meet the president-elect after the November election.
THE SPEED READ
Deals
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Several prominent hedge funds — including Millennium, D.E. Shaw, Bridgewater Associates and Ken Griffin’s Citadel — reported double-digit returns last year. (Reuters)
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Hindenburg Research, the activist short-seller, announced a bet against Carvana, accusing the used-car sales platform of accounting manipulation. (CNBC)
Politics and policy
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President-elect Donald Trump picked Ken Kies, a longtime tax lobbyist for clients including Microsoft, as the Treasury Department’s assistant secretary for tax policy. (Bloomberg)
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“How Silicon Valley won a powerful House committee” (Politico)
Best of the rest
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The U.S. surgeon general, Vivek Murthy, called for cancer warnings to be placed on alcoholic beverages; doing so would require Congress to act, however. (NYT)
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Richard Easterlin, an economist whose work challenged the assumption that more money always leads to more happiness, died Dec. 16. He was 98. (NYT)
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We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.
Business
After ‘Megalopolis’ flops, Francis Ford Coppola puts his pricey watch collection up for auction
Francis Ford Coppola wants an offer he can’t refuse — on his timepieces.
The Academy Award-winning director is selling seven watches from his personal collection, including his custom F.P. Journe FFC Prototype, estimated to sell for more than $1 million, according to a statement from Phillips, the New York City-based auction house. Phillips will hold the auction on Dec. 6 and 7.
The sale could help stanch losses from last year’s box-office flop “Megalopolis,” which cost over $120 million to make and was largely financed by the 86-year-old director. The movie grossed only $14.3 million worldwide.
The film, Coppola’s first since his 2011 horror movie “Twixt,” premiered at Cannes last year to largely negative reviews. The Times’ Joshua Rothkopf called it a “wildly ambitious, overstuffed city epic.”
At a news conference at Cannes, Coppola discussed the tremendous amount of his own money that he had sunk into the film, saying that he “never cared about money” and that his children “don’t need a fortune.”
Among the Coppola timepieces also going under the hammer are examples from Patek Philippe, Blancpain and IWC.
But the headlining piece is the F.P. Journe FFC Prototype that features a black titanium, human-like hand that resembles a steampunk gauntlet that articulates the hours when the fingers extend or retract.
Francis Ford Coppola’s custom F.P. Journe FFC timepiece uses a single hand to indicate all 12 hours.
(Phillips)
The watch was a collaboration between Coppola and master watchmaker François-Paul Journe that began following a conversation the pair had during a visit he made to the filmmaker’s Inglenook winery in Napa Valley in 2012.
Coppola asked Journe if a human hand had ever been used to mark time. That question sparked a years-long conversation during which the watchmaker grappled with how to indicate the 12 hours of the dial using just five fingers.
Journe found his inspiration in Ambroise Paré, a 16th century French barber surgeon and an innovator of prosthetic limbs in particular, including Le Petit Lorrain, a prosthetic hand made of iron and leather that featured hidden gears and springs enabling the fingers to move, not dissimilar to a watch mechanism.
“Speaking with Francis in 2012 and hearing his idea on the use of a human hand to indicate time inspired me to create a watch I never could have imagined myself. The challenge was formidable — exactly the type of watchmaking project I adore,” said Journe in a statement.
Journe eventually created six prototypes and delivered Coppola’s watch to him in 2021.
“I’m proud to fully support the sale of this watch through Phillips to fund the creation of his artistic masterpieces in filmmaking,” he said.
Coppola first became interested in the watchmaker when he gifted his wife Eleanor an F.P. Journe Chronomètre à Résonance in platinum with a white gold dial for Christmas in 2009, prompting the director to extend an invitation to Journe to visit him at his Napa winery.
Eleanor Coppola, a documentary filmmaker and writer, died in 2024 after 61 years of marriage. Her F.P. Journe timepiece is also part of the auction and is estimated to fetch between $120,000 to $240,000.
Business
Disney warns that ESPN, ABC and other channels could go dark on YouTube TV
Walt Disney Co. is alerting viewers that its channels may go dark on YouTube TV amid tense contract negotiations between the two television giants.
The companies are struggling to hammer out a new distribution deal on YouTube TV for Disney’s channels, including ABC, ESPN, FX, National Geographic and Disney Channel. YouTube TV has become one of the most popular U.S. pay-TV services, boasting about 10 million subscribers for its packages of traditional television channels.
Those customers risk losing Disney’s channels, including KABC-TV Channel 7 in Los Angeles and other ABC affiliates nationwide if the two companies fail to forge a new carriage agreement by Oct. 30, when their pact expires.
“Without an agreement, we’ll have to remove Disney’s content from YouTube TV,” the Google Inc.-owned television service said Thursday in a statement.
Disney began sounding the alarm by running messages on its TV channels to warn viewers about the blackout threat.
The Burbank entertainment company becomes the latest TV programmer to allege that the tech behemoth is throwing its weight around in contract negotiations.
In recent months, both Rupert Murdoch’s Fox Corp. and Comcast’s NBCUniversal publicly complained that Google’s YouTube TV was attempting to unfairly squeeze them in their separate talks. In the end, both Fox and NBCUniversal struck new carriage contracts without their channels going dark.
Univision wasn’t as fortunate. The smaller, Spanish-language media company’s networks went dark last month on YouTube TV when the two companies failed to reach a deal.
“For the fourth time in three months, Google’s YouTube TV is putting their subscribers at risk of losing the most valuable networks they signed up for,” a Disney spokesperson said Thursday in a statement. “This is the latest example of Google exploiting its position at the expense of their own customers.”
YouTube TV, for its part, alleged that Disney was the one making unreasonable demands.
“We’ve been working in good faith to negotiate a deal with Disney that pays them fairly for their content on YouTube TV,” a YouTube TV spokesperson said in a statement. “Unfortunately, Disney is proposing costly economic terms that would raise prices on YouTube TV customers and give our customers fewer choices, while benefiting Disney’s own live TV products – like Hulu + Live TV and, soon, Fubo.”
Disney’s Hulu + Live TV competes directly with YouTube TV by offering the same channels. Fubo is a sports streaming service that Disney is in the process of acquiring.
YouTube said if Disney channels remain “unavailable for an extended period of time,” it would offer its customers a $20 credit.
The contract tussle heightens tensions from earlier this year, when Disney’s former distribution chief, Justin Connolly, left in May to take a similar position at YouTube TV. Connolly had spent two decades at Disney and ESPN and Disney sued to block the move, but a judge allowed Connolly to take his new position.
YouTube TV launched in April 2017 for $35 a month. The package of channels now costs $82.99.
To attract more sports fans, YouTube TV took over the NFL Sunday Ticket premium sports package from DirecTV, which had been losing more than $100 million a year to maintain the NFL service. YouTube TV offers Sunday Ticket as a base plan add-on or as an individual channel on YouTube.
Last year, YouTube generated $54.2 billion in revenue, second only to Disney among television companies, according to research firm MoffettNathanson.
The dispute comes as NFL and college football is in full swing, with games on ABC and ESPN. The NBA season also tipped off this week and ESPN prominently features those games. ABC’s fall season began last month with fresh episodes of such favorite programs as “Dancing with the Stars” and “Abbott Elementary.”
ABC stations also air popular newscasts including “Good Morning America” and “World News Tonight with David Muir.” Many ABC stations, including in Los Angeles, run Sony’s “Wheel of Fortune” and “Jeopardy!”
“We invest significantly in our content and expect our partners to pay fair rates that recognize that value,” Disney said. “If we don’t reach a fair deal soon, YouTube TV customers will lose access to ESPN and ABC, and all our marquee programming – including the NFL, college football, NBA and NHL seasons – and so much more.”
Business
10 years since Aliso Canyon: Disaster was wake-up call for U.S. on dangers of underground gas
On an evening 10 years ago, Porter Ranch resident Matt Pakucko stepped out of his music studio and was walloped by the smell of gas — like sticking your head in an oven, he recalled.
Pakucko called the fire department. It turned out crews had already been up to the Aliso Canyon gas storage facility in the Santa Susana Mountains behind the neighborhood, responding to a report of a leak. Many of his neighbors were beginning to feel ill, reporting issues such as heart palpitations, vomiting, burning eyes and bloody noses.
“I swear I thought I was standing behind a 747 with its engines blowing — it was not just gas, it was oil smell, it was chemical smell that permeated,” recalled Pakucko, who went on to co-found the advocacy group Save Porter Ranch. “I couldn’t stay out there for 30 seconds. It tasted like f— gasoline.”
Soon it was clear that this wasn’t just a leak — it was a blowout. Over the course of 112 days, the Aliso Canyon facility would spew an estimated 120,000 tons of methane and toxic chemicals into the atmosphere. It was the worst natural-gas well blowout in U.S. history, and an environmental disaster whose effects will be unpacked for generations.
The event was widely seen as a wake-up call to the dangers of methane and underground natural gas storage. Methane, a planet-warming greenhouse gas, is about 80 times more potent than carbon dioxide and is responsible for about a quarter of all the human-caused climate change we are experiencing. A study published by UCLA researchers last month found that women in their final trimester of pregnancy who were living within 6.2 miles downwind of the blowout in 2015 had a nearly 50% higher-than-expected chance of having a low birth-weight baby.
The blowout ushered in a wave of new regulations to strengthen the governance of natural gas storage facilities in California and the United States, as well as new tools and technology to monitor methane emissions.
But 10 years later, some Porter Ranch residents say the wounds still feel fresh, and too many promises have been broken. After the disaster, then-Gov. Jerry Brown called for the permanent closure of Aliso Canyon by 2027 — a goal his successor, Gavin Newsom, called a top priority and vowed to meet even sooner.
Instead, Aliso Canyon remains open, with regulators voting in December to continue using the facility for years — probably into the 2030s — citing the need for natural gas to help maintain affordable energy rates and grid reliability in California.
The facility is a key asset for Southern California Gas. In an emailed statement, the company said the state would struggle to meet electricity demand without Aliso Canyon’s storage. The site fuels 17 power plants and helps keep the lights on during the hours that can’t yet be met by solar, wind and other renewable resources, the company said. Natural gas still represents about 40% of the state’s electricity supply.
“There’s a lot of work to do to get off natural gas and oil in California,” said Adam Peltz, senior attorney with the nonprofit Environmental Defense Fund. “That work is underway, but it’s not complete. If you’ve built an economy on fossil fuels, it takes awhile to get off of it.”
Aliso Canyon was originally drilled as an oil field in the late 1930s before SoCalGas converted it to natural gas storage in the early 1970s. Utilities often use played out crude oil fields as places to pump gas downward under pressure and hold it until it is needed.
Aliso Canyon is one of the largest natural gas storage facilities in the U.S.
In the lead-up to the blowout, SoCalGas was filling the site in preparation for the winter heating season. Crews were using tremendous force to pump gas down a well that was more than 60 years old. But a metal casing on well SS-25 had corroded, and gas began blowing out at very high volumes.
Methane is not visible to the naked eye, but aerial images captured with infrared cameras and released by the Environmental Defense Fund showed a geyser-like eruption of the flammable, climate changing gas — making it clear to the whole world the magnitude of the disaster.
Matt Pakucko, right, founder of Save Porter Ranch, and other protesters against SoCalGas hold a rally at the intersection of Tampa Avenue and Rinaldi Street on Sept. 28, 2021, in Porter Ranch.
(Irfan Khan / Los Angeles Times)
It took nearly four months for crews to stop the leak. By that time, damage was done. More than 8,000 households were temporarily displaced, businesses were shut down, and two schools were relocated for several months.
Researchers are still working to unpack the health outcomes of the event. SoCalGas, meanwhile, has paid about $2 billion in settlements and agreed to operate the facility at a lower maximum pressure.
Officials with the gas company said they have shored up the facility, including replacing the inner steel tubing on all operating wells and conducting continuous ambient methane monitoring. All wells at the site are subject to real-time pressure readings and visual inspections four times a day, among other protocols, SoCalGas said.
“Over the past 10 years, SoCalGas has conducted comprehensive safety reviews and implemented multiple safety layers that protect one of California’s most important assets for energy reliability and affordability,” the company said.
While the maximum allowable operating pressure at the site remains reduced — about 3,183 pounds per square inch compared with 3,600 pounds per square inch in 2015 — state officials recently voted to let SoCalGas increase storage at the facility to 68.6 billion cubic feet of natural gas from 41 billion cubic feet, outraging many in the community.
But experts say there are silver linings to the disaster. California overhauled its underground natural gas storage regulations to make them the strongest in the nation and among the strongest in the world, according to Peltz, of the Environmental Defense Fund. The changes include more thoughtful rules for well construction, better monitoring and risk management, and improved planning and emergency response.
Congress reacted to the disaster by requiring its regulatory agency, the Pipeline and Hazardous Materials Safety Administration, to issue safety standards for natural gas storage nationwide. In 2016, it adopted best practices recommended by the American Petroleum Institute, which were strengthened at the beginning of this month.
Many states with natural gas storage previously had no regulations at all, Peltz said.
“On a national basis, the systems will be safer as a result of that change,” he said.
There have been technological advancements too. The infrared aerial recording of the leak captured in 2015 was a relatively new technique at the time, but has now become commonplace. The California Air Resources Board conducted its first large-scale statewide aerial methane survey in 2016, identifying many of the largest methane sources in the state.
There have also been considerable advancements in the ability to observe methane super-emitters through satellites and remote sensors, according to Seth Shonkoff, executive director at the science research institute PSE Healthy Energy and an associate researcher at the UC Berkeley School of Public Health.
“The rub is that we know more than we ever have, and we’re perhaps controlling more than we would have if we didn’t have the technology to see them, but we’re still seeing more and more of these large-scale emission events all across the United States and all across the world,” he said.
Methane concentrations in the atmosphere are still rising. It is streaming, often constantly, from facilities associated with the oil and gas industry, landfills and dairy farms, among other sources.
The Aliso Canyon Southern California Gas storage facility on May 28, 2020.
(Robert Gauthier / Los Angeles Times)
Methane isn’t the only concern either. Researchers now have a better understanding of what’s in the gas that blew from Aliso Canyon and that continues to be stored in natural gas facilities around the country. Although it is primarily composed of methane, roughly 99% of samples analyzed by Shonkoff and his team have contained hazardous air pollutants such as benzene, hexane and toluene, largely as a result of commingling with depleted oil and other subsurface materials.
Moving forward, he said, it will be critically important for gas companies to disclose to regulators and risk managers what their gas is composed of, so that if it leaks, responders can quickly determine the appropriate response.
“If we had had that with Aliso Canyon, we could have, within a matter of hours, understood whether people should get out of the way or stay inside, and we wouldn’t have had as many people suffering from health symptoms,” Shonkoff said.
In 2024, the Biden administration passed the first comprehensive rules to limit methane pollution by fining oil and gas developers for excessive emissions. But this year, the Trump administration revoked the rule, which it described as a tax.
At the same time, many natural gas storage facilities across the country are old and require retrofitting to meet current regulations, but such upgrades can be slow and expensive — often leaving ratepayers on the hook.
Residents near Aliso Canyon have also long feared an earthquake or wildfire in the area. The gas field sits along the Santa Susana fault and is in a high fire hazard severity zone. SoCalGas says it has numerous safety plans and procedures in place.
Perhaps the greatest tension remains between those who wish to see Aliso Canyon shuttered and the officials who say the facility is critically important to California’s energy supply, which is increasingly trying to serve power-hungry artificial intelligence data centers.
Dozens of Porter Ranch protesters chant “shut it all down,” as they demonstrate at the Aliso Canyon gas storage facility in Porter Ranch on May 15, 2016.
(Francine Orr / Los Angeles Times)
California has committed to reaching 100% carbon neutrality by 2045. But SoCalGas says it still needs Aliso Canyon.
“SoCalGas is aligned with the state of California in pursuing the technologies and infrastructure that supports California’s climate plan, including clean renewable hydrogen and renewable natural gas, that could, over time with other renewable energy projects, deliver the reliability and affordability Aliso Canyon supports today,” the utility said in a statement. However, any decision to reduce or eliminate operations at Aliso Canyon must be based on genuine reduced demand that is permanent, the company said.
Pakucko, of Save Porter Ranch, noted that the facility was offline for two years after the blowout without an interruption in service.
“Two years!” he said. “And guess what? We managed without the facility.”
For others in the area, it feels like the latest in string of broken promises.
Among SoCalGas’s settlement agreements was a $120-million consent decree with the state of California requiring the utility to fund methane mitigation projects, air monitoring and other initiatives to address alleged harms caused by the blowout. About $25 million of that went toward a long-term health study on the effects of natural gas exposure, which is being conducted by researchers at UCLA. The results are eagerly awaited.
About $26 million went to a program for dairy digesters in the Central Valley, which capture methane from cow manure before it enters the atmosphere. Many had hoped those funds would be spent closer to home, including former L.A. Mayor Eric Garcetti, who at one point envisioned the mitigation money being used to transform Porter Ranch into a net-zero community.
“That would have been so great,” said Patty Gleuck, a Porter Ranch resident who served on the community advisory group for the health study. Instead, “that money went to this dairy digester program that does not benefit this area.”
Like Pakucko, Gleuck recalled suffering health effects during the blowout, including a tightness in her chest and a metallic taste in her mouth that dissipated when she left the area and resumed when she returned.
She still suffers from a chronic cough and uses an inhaler, she said, adding that “a lot of inhalers were prescribed in the area.”
“A lot of people moved away, taking a loss on their homes because they were so sick, or their family members were sick,” she said. “I just don’t think that there has been justice.”
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