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Big Oil Fights New Environmental Law in California | The Regulatory Review

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Big Oil Fights New Environmental Law in California | The Regulatory Review


The oil and fuel business makes an attempt to quash a California legislation defending residents from extraction wells.

Earlier this fall, California Governor Gavin Newson signed into legislation environmental protections for California residents. Three days later, the oil and fuel business submitted to the state legal professional normal a proposed referendum that will reverse the brand new legislation.

In California, nearly 3 million residents reside inside 3,200 toes of an energetic oil and fuel nicely, and over 7 million residents reside inside one mile of a nicely. These residents are feeling the consequences. In learning the air pollution rising from wells, scientists have linked most cancers, bronchial asthma, and different long-term well being defects to residing close to wells.

To guard Californians from oil and fuel wells’ close-range impacts, the legislation will prohibit installment of recent wells inside 3,200 toes of homes, colleges, hospitals, and different delicate areas the place individuals collect. This well-setback portion of the legislation is ready to take impact in January 2023. As well as, the legislation would impose extra stringent controls on nicely operators—akin to requiring them to handle mud migration and submit a nicely “leak detection and response plan.”

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However slightly than embrace the significance of complying with the brand new well-setback legislation, the oil and fuel business has tried to dam the legislation’s implementation by a referendum. To win approval so as to add this referendum on the statewide poll in 2024, challengers of the legislation might want to get hold of about 625,00 signatures.

The California Impartial Petroleum Affiliation wasted no time in submitting a proposed referendum quickly after Newsom signed the invoice into legislation. If the business succeeds in getting the required variety of signatures by December 15, 2022, the California Secretary of State will put the well-setback legislation on the 2024 poll. Then, Californians would vote on whether or not to maintain or overturn the nicely setback.

Even when the general public votes in favor of the nicely setback in 2024, the business can have not less than succeeded in stalling the legislation’s implementation if it does get hold of the requisite signatures. Beneath California legislation, statutes which are challenged through a referendum can not take impact till the final citizens votes to move it.

The oil and fuel business has already raised over $8.1 million to fund its referendum marketing campaign, which it has dubbed, “Cease the Power Shutdown.” The business claims that nicely setbacks will lower the state’s fossil gasoline provide, resulting in elevated reliance on out-of-state fossil fuels and elevated fuel costs.

As well as, the business alleges that the legislature handed the well-setback legislation “with none scientific foundation.”

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In passing the legislation, nevertheless, the legislature famous that research reveal hostile well being impacts on populations positioned inside roughly 3,200 toes of oil and fuel wells. Furthermore, the Geologic Power Administration Division—the California company that regulates oil and fuel wells—sought specialists’ opinion on whether or not close by oil and fuel developments negatively influence residents. The specialists’ concluded with “a excessive stage of certainty” that oil and fuel improvement is related to well being defects.

Given methane leaks and discharges of hazardous particulate matter from wells, researchers have tied residing close to nicely operations with pre-term delivery and elevated cardiovascular dangers, amongst different hostile well being results.

However not all Californians will endure these well being results. Wealthier communities, such because the group of Palos Verdes, are uncovered to much less air pollution from oil and fuel operations. In distinction, poorer and non-white communities bear the brunt of oil and fuel operations’ impacts. As an example, the group of Wilmington—a principally non-white group—sits close to the Wilmington Oil Subject and suffers disproportionate air pollution.

Francisco Gonzales, a resident of California’s “oil nation” in Kern County, has reportedly defined that residing close to wells prompted him to accumulate allergy symptoms and bronchial asthma. Bakersfield, the biggest metropolis in Kern County, endures probably the most particulate matter air pollution within the nation, and roughly 70,000 residents have bronchial asthma. The childhood bronchial asthma fee in Bakersfield is thrice the California common.

In the meantime, one of many legislature’s functions in enacting the well-setback legislation was to remediate disproportionate impacts on environmentally weak communities. The legislature discovered that non-white communities are “most probably to reside in shut proximity to grease extraction actions.”

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California Senator Lena Gonzalez (D-Lengthy Seaside), the legislation’s sponsor, has described California oil and fuel operations as a “long-standing and obvious instance of environmental racism.” Regardless of the business’s efforts, Gonzalez is reportedly “optimistic that the referendum is not going to achieve success.”

This isn’t the primary time, nevertheless, that Massive Oil has used the referendum course of to overturn protecting environmental legal guidelines.

Earlier this yr, the oil and fuel business raised $8.2 million and efficiently overturned an initiative in Ventura County that will have tightened environmental oversight of decades-old fossil gasoline drilling permits. And in 2018, the business poured hundreds of thousands into the referendum course of to defeat a county-wide initiative in San Luis Obispo County that will have banned new oil and fuel extraction.

Environmental advocates in California have seen the business repeatedly use referenda and different ways to overturn environmental initiatives. Coalition coordinator of Voices in Solidarity In opposition to Oil in Neighborhoods, Kobi Naseck, has reportedly contended that the business’s referendum on nicely setbacks outlines a well-known story: “Massive Enterprise and their hundreds of thousands of {dollars} vs. public well being.”

Though the oil and fuel business has succeeded in overturning protecting environmental legal guidelines through the referendum course of prior to now, Senator Gonzalez reportedly said that the well-setback referendum will fail this time as a result of, “greater than ever earlier than, individuals consider in a carbon- and fossil-free future.”

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In opposition to the backdrop of a rising public concern for local weather change, advocacy teams akin to Meals & Water Watch are already organizing towards the business’s marketing campaign to dam nicely setbacks.

Even when the business succeeds in getting sufficient signatures by December 15 to set off the referendum, the individuals of California can have the final vote on nicely setbacks—and present tendencies forecast that Massive Oil’s black mark on the Golden State is not going to depart a everlasting stain.



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California

Dow Jones stock index crosses 40,000: Good or bad for California?

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Dow Jones stock index crosses 40,000: Good or bad for California?


The stock market’s venerable yardstick, the Dow Jones Industrial Average, just made history – crossing 40,000 for the first time.

Yes, this milestone set Thursday, May 16, is only a brief emotional victory for shareholders. Yet it can be seen as a historical milepost for the broader business climate, especially in California.

To honor the moment, the trusty spreadsheet reviewed the Dow’s 5,000-point markers and how California fared in those periods using an economic metric (California unemployment), an interest rate (the average 30-year fixed mortgage), and home prices from the California Association of Realtors.

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As we begin our data-filled voyage, let’s note the Dow first crossed 5,000 in November 1995 — back when you could buy the median-priced California single-family home for $176,000.

5,000-point mileposts

Dow passes 10,000 in December 1999: It took the stock index just over four years to double from 5,000 compared with a 28% gain for California homes to $225,000 in the same timeframe. This was an era when the economy broke loose from its early 1990s slumber. California unemployment dipped between 1995 and 1999 to 5% from 7.9% while mortgage rates rose to 7.9% from 7.4%.

15,000 in May 2013: The Dow needed more than 13 years to gain 50% to hit this benchmark vs. an 85% surge for homes statewide to $417,000 in the same period. This extended gap came during the financial rollercoaster ride from the bubble period in the early 2000s bursting into a Great Recession and then the economy’s slow recovery. So, California unemployment was 9.2%, up from 5% at the beginning of this crazy period. Yet, cheap money was one salve: 3.5% mortgages vs. 7.9% in 1999.

20,000 in January 2017: The Dow took under four years to gain 33% to gain the next 5,000 while homes statewide gained 18% to $492,000 as the post-crash rebound continued. California unemployment fell to 5.2% from 9.2%  as mortgage rates ticked up to 4.2% from 3.5% in 2013.

25,000 in January 2018: The Dow needed just one year to gain 25% for its next benchmark vs. a 7% gain for California homes to $528,000 as the recovery hit full stride. California unemployment dipped to 4.4% from 5.2% while mortgage rates slipped to 4% from 4.2% in 2017.

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30,000 in November 2020: The index took just under three years to gain 20% vs. 32% for California homes to $699,000 in the middle of the pandemic’s business wild gyrations. California unemployment surged to 9% from 4.4%  – but investors cheered historically cheap money such as mortgages hitting 2.8%, falling from 4% in 2018.

35,000 in July 2021: It took the Dow less than a year to gain 17% vs. 16% appreciation for California homes to $811,000 as the pandemic’s economic surge was in full force. Statewide unemployment fell to 7.4% from 9% and mortgages remained cheap – 2.9% vs. 2.8% in 2020.

40,000 in May 2024: The Dow took almost three years to gain 14% vs. an 11% gain for California homes to a record $904,000 in April. The economy struggles to find its new normal as statewide unemployment fell to 5.3% in April from 7.4%. But mortgages got expensive as the Federal Reserve fought and overheated economy – 7% in April from 2.9% in 2021.

Bottom line

So, the Dow is up eight-fold since crossing 5,000 just over 28 years ago. California homes are only five times more expensive.

That’s not the point, though. This stroll down memory lane reminds us that the markets typically need a solid economy for stocks or homes to appreciate. Cheap money is the icing on the cake.

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Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

 



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California continues to lead in US unemployment rate

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California continues to lead in US unemployment rate


SACRAMENTO: The state of California continues to lead the United States in the number of job losses since the start of this year, reported Xinhua, quoting a report by California’s Employment Development Department on Friday.

The unemployment rate in California, home to around 40 million residents, remained unchanged at 5.3 per cent in April for the third consecutive month, maintaining the highest level in the country.

The report showed that the number of unemployed Californians was 1,027,000 in April – down by 5,900 from the previous month and up 164,700 year on year.

This is the second time in five months the total number of the unemployed has declined. It comes amidst sluggish job growth, with statewide employers adding just 5,200 nonfarm payroll jobs in April, a significant drop from the 18,200 jobs added in March.

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According to the report, California’s employment landscape has been particularly bleak across several major sectors. Manufacturing, information, and professional and business services all experienced job losses in the past month, contributing to a less robust job market.

Meanwhile, five of California’s 11 industry sectors gained jobs in April, with private education and health services posting the largest month-over-month gain for the fourth consecutive month.



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Priorities & Progress | Governor of California

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Priorities & Progress | Governor of California


Working towards a better life for all

Californians deserve a government that works for them and with them. One that will work to ensure opportunity and justice. This is the goal of the Newsom Administration.

We are informed by our history as a state and nation. We are building a California not for the few, but for all — including those who have historically been left out.

We are doing the work to make our state a place for every Californian and all the diversity that makes us strong. Our state will be known as a place where everyone is respected, protected, and connected.



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