Kashkari Thinks Fracking is His Best Shot

Troubled campaign looking for some sort of boost

by Brian Leubitz

The gubernatorial candidate from Wall Street, Neel Kashkari, is struggling in the polls and fundraising is running dry. So, where to turn? How about trying to get some cash from the petroleum industry with some timely shout outs to his corporate friends in the business:

Republican gubernatorial candidate Neel Kashkari toured a drilling technology company here Wednesday and promised to rebuild the state’s economy in part by improving the business climate for oil and gas.

In the last three years that Jerry Brown has been governor, California has increased its crude oil production 3 percent to 199 million barrels, he said. During the same three years, Texas has increased its production 77 percent to 941 million barrels, and North Dakota has hiked production 105 percent to 313 million barrels.

California’s economy is improving slowly, Kashkari said, but added that far too many Californians remain out of work because the state isn’t business-friendly.(Bakersfield Californian)

Well, that is all well and good, but the numbers that the Kashkari campaign passed off in a press release are not really relevant. Even petroleum executives would allow that each state has different petroleum reserves. Not all wells are created equal. Part of that is the regulatory environment, but fracking is a technology that aims to get at deposits with a wildly varying levels of accessibility. Monterey shale isn’t the same as the deposits in Texas or North Dakota, and there are many other considerations. Like, hey, the fact that we are in a big drought. KQED has a great report on that subject in both audio and text formats.

The potential for higher water use doesn’t sit well with some San Joaquin Valley farmers. “They’re competing for the same water that we’re using for our farms,” says Keith Gardiner. “That’s taken away from the farm fields.”

“It is an added pressure,” says Greg Wegis of Wegis and Young, a farming operation near Bakersfield. “From what I’ve seen, in some of the fracking wells, they’re using 3-to-4 acre-feet per well. That’s not helping the situation.”(KQED)

But Kashkari has very little to work with. Brown has a huge warchest, and Donnelly is still polling above him. Kashkari needs more cash and attention. He can claim to be addressing with an appearance on Squawk Box, but appearing on CNBC won’t make the kind of big shake up that he needs to this race. So, why not try pandering to petroleum interests. It won’t help him win the governor’s office, but maybe he can squeeze into the November top-2.

PPIC Poll shows Brown with huge lead, Donnelly in distant second

Endeavour Grand  Opening Ceremony (201210300002HQ)Poll shows right-wing anti-immigrant Tim Donnelly could be GOP standard bearer in November

by Brian Leubitz

WHo really wants to be the one to get steamrolled by Gov. Brown and his huge warchest come June/November? Well, there are a few folks vying for the privilege, but few show any sign of making any inroads. Barring a bizarre calamity, Brown seems a prohibitive favorite over the field. And that instinct is borne out in PPIC’s poll:

When primary likely voters are asked how they would vote in the governor’s race, 47 percent choose Brown and 10 percent choose Republican Tim Donnelly. Fewer support Republicans Andrew Blount (2%) or Neel Kashkari (2%)-the other candidates included in the survey-while 3 percent name someone else and 36 percent are undecided. (PPIC)

Now, Donnelly, who is a well known right wing extremist better known as a Minuteman vigilante than as a serious legislator. Not exactly the type of candidate a 21st century party is really looking for in a state with a minority majority. But while some party leaders are kind of rooting for Neel Kashkari, and his much more compelling, and modern, story, the grassroots of the party seems to prefer Donnelly’s anti-immigrant right-wing platform.

Had Kashkari been able to keep up his initial strong fundraising, you would have to like his odds to pull out the number two spot. But with that fundraising rapidly slowing, Donnelly may be able to carry a right-wing base vote to the second line of the November ballot.  The other candidate, Andrew Blount, Mayor of Laguna Hills, says he is raising no money at all. Unless he plans to self-finance, Donnelly’s slightly higher name ID would likely be enough to push him over the edge. Here’s the current cash situation:

Donnelly reported Monday that he has less than $11,000 in cash on hand, with unpaid bills of $149,068. Kashkari, meanwhile, has banked more than $900,000, while Brown has nearly $20 million on hand.(SacBee)

Perhaps this will improve when one of them squeaks onto the November ballot. However, the numbers right now are all looking strong for Gov. Brown. His current approval rating is at 49% approval, down a bit from his all time high in January of 58%, but more than solid given the other factors in the race.

Leland Yee Arrested in SF Chinese Gang Investigation

Arrest in a shocking investigation opens up SoS race

by Brian Leubitz

First, I’ll simply state that everybody deserves their day in court, and all the charges are merely allegations at this point. But, wow, if only a small fraction of what was revealed is true, you have the makings of an action-packed Hollywood blockbuster.

In the part that pertains to Yee, the long and short of it was that he sold proclamations and small favors in exchange for campaign contributions. (Some of which exceed the contribution limits in the SF mayoral race.) In the affidavit, which you can find over the flip or on scribd here, Yee is said to have told the federal informants that he would not make money for himself for any official acts, and that he did not want to discuss pay-for-play deals. However, he is alleged to have participated in said pay-for-play for campaign contributions at the behest of his fundraising consultant, and alleged gun runner, Keith Jackson.

State Senator Leland Yee, one of the most powerful Democratic politicians in California, was arrested Wednesday morning in a major series of federal raids in the Bay Area and Sacramento targeting corruption and gang activity.

Federal agents arrested Lee(sic) at his home in San Francisco Wednesday morning and he was driven to the federal courthouse while his offices in Sacramento were raided.

The federal complaint filed March 24 and unsealed Wednesday alleges Sen. Yee was engaged in soliciting illegal campaign donations in exchange for political favors and was involved in a conspiracy to traffic firearms. (CBS  SF)

Now, as for the SoS race, you have to figure that with Sen. Yee out of the running, Sen. Alex Padilla is now the big frontrunner. That being said, Democrat Derek Cressman could make a strong challenge if he can continue to raise enough money to increase his name ID. Former Republican Dan Schnur and current Republican Pete Peterson could also push to make that second line of the ballot.

Whatever else you do today, take a few minutes to read the affidavit. It’s like something out of a Mario Puzo novel.

UPDATE: I managed to get a snapshot of Keith Jackson’s page from Singer Associates website, which has now been taken down. You can read the full affidavit over the flip, as well as viewing a CBS-SF news report.

UPDATE 2: Yee has now officially quit the Secretary of State race.

Jerry Brown Waxes Nostalgic with Maureen Dowd

Governor looks solid for next election, looks back and forward with Dowd

by Brian Leubitz

Neel Kashkari, despite being something of a modest frontrunner to make it to the general election with Gov. Brown, is now struggling with fundraising. Apparently Hank Paulson can only max out once, and Kashkari is having some issues getting contributions beyond the ranks of Goldman Sachs. Kashkari now has less than $1mil, compared to Brown’s nearly $20m.

That all leads up to Maureen Dowd’s puff piece with the Governor entitled “Palmy Days with the Governor.” There are no hard hitting revelations here, just a few rememberances, many of which have to do with the Clintons:

So how does he reconcile what he said in 1992 and now? Have the Clintons changed, or has Brown changed?

He crosses his arms and gives me a flinty look, finally observing: “In retrospect, after we see all the other presidents that came afterwards, certainly, Clinton handled his job with a level of skill that hasn’t been met since.”

Take that, President Obama. (Maureen Dowd / NYT)

It goes on to cite the heckling at the CDP convention, but Gov. Brown is a fighter at heart. Despite his discomfort at the heckling, he closed his speech with “keep protesting.” He has changed a lot since his first go-round, but maybe he is still much the same.

photo by Alan Light

The Race to Pass the Buck in CA-25

DFCon2012_0382Crowded Field and Top-2 could net interesting election

by Brian Leubitz

Buck McKeon announced his retirement in January, but the announcement produced little surprise. He was rumored to retire for a while now, including some rumors in the past few cycles. And Tony Strickland, after losing a run against Julia Brownley in 2012, has been pretty much campaigning in this district since.

But even with the Strickland campaign up and running for a long time, there have been no shortage of candidates. And over in the LA Daily News, Rick Orlov takes a look at the field:

The race has drawn two prominent Republicans – Sen. Steve Knight and former Sen. Tony Strickland – who have represented portions of the district in the state Legislature, as well as a physician who first ran against McKeon two years ago, a former test pilot, a pair of businessmen and one Libertarian. (Rick Orlov / LA Daily News)

Dr. Lee Rogers, the Democratic nominee in 2012, is running again, joining former Air Force pilot Evan Thomas. The crowded field of 4 Republicans, a Libretarian, and two Democrats kind of presents the question of Top-2. Last year, a strong chance at a Democratic pickup in CA-31 was foiled when a field of Democrats piled over each other and fell behind the two Republicans running. Of course, that could happen again there in 2014, with a huge field.

In order for that dynamic to really work, there has to be two recognizable members of one party and a field of less known candidates on the other side. However, 2014 seems more likely for the two Republican Senators to split most of the GOP vote, and the other two Republicans picking up only a smattering of votes. The fact that Thomas is starting a bit behind also makes him unlikely to creep into that top-2. However, with the small sample size we have seen so far, you never really know what is going to happen in the post Top-2 world.

While 2014 is likely to be a tough year for Democrats nationwide, one again California appears to be the breaking point of any momentum. The party stands a chance to pick up both CA-31 and CA-25, netting a few seats that may have to make up for other states across the country.

Nonprofit Disclosure Fails for Lack of Supermajority

Senator Lou CorreaMeasure to require donor disclosure for nonprofit political dies in Senate

by Brian Leubitz

Take a step into my TARDIS, way back to 2012, when a group of conservative nonprofit groups with connections to the Koch Brothers poured around $15 million into the efforts to defeat Prop 30 and pass Prop 32. Eventually, they settled for a record fine of over a million dollars, but hey, if you can get away with it, #AmIRight? What’s a million dollars between friends trying to monkey with democracy?

Well, a bill to fight just these sort of money laundering operations was working its way through the state Legislature. SB 27, introduced by Senator Correa would have required every ballot committee receiving more than $1 to disclose its top ten contributors.

I say was, because with the loss of the votes of Sens. Wright and Calderon and the current lack of Democratic supermajority, that measure seems to be on ice for a while. No Republicans would cross party lines and vote for public disclosure, so despite the passage in the Assembly, the measure goes nowhere. CORRECTION: A previous version of this post said a supermajority was required due to a requirement of constitutional amendments. However, SB 27 is not a constitutional amendment. Rather, the Political Reform Act of 1974 requires a 2/3 supermajority to make changes.

“Senate Republicans should be ashamed of themselves for voting to keep Californian’s in the dark about who is funding political campaigns,” said SoS candidate Derek Cressman.  “How anyone favoring fair and transparent elections could have no preference between the party of dark money and the party that voted unanimously for sunshine today is a mystery to me.”

Next10 Updates Budget Challenge

Interactive website lets you choose budget priorities

by Brian Leubitz

We’ve had a link to the Next10 Budget Challenge on the right sidebar for a while now, and mentioned it once or twice. And while it has a few flaws, after all it is hard to pack a $100B budget into a easily understood little game, it does offer an interesting way to look at the budget. It helps even those who haven’t really had a chance to take more than the briefest of looks into the system. Check out the intro text:

While California is no longer experiencing an immediate budget crisis, important decisions will be made balancing this year’s budget that will impact our shared future.  How quickly should the state pay off $28 billion in budget debt?  What should California do to plan for long-term pension and retiree health care costs?  How much should be invested in programs cut during the recession?  How much should the state have in reserve, and where should those funds come from?

The budget is a months long process, and you aren’t going to get answers in 10 minutes. But, if you know a few folks who would be interested in learning more about the budget, send them over to the Next10 Budget Challenge. Also, give them a chocolate bar to help ease the depression that knowledge of the budget may bring on.

California DMV’s Autonomous Vehicle Regulations Must Protect Users’ Privacy

Driverless CarI was up in Sacramento today to call on the Department of Motor Vehicles to ensure that the regulations that they are developing to govern the use of autonomous vehicles – popularly known as driverless cars -will protect the operators’ privacy.

The company that will be most directly affected by the new autonomous vehicle regulations is Google, which is pioneering development of the robot-driven cars. The Internet giant was the driving force behind SB 1298, which charged the DMV with the task of developing the regulations and also rebuffed attempts to require privacy protections in the law.

However, it is not too late to implement privacy safeguards in this rulemaking and Consumer Watchdog called on the DMV to do so. Failure to act will mean substantial privacy risks from the manufacturers’ driverless car technology if there are not protections from what Google is best known for: the collection and use of voluminous personal information about us and our movements.

The DMV regulations must give the user control over what data is gathered and how the information will be used.  Merely stating what data is gathered with no explanation of its use is woefully inadequate. The DMV’s autonomous vehicle regulations must provide that driverless cars gather only the data necessary to operate the vehicle and retain that data only as long as necessary for the vehicle’s operation.  The regulations should provide that the data must not be used for any additional purpose such as marketing or advertising without the consumer’s explicit opt-in consent.

Without appropriate regulations, autonomous vehicles will be able to gather unprecedented amounts of information about the use of those vehicles.  How will it be used?  Just as we are now tracked around the Internet, will Google and other purveyors of driverless car technology now be looking over our shoulders on every highway and byway? Will the data be provided to insurance companies for underwriting purposes or to third parties that develop some kind of a driving score related to where and when individuals travel?  Will it be used to serve in-car advertisements or advertisements through other venues in the Google suite of products? Will it be used to track our movements and those of surrounding cars and mobile devices so that Google’s advertisers can better locate us?

Google is the aforementioned leader in driverless car research and is attempting to steer regulatory efforts in various states, especially California.  That’s why our concerns are so focused on the company. So I ask:  Why won’t Google endorse simple privacy safeguards for its self-driving cars?  I think there are two reasons.

First, Google’s entire business model is based on building digital dossiers about our personal behavior and using them to sell the most personal advertising to us.  You’re not Google’s customer; you are its product – the one it sells to corporations willing to pay any price to reach you.  Will the driverless technology be just about getting us from point to point or more about tracking how we got there and what we did along the way?

Second, computer engineers, who believe that more data is always better, are in charge at Google.  They may not know what they would use data for today, but they think they may someday find a use for it and don’t want any restrictions on them now.

Google is first and foremost an advertising company; 98 percent of its $38 billion in revenue comes from advertising, and the more personalized the marketing the better.  Indeed, Executive Chairman Eric Schmidt has said, “We don’t need you to type at all. We know where you are. We know where you’ve been. We can more or less know what you’re thinking about.”

John SimpsonWe all remember the last time Google deployed high tech vehicles around the world.  The result was Wi-Spy, the biggest wire-tapping scandal in history when the company’s Street View cars sucked up data from tens of millions of private Wi-Fi networks, including emails, health information, banking information, passwords and other data.  The company paid $7 million to settle the case brought by the state Attorneys General.  A class action suit is pending in federal district court.

Citing its “Don’t Be Evil” motto, Google claims it can be trusted with our information.  Facts show otherwise. The FCC released documents showing the Wi-Spy scandal was not a mistake or the work of one rogue engineer, as the company had claimed; but was part of the Street View design. The Commission fined Google $25,000 for obstructing its investigation.

The Federal Trade Commission imposed a $22.5 million penalty on Google for violating a consent agreement and hacking around privacy settings on Apple’s Safari browser, which is used on iPads and iPhones. Simply put, there is no reason to believe Google when it claims to be concerned about privacy.

Consumers enthusiastically adopted the new technology of the Internet.  What we were not told was that our use of the Information Superhighway would be monitored and tracked in order to personalize corporate marketing and make a fortune for companies like Google.  Consumer Watchdog supports driverless car technology and predicts it will be commonplace sooner than many of us expect.  However, it must not be allowed to become yet another way to track us in our daily lives.

Internet technology was implemented with little regard to protecting users’ privacy.  We are playing catch-up for our failure to consider the societal impact of a new technology.  The time to ensure that this new driverless car technology has the necessary privacy protections is while it is being designed and developed.   This is a concept known as “Privacy by Design.” It means privacy issues are considered from the very beginning and solutions are “baked in.” Trying to catch up after a new technology is developed and broadly implemented simply will not work.  The DMV should act to require that consumers must give opt-in consent before any data gathered through driverless car technology is used for any purpose other than driving the vehicle.

While we don’t propose to limit the ability of the cars to function by communicating as necessary with satellites and other devices, the collection and retention of data for marketing and other purposes should be banned. Unless strong protections are enacted in the new regulations, once again society will be forced to play catch-up in dealing with the impact of the privacy invading aspects of a new technology.


Posted by John M. Simpson, Director of Consumer Watchdog’s Privacy Project.