By Yenah Lee and Madi Whittemore
OAKLAND, CA – The Office of the Attorney General announced a settlement against Southern California Gas Company (SoCalGas) Monday after the company was found guilty of making misleading statements in 2019 about all natural gas being “renewable.”
According to California Attorney General Rob Bonta, these misleading statements by SoCalGas were found in the public media, informative displays such as billboards, in slogans, and even in merchandise.
For example, AG Bonta cited one online advertisement with a slogan where SoCalGas claimed that its “natural gas is affordable, clean, and renewable.”
“SoCalGas is a large, sophisticated entity. While we appreciate its cooperation in our investigation, SoCalGas should have known better than to broadcast unqualified claims suggesting that all natural gas is ‘renewable,’” AG Bonta emphasized in the settlement announcement.
California is making efforts to reduce fossil fuel usage and become “greener” through bills like Senate Bill (SB) 100 aiming to sell only renewable and zero-carbon resources to power all retail electricity by 2045.
Additionally, the California Air Resources Board (CARB) has asked the Environmental Protection Agency (EPA) to approve a waiver under the Clean Air Act that would ban the sale of new gasoline-powered vehicles by 2035.
According to AG Bonta, to effectively support California’s green initiatives, the Dept. of Justice must crack down on companies such as SoCalGas that may cloud and confuse people’s judgment about what constitutes renewable energy versus fossil fuels.
“Today’s settlement should send a clear message: The California Department of Justice is committed to holding accountable corporations that mislead or deceive consumers about the environmental attributes of a product,” the AG concluded, also adding that “truth in marketing matters, and it’s required under state law.”
Before the settlement, there were several allegations regarding SoCalGas violating California’s consumer protection laws such as the Unfair Competition and the False Advertising Law.
However, the new settlement will require SoCalGas to solve these allegations under multiple new regulations including: cease any and all statements regarding natural gas being renewable, pay a $175,000 penalty where $87,500 will be given to the California Environmental Protection Agency’s Environmental Justice Small Grants Program to support environmental justice projects such as the Supplemental Environmental Project (SEP), and release an announcement on its website correcting the statements within two weeks of the settlement taking effect.
Sempra Utilities, and SoCalGas in particular, has been spreading misinformation about the relative merits of electrification versus fossil methane use. This fine is a slap on the wrist for the extent of their campaign.