How Big Oil Broke Jerry Brown’s Heart
CALIFORNIA WATCH--As Governor Jerry Brown touted California’s environmental initiatives and prodded world leaders in Paris to embrace tougher environmental policies during the United Nations summit on climate change, it was instructive to look back at how one of Brown’s top environmental priorities suffered a major defeat in the California Legislature this year.
That priority was to establish a 50 percent reduction in petroleum usage in cars and trucks by 2030. Brown’s failure to win its passage in an overwhelmingly Democratic Legislature clearly illustrates not only the influence of the fossil fuel lobby, but also the continued rise of a new breed of Democrats who are exceedingly attentive to big business, while tone-deaf toward their party’s traditional progressive base.
Petroleum reduction was a key part of a proposed law, introduced as Senate Bill 350, which also called for steps to increase energy efficiency in existing buildings and require that 50 percent of California’s energy come from renewable sources, such as solar and wind. By any definition SB 350 was a landmark piece of legislation. It had the rock-solid support of environmentalists, numerous health and physicians groups, and two Nobel Prize winners.
In hindsight, however, it probably didn’t stand a chance, thanks to an intense, summer-long lobbying campaign and media blitz by Big Oil and others. State filings show that oil companies and their trade organizations opposed to the petroleum reduction measure spent $10.7 million in the third quarter of 2015 to lobby lawmakers and conduct a negative media assault.
Of that, the Western States Petroleum Association, an influential industry trade group, spent $6.7 million, more than twice as much as it had spent in the previous two quarters. Individual oil companies, such as ExxonMobil and Valero, also spent hundreds of thousands of dollars in the third quarter, a significant increase over the amounts they spent on lobbying earlier this year.
In contrast, among the bill’s supporters, NextGen Climate, an environmental group founded and headed by philanthropist Tom Steyer, spent nearly $1.2 million on lobbying in the third quarter.
By late summer, the industry’s lobbying campaign and media blitz attacking SB 350 had had a big impact. Faced with defections by a group of nearly 20 so-called moderate Democrats, led by Fresno Assemblyman Henry Perea, SB 350 backers reluctantly removed the petroleum reduction measure. The move followed two critical meetings between supporters of the bill and the group of about 20 moderate Democrats concerned about the petroleum reduction measure. At the first meeting, on August 24, the moderate Democrats, led by Perea, met with then-Assembly Speaker Toni Atkins (D-San Diego). At the second meeting, on August 31, the same group met with officials at the governor’s office. (Perea announced this month that he is leaving the Legislature a year before his current term expires.)
Many of the corporate-friendly Democrats who attended those meetings with Atkins and Brown have received substantial campaign contributions from Big Oil over the years. Perea, for example, has received almost $100,000 in campaign contributions from the oil and gas industry, while Merced Assemblyman Adam Gray has received about $80,000 and Rudy Salas, an Assemblyman from Bakersfield, has received about $65,000, according to a story in the Los Angeles Times citing the National Institute on Money in State Politics.
On September 9, with only two days left in the legislative session, Brown, Atkins and Senate President Pro Tem Kevin de León (D-Los Angeles), announced they were dropping the petroleum usage provision from the bill. The California Chamber of Commerce, another powerful opponent of the measure, then removed its influential “job killer” tag from the bill, sending a clear signal to corporate-friendly Democrats that it was now permissible to support SB 350.
A watered-down bill soon passed, with all of the formerly recalcitrant Democratic lawmakers except Gray voting for it. Brown signed it into law in a ceremony in October at the Griffith Observatory in Los Angeles.
“The main takeaway regarding the loss of the petroleum reduction piece of SB 350 is that it allowed us to shine a bright light on unprecedented oil industry spending [intended] to protect their bottom line – along with the lengths some lawmakers will go to ignore what voters truly want, which is less dependence on petroleum,” Susan Frank, director of the California Business Alliance for a Clean Economy, tells Capital & Main.
The alliance, a network of 1,300 mostly small and mainstream companies in California that support a clean energy economy, was an important backer of the bill. Frank adds that it wasn’t a total loss, citing the stronger renewable energy and building efficiency standards that survived.
Les Clark, executive vice president of the Independent Oil Producers Agency, an industry trade group based in Bakersfield, says he was adamantly opposed to the petroleum reduction provisions of SB 350 because they would have significantly hurt anyone who produces oil, particularly the mom-and-pop operators he represents.
“We were opposed to it,” Clark tells Capital & Main. “If you produce oil, you are producing it to make money. Of course we’d be concerned about that.”
Clark claims the measure could have driven some smalltime oil producers out of business. “It’s not good for my neighbors to have to pack up and go back East to find a job,” he says.
In speaking against the petroleum reduction measure, the bill’s opponents warned that it could result in gas rationing and prohibitions on sport utility vehicles. Opponents, including some Democratic lawmakers, also claimed that cutting petroleum use would be disproportionally harmful to residents of the Central Valley, whose long commutes and dearth of public transportation make dependence on automobiles – and fuel – a certainty.
“In the Valley – more than anywhere else in California – that means reducing jobs, businesses and opportunities,” Assemblyman Adam Gray wrote in an opinion piece published in the Merced Sun-Star. “The Valley’s No. 1 industry, agriculture, is dependent on transportation by both trucks (produce) and cars (labor). We have some of the highest levels of poverty and unemployment in the nation. Yet SB 350 puts these disadvantaged communities first in line to pay more and offers nothing in return.”
Sarah Rose, chief executive of the California League of Conservation Voters, disagreed, and in an interview confirms that the opposition of several key Democratic lawmakers to the petroleum reduction measure appears to have been motivated more than anything by a desire to please Big Oil.
“Clearly, there’s a problem when you have legislators not voting in the best interests of their constituents,” says Rose, whose organization supported SB 350.
“Oil has won a skirmish,” Brown conceded at the September 9 press conference, while de León added that the measure’s proponents were unable to compete with Big Oil’s “bottomless war chest.”
Now, three months later, after the governor promoted California’s accomplishments in a weeklong series of events at the Paris climate change conference, Brown can only look back and regret what was clearly a lost opportunity in Sacramento.
(An investigative reporter for more than three decades, Gary Cohn won the Pulitzer Prize for Investigative Reporting in 1998 for his series The Shipbreakers. This piece originated at Capital and Main)
-cw
CityWatch
Vol 13 Issue 101
Pub: Dec 15, 2015
NO SUBSTITUTE FOR WALKABLE STREETS--At the center of UCLA’s campus, there’s a banner advertising some of the university’s newest groundbreaking research. It features the outline of a small vehicle and reads, “The 405 is a joyride … in a driverless car.”
All this portends a brighter future for LA and similar cities. But even today, the truth is that my car-free lifestyle is very doable — sometimes even convenient. LA has a robust bus system that I use to commute to UCLA, and so far I’ve found it to be reliable (LA’s bus and train networks combine for about 1.5 million weekday boardings, third in the nation after New York and Chicago). My home in the Palms neighborhood is a 15-minute walk from a light rail stop that takes me to Downtown LA, which has recently come into its own as a cultural and culinary hotspot. Almost everything I need is within biking distance of my apartment, and when I have to, I can rely on the generosity of friends with cars.
And that's what leads to the next point. If it's not the local police, who does make the decision to keep all these jails closed? It's not going to be a deep revelation that this kind of decision comes out of the city's budget process. Could the city find the dollars to open the Harbor Area Jail if it were considered a weighty enough priority? Obviously it could. But that decision would come at the cost of other priorities.
DOWNTOWN- This week, the Downtown Los Angeles Neighborhood Council (DLANC) had to cancel it’s monthly Board meeting after being informed of their Brown Act violations. This comes after last week’s abrupt cancellation of the DLANC Executive Committee meeting.
SPORTS POLITICS--On Monday, former University of Southern California head football coach Steve Sarkisian
BIKING … THE VIEW FROM HERE--Good news for anyone who believes in the future of cities and humanity; bad news for the Neanderthals on the LA City Council who grunt nostalgically for the bad old days of traffic jams, road rage, sprawl, and blood on the streets. (And anyone who believes that road rage is a new phenomenon need only watch the 1950s Disney cartoon,
But there are only so many police and firemen, not to mention trucks and ambulances. For the most of us, it will be the scenario I've characterized as You're On Your Own, aka YOYO, at least for a crucial 3 or 4 days. You won't have a lot of help from the uniformed agencies, because they will be tied up dealing with areas of dense population and mass casualties.
One of the most moving scenes in the diary occurred when the students made a kind of feminist pilgrimage to pay respect to the novelist and social reformer Hannah More (photo), the high-minded rival of Jane Austen. As the author of numerous books—some of them huge bestsellers—she appeared to them the epitome of the England that Salih called the vilayat-i azadi, or “land of freedom.” The students praised her learning and library; she gave them signed copies of her books, which they promised to print when they returned home.
The timing for this sudden departure is even more interesting because there is a proposed development in Skid Row to convert buildings that were previously used by Salvation Army (photo) to provide housing and services to homeless and formerly homeless. The developer now wants to change it into an adaptive reuse project which plans to provide market-rate, micro-unit housing to students and workforce members -- in the heart of Skid Row!
Serious gun control is needed now. Mere possession or sale of assault or any semi-automatic weapons should be declared grounds for possible criminal prosecution. A period of amnesty should be granted for all to turn in these weapons – even reimbursing the owners who can provide proof of purchase; otherwise, allow them to surrender the weapons anonymously.
In the wake of the horrific attacks in Paris on Nov. 13, there has been a crushing backlash against refugees from the wars in Syria, Iraq and Afghanistan. A cartoon has been circulating on social media showing a Native American man greeting a Pilgrim, saying, “Sorry, but we’re not accepting refugees.”
