Tag Archives: Valero Energy

Prop 23: California’s Future Fights Back Against Oil Money

This fall, California voters will vote on Proposition 23, officially termed a “suspension” of California's global warming law (AB32) “until unemployment reaches 5.5%” and named by its supporters a “jobs initiative.”  

The battle should play out exactly as similar battles over federal climate policies: conservatives claim it'll destroy jobs, raise taxes, and increase family energy costs; environmentalists valiantly-yet-unsuccessfully try to set the record straight, only to be ignored by middle class voters worried about pocketbook issues.

But a funny thing is happening.

The narrative is shaping up to be quite different.  The shadowy interests behind Prop 23 are being exposed to the light.  And Prop 23 is being opposed by clean technology investors who see a stark choice: build the future or burn the planet.

Consider it evidence of hope.

In 2006, California passed the California Global Warming Solutions Act, commonly known as AB32, which established the first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases. Conservatives have been whining about it ever since it passed; hence, Proposition 23.  Officially, it's been placed on the ballot by Assemblymember Dan Logue, who calls it a “jobs initiative.”  But calling it a jobs initiative doesn't make it true, and calling it Logue's proposition only conceals the out of state dirty energy interests behind Proposition 23.

  1.  Behind Proposition 23: Out-of-State Oil and Coal

Who's really paying for Prop 23? Short answer: Valero Energy of Texas, Tesoro of Texas, and Koch Industries of oil/gas/coal/Americans for Prosperity fame.  

Valero has given over $4 million of the nearly $6.2 million received by the Yes on 23 campaign, and Tesoro is in for $525,000.  A shadowy Missouri conservative group with ties to coal whose spokesman criticizes “liberal politicians” in California with “crazy radical ideas” has donated $500,000, even though last December it only had $109 in its bank account.  A ThinkProgress blog post links Koch Industries to the “yes on Prop 23” forces.

A Sunlight Foundation investigation of donations 1998-2008 found that Big Oil's money at the state level goes mostly to influence public, not politicians; money is spent on elections, not contributions.  Prop 23 fits that mold.

  1.  Opposing Proposition 23: The Future

ca-print-map-lgOf course, environmentalists are appalled by any effort to roll back AB32.  However, serious money is coming from other sources.  Venture capitalist John Doerr has given $500,000 to the “No” campaign; Farallon founder Tom Steyer has pledged $5 million. Silicon Valley venture capitalist Vinod Khosla states: “Proposition 23 will kill markets and the single largest source of job growth in California in the last two years.  Not only that, it'll kill investment in the long term for creating the next 10 Googles.”  Small wonder that the cleantech industry opposes Prop 23.

In 2009, 40 percent of cleantech venture capital went to California, where some 12,000 companies are working on ways that could help businesses and consumers reduce energy consumption. More than 500,000 people work in the industry, including 93,000 in manufacturing and 68,000 in construction. Clean energy jobs are growing in California at 10 times the statewide average.  For job-related reasons, the San Jose Mercury News editorial page urges a no vote.

Big Oil may be meeting its match in Google.

Perhaps sensing a loser, Meg Whitman is waffling on Prop 23.

The fall campaign season hasn't yet started, and optimism may be premature.  However, a Proposition 23 defeat would be the first sign of optimism on the climate front I've seen since the climate bill died.  The good clean energy jobs are already here in California.  Investors know it.  Our economy will not only survive regulation of greenhouse gases, it'll flourish.  Let's hope the climate peacocks of the United States Senate listen.  In the meantime, courtesy of Climate Progress, here's five actions to take:

1.Visit the “No on 23″ website, learn the facts & sign up:  Stop Dirty Energy

2.Educate yourself on how California’s climate & energy laws have created companies & jobs: CABrightSpot

3.Tell your friends by email, on Facebook, at work, & everywhere else.

4.Participate in the debate. Write letters to the editor and post comments on blogs & websites.

5.Contribute here. The other side’s leader, right-wing California Assemblyman Dan Logue, has publicly said he expects the oil companies to spend $50 million.

Exposed: secret Texas oil money behind California’s Suspend AB32

California’s Suspend AB32, deceptively entitled “California Jobs Initiative,” is one of the stupidest ideas cooked up in a state not named Utah or Texas.  AB32 is California’s landmark climate law, requiring the state to reduce its greenhouse gases to 1990 levels by 2020.  A Republican member of the state assembly, Dan Logue, has proposed that the law be suspended until unemployment drops below 5.5% for four consecutive quarters — effectively gutting the law entirely, as unemployment has rarely been that low for that long.  

The initiative ran into financial trouble last month, but it’s been resurrected from the grave.  The money behind this particular zombie looks like it’s coming from two large Texas-based refiners, Tesoro and Valero.  If so, the initiative may be in violation of California Fair Political Practices Committee regulations.

When last we heard from Suspend AB32 in mid-February, it was dying from lack of the mother’s milk of politics, a shortage of funds, along with a renaming (thanks to once-and-future governor Jerry Brown) from “California Jobs Initiative” to the far more accurate “Suspends air pollution control laws requiring major polluters to report and reduce greenhouse gas emissions that cause global warming.”  However, as any fan of George A. Romero knows, some creatures are hard to kill.

Greenwire, via New York Times, has the story: Texas refiners mum about funding push to halt California’s climate law.  “Several well-placed sources in Sacramento” report that two refiners based in San Antonio, Texas — Valero Energy Corp. and Tesoro Corp. — are the sole funders behind the new push.  (Spokespeople for Valero, Tesoro, and Logue have refused comment but are not denying the assertion.)  Signature gathering has moved from Logue to Goddard Claussen, which bills itself as an “issue advocacy” firm with clients like “Californians to Stop Unfair Rate Increases,” in actuality “several of the nation’s leading insurance companies” and “Floridians For Lower Insurance Costs,” in actuality State Farm.  (All information taken from the firm’s website.)

Valero and Tesoro both operate refineries in California: Valero in Benicia and Wilmington, and Tesoro in Martinez and Los Angeles (formerly Shell).  Valero has an astroturf Voices for Energy campaign, warning falsely that cap and trade is a hidden tax that will cost 77 cents per gallon.  Tesoro repeats the lie on its Tesoro Action Center page.  In reality, AB32 has virtually no economic impact on small businesses and has been praised as a clean energy jobs powerhouse.

The California Fair Political Practices Committee now requires that any ballot measure

must list the economic or other special interests of their $50,000 donors in descending order in its committee name. This list must precede and not be interspersed with constituencies such as “concerned citizens,” or “taxpayers.”

Suspend AB32’s website has lists of proponents and endorsers, all California-based, but no mention of Valero or Tesoro.  Logue fancies himself a Columbo, but as I recall, detectives work to enforce the law, not circumvent it.

Is someone running afoul of the FPPC?  I don’t know, but I do know that this zombie clean energy jobs killer initiative needs to die, once and for all.  And, as a Californian, I’m not too happy with out-of-state institutions spending millions on ballot initiatives telling me who I can marry and what kind of air I can breathe.

(x-posted at DailyKos)