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California wades into oil lawsuits

Presented by ExxonMobil: Your guide to the political forces shaping the Energy transformation
Sep 18, 2023 View in browser
 

By Arianna Skibell

Presented by ExxonMobil

Pump jacks at an oil extraction site are seen near Somis, Calif., during the Maria Fire of 2019. | Getty Images

California’s lawsuit against some of the world’s largest oil companies could supercharge a yearslong campaign to force the industry to pony up for its role in driving Climate change.

The state joined a growing number of governments on Friday in filing suits accusing the oil companies of intentionally misleading the public about the dangers of fossil fuels — making it the largest economy in the country to join the effort, writes Lesley Clark.

“Having California participate is a big deal,” Ken Alex, who worked for former Democratic California Gov. Jerry Brown when he served as the state’s attorney general, told Blanca Begert and Debra Kahn over the weekend.

California’s 135-page lawsuit, along with scores of others from New Jersey to Hawaii, has a long way to go. But if the challenges are successful, they could force the oil industry — like tobacco and opioid manufacturers before it — to pay billions of dollars to make up for harm to the public.

The suit, filed by California’s democratic attorney general, Rob Bonta, also contends that Exxon Mobil, Shell, Chevron, ConocoPhillips, BP and the trade group American Petroleum Institute have continued their deception to this day.

While some legal analysts have questioned whether the cases can demonstrate that companies continue to engage in public deception, new revelations continue to emerge.

For example, The Wall Street Journal published internal Exxon documents last week that it says show how the company had sought to downplay concerns about global warming since 2006 despite its public acknowledgement of the problem.

Industry pushback
In a statement, API Senior Vice President and General Counsel Ryan Meyers called the campaign “meritless” and “an enormous waste of California taxpayer resources.” Climate policy, Meyers argued, is something for Congress “to debate and decide, not the court system.”

The oil industry has sought to undermine the raft of similar cases by waging a yearslong jurisdictional battle to move such cases from the state courts where they were filed to federal court, which companies view as a friendlier venue.

But earlier this year, the Supreme Court allowed existing suits from local governments to proceed in state court. That could pave the way for additional states to follow in California’s footsteps.

 

It's Monday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy.

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The world needs ways to reduce carbon emissions. At ExxonMobil, we’re working on solutions in our own operations – like carbon capture and clean energy from hydrogen – that could also help in other industries like manufacturing, commercial transportation and power generation, too. Helping deliver heavy industry with low emissions.

 

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Power Centers

United Auto Workers member Mike Duneske on strike at a Ford plant in Wayne, Mich. | Paul Sancya/AP Photo

How Elon Musk could win the UAW strike
The United Auto Workers strike could kneecap the Big Three automakers as they gear up to challenge Elon Musk and Tesla's grip on the electric vehicle market, writes James Bikales. And that spells trouble for President Joe Biden’s vision of an EV industry driven by union labor.

Increasing workers’ wages at Ford, General Motors and Stellantis could widen the gap in labor costs between the U.S. auto giants and Tesla’s non-union factories. It would be the latest just example of Musk shaping EVs’ future in ways that differ from the Biden administration's agenda.

Biden throws down for N.Y. climate week
Biden promised to use the whole federal government to tackle climate change, and he’s sending his climate hotshots to New York City this week in a bid to prove he’s following through, writes Robin Bravender.

Senior White House officials, agency leaders and the president himself are slated to appear in New York for “climate week,” an annual series of climate-focused events that Biden’s climate envoy, John Kerry, jokingly referred to as “diplomatic speed dating.” Biden is also skipping a U.N. summit Wednesday to which global leaders were asked to bring ambitious plans for tackling climate change, the White House announced last week.

Common ground on energy permitting?
As Congress continues to chase a bipartisan deal to overhaul the nation’s permitting process for energy projects, two Democrats are throwing a new proposal into the mix that they hope will help lawmakers find common ground, write Emma Dumain and Kelsey Brugger.

Rep. Scott Peters (D-Calif.) and Sen. John Hickenlooper (D-Colo.) introduced a measure on Friday they said aims to make electricity more affordable while building a power grid that can accommodate a vast increase in clean energy.

In Other News

U.N. General Assembly: Thousands of protesters gathered in New York City ahead of the U.N.'s meetings this week to demand world leaders halt new oil and gas drilling.

New frontier: Climate change could bring more storms like Hurricane Lee to New England.

 

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California Gov. Gavin Newsom speaks with POLITICO in Sacramento, Calif. | Rich Pedroncelli/AP Photo

California Gov. Gavin Newsom announced Sunday he plans to sign two landmark bills that would require companies to disclose their greenhouse gas emissions and climate risks.

A new deal could erase billions of dollars of debt owed by Puerto Rico's utility, but the measure could also drive up power costs and slow clean energy growth needed to help stabilize the island's grid.

One of the nation's regional grid operators is expanding westward, positioning it to become the first to control areas in both the eastern and western United States.

That's it for today, folks! Thanks for reading.

 

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Heavy industry accounts for nearly 30% of global carbon emissions. For these businesses, setting and achieving meaningful carbon-reduction goals can be complex. At ExxonMobil, we’ve been working on reducing our own carbon emissions. At our Baytown plant, one of the world’s largest integrated refining and petrochemical operations, we’re working to deploy hydrogen power and carbon capture to reduce emissions by up to 30%. Now, we’re taking solutions like these to others in heavy industry. Using our technologies, we can help these businesses create a plan to make similar reductions. And together, we can deliver a lower-emissions future. Let's deliver.

 
 

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