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Residents Harmed by Oil Drilling May Soon Receive Reparations Under New California Law

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Why This Matters

California's AB 1661 marks a rare instance of a state directly funding cash payments to residents—many of them Black—who have suffered health harms from living near urban oil drilling. It sets a precedent for treating environmental racism as a policy issue deserving direct reparative action, not just regulation, and could influence how other states address pollution-driven health disparities.

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This story originally appeared on Capital B and is part of the Climate Desk collaboration.

As a child in the 1950s and ’60s, Regina Martin became so used to the oil pumpjacks near her home that she assumed every child lived beside them. Everyone was made “sick to [their] tummy” by the sulfurous, rotten-egg smell that never seemed to leave, she thought.

Only until she was grown did she begin to see a possible connection between growing up on top of the nation’s largest urban oil drilling field and her own sickness and the asthma that affected her sister.

For over a century in Los Angeles and across the nation, Black people have been disproportionately likely to live near oil wells, the machinery that draws oil from deep underground. The pollution from these drilling sites are connected to birth complications, child development issues, respiratory illnesses, and cancer.

Now, a new California state law moves to turn that lived experience into a broader public-policy question: What does a state owe communities exposed to pollution for generations? And what happens when you can’t offer support to every family that has struggled through the harm?

California lawmakers have passed AB 1661, which would steer $5 million collected from penalized oil wells in Inglewood into direct cash aid for 1,000 nearby households with qualifying respiratory or reproductive health impacts. Some of LA’s Blackest suburbs and city neighborhoods, including Inglewood, Ladera Heights, and Baldwin Hills, surround the oil field.

The legislation, introduced by Assemblymember Isaac G. Bryan, is expected to be signed into law by Gov. Gavin Newsom by October. It sets aside enough money for payments of up to $5,000 for 1,000 impacted households under its initial structure. The money would come from the state’s community repair and reinvestment fund for people living nearest the oil field.

For Black communities living nearest to refineries, highways, landfills, and oil wells, this fund may signal something larger than one oil field or payment. It asks whether money can begin to repair harms accumulated across generations: lives cut short by illness, household wealth drained by medical bills and depressed property values, and the anxiety of raising children amid pollution.

Bryan and other supporters are calling it environmental reparations and say it is a model that could be replicated to make industrial companies help repair the damage borne by people living closest to polluting sites.

To Tianna Shaw-Wakeman, the environmental justice program director with Black Women for Wellness in LA, the law could provide a national organizing model. “My hope has always come at the community level, at the grassroots level,” she said. “I see how grassroots organizing has created long-term change in our local communities, and I see that that can be and is being replicated all over the country.”

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