The City of Santa Monica is wading into a controversial national issue over fossil fuels, environmental protection, and the sanctity of Native American lands. On Thursday, the city announced it would sever ties with Wells Fargo Bank over its financial involvement with the Dakota Access Pipeline (DAPL), a planned 1,200-mile main designed to transport crude oil from North Dakota to Illinois.
The project was announced in 2014 but suspended last year following massive protests led by the Standing Rock Sioux Tribe of North Dakota. The tribe believes the project would cause substantial environmental damage and disrupt burial sites. The U.S. Army Corps of Engineers has since granted an easement allowing the project to resume.
“Last night, the Santa Monica City Council voted to divest all City funds from Wells Fargo bank due to their involvement in financing the Dakota Access Pipeline and their other misleading business practices that do not align with Santa Monica policies,” according to a city press release. “The motion was brought forward by Councilmembers Terry O’Day and Tony Vazquez.”
Councilmember O’Day called the fight over DAPL “one of the most substantive and symbolic fights for our future” and “a fight over sovereignty and respect for native people and humanity.”
Santa Monica has $1 billion in transactions with Wells Fargo, according to the release, and the city’s investment portfolio includes $4.6 million in Wells Fargo bonds. Recommendations on a strategy for full divestment will be presented by Finance staff on Feb. 28.
Santa Monica joins the City of West Hollywood which is also in the process of divestment over DAPL. The California Public Employees’ Retirement System (CalPERS) is also under pressure to divest and is calling for rerouting of the pipeline.