Valero Political Action Committee files financial statement with City of Benicia on Aug 1, 2022
By Roger Straw, August 2, 2022
BENICIA > Jan 1 to June 30 this year, Valero’s PAC received $0 and spent $7,064, all expenditures for legal and accounting services with Nielsen Merksamer et al.
Their report at this time in our 2020 elections was the same. We won’t get any more information as to the PAC’s intentions until the next report is released, after due date of August 29.
Full Committee Name: Working Families for a Strong Benicia, a Coalition of Labor and Industrial Services Companies, Committee Major Funding by Top Contributors Valero and International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers Local 549 PAC
Total Contributions:
This period: $0
Year Total to Date: $0
Total Expenditures:
This period: $7,064.31
Year Total to Date: $7,064.31
Detail: 8 payments to Nielsen Merksamer Parrinello Gross & Leoni, all for Professional Services (legal, accounting)
BENICIA – Mayor Steve Young says he’s displeased that Valero Benicia Refinery is poised once again to spend a large sum of money during the upcoming city council election.
The refinery dumped $200,000 into its Working Families for a Strong Benicia PAC last December, giving the PAC more than $232,000 ahead of the November 2022 election, according to campaign forms submitted to the Benicia City Clerk’s Office.
Benicia Mayor Steve Young
Typically, a Benicia council candidate can expect to receive more than $20,000 in contributions over the span of an election or about 10% of what Valero has available.
The move has revitalized conversation in town between environmentalists seeking more regulations, the company, and local unions that are concerned that city officials want to shut down the plant.
Valero couldn’t be immediately reached for comment.
Young — who said he issued his statement over the weekend only as a Benicia resident and not as mayor — admitted that what Valero was doing was legal but argued “it is wrong-and extremely harmful to our community.”
“There is only one purpose in making such a huge expenditure nine months before the election: to scare off any potential City Council candidate who would consider running without first getting Valero’s stamp of approval,” Young’s statement read. “What candidate is willing to go up against that kind of war chest?”
Young wrote that Valero should have a say in the election but “they should also play by the same rules that apply to everyone else under our campaign finance regulations.”
Young said the city’s campaign laws allow a candidate to spend no more than $35,000 on a campaign. He argued Valero should be held to the same rule.
“But Valero’s size and wealth gives them the belief that they can pick and choose who should be our elected representatives,” Young added.
Young said that to stop Valero every council candidate should reject support it receives from the company.
“In addition, voters should demand that any candidate take a public and ongoing stand that Valero should not support their campaign in any way,” Young added. “I call on all prospective candidates in the November election to make this pledge. If no candidate is willing to be supported by this PAC, where will they spend all of their money?”
Young’s statement comes as the Valero refinery has been receiving some negative attention.
The Bay Area Air Quality Management District announced in January that it was seeking a legally binding order against the refinery to correct “significant excess emissions violations.” The district alleges that Valero didn’t report that more than 8,000 tons of excess emissions came from the plant over a 16-year period.
Last November, a contractor was found dead hanging from a scaffolding ladder by his safety harness over a piece of refinery equipment.
Valero is the largest employer in Benicia, employing more than 400 people. The plant processed 165,000 barrels of oil each day, according to its website.
Campaign records show that from July 1 through Dec. 31, 2021, the PAC spent more than $5,000 with Sacramento-based Nielsen Merksamer Parrinello Gross & Leonli LLP for campaign services.
Young, who has opened a 2024 re-election campaign, reported raising no contributions and only spending $29 during the second half of 2021. The campaign reported having about $900.
Meanwhile, both Largaespada and Strawbridge, who are up for re-election this November, reported no activity during the same period.
I want to emphasize that I am writing today not as the Mayor, but rather an interested Benicia resident and voter. I also want to state that I understand the importance of Valero to our local economy as a major employer and taxpayer and an important contributor to local causes. Since the last election, I have initiated meetings with the Valero General Manager on a monthly basis, and feel that we have developed a respectful relationship. I have also told him directly that I will be writing this article.
Last week, it was revealed [here on the Benicia Independent] that Valero, through the oddly named Working Families for a Strong Benicia Political Action Committee (PAC), had deposited another $200,000 in anticipation of this year’s City Council elections. They are currently sitting on $235,000.
There is only one purpose in making such a huge expenditure nine months before the election: to scare off any potential City Council candidate who would consider running without first getting Valero’s stamp of approval. What candidate is willing to go up against that kind of war chest?
In 2018, Valero and their construction trade union allies, ran a big-dollar, negative campaign against Planning Commission Chair Kari Birdseye (“Birdseye Bad for Benicia”) and in favor of Christina Strawbridge and Lionel Largaespada. The PAC attack was successful, and Strawbridge and Largaespada were elected. The presumed reason for opposing Ms. Birdseye is that she (and I) had led the Planning Commission denial of Valero’s Crude by Rail proposal (a denial that ultimately was upheld by the City Council).
In 2020, the same Valero-funded PAC decided to run the same type of negative campaign against me in my race for Mayor. Over $250,000 was spent attacking me, and in favor of Ms. Strawbridge. Unlike in 2018, however, Benicia voters saw through this effort and I was elected by a 20 point margin.
The argument has been made that, as Benicia’s largest employer and a significant taxpayer, Valero should have a say in the selection of Council candidates and the Mayor. And I agree. They should have the same right as any other company or individual to support the candidate(s) of their choice.
But they should also play by the same rules that apply to everyone else under Benicia’s campaign finance regulations. They, and any of their employees, are able to donate $540 to the candidate of their choice. But, in Benicia, candidates are limited by our campaign finance ordinance to spending no more than $35,000 on a campaign (assuming they can raise that much). By contrast, the PAC spending more than $250,000 on our local campaigns shows how uneven (and undemocratic) their influence buying campaign has become.
The disastrous “Citizens United” Supreme Court decision opened the door for this by declaring that “money is speech”, and allowing for unlimited spending by corporations and unions. Usually, this level of over the top spending is confined to national and statewide elections, not in small towns like Benicia. But Valero’s size and wealth gives them the belief that they can pick and choose who should be our elected representatives.
What they are doing is legal, but it is wrong-and extremely harmful to our community. This is what is truly “Bad for Benicia”.
The only way to stop it is if EVERY candidate for City Council publicly, vociferously, and repeatedly rejects support from the Valero PAC, and denounces this type of negative campaigning and excessive spending. In addition, voters should demand that any candidate take a public and ongoing stand that Valero should not support their campaign in any way. I call on all prospective candidates in the November election to make this pledge. If no candidate is willing to be supported by this PAC, where will they spend all of their money?
FULL COMMITTEE NAME: Working Families for a Strong Benicia, a Coalition of Labor and Industrial Services Companies, Committee Major Funding by Top Contributors Valero and International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers Local 549 PAC
Total Contributions:
This period: $200,000
Year Total to Date: $200,000
Detail: Received $200,000 on 12/23/21 from Valero Services, Inc. and Affiliated Entities, 3400 East Second St., Benicia [See CA Secty of State listing for Valero Services Inc & Affiliated Entities. See also Valero Services’ year-end report showing this contribution.]
Total Expenditures:
This period: $6,366.34
Year Total to Date: $13,373.39
Detail: 6 payments to Nielsen Merksamer Parrinello Gross & Leoni, all for Professional Services (legal, accounting)
Current Cash Statement: $232,386.88
Outstanding Debts: $1,651.63
Detail: 2 expenses accrued but unpaid to Nielsen Merksamer etc. for Professional Services (legal, accounting)
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