News : Big Oil’s big checks

Thursday, May 4, 2023

Big Oil’s big checks

May 04, 2023

By Lara Korte, Jeremy B. White, Matthew Brown and Ramon Castanos

Presented by

THE BUZZ: DEGREASE THE TRACKS? — The oil industry made no secret of its disdain for Gov. Gavin Newsom’s windfall profits penalty bill, but the latest lobbying figures give us a glimpse into how much they were willing to spend to stall it.

Hint: It was a lot.

In the first quarter of 2023, which was marked by heated debate over the cause of high gas prices, oil companies spent about $9.4 million lobbying the California state government. In fact, Chevron and the Western States Petroleum Association were the two highest spenders overall— topping the list of more than 3,400 lobbyist employers who reported figures for the first three months of the year.

In their disclosures, oil companies list a bevy of bills they were lobbying on, including the high profile SBX 1-2, the vessel for Newsom’s outrage against last summer’s eye-popping prices at the pump. In October, the governor announced he would call a special session of the Legislature to address the issue, launching a months-long process that eventually culminated with a watered-down version of his original proposal to tax excess profits.

The law Newsom signed in March is a far cry from the first iteration and empowers the state energy agency to consider imposing a penalty on whatever it determines to be excess oil profits.

Nevertheless, oil companies went all-out opposing it.

As POLITICO’s Wes Venteicher notes, Chevron’s $4.9 million quarterly lobbying bill was the highest it reported since 2017, when the Legislature was preparing to approve a gas tax and the corporation spent more than $6.2 million in one quarter. In comparison, Chevron’s spending didn’t surpass $800,000 the previous two quarters.

WSPA reached a similar order of magnitude, dropping nearly $2.4 million in Q1. As one of the loudest voices for the industry, the group has been known to reach the seven-figure zone on a regular basis — spending $1.7 million and $2.2 million in the previous two quarters.

Other oil companies that spent big last quarter — Aera Energy ($627,892), Marathon Petroleum ($233,256), Phillips 66 ($207,714) and Valero ($134,800).

BUENOS DÍAS, good Thursday morning. Lawmakers are back on the floor today and expected to vote on several early-action budget items, including language to solidify last year’s agreement between Gov. Gavin Newsom and United Farm Workers.

Got a tip or story idea for California Playbook? Hit us up at jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte.

A message from American Beverage Association:

America’s leading beverage companies – The Coca-Cola Company, Keurig Dr Pepper and PepsiCo – are bringing consumers more choices with less sugar. From sparkling, flavored and bottled waters to zero sugar sodas, sports drinks, juices and teas, consumers have more options than ever. In fact, nearly 60% of beverages sold today have zero sugar. Americans are looking for more choices to support their efforts to find balance, and America’s beverage companies are delivering. Explore choices at BalanceUS.org.

WHERE’S GAVIN? Nothing official announced.

QUOTE OF THE DAY: "My decision to drive last night was irresponsible. I accept full responsibility and there is no excuse for my actions. To my family, constituents and supporters, I am so deeply sorry. I know I need to do better. I will not let this personal failure distract from our work in California and in Washington." CA47 candidate Sen. Dave Min after he spent Tuesday night in Sacramento County Jail for a DUI. More on that here.

BONUS QOTD: “You suck." Elon Musk in an email to an NPR reporter regarding coverage of the outlet’s Twitter account.

TWEET OF THE DAY:

alex_lee

WE’RE HIRING — POLITICO is embarking on an exciting expansion in the Golden State and looking for another journalist to join our growing team as a California Playbook author. More in the job description here.

PLAYBOOK MEET & GREET! We did it before and we're doing it again! Join California Playbook and POLITICO’s growing team in Sacramento at Smic’s Sip & Quip on Thursday, May 11, 2023, for an evening of cocktails and conversation. As POLITICO expands in California, we're convening our most influential readers in Sacramento and beyond. Swing by and have a cocktail on us—you never know who you might run into! Register here.

TOP TALKERS

— “Oakland teachers to leave 34,000 students without instruction in open-ended walkout,” by the San Francisco Chronicle’s Jill Tucker: “District officials said Wednesday afternoon they were close to a deal, but well into the evening, they were still too far apart, prompting Oakland Education Association members to declare the progress wasn’t good enough. District officials told parents to expect picket lines.

— “After Nordstrom store closures, what can San Francisco do to stop the retail exodus?” by the San Francisco Chronicle’s J.D. Morris and Roland Li: “The loss of Nordstrom, a neighboring Saks Off 5th store and other global brands like Uniqlo, Gap and H&M hurts not only the city’s sales tax base and labor force, but also the vitality of critical downtown streets where tourists flock, helping shape San Francisco’s global reputation.”

CAMPAIGN MODE

— “Amy Reichert declares candidacy for San Diego County supervisor seat,” by KUSI: “Reichert, who grew up in San Diego, is a state-licensed investigator. She has a degree in political science from San Diego State University. She is a co-founder of ReOpen San Diego and was a vocal critic of some COVID-19 county mandates. She ran against Fletcher in the November election which Fletcher won, 64 percent to 35 percent.”

A message from American Beverage Association:

CALIFORNIA AND THE CAPITOL CORRIDOR

— “A day of school stabbings, crashes and suspected fentanyl overdoses sparks alarm at LAUSD,” by the Los Angeles Times’ Howard Blume and Noah Goldberg: “During one school day this week, Los Angeles Unified grappled with three emergencies: a double stabbing outside a high school, multiple suspected fentanyl overdoses at a middle school and a traffic collision outside an elementary school that badly injured a child. The Monday violence and trauma was so alarming that it prompted a Tuesday morning phone call between Mayor Karen Bass and L.A. schools Supt. Alberto Carvalho; the two pledged to work together to confront what feels to many parents like a school-safety crisis.”

— “S.F. Pride enlisted Dee Snider for its campaign against transphobia. Then a tweet got in the way,” by the San Francisco Chronicle’s Joe Garofoli: “On Sunday, Stanley, who rode to fame more than five decades ago as a member of the band Kiss, tweeted that ‘There is a BIG difference between teaching acceptance and normalizing and even encouraging participation in a lifestyle that confuses young children ... as though (it is) some sort of game and then parents in some cases allow it.’”

— “Court upholds California’s AR-15 ban,” by the San Francisco Chronicle’s Bob Egelko: “The Third District Court of Appeal in Sacramento said the high-capacity rifles, which can be fired repeatedly without reloading, are weapons ‘not typically possessed by law-abiding citizens for lawful purposes.’ That means a state can still prohibit their sale and possession, the court said, even under the tightened standards the Supreme Court announced last June.”

— “Facing California deadlines, automakers race to produce electric cars,” by CalMatters’ Nadia Lopez: “From Michigan to Georgia to the Bay Area to overseas, a new age of car manufacturing has arrived, spurred by California’s landmark mandate to end new sales of gasoline-powered cars in a dozen years. Already the transition to electric vehicles is exposing automakers to myriad challenges as they rush to ramp up production.”

DON’T MISS THE POLITICO ENERGY SUMMIT: A new world energy order is emerging and America’s place in it is at a critical juncture. Join POLITICO on Thursday, May 18 for our first-ever energy summit to explore how the U.S. is positioning itself in a complicated energy future. We’ll explore progress on infrastructure and climate funding dedicated to building a renewable energy economy, Biden’s environmental justice proposals, and so much more. REGISTER HERE.

SILICON VALLEYLAND

DISPATCH FROM THE TRENCHES — “Elon Musk's giving out Twitter Blue for free. Experts say this could mean legal trouble,” by the Los Angeles Times’ Jaimie Ding: “Public figures including author Stephen King and Lakers star LeBron James have tweeted about not being willing to pay the $8-a-month subscription Musk implemented for the blue check mark, yet it remains on their profiles. Beyond angering celebs, however, Musk’s move could be flouting U.S. Federal Trade Commission regulations surrounding consumer protection and false advertising.”

MIXTAPE

— “When the circus came to a ghost town,” by The New York Times’ Debra Kamin.

— “Republican-backed recall committee forms against Bay Area Democratic Sen. Aisha Wahab,” by The Sacramento Bee’s Jenavieve Hatch.

— “Bloom or bust,” by The Washington Post’s Reis Thebault.

BIRTHDAYS

Shana Mansbach … Allison Bormel … Steve Rosenberg

A message from American Beverage Association:

Families are looking for more choices to support their efforts to find balance, and today nearly 60% of beverages sold have zero sugar. America’s beverage companies are intentionally offering more choices with less sugar or no sugar at all, and our actions are making a real difference.

Our commitment to helping our consumers find balance includes:

Putting clear calorie labels on every bottle, can and pack.
Reminding consumers to think about balance with signs on coolers and displays in store.
Innovating products to offer more choices with less sugar or no sugar at all.
Working with local organizations across the country to build awareness of the many choices available – and make zero sugar beverages more available in communities where it’s needed most.

Learn more at BalanceUS.org

CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here.

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