Oil and gas profits come at the cost of wildfire preparedness in California

California’s largest tax break allows fossil fuel companies to sidestep $146 million annually, gutting resources for wildfire prevention as climate change intensifies year-round fire risks.

Freddy Brewster and Lucy Dean Stockton report for The Lever.

In short:

California’s “water’s edge” tax loophole lets oil and gas giants avoid paying taxes on foreign profits, depriving the state of billions in revenue annually.
As Los Angeles faces devastating wildfires, budget cuts to fire preparedness and infrastructure have left firefighters scrambling for resources like water access.
Efforts to close the loophole face stiff opposition from oil lobbyists, who have sued the state over attempts to reclaim lost revenue for climate solutions.

Key quote:

“Every dollar lost to this tax giveaway is a dollar that could be invested in climate solutions that save lives and dollars.”

— Barry Vesser, COO of the Climate Center

Why this matters:

California’s wildfires are growing more destructive as climate change makes fire seasons perpetual. Fossil fuel tax breaks not only weaken the state’s ability to prepare for disasters but also fund the very industry exacerbating these crises. Eliminating these loopholes could transform climate policy and save lives.

www.levernews.com

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