By Alejandro Lazo, CalMatters

This story was originally published by CalMatters. Sign up for their newsletters.

California is considering handing oil refineries and other major polluters billions of dollars in free emission allowances just as the state says carbon reductions need to come faster than ever.

In the last six months, two refineries have closed and gas prices have topped an average of $6 a gallon as the Iran-Israel war sent oil markets into turmoil. The oil and gas sector spent $10.3 million lobbying Sacramento in the first three months of the year, according to lobbying filings, with the Western States Petroleum Association and Chevron accounting for the bulk of it.

The result is a new proposal before the California Air Resources Board that would provide as much as $4 billion in new free emission permits to companies with half slated for the fossil fuel industry in exchange for commitments to invest in clean energy. 

Environmentalists warn the proposal is a giveaway to Big Oil that would weaken California’s “cap-and-invest” program just as the state is relying on it to cut emissions and fund climate, housing and other programs. Anthony Martinez, a spokesman for Gov. Gavin Newsom, said the changes are necessary to keep the state’s carbon market “durable” and “affordable” amid mounting refinery closures.

The fight over California’s carbon market has exposed the political tensions at the heart of Newsom’s energy transition agenda. California is trying to preserve its climate ambitions while keeping gasoline affordable for drivers already facing the highest prices in the country. Critics say the air board’s proposal accomplishes neither goal.

“We are really concerned that this would significantly kneecap the program,” said Chloe Ames, a policy adviser with NextGen Policy.

Weakening the backstop

Through California’s 13-year-old carbon market, major polluting companies must buy permits for every ton of greenhouse gases they emit, with the state capping total emissions year by year. Each permit is worth real money and companies can sell the ones they don’t use. The program is considered California’s climate backstop — the only state policy that sets a firm limit on greenhouse gas emissions.

At the heart of the dispute with environmentalists is a proposed subsidy program carved out of that carbon market. The air board, if it approves the proposal on May 28, would create a new pool of free pollution permits for refineries, cement plants and other big companies that pledge to invest in clean energy and efficiency projects.

The pool would be capped at 118.3 million permits — the same number the air board has said must come off the market for California to hit its 2030 climate target. Environmentalists say the proposal risks wiping out those reductions.

Berkeley energy economist Meredith Fowlie, who chairs an independent committee that oversees the carbon market, wrote in a recent analysis that the design would give qualifying refineries more free permits than they need to cover their emissions.

“One could use the word generous,” Fowlie said.

Rajinder Sahota, the air board official overseeing the program, said the proposal would ensure emissions reductions. The new permits, she said, would only go to companies undertaking clean energy and efficiency projects and would be limited, temporary and rescinded if companies misuse them. The plan is meant to help keep refineries operating in California at a time of uncertainty, she added.

“We want to make sure that there’s reliable, affordable fuel for California consumers while the demand persists,” Sahota said.

But environmentalists say the air board has built in almost no accountability for how companies invest in those projects. Katelyn Roedner Sutter, state director for the Environmental Defense Fund, said the proposal  “is based on proposed investment, not any guaranteed reduction.” 

“That’s a red flag,” she said.

A climate money crunch

Quarterly auction revenue for state programs could drop from roughly $4 billion a year to about $2 billion under the proposal, according to the Legislative Analyst’s Office.

Sen. John Laird, the state Senate budget chair and a co-author of California’s original 2006 climate law, warned at a May 6 hearing that the proposal “flies against many things we negotiated just last fall” with the governor and could put the carbon market deal “back on the table.”

Not all lawmakers are critical. Assemblymembers Jacqui Irwin and Cottie Petrie-Norris, who respectively chair climate and energy committees, said the proposal “reflects the Legislature’s focus on affordability,” and urged the board to proceed “without delay.” 

They pointed to an increase in the Climate Credit, the twice-yearly rebate that the carbon market funds on Californians’ utility bills; a UC Santa Barbara analysis, however, found the new subsidy could shrink the credit by as much as $1.7 billion under the proposal.

A separate, bipartisan group including Assemblymember David Alvarez, a Democrat, and Senator Suzette Valladares, a Republican, argues the purpose of the carbon market is to cut emissions, not raise money for programs.

Newsom struck an eleventh-hour deal with lawmakers last year that extended the state’s carbon market through 2045 and set the order of which state programs get auction money first.

Under that plan, California’s high-speed rail project receives $1 billion a year before many other programs. Lawmakers also carved out a $1 billion annual pool for priorities they control themselves, but Newsom in January proposed committing that money to wildfire spending and other programs. 

Last in line are programs lawmakers have spent years building into California’s climate agenda: affordable housing and transit-oriented development meant to reduce driving and climate pollution, rail and bus service, wildfire resilience, clean drinking water in poor communities and neighborhood pollution monitoring. 

Newsom unveiled a revised state budget on May 14 that did not reflect the potential drop in carbon market revenue. Laird, in an interview, said the administration told him the revenue drop wouldn’t show up in the coming fiscal year.

Laird said he planned to “ground truth” that assessment in the weeks ahead. The hit “would still be a big hit the year after this budget year,” he added.

Big Oil’s biggest target

California’s carbon market became a central focus of the oil industry’s lobbying efforts after the air board released a January proposal sharply reducing free pollution permits for industry.

Seven of the 10 highest-spending oil and gas lobbying groups in California pushed state officials on the proposal, state filings show. The petroleum association and Chevron mounted some of the industry’s most aggressive lobbying, pressing lawmakers, the governor’s office, the air board and the California Energy Commission on the plan.

The April plan raised free permits for most industries through 2030 above the January version, but deferred decisions on permits after 2030 to a future rulemaking.

Jim Stanley, a spokesman for the petroleum association, said the group has been pressing lawmakers, regulators and the governor’s office about “the potential consequences of a poorly structured cap-and-invest program.”

Chevron spokesman Ross Allen declined to comment beyond letters Chevron filed with the air board. Chevron initially warned the proposal threatened refinery survival in California. After last month’s revisions, the company is continuing to push for additional protections.

Zach Leary, a lobbyist for the petroleum association, said California needs to go further than even its latest proposal. He wants California to lock in a higher level of free permits permanently. 

“The state is acknowledging that affordability and ambition are not getting along very well right now,” Leary said.

Eddie Ahn, executive director of Brightline Defense, oversees community air sensors in San Francisco’s Tenderloin, Mission and South of Market neighborhoods funded through the state’s community air protection program. That program is among those that could lose state money if carbon market auctions decline under the proposal. 

“If the funding is cut off, then convening groups of people on a monthly basis — that goes away,” Ahn said. “It means frontline communities get disconnected from environmental policy.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

City lights of bustling San Francisco shown dimly along the shore, while the headlights of cars making their morning commute streaked quickly along one of the towering bridges of the Bay. We floated below the cement city, rocking gently with the waves of the sea and sitting silently as the world woke up around us. As the sun rose with the people from its sleeping slumber, our group of hunters waited for our boat Captain, Melynda Dodds, to say the magic words: “Scoters on the horizon, get ready.”

San Fran Scoters

When hunters think of sea duck hunting, images of the snowy, blistering winter conditions of remote Alaska or coastal Maine come to mind. And while it’s true these destinations see their fair share of sea ducks migrating through, so do warmer climates.

California is more than just movie stars and Los Angeles. It’s a state that is steeped in hunting heritage but often overlooked because of its Hollywood fame. The Pacific Flyway stretches some 4,000 miles north to south and encompasses The Golden State and the Pacific Ocean. The state is a waterfowl hunting destination as it sees thousands of birds migrate through including not only divers like goldeneyes and blue bills, but puddle ducks and sea ducks.

Instead of ice and snow, hunters are given a unique hunt in warm climates as surf scoters make their way south along the Pacific coast from their far north breeding grounds in Alaska and Canada.

The surf scoter is a unique species of sea duck. The drakes are often referred to as “Old skunkhead” because of the unique black and white patches that line its head, while a bright orange and white bill is florescent against its black plumage.

Although they may sometimes fly inland to lakes during migration, their primary range is wide open seas. Like all sea ducks, scoters do not respond well to calling. They are, however, excellent decoy and flagging birds. They fly fast and low along the water, making hunting and connecting on this fowl a test in skill as you battle shooting on rolling ocean seas.

Unlike most hunting, where you find yourself far off the beaten path, a healthy population of surf scoters passes through the San Francisco Bay area, making for a unique urban hunt. Sprawling cities with tall tech buildings and refineries line the skyline and sit as your backdrop, while cargo ships sail by your small, in comparison, hunting vessel. While you swing on fast flying scoters, city life is thriving just a few miles away on the shore.

Hunting Scoters with California Guide Service

It was 5 a.m. and in the middle of December as my friends and I pulled into the boat ramp in the San Francisco Bay. We expected to see a line to launch duck boats during prime hunting season. Instead, it was empty except for a lone Toyota Tundra hauling a 25-foot Bankes Titan boat and two women moving with purpose around the vessel.

With skilled precision from many mornings of this same routine, Melynda Dodds, owner of California Guide Service, and her deckhand Maddie Day, prepared the open water boat for launch as we stepped out to greet them.

One wouldn’t know Melynda was an adult-onset hunter. Her depth of knowledge regarding how to shoot California sea ducks and skills as a boat Captain gave off the conviction that she had been hunting these open waters since an early age. Instead, Melynda began her love for the outdoors as a young woman growing up in Texas, a far cry from the busy San Francisco area.

“I grew up in a hunting family, but I was never invited to hunt, they didn’t think I would be interested,” explained Melynda. “It wasn’t until I was 30 that I would shoot my first deer and hog. I was told I couldn’t do it…you don’t tell a Texas girl that.”

After taking her first big game animals, Melynda was hooked on hunting and would make it her career soon after. Relocating with her family to the Bay area, she experienced the thrill of hunting ducks along the Pacific Flyway and never looked back.

“I was at a crossroads after my kids were both in school,” said Melynda. “I could either go back to the corporate world or dive into guiding for fishing and hunting, two things that I was actually passionate about. So, I dove right in.”

Starting from the bottom, Melynda began by working as a deckhand on charter fishing boats to gain experience before applying for her Captain’s license. Once licensed, she set out to learn how to drive as many boats as possible, skippering seven different boats—from 50-foot Deltas, to Six-Pack boats, to 56-foot Westports. While mastering her Captain’s license, Melynda’s knowledge for hunting ducks in the Bay went from novice to expert, and California Guide Service was born.

Sea Duck Hunting in California

With the boat ready for launch thanks to our skilled guides, I watched as Melynda backed the 25-foot duck boat down the ramp with ease, her years of hard work and experience showing itself.

We were ready for our California sea duck adventure. With gear loaded, and Melynda’s black Lab, Nova, in her place next to deckhand Maddie, Captain Melynda Dodds steered us through the harbor, the city lights twinkling in the distance.

Having embarked on blistering boat rides for sea ducks in years past, it was satisfying not to have to hunker down for warmth on the short ride before Melynda slowed the throttle. Working as a proficient team, our Captain maneuvered the boat while Maddie prepared and launched multiple strings of scoter decoys.

Soon after legal shooting light, flocks of scoters began flying. Unlike puddle ducks or divers that provide high in the sky shooting, sea ducks fly low and fast along the water, making it very difficult to connect on birds. If we were lucky, we could spot flocks of sea ducks off in the distance so we could prepare ourselves for shooting if we saw the birds turn towards our decoys. Other times, the ducks would zip into the decoys without notice, their black bodies blending in with the dark of the water.

Your positioning in the boat tested your skills as a shotgunner. At times, you were lucky, and the scoters would cup their wings for landing straight on in your shooting lane, while other times, you were dealing with hard crossing shots. Because they fly low on the water, it’s easy to determine whether your shots are behind or ahead thanks to your shot string making a visual splash.

My friends and I marveled at the scoters who humbled us for a time before we had our lead times tuned in. Soon, we were enjoying the cool California morning, picking our shots carefully on drakes while Captain Melynda and Maddie laughed with us at our epic hits and misses.

Nova sat patiently, waiting on us to get our sea legs so she could work. The drakes were easy to pick out of the flocks, the white paint on their heads serving as a makeshift target that was easily distinguishable from the all brown plumage of the scoter hens. Soon, Melynda gave Nova what she wanted, releasing her to dive into the dark seas to retrieve our quarry.

An All Women Guiding service

Melynda and Maddie worked as a smooth operating team during our two days hunting the San Francisco Bay. In fact, Melynda prides herself on being a Women Owned Small Business with a crew of only females for both her fishing charters and hunts.

“It’s important for me to provide opportunities to women and young girls,” said Melynda. “In this industry, ladies are generally guided by men—few are full female outfits. I want to show women that they really can hunt all on their own. I feel having a team comprised of all women helps to build confidence and expand possibilities for other ladies.”

Melynda and her crew had our respect long before the hunt began, but after days on the water together, that respect only grew. Her passion for hunting California burned bright, making this urban sea duck hunt one for the record books.

Gear For Hunting Surf Scoters

Sea ducks are tough fowl. Their plumage is made to withstand the harshest ocean conditions, making it hard for shot to penetrate. Additionally, close ranging shots on these fast flyers are rare—most of the time they’re zipping past the end of your decoy lines, typically 30 to 40 yards at the minimum.

Benelli Ethos A.I.

Scoters proved a fantastic opportunity to put an Ethos with the new Benelli Advanced Impact (A.I.) barrel technology to the test.

The new A.I. barrel is packed with enhanced features, making it one of the most advanced shotgun barrels of all time. The interior contours as it makes its way down the barrel, making an hourglass shape that is extremely long and tapered. This creates pressure in the barrel that not only increases velocity and energy at impact, but keeps shot strings compact and uniform. At 30 yards, velocity is 21 percent higher than a standard barrel, giving the Ethos 50 percent more penetration on target.

benelliusa.com

B&P Dual Steel

To bring down tough ocean scoters, a reliable steel shot load was needed. The B&P Dual Steel Magnum shot is made with two layers of pellets: steel and plated steel. This combination helps maintain consistent shot patterns, even at distance. The loads are also made with B&P’s Green Core wad, which is not only completely bio-degradable, but also made to withstand varying inclement weather and temperatures like those found when hunting sea ducks.

baschieri-pellagriusa.com