Category Archives: Oil industry lobby

Oil Industry Spending Millions on California Lobbying

An email alert from California League of Conservation Voters (EcoVote.org)

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From: Sarah Rose, Chief Executive Officer,  California League of Conservation Voters
Sent: Saturday, August 15, 2015 8:01 AM
Subject: BREAKING: In California, Oil Industry Spends Millions on State-Level Lobbying

Breaking news:

In a report just released by the California Secretary of State, we can see for the first time just how far the oil industry is willing to go to influence state lawmakers. Here what we know:

  • Oil industry lobbyists spent $6.2 million − in just the first six months of this year – to push their agenda on state-level issues in California.
  • Oil companies are spending more than $1 million per month to stop Californians like us from cleaning up the air we breathe, protecting our drinking water supplies, shifting to renewable energy, and preventing future oil spills.
  • They’re not slowing down. In fact, this week the oil industry’s main lobbying group WSPA (Western States Petroleum Association) launched an all-out attack on climate change bills in the statehouse right now. Under the mask of their front group “California Driver’s Alliance,” WSPA’s deceptive and manipulative ads are now running on television, internet, and radio in several key legislative districts throughout the state.
  • We can beat them, but we need your help. Right now, we’re fighting to pass a historic package of climate change laws that will thrust California back into the forefront of global climate leadership. Here at CLCV, we’ve faced off against WSPA in countless battles over our 40-year history. We’ve beat them enough times to know what works – and it’s you  (yes, you!) persistently contacting your lawmakers, speaking your mind, and personally insisting that your life and your family’s future are more important than the profit margins at Chevron and Shell. Take action and send your message to lawmakers right now. >>

Last year, the oil industry spent a record $20 million in lobbying to try to stop the full implementation of California’s first landmark climate and clean energy law, AB 32 – but they failed, because we fought back. Thousands of us in the California League of Conservation Voters stood side-by-side with our allies and fought back against WSPA’s cynical propaganda. Together, we defeated their pro-pollution agenda, and now transportation fuels (which are responsible for 40% of carbon pollution and 80% of smog-causing pollution produced in CA) are included under the “cap” in cap-and-trade.

I’m proud of our victory last year, but the real story is we won that battle by the skin of our teeth. Things very easily could have gone the other way if we didn’t have so much help from voters like you. Now, the stakes are even higher, and the oil industry is on track to break last year’s spending record to lobby against us. We need your help today: Stand with us now. >>

Sincerely,

Sarah Rose Chief Executive Officer California League of Conservation Voters

P.S. As they attempt to hide from public scrutiny, oil companies funnel most of their California lobbying cash through the industry lobbying group WSPA (Western States Petroleum Association). But one oil company − Chevron – went above and beyond. In addition to their WSPA contributions, Chevron spent $1.5 million lobbying for influence over California laws. That means two spots on California’s top-five list for big-spending lobbyists belong to Big Oil. We can’t let them win. Please, speak out about climate change right now: http://ecovote.org/ActOnClimate >>

Additional background: CLCV supports Senate Bill 32 (Pavley) and Senate Bill 350 (de León) to combat climate change, reduce pollution, create clean energy jobs, and ensure that all California communities are prepared for the future. Specifically, these important bills call for bold but achievable new climate goals:

  • Increase from one-third to 50 percent our electricity derived from renewable sources
  • Reduce today’s petroleum use in cars and trucks by up to 50 percent
  • Double the energy efficiency of existing buildings
  • Reduce greenhouse gas emissions to 80 percent below 1990 levels by 2050

With help from thousands of CLCV supporters like you, these important bills have already passed the State Senate. Now both bills are facing critical votes in the Assembly. Make sure your Assemblymember hears from you: Speak out now!

We need to keep making progress to address the challenges presented by climate change, especially in our hardest-hit communities. Senate pro Tem Kevin de León put it best: “For too long, poor and working class families in California’s most polluted communities do not have the opportunity to invest in clean, efficient transportation … We need to move the state away from fossil fuels, away from the grip of oil … This is common sense climate policy.”

Since 1972, the California League of Conservation Voters (CLCV) has protected our land, air, water, and public health as the non-partisan political arm of the environmental movement. CLCV’s mission is to protect and enhance the environment and the health of all California communities by electing environmental champions, advancing critical priorities, and holding policymakers accountable. You can unsubscribe at any time, but we hope you’ll stay. You make a big difference with CLCV, because our political strength comes from members like you. Thanks for reading, and thank you for everything you do to make California a cleaner, safer, and healthier place to call home.

Can state cut gasoline use in half in 15 years?

Repost from the CalMatters.org
[Editor:  This article also appeared in the 8/9/15 San Francisco Chronicle.  – RS]

Can state cut gasoline use in half in 15 years?  Probably not

By Kate Galbraith, August 5, 2015
Mary Serrano gets instructions on the Chevy Spark PHOTOGRAPH BY Carl Costas for CALmatters

One sunny Saturday in Stockton, Mary Serrano climbed into the driver’s seat of a bright-red, all-electric Chevrolet Spark. A retiree who normally drives a 20-year-old Toyota Camry, she was curious about the new technology on display at the local fairground.

“I feel like I’m going to outer space,” she said giddily, as a company representative prepared to explain the controls.

But after the excitement of the test drive, reality set in. The Camry, which had to be fixed after failing a smog test, will keep its place at her Stockton home. An electric car seems out of reach, despite the availability of rebates.

“For the moment, I don’t have the money to buy it,” she said by phone, a few months after the fairground event. “Maybe later in life.”

Her situation suggests that for all the allure of emissions-free vehicles, getting Californians to adopt them will take time. That in turn creates challenges for slashing gasoline and diesel use, a goal state leaders are championing as part of their battle against climate change. A bill that has passed the state Senate and awaits a vote in the Assembly seeks to halve the amount of petroleum used in motor vehicles by 2030. It will be difficult to accomplish in such a short period.

“If we’re talking about transportation petroleum use, then the goal probably isn’t possible,” said John German, a Michigan-based senior fellow with the International Council on Clean Transportation. A key problem, he said, is that people hold onto cars and trucks for a long time, an average of more than 11 years for American cars.

The bill has the backing of Gov. Jerry Brown, who earlier this year called for the state to cut petroleum use in cars and trucks by “up to 50 percent.” Senate Bill 350 contains an unequivocal 50 percent target.

“I wouldn’t set forth on this pathway if I believed that the targets were unrealistic,” said Senate leader Kevin de León, D-Los Angeles, the bill’s powerful co-author, in a recent interview.

Other parts of the legislation call for electric utilities to use 50 percent renewable energy by 2030 and for buildings to become twice as energy efficient.

“We should be careful when we set round numbers like 50-50-50. Why 50?” said Eloy Garcia, who lobbies for the Western States Petroleum Association, in testimony before an Assembly committee in July. “I know they’re nice round numbers, but we should be careful about why we’ve picked those numbers.”

The bill would take gasoline use in the state back to the 1960s, a time when California’s population was close to half of what it is today. It would not only help cut greenhouse gas emissions, a priority for the state, but also reduce the fine particles and smog-forming gases that contribute to unhealthy air above some California cities, including Los Angeles, Bakersfield, and Fresno.

“The primary driver of this target was air quality,” Stanley Young, a spokesman for the Air Resources Board, the state agency overseeing air quality and climate change policy, wrote in an e-mail.

The ARB would oversee the programs, creating a point of controversy because industry groups perceive it as high-handed, even as environmentalists cheer it on. Petroleum lobbyists and other opponents want elected legislators to plan how the goals will be met and not the appointed air board officials.

Currently, trends are moving in the wrong direction. Gasoline and diesel sales are ticking up, the sign of a surging economy. The number of miles traveled by vehicles on California highways — a crucial metric for determining whether Californians are getting out of their cars and onto bikes, sidewalks or public transportation– is also rising.

But the technology exists to halve petroleum use, as German and others point out. If everyone suddenly began driving emissions-free electric cars, such as the one Serrano tried out, California would easily meet its target. Driven by government fuel-economy and emissions standards, even cars that run on petroleum will be made of lighter, more fuel-efficient materials in the future.

These coming changes will be dramatic, even if they do not end up being enough to halve petroleum use in 15 years. German’s organization, the International Council on Clean Transportation, estimates that recent federal fuel-economy standards could cause greenhouse gas emissions from light-duty vehicles nationwide to fall 28 percent by 2030 compared to 2015.

Jeffrey Greenblatt, a scientist at the Lawrence Berkeley National Laboratory, estimates that by 2030, a number of transportation policies already in existence will enable the state to cut petroleum use by cars and trucks to about 70 percent of their 2014 level. Besides federal fuel-economy standards, these include support for public transit and a state goal of having 1.5 million emissions-free vehicles by 2025.

Another way the state is trying to cut petroleum is by encouraging the use of biofuels like ethanol or renewable diesel, provided they are formulated to be as environmentally friendly as possible. (Renewable diesel is made from fats or vegetable oil and specially refined.) At a pump in Redwood City operated by Propel Fuels, several customers opted for 85 percent ethanol rather than the ordinary gasoline available nearby, although helping the environment was not their primary motive.

“It’s cheaper,” said Donald Rainer of Menlo Park, whose flex-fuel GMC Yukon takes both gasoline and 85 percent ethanol. His main complaint was about refueling stations: “They don’t have enough of them around.”

For potential buyers of electric cars, too, costs are key. Many plug-in vehicles remain expensive, though prices have been falling and the state subsidizes them in various ways. The cars are limited in how far they can go without recharging, but that problem is diminishing as battery technology improves. Some in the auto industry wonder whether key incentives, such as allowing zero-emissions vehicles into the high-occupancy vehicle lanes on major roads, will remain in place if electric cars flood the roadways.

As improved fuel-efficiency allows Californians to use less gasoline, then prices at the pump may fall, according to Darwin Hall, professor emeritus of economics at California State University, Long Beach, depending on whether refiners adjust their capacity.

However, in the near-term, some climate policies are causing the price of gasoline to rise. The state’s cap-and-trade program, which sets limits on the amount of greenhouse gases that fuel distributors, refineries and other large polluters can emit, has increased gasoline prices by roughly a dime a gallon this year, economists estimate.

Republican lawmakers fear that SB 350 will cause job losses and economic damage. “What are my constituents going to do if we cut petroleum by 50 percent but they are still using cars that require petroleum? Will they all be required to buy new cars?” asked Sen. Jean Fuller, R-Bakersfield, during a floor debate over the bill. Her colleague, Sen. Jeff Stone, R-Temecula, described it as “coastal elitism at the worst.”

The bill is expected to have a more difficult time in the Assembly than in the Senate, where it passed the Senate with the support of all but two Democrats: Sen. Cathleen Galgiani of Stockton and Sen. Richard Roth of Riverside. The Assembly contains more moderate Democrats who have historically been friendly to the oil industry, which has launched a television ad dubbing the bill the “gas restriction act of 2015.”

The ads target a select group of lawmakers and are running on web sites in their respective districts, said Beth Miller, a spokeswoman for the industry group called California Drivers Alliance.

“It is a method of communicating to legislators about an issue we think is of concern to their constituents,” Miller said.

Sen. de León emphasized that fossil fuels were not going away. Nor, he said, would everyone need to immediately buy an electric car or hybrid. (In his official capacity, de León is chauffeured in a Chevrolet Suburban. For personal use, he leases a Chevrolet Impala and said he aspires to a hybrid.) Establishing targets, he said, is vital to encouraging California down the path toward clean energy, but the policy would not result in banning or rationing gasoline.

“If we don’t meet this goal,” de León said, “no one’s going to jail.”

Laurel Rosenhall contributed reporting.

PETITION: Kick Big Polluters out of Climate Policy

Repost from Oil Change International

Help kick Big Oil out of climate policy!

Sign the petition to the Parties to the United Nations Framework Convention on Climate Change:

“We call on you to take immediate action to protect COP21 and all future negotiations from the influence of big polluters. Given the fossil fuel industry’s years of interference intended to block progress, push false solutions, and continue the disastrous status quo, the time has come to stop treating big polluters as legitimate “stakeholders” and to remove them from climate policymaking.”

Today, we are facing the prospect of the destruction of life as we know it and irreversible damage to our planet due to climate change. Scientists are telling us with ever more urgency that we must act quickly to stop extracting fossil fuels and reduce greenhouse gas emissions. But the world’s largest polluters have prevented progress on bold climate action for far too long.

We call on the Parties to the UNFCCC to protect the UN climate talks and climate policymaking around the world from the influence of big polluters. The world is looking to the next round of negotiations – in Paris this December – for decisive action on climate. This is a pivotal moment to create real solutions. We need a strong outcome from the Paris talks in order to seize the momentum of a growing global movement, and to urge leaders to take bolder action to address the climate crisis.

But the fossil fuel industry and other transnational corporations that have a vested interest in stopping progress continue to delay, weaken, and block climate policy at every level. From the World Coal Association hosting a summit on “clean coal” around COP19 to Shell aggressively lobbying in the European Union for weak renewable energy goals while promoting gas – these big polluters are peddling false solutions to protect their profits while driving the climate crisis closer to the brink.

A decade ago, the international community took on another behemoth industry – Big Tobacco – and created a precedent-setting treaty mechanism that removed the tobacco industry from public health policy. This can happen again here.

Corporate Accountability International will deliver this message and the list of signatures at the climate talks in Bonn, Germany, the first week of June. We will do another delivery by the end of COP21 in Paris this December.

Participating organizations:

350.org
Amazon Watch
Chesapeake Climate Action Network
Climate Action Network International
Corporate Accountability International
CREDO Action
Daily Kos
Environmental Action
Food & Water Watch
Federation of Young European Greens
Forecast the Facts
Greenpeace USA
League of Conservation Voters
Oil Change International
People for the American Way
Rainforest Action Network
RH Reality Check
SumOfUs
The Natural History Museum
CC: UNFCCC Executive Secretary Christiana Figueres
UN Secretary General Ban Ki-moon
Outgoing COP20 President Manuel Pulgar-Vidal
Incoming COP21 President Laurent Fabius

Fossil fuels subsidized by $10m a minute, says IMF

Repost from The Guardian
[Editor:  See additional coverage in the Wall Street Journal, “IMF Estimates Trillions in Hidden Fossil-Fuel Costs” … and in Salon, “Big Oil’s astronomical hand-out: Fossil fuels receive $5.3 trillion in global subsidies each year.”  – RS]

Fossil fuels subsidised by $10m a minute, says IMF

By Damian Carrington, 18 May 2015 09.30 EDT

‘Shocking’ revelation finds $5.3tn subsidy estimate for 2015 is greater than the total health spending of all the world’s governments

Fossil fuel companies are benefitting from global subsidies of $5.3tn (£3.4tn) a year, equivalent to $10m a minute every day, according to a startling new estimate by the International Monetary Fund.

The IMF calls the revelation “shocking” and says the figure is an “extremely robust” estimate of the true cost of fossil fuels. The $5.3tn subsidy estimated for 2015 is greater than the total health spending of all the world’s governments.

The vast sum is largely due to polluters not paying the costs imposed on governments by the burning of coal, oil and gas. These include the harm caused to local populations by air pollution as well as to people across the globe affected by the floods, droughts and storms being driven by climate change.

Nicholas Stern, an eminent climate economist at the London School of Economics, said: “This very important analysis shatters the myth that fossil fuels are cheap by showing just how huge their real costs are. There is no justification for these enormous subsidies for fossil fuels, which distort markets and damages economies, particularly in poorer countries.”

Lord Stern said that even the IMF’s vast subsidy figure was a significant underestimate: “A more complete estimate of the costs due to climate change would show the implicit subsidies for fossil fuels are much bigger even than this report suggests.”

The IMF, one of the world’s most respected financial institutions, said that ending subsidies for fossil fuels would cut global carbon emissions by 20%. That would be a giant step towards taming global warming, an issue on which the world has made little progress to date.

Ending the subsidies would also slash the number of premature deaths from outdoor air pollution by 50% – about 1.6 million lives a year.

Furthermore, the IMF said the resources freed by ending fossil fuel subsidies could be an economic “game-changer” for many countries, by driving economic growth and poverty reduction through greater investment in infrastructure, health and education and also by cutting taxes that restrict growth.

Another consequence would be that the need for subsidies for renewable energy – a relatively tiny $120bn a year – would also disappear, if fossil fuel prices reflected the full cost of their impacts.

“These [fossil fuel subsidy] estimates are shocking,” said Vitor Gaspar, the IMF’s head of fiscal affairs and former finance minister of Portugal. “Energy prices remain woefully below levels that reflect their true costs.”

David Coady, the IMF official in charge of the report, said: “When the [$5.3tn] number came out at first, we thought we had better double check this!” But the broad picture of huge global subsidies was “extremely robust”, he said. “It is the true cost associated with fossil fuel subsidies.”

The IMF estimate of $5.3tn in fossil fuel subsidies represents 6.5% of global GDP. Just over half the figure is the money governments are forced to spend treating the victims of air pollution and the income lost because of ill health and premature deaths. The figure is higher than a 2013 IMF estimate because new data from the World Health Organisation shows the harm caused by air pollution to be much higher than thought.

Coal is the dirtiest fuel in terms of both local air pollution and climate-warming carbon emissions and is therefore the greatest beneficiary of the subsidies, with just over half the total. Oil, heavily used in transport, gets about a third of the subsidy and gas the rest.

The biggest single source of air pollution is coal-fired power stations and China, with its large population and heavy reliance on coal power, provides $2.3tn of the annual subsidies. The next biggest fossil fuel subsidies are in the US ($700bn), Russia ($335bn), India ($277bn) and Japan ($157bn), with the European Union collectively allowing $330bn in subsidies to fossil fuels.

The costs resulting from the climate change driven by fossil fuel emissions account for subsidies of $1.27tn a year, about a quarter, of the IMF’s total. The IMF calculated this cost using an official US government estimate of $42 a tonne of CO2 (in 2015 dollars), a price “very likely to underestimate” the true cost, according to the UN’s Intergovernmental Panel on Climate Change.

The direct subsidising of fuel for consumers, by government discounts on diesel and other fuels, account for just 6% of the IMF’s total. Other local factors, such as reduced sales taxes on fossil fuels and the cost of traffic congestion and accidents, make up the rest. The IMF says traffic costs are included because increased fuel prices would be the most direct way to reduce them.

Christiana Figueres, the UN’s climate change chief charged with delivering a deal to tackle global warming at a crunch summit in December, said: “The IMF provides five trillion reasons for acting on fossil fuel subsidies. Protecting the poor and the vulnerable is crucial to the phasing down of these subsidies, but the multiple economic, social and environmental benefits are long and legion.”

Barack Obama and the G20 nations called for an end to fossil fuel subsidies in 2009, but little progress had been made until oil prices fell in 2014. In April, the president of the World Bank, Jim Yong Kim, told the Guardian that it was crazy that governments were still driving the use of coal, oil and gas by providing subsidies. “We need to get rid of fossil fuel subsidies now,” he said.

Reform of the subsidies would increase energy costs but Kim and the IMF both noted that existing fossil fuel subsidies overwhelmingly go to the rich, with the wealthiest 20% of people getting six times as much as the poorest 20% in low and middle-income countries. Gaspar said that with oil and coal prices currently low, there was a “golden opportunity” to phase out subsidies and use the increased tax revenues to reduce poverty through investment and to provide better targeted support.

Subsidy reforms are beginning in dozens of countries including Egypt, Indonesia, Mexico, Morocco and Thailand. In India, subsidies for diesel ended in October 2014. “People said it would not be possible to do that,” noted Coady. Coal use has also begun to fall in China for the first time this century.

On renewable energy, Coady said: “If we get the pricing of fossil fuels right, the argument for subsidies for renewable energy will disappear. Renewable energy would all of a sudden become a much more attractive option.

Shelagh Whitley, a subsidies expert at the Overseas Development Institute, said: “The IMF report is yet another reminder that governments around the world are propping up a century-old energy model. Compounding the issue, our research shows that many of the energy subsidies highlighted by the IMF go toward finding new reserves of oil, gas and coal, which we know must be left in the ground if we are to avoid catastrophic, irreversible climate change.”

Developing the international cooperation needed to tackle climate change has proved challenging but a key message from the IMF’s work, according to Gaspar, is that each nation will directly benefit from tackling its own fossil fuel subsidies. “The icing on the cake is that the benefits from subsidy reform – for example, from reduced pollution – would overwhelmingly accrue to local populations,” he said.

“By acting local, and in their own best interest, [nations] can contribute significantly to the solution of a global challenge,” said Gaspar. “The path forward is clear: act local, solve global.”