Long Beach City Council members were preparing final language Thursday for a measure that would press the state to let the city keep a larger share of locally generated oil revenues to address coastal environmental needs.
The Keep Long Beach Oil Revenue Local measure, unanimously approved on Aug. 19, calls on the state to update decades-old revenue rules that have sent nearly $6 billion from Long Beach oil production to Sacramento since 2004.
City officials said Long Beach receives just 8.5% of oil revenues under a 1991 revenue-sharing formula. They argue the agreement no longer reflects Thursday’s challenges, with oil revenues declining and more than $1 billion in unfunded coastal needs for sea level rise, emergency preparedness, habitat restoration and infrastructure.
A 2024 City Auditor report projected a $300 million shortfall for coastal maintenance over the next decade, according to city officials.
“In the case of Long Beach’s tidelands, the state has acted like a greedy oil tycoon, taking the profits while leaving our city with just enough to meet the minimum obligations,” Councilmember Kristina Duggan said in a statement. “Now, as oil revenue declines due to state restrictions, the state is squeezing every last dollar out of oil drilling in Long Beach while trying to shift the financial burden onto local taxpayers.”
Councilmember Dr. Joni Ricks-Oddie, who chairs the Budget Oversight Committee, said the outdated formula is draining funds needed for public safety and neighborhood programs.
“As a councilmember who represents coastal neighborhoods, I see firsthand the cost and responsibilities of maintaining our beaches, marinas and waterways,” said Councilmember Cindy Allen, chair of the Climate, Environment and Coastal Protection Committee. “For decades, Long Beach has shouldered these burdens, and it is only fair that the dollars generated here stay here.”
The initiative drew support from residents, business leaders, labor groups and environmental advocates, with more than 200 written comments submitted and dozens testifying in favor, according to city officials.