State lawmaker introduces bill to help Hermosa Beach fight oil drilling proposal
Two state lawmakers opposed to a proposed oil and gas drilling project in Hermosa Beach announced legislation Friday that would make it easier for the city’s voters to turn it down later this year.
Assemblyman Al Muratsuchi, D-Torrance, and Sen. Ted Lieu, D-Redondo Beach, told anti-oil supporters gathered on Pier Plaza that they would work to gather support for AB 2711, a bill that would provide the city with a no-interest, $17.5 million loan.
The money would be used for a one-time settlement fee with E&B Natural Resources Management Corp. of Bakersfield if the company does not win voter approval of its plan to install 34 wells near the coast and drill underground to tap the Torrance Oil Field.
Under terms of a settlement with another oil company, the city would required to pay $17.5 million to E&B if the project is rejected. The vote is tentatively scheduled to take place in November.
“AB 2711 would loan state funds to the city from state tideland oil revenues to cover this financial penalty,” Muratsuchi said. “I love Hermosa Beach. I love the hippy beach vibe of this little community. This city is a strong leader in the fight to protect our environment.”
The Muratsuchi-authored bill is in response to a 2012 legal settlement between the city and MacPhearson Oil over rights to drill, which the city approved in the 1980s but then rescinded with a resident-approved initiative in 1995. The settlement lets the city off the hook, with the condition that voters be allowed to decide whether E&B can drill.
Muratsuchi, who is campaigning for re-election, said the state would loan the funds from its general fund, where oil and gas revenues are deposited by the State Lands Commission. The city would be required to pay at least $500,000 a year until the sum is repaid, and those payments would be placed in the State Coastal Conservancy Fund for its Climate Ready Program.
Along with Muratsuchi and Lieu, congressional candidate Wendy Greuel also announced her opposition this week to E&B’s proposed drilling project.
“I’ve always opposed oil drilling along our coast,” Lieu said Friday. “I can’t really think of anything more stupid than drilling along our coastline. This is an ingenious bill that I believe will help resolve our situation.”
E&B Natural Resources spokesman Eric Rose said company officials are a bit bewildered by AB 2711.
“During the past two years, city officials and community activists have consistently and forcefully stated that the city has the financial capacity to repay the $17.5 million loan E&B provided,” Rose said. “This loan allowed the city to avoid bankruptcy and to end 14 years of litigation with MacPherson Oil Co. The loan repayment will not be necessary if Hermosa Beach voters agree to once again allow safe oil recovery at the city’s maintenance yard.”
Some residents have actively campaigned against the proposal for about two years through a grass-roots organization called Stop Hermosa Beach Oil, which has placed signs around town reading “Keep Hermosa Hermosa” and worked to get political support opposing the project.
Representatives from Heal the Bay, Sierra Club, Los Angeles Waterkeeper, and other local environmental groups attended Friday’s press conference to show their support for AB 2711.
Stacey Armato, an environmental activist and founder of Stop Hermosa Beach Oil, praised the bill, which has been introduced in the Assembly and will be heard in committee on Monday.
“This offer of a $17.5 million interest-free loan makes it easier for voters to make decisions to protect the health and safety of our community,” Armato said.
Hermosa Beach officials have been setting aside funds to cover a settlement, if necessary. Of the $17.5 million, about $6 million already has been saved. Officials have said the balance would be paid off with annual payments of $850,000 to $1 million.
But if AB 2711 passes and the city accepts a no-interest loan, those payments likely would be reduced significantly.
Assemblyman Al Muratsuchi, D-Torrance, and Sen. Ted Lieu, D-Redondo Beach, told anti-oil supporters gathered on Pier Plaza that they would work to gather support for AB 2711, a bill that would provide the city with a no-interest, $17.5 million loan.
The money would be used for a one-time settlement fee with E&B Natural Resources Management Corp. of Bakersfield if the company does not win voter approval of its plan to install 34 wells near the coast and drill underground to tap the Torrance Oil Field.
Under terms of a settlement with another oil company, the city would required to pay $17.5 million to E&B if the project is rejected. The vote is tentatively scheduled to take place in November.
“AB 2711 would loan state funds to the city from state tideland oil revenues to cover this financial penalty,” Muratsuchi said. “I love Hermosa Beach. I love the hippy beach vibe of this little community. This city is a strong leader in the fight to protect our environment.”
The Muratsuchi-authored bill is in response to a 2012 legal settlement between the city and MacPhearson Oil over rights to drill, which the city approved in the 1980s but then rescinded with a resident-approved initiative in 1995. The settlement lets the city off the hook, with the condition that voters be allowed to decide whether E&B can drill.
Muratsuchi, who is campaigning for re-election, said the state would loan the funds from its general fund, where oil and gas revenues are deposited by the State Lands Commission. The city would be required to pay at least $500,000 a year until the sum is repaid, and those payments would be placed in the State Coastal Conservancy Fund for its Climate Ready Program.
Along with Muratsuchi and Lieu, congressional candidate Wendy Greuel also announced her opposition this week to E&B’s proposed drilling project.
“I’ve always opposed oil drilling along our coast,” Lieu said Friday. “I can’t really think of anything more stupid than drilling along our coastline. This is an ingenious bill that I believe will help resolve our situation.”
E&B Natural Resources spokesman Eric Rose said company officials are a bit bewildered by AB 2711.
“During the past two years, city officials and community activists have consistently and forcefully stated that the city has the financial capacity to repay the $17.5 million loan E&B provided,” Rose said. “This loan allowed the city to avoid bankruptcy and to end 14 years of litigation with MacPherson Oil Co. The loan repayment will not be necessary if Hermosa Beach voters agree to once again allow safe oil recovery at the city’s maintenance yard.”
Some residents have actively campaigned against the proposal for about two years through a grass-roots organization called Stop Hermosa Beach Oil, which has placed signs around town reading “Keep Hermosa Hermosa” and worked to get political support opposing the project.
Representatives from Heal the Bay, Sierra Club, Los Angeles Waterkeeper, and other local environmental groups attended Friday’s press conference to show their support for AB 2711.
Stacey Armato, an environmental activist and founder of Stop Hermosa Beach Oil, praised the bill, which has been introduced in the Assembly and will be heard in committee on Monday.
“This offer of a $17.5 million interest-free loan makes it easier for voters to make decisions to protect the health and safety of our community,” Armato said.
Hermosa Beach officials have been setting aside funds to cover a settlement, if necessary. Of the $17.5 million, about $6 million already has been saved. Officials have said the balance would be paid off with annual payments of $850,000 to $1 million.
But if AB 2711 passes and the city accepts a no-interest loan, those payments likely would be reduced significantly.
