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Big Oil's Dark Money Ad Campaign Exposed

By Staff - Center for Biological Diversity, January 8, 2024

This is an ongoing pillar of the fossil fuel industry’s playbook in California: front groups organized and funded by the oil companies masquerade as “broad coalitions” of concerned citizens and business representatives but are functionally opaque entities with a single mission: furthering the oil and gas industry’s agenda in the state.

Usually organized as 501(c)(4) nonprofits (“social welfare organizations”), such groups are referred to as “dark money” because they’re able to spend money on certain types of campaigns without revealing their donors. Under California law, these types of groups are legally permitted to spend funds on “issue advocacy” campaigns without revealing their donors.

Because these “issue advocacy” campaigns don’t explicitly advocate for or against ballot measures or referenda, millions of dollars can be spent to subtly influence voters without disclosing the true funders behind the messaging campaign. Because of the lack of donor disclosure, we refer to these groups as “dark money groups.”

This report profiles three such groups that have been actively pushing an oil industry ad campaign to promote anti-SB1137 talking points (higher gas prices, losing good jobs, foreign oil); all three track back to the California Independent Petroleum Association (CIPA) and to the Western States Petroleum Association (WSPA), the top lobbyist for the oil industry in the western United States.

Download a copy of this publication here (link).

Bailed Out and Propped Up: US Fossil Fuel Pandemic Bailouts Climb Towards $15 Billion

By Dan L. Wagner, Christopher Kuveke, Alan Zibel, and Lukas Ross - Bailout Watch, Public Service, Friends of the Earth, November 2022

The fossil fuel industry received between $10.4 billion and $15.2 billion in direct economic relief from federal efforts under President Donald Trump.

During a year of massive economic losses caused by climate change-driven wildfires and hurricanes, the U.S. government has sent billions in pandemic-related economic aid to the fossil fuel companies most responsible for catastrophic climate damage.

An analysis by BailoutWatch, Public Citizen, and Friends of the Earth reveals the fossil fuel industry received between $10.4 billion and $15.2 billion in direct economic relief from federal efforts under President Donald Trump to sustain the economy through the pandemic.

These direct benefits were magnified by indirect lifelines, most notably the implied seal of approval conferred on some companies’ debt when the Federal Reserve bought $432 million in oil and gas bonds from private investors on the secondary market. The Fed earlier signaled its support for the broader bond market, including junk-rated debt, by buying Exchange-Traded Funds that included $735.4 million of fossil fuel bonds.

By demonstrating its willingness to take on fossil fuel debt — and risky debt from any part of the economy — the Fed drew private investors back into a shaky market. This fueled a lending boom of more than $93 billion in new bond issuances by oil and gas companies since the Fed intervened in March — the fastest rate of energy bond issuance since at least 2010.

The Fed’s bond purchases, along with the new issuances they spurred, amounted to indirect benefits totaling $94.7 billion. Together with direct benefits worth up to $15.2 billion, likely more, the 2020 fossil fuel bailouts add up to $110 billion.

Read the text (PDF).

Decommissioning California Refineries and Beyond Workshop

Toxic Relationship: How refineries affect climate change and racial and economic injustice

By Jean Tepperman - East Bay Express - July 22, 2020

California should begin gradually reducing output from its oil refineries in order to avoid climate catastrophe and to make the transition to clean energy as equitable as possible. That's the conclusion of a major new report released July 6 by Communities for a Better Environment (CBE), endorsed by more than 40 environmental and social justice organizations.

While most people agree on the need to use less fossil fuel, many fear that requiring refineries to reduce production could lead to higher gasoline prices and a big economic hit for workers and communities that depend on refineries for income. Report-author Greg Karras responded, "If we start now, doing it gradually, it will give us the time to replace refinery-dependent economics." The report calls for cutting production 4 to 7 percent a year, starting in 2021.

California has set targets for cutting carbon emissions between now and 2050: the state's share of global cuts needed to keep temperature increases below catastrophic levels. Because the carbon that causes climate change builds up in the atmosphere, California has a carbon "budget"—the total amount it can emit from now until 2050. According to Decommissioning California Refineries, California will have to refine much less oil per year to avoid blowing through this carbon "budget" by about 2037.

"California is the biggest oil-refining center in Western North America," Karras said. "Oil refined here emits more carbon than all other activities in the state combined." Even if all other sources of carbon are reduced on schedule, Karras said, "we must refine much less oil if we hope to meet the state's carbon limit."

"We have to break free from our toxic relationship with oil before it takes us over a cliff," Karras said. "When you're in a car heading toward a cliff, it matters when you start putting on the brakes."

The sooner we start, the more likely we are to escape the worst impacts of climate change.

The issue is not just climate, said Andres Soto of CBE. He pointed out that refinery pollution is concentrated in communities like Richmond, centers of racial and economic injustice.

"Only 20 percent of Richmond is Euro-American," he said.

And the health consequences of having a refinery as a neighbor are severe.

Rodeo, another Contra Costa refinery town, "is in the 98th percentile for asthma," said resident Maureen Brennan, and it has high rates of skin disease, autoimmune disease and cancer—all linked to refinery-generated pollution.

Retired refinery worker Steve Garey, past president of a United Steelworkers local in Washington state, said starting now to plan for reduced refinery production could actually benefit refinery workers, since "the movement away from fossil fuels and toward renewables is going to accelerate. It's an economic reality. Renewables are cheaper than fossil fuel and getting cheaper all the time."

Recently when the pandemic cut demand for gasoline, Garey said, the Marathon refinery in Martinez shut down, leaving the workers and community stranded.

The current drop in oil use, Karras said, gives us a once-in-a-lifetime opportunity to turn away from the cliff and build a cleaner and more equitable recovery.

Decommissioning California Refineries: Climate and Health Paths in an Oil State

By Greg Karras - Communities for a Better Environment, July 2020

Machines that burn oil are going away. We will burn much less oil, either to prevent the increasing accumulation of pollution impacts that could cause the collapse of human societies as we know them, or as a footnote to the collapse of our societies and economies on which the petroleum fuel chain now feeds. Which path we take matters.

Sustainable energy technologies that are proven, available now, and obviously more economic than societal collapse could replace oil and other fossil fuels. But critical oil infrastructure, permitted mainly in working class communities and communities of color, is still growing. Environmental, economic, and racial injustice weaken societal capacity to break free of this toxic path. Societal capacity to organize—political feasibility—has emerged as the primary barrier to solving our existential pollution crisis.

California has this problem. It hosts the largest oil refining center in western North America. It has the worst air pollution in the nation, and yet it has allowed its oil sector’s critical infrastructure to grow in low-income communities of color, where this pollution is disparately severe compared with the state average. It uses pollution trading—the exchange of money for permits to pollute—leaving communities largely on our own to fight refinery and oil terminal expansion projects.

Communities rose up to stop tar sands projects in many inspiring efforts that for a decade have held to a trickle the flood of cheaper, dirtier oil that refiners sought. But some projects slipped through. The petroleum fuel chain emits more carbon from extracting, refining, and burning fuels made from the oil refined in California than all other activities in the state combined, and as other emissions have begun to decline, its emissions have not.

In fact its emissions increased from 2013–2017 as refiners here increased production for exports that sold for more money than the entire oil sector spent on permits to emit under the state’s carbon trading scheme. They could do that because no refiner faced any limit on carbon emissions from its plant. They still can because politicians caved in to their demand to make carbon trading the only curb on those emissions. Since 2017, state law has prohibited state air officials from setting a carbon-cutting limit on any oil refining plant under this carbon trading scheme.

Governor Brown argued this law was the best “compromise” that was politically feasible. Yet state climate policy has ignored the need, first voiced by the Oil, Chemical & Atomic Workers Union decades ago, for a mandate that assures workers a just transition. Equally important to political feasibility, communities must predict how fast to transition their job and tax bases from oil to sustainable alternatives. But by letting any polluter delay emission cuts at any time, pollution trading makes it harder to make this very prediction.

Read the report (PDF).

EcoUnionist News #30

Compiled by x344543 - IWW Environmental Unionism Caucus, February 9, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

The following news items feature issues, discussions, campaigns, or information potentially relevant to green unionists:

Lead Stories:

  • Register now for the Future of Railroads: Safety, Workers, Community & the Environment Conferences: Richmond, California (March 14, 2015) and Olympia, Washington (March 21, 2015) - railroadconference.org

USW Refinery Workers Strike News:

Crude by Rail:

Carbon Bubble:

Green Jobs and Just Transition:

March for Real Climate Leadership:

Other News

For more green news, please visit our news feeds section on ecology.iww.org; Twitter #IWWEUC

EcoUnionist News #28

Compiled by x344543 - IWW Environmental Unionism Caucus, February 5, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

The following news items feature issues, discussions, campaigns, or information potentially relevant to green unionists:

Lead Story:

  • Register now for the Future of Railroads: Safety, Workers, Community & the Environment Conferences: Richmond, California (March 14, 2015) and Olympia, Washington (March 22, 2015) - railroadconference.org

USW Refinery Workers Strike News:

Crude by Rail:

Carbon Bubble:

Green Jobs and Just Transition:

Other News of Interest:

For more green news, please visit our news feeds section on ecology.iww.org; Twitter #IWWEUC

Big Oil Brown Greenwashes his Legacy at U.N. Climate Summit

By Dan Bacher - Indybay.Org, September 23, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Jerry Brown, one of the worst governors for fish, water and the environment in California target="_blank" history, spoke to world leaders at the United Nations Climate Summit in New York City today in a cynical attempt to greenwash his deplorable environmental record.

During his U.N. address, Governor Brown touted California’s controversial carbon trading policies as an example of "innovative climate strategies."

“The California story is a very hopeful one,” Brown gushed. “It’s a story of Republican and Democratic governors pioneering innovative climate strategies. It’s not been easy, it’s not without contest, but we’re making real progress."

“I believe that from the bottom up, we can make real impact and we need to join together,” added Governor Brown. “We’re signing MOUs with Quebec and British Columbia, with Mexico, with states in China and wherever we can find partners, because we know we have to do it all.”

Brown's remarks at the summit are available at: http://cert1.mail-west.com/oUyjbH/myuzjanmc7rm/21oUgt/r8kgy/vnqoU2xx1jy8d/uqc5hy21oUq/043i8kyepg?_c=d%7Cze7pzanwmhlzgt%7C12lu5pdhlx8v340&_ce=1411519461.60b50da8597e418eaeff8b1b85e25029)

In a video message ahead of the Summit, Brown claimed, "We are carrying on because we know in California that carbon pollution kills, it undermines our environment, and, long-term, it’s an economic loser. We face an existential challenge with the changes in our climate. The time to act is now. The place to look is California.”

Yes, California, now under attack by the anti-environmental policies and carbon trading greenwashing campaign by Governor Brown, is definitely “the place to look” for one example after another of environmental destruction.

Once known as "Governor Moonbeam" for his quirkiness and eccentricities during his first two administrations from 1975 to 1983, has in his third administration transformed himself into "Big Oil Brown.”

San Francisco Bay Area Oil Infrastructure

The following pamphlet, compiled by Gifford Hartman (Fall 2014) offers a brief, and concise description of the five oil refineries in the San Francisco Bay Area, located northeast of San Francisco. [PDF File]

Capital Blight - Oil Town Rebellion

By x344543 - March 22, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

For years, the communities of Western and Northwestern Contra Coast County and southwestern Solano County, located on the San Pablo and Suisun Bays, northwest of the San Francisco Bay have been dominated by the fossil fuel industry (and to some extent--until 1993--by the US Military Industrial Complex), and the capitalists running that industry have run each of these communities essentially like company towns.

Under these conditions, all official institutions, including elected city, county, and regional governments, most other businesses, and even the unions that supposedly "represent" the workers in these facilities are beholden to the dominant capitalist interests. Dissident residents or workers--if there are any--often find themselves isolated and alone if they can even find the courage to speak out at all. Complaints about working conditions, corrupt union officials, bought politicians, environmental racism, toxic pollution, and capital blight often fall on deaf ears and are usually dismissed as the product of "outside agitators", even "unwashed-out-of-town-jobless-hippies-on-drugs" or some such thing.

In this northwestern Bay Area region, there are four corporate refineries that dominate the towns of Avon and Pacheco (Tesoro), Benicia (Valero), Martinez (Shell), Richmond (Chevron), and Rodeo and Crockett (Conoco-Phillips), and--as one would expect--dissenters have indeed had a difficult, almost impossible time being heard.

Chevron in particular has run Richmond as a virtual company town as long as it has existed (indeed, the refinery predates the town's founding).  For years, the people of the nearby residential neighborhoods have complained of toxic pollution and political double standards that favor the corporation--allegations that are supported by mountains if evidence. Until recently, the local politicians were entirely loyal to the company.

The environmental struggles of these communities--mostly composed of African-Americans, Asian, Latino, and working class White people--have often been ignored by mainstream environmental NGOs. Locally based environmental groups, including the West County Toxics Coalition and Communities for a Better Environment (CBE), have had to do the vast majority of the work of bringing attention to the plight of their residents. On occasion, Greenpeace and Earth First! have given attention to them, but for the most part, it's been locals--most of whom are not typically activist oriented--who've borne the brunt of the struggles.

Many of these refineries are unionized--mostly by the United Steelworkers Union, with a minority of the workers instead belonging to IBEW Local 180. Naturally, the leadership of these unions has oriented themselves towards capitalist interests, who have on numerous occasions tripped over themselves to voluntarily speak on behalf of their capitalist masters.

For example, in 1999, after four refinery workers were killed in a fire, at the Tosco (now Tesoro) facility in nearby Avon, CBE spoke up on behalf of the deceased and called for stricter regulations of refineries (to protect both workers and the environment). Tosco, of course, opposed the proposed regulatory changes, instead calling for more watered down oversight which--CBE argued--left the foxes guarding the hen-house. Rather than support CBE, Jim Payne of the PACE union local that "represented" the workers at the time excoriated the environmentalists, declaring,

"It absolutely infuriates me that those damned tree-huggers would place this regulation in jeopardy,"

Certain residents of the nearby communities of Avon and Clyde were not especially welcoming of CBE either because--naturally--Tesoro used their substantial economic and political leverage to convince these people that CBE were "outside agitators", perhaps even "unwashed-out-of-town-jobless-hippies-on-drugs" (imagine that!).

This incident was very similar to the PCB spill in Georgia Pacific's lumber mill in Fort Bragg, California, that took place a decade earlier, in which the union leadership of IWA Local 3-469 (one Don Nelson) essentially took the company's side, leaving the rank and file workers to seek outside help from Earth First! and the IWW. Those efforts were led by Anna Marie Stenberg and (you guessed it), Judi Bari.

In spite of years of frustration and the corporations' seemingly iron rule, aided in large parts by their attempts to divide and conquer workers and environmentalists, the political winds in these northwestern Bay Area refinery towns appears to be shifting. Dissidents are gaining traction within their communities, no longer finding themselves isolated from their fellow residents. Workers employed by these industries are speaking out and even making alliances with environmentalists, the communities are finding that they can elect politicians willing to chart a course independent of the dominate corporate forces, and regulatory agencies—who usually provide official cover for the capitalists they’re ostensibly charged with regulating—are actually showing signs of actually demanding accountability from the powers that be.

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