San Francisco billionaire Tom Steyer has written a letter urging Gov. Jerry Brown to convene a “California Energy Summit” with the oil industry, clean energy companies, environmentalists and citizens to discuss things like a halt to fracking and levying an oil extraction tax.
The governor won’t commit.
“We haven’t received the letter yet, but the governor regularly speaks with Tom on climate change issues, as he does with a diverse group of academic, industry and environmental leaders,” Brown spokesman Evan Westrup said Thursday. “We look forward to continuing those discussions.”
Steyer – a former hedge-fund manager who has created NextGen Climate as a vehicle to influence the climate-change debate – wrote to Brown on Wednesday citing the U.S. Energy Information Administration’s 96-percent downgrade in its estimate of how much oil current technology can recover from the Monterey Shale.
“In a single but far-reaching action, the federal government has completely dispelled the economic illusion hanging over the ongoing debate over new oil exploration and extraction in the State of California,” Steyer wrote. “With this new report, the Monterey Shale mirage is gone. Now, it is time to hit the reset button, call Big Oil’s bluff and force them to the table in an effort to finally give Californians a Fair Shake.”
Steyer wrote that he knows Brown has “long acknowledged that climate change is a real threat to California and our world. As recently as this week, you rightfully stated that California is ‘the epicenter of climate change.’”
“California deserves a Fair Shake for our climate, for our economy and for our families,” he wrote. “Our state currently gives Big Oil a unique $2 billion tax subsidy that no other state in the country offers. This must stop.”
Steyer is championing a movement to enact an oil extraction tax; California is the nation’s only oil-producing state that doesn’t charge such a tax.
“And local California communities deserve a guarantee that Big Oil cannot rush to extract oil through fracking or other experimental drilling methods until oil companies have proved, beyond a reasonable doubt, that they have the toughest, safest and most rigorous safeguards in place to ensure that California’s local communities don’t suffer for the sake of Big Oil’s bottom line,” Steyer wrote.
Brown in May 2013 said “the fossil fuel deposits in California are incredible, the potential is extraordinary.” Environmental groups urged Brown to support a fracking moratorium, but the governor resisted. In September, he signed a law creating new fracking regulations, including a permitting process, notification of neighbors, public disclosure of chemicals used and groundwater- and air-quality monitoring.
State Sen. Holly Mitchell, D-Los Angeles, is carrying a moratorium bill now, but the Senate Appropriations Committee voted unanimously Monday to put SB 1132 into the suspense file – essentially putting it on indefinite hold. Mitchell issued a statement Thursday morning saying the new EIA report means “there’s no ocean of black gold that fracking is going to release tomorrow, leaving California awash in profits and jobs. We have the time, the need and, in SB 1132, the mandate to halt fracking while we determine if and how it can be done safely in California. Let’s pass the bill and halt fracking until due diligence can assure us it won’t put workers and residents in danger.”
Steyer concluded his letter to Brown by arguing the new facts “present an opportunity to hold an honest conversation about climate change and oil extraction in California.”
“Now is the time to act, and I urge you to convene stakeholders—from the oil industry and the clean energy, environmental and scientific communities, as well as local citizens — for an historic California Energy Summit to make sure that California gets a Fair Shake,” he wrote.