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Mike Sandler

Mike Sandler

Posted: March 5, 2010 11:50 AM

California Voters to Choose: PG&E and Refineries or Clean Energy and the Climate

What's Your Reaction:

It's obvious, right? Monopoly utilities and oil refineries that want to keep peddling their wares finance ballot measures to mislead voters into postponing the inevitable move away from fossil fuels. Nothing new here, but California voters get ready for the next round this election season.

First, PG&E is backing an initiative called Proposition 16: New Two-Thirds Requirement for Local Public Electricity Providers Act, which will be on the June Primary ballot. The measure would limit the ability of California cities to go into the public power business and force local governments that want to compete with PG&E to win the approval of two-thirds of their voters.

The intent seems to be to solidify PG&E's monopoly status, and so far it has succeeded in generating some interesting opposition artwork. But there are important clean energy implications. Prop 16 would block cities from delivering more clean energy for their residents than PG&E does. Its target is a law, Assembly Bill 117, known as Community Choice Aggregation or CCA, which enabled California cities and counties to circumvent their utilities and directly procure energy on behalf of electric consumers within their jurisdictions. The CCA system has been adopted into law in the states of California, Massachusetts, Ohio, New Jersey, and Rhode Island.

On both sides of the Golden Gate Bridge, San Francisco and Marin County have been pioneers in using the law to increase the amount of renewable energy for their residents. When Marin's Energy Authority goes online this summer, it will offer customers a "deep green" option of 100% renewable energy.

Studies have identified CCA as a high-leverage strategy to reduce greenhouse gas emissions at the local level. Sonoma County's Community Climate Action Plan calls it "one of the most potent tools in the financial toolbox," allowing cities the ability to issue H-bonds and secure up to $6 billion for renewable development and efficiency retrofits.

PG&E is required by law to cooperate with cities that decide to implement the Community Choice law. It has also cultivated a green-ish image by supporting AB32 and federal cap and trade legislation (especially the type where they are given allowances for free), boasting about its low coal profile, and creating an offsets program called ClimateSmart. Even so, the Pacific Gas & Electric Corporation, which is the parent company of the regulated Pacific Gas & Electric Company, plans to spend $25 million to $35 million in support of Prop 16. They are the sole sponsor of the initiative. If recollection serves, the Corp was first created to transfer the Company's assets out of the state before declaring bankruptcy during the state's electricity crisis. So other than flouting the law, attacking cities' clean energy programs, and screwing over California taxpayers, what other benefit does the Corp serve? Good question.

Meanwhile, the refineries aren't standing idly by while California creates a green economy. California Assembly member Dan Logue (R-Marysville) has been complaining about the supposed economic impact of the state's AB32 law. Logue hired a political consultant to run an initiative that would suspend AB32 until the state's unemployment rate dips to 5.5 percent, effectively repealing it. Current Attorney General and possible next Governor Jerry Brown gave Logue's measure the lengthy but accurate title, "Suspends Air Pollution Control Laws Requiring Major Polluters to Report and Reduce Greenhouse Gas Emissions That Cause Global Warming Until Unemployment Drops Below Specified Level for Full Year." Here's where it gets interesting. The sole funders are based in San Antonio, Texas -- Valero Energy Corp. and Tesoro Corp. That's not entirely fair. They do business (i.e. pollute) in California. Valero owns petroleum refineries in Benicia and Wilmington, while Tesoro runs plants in Martinez and Los Angeles.

This week Logue's crew started gathering the 433,971 valid signatures needed to qualify the measure for the November ballot. So California voters should prepare for a barrage of election ads paid for by PG&E, Valero, and Tesoro. A somewhat green utility and two brown refineries hope to postpone the necessary transformation to the 21st century green economy. What will the people say?

{slight edits made 6-23-10}

 
It's obvious, right? Monopoly utilities and oil refineries that want to keep peddling their wares finance ballot measures to mislead voters into postponing the inevitable move away from fossil fuels.
It's obvious, right? Monopoly utilities and oil refineries that want to keep peddling their wares finance ballot measures to mislead voters into postponing the inevitable move away from fossil fuels.
 
 
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05:13 PM on 04/10/2010
The 2/3 majority makes it a near certainty that voters would never approve and ballot measure under Prop 16.

If the proposition required a simple majority to pass then I might be in favor of it.

PG&E, like ALL corporations, wants to own the entire market and will use any means available.

About the only difference between US corporations and the mob, is that corporations are supposedly regulated by the government, but in many instances it is the other way around.
05:46 PM on 03/08/2010
As a liberal democrat, I am more than willing to support the law to drive only vehicles with 40+ MPG vehicles, provided the same law requires idiot republicans to suck the pollutants from the tailpipe of their hummers--fair is fair.

Motive is a key to solving any crime. What is the motive behind the reference propositions?
02:04 PM on 03/08/2010
I guess the far left wing wants our utility and refining sectors to leave the US for Mexico too. How much more production and how many more jobs are going to have to leave this country before people say enough is enough.
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Richard2
10:17 AM on 03/08/2010
If a region wants to attrack new manufacturing jobs, the best thing it can do is promise that cheap energy will be available to power the machinery, and then work to make that happen. That means coal or natural gas.

A region that forces the public to pay 4 times as much per unit of energy because that energy will be required to come from expensive sources (wind farms and solar projects), will bleed manufacturing jobs.
11:03 AM on 03/07/2010
OK Mike you have made your case and highlighed who funds who.

Oh, you didn't mention who funds you ????
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nameunused
08:02 AM on 03/07/2010
California is broke and cannot afford clean energy. Interesting isn't it?
04:17 PM on 03/07/2010
no, but it's false. the entire country is broke,

yet rooftop pv solar installations double every year.

Wind too.
06:57 PM on 03/06/2010
We are going to need refiners to convert raw Bio Fuels into gasoline, diesel, etc...

They should , of course, be required to pass all environmental regulations.
11:33 AM on 03/06/2010
It is always the refineries that must prep for the 21century. Where are all the liberals who won't buy or invest in smaller cars? Why did Maria Shriver drive a 2 ton, 300 horse,16mpg Cadillac Escalade and not a 40mpg Fit or Aveo or a SIERRA? If there are so many liberals in Cal, then why are there not more 40mpg small car factories run by the NRDC and the Sierra Club members? With over 1 million members you would think they would start their own car factory. This would displace the Escalade Mrs Shriver was driving.
Cut demand and the refineries will follow. Why not pass a law that says that all liberal democrats in Cal. must drive subcompact vehicles? This would cut GHGs by 25%. Pro 87 was a joke also. You people spend more money with this Pro. that you could have bougfht the GM Geo Metro plant and sold cars that get 45mpg. You spent 60 million? The car plant was worth 20 million? You people could have started your own plant and helped the environment instead of bitching about the oil producers.
Joe Vecchio, real liberal
06:59 PM on 03/06/2010
you have no idea what liberal or conservative mean:

Throw the Conservatives out in the primaries then for for the liberals in the main election!

"America, the first modern liberal state was founded, without a monarch or a hereditary aristocracy.[8"

"Liberalism first became a powerful force in the Age of Enlightenment, rejecting many foundational assumptions that dominated most earlier theories of government, such as the Divine Right of Kings, hereditary status, and established religion. The French Revolution, which implemented some of these new ideas, was a seminal event in the history of liberalism. John Locke is often credited with laying the philosophical foundations of liberalism.[3][4][5] "

http://en.wikipedia.org/wiki/Liberalism

Conservatism was founded and continues to be for Destroying the Republic and the Democracy and selling it to the plutocracy.

Conservatism was founded to undo the Enlightenment and the French revolution.

http://en.wikipedia.org/wiki/Conservatism

Ever wonder why the Right make Liberal such a dirty word?
08:46 AM on 03/08/2010
perhaps you should use more reliable sources than Wikipedia.
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Richard2
06:39 PM on 03/05/2010
Yes, Californians have a choice. They can accept AB32, which will have the effect of sharply driving up the cost of energy, and indirectly cause many energy consuming industries to move Nevada, Arizona, and elsewhere, or they can openly vote to effectively repeal AB32 by passing a citizens initiative. This will keep energy costs in California on a par with other states.

For the sake of the families of working Californians, let's hope that AB32 is put on hold, until we have full employment.
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SusanElizabeth1949
My micro-bio may be empty but my head isn't.
10:14 PM on 03/06/2010
I strongly disagree, PG and E (or as my Grandfather called it Pacific Graft and extortion--it got that nic in it's early days in CA) wants to maintain their monopoly. Have you forgotten their creative bankruptcy in the late 90s that destroyed so many people's retirement nest egg? If they are funding it it is because they are out (as usual) to screw the people of California -- they have a nearly century long history of doing that.
01:07 AM on 03/08/2010
Mike, As a taxpayer and ratepayer the issue with AB117 is we will be defaulted into the Community Choice Aggregation program unless we option out of the program. That is wrong. That method is called "slamming" in the telcom business which is now against the law. Hence, I and most other residents will be against any such default or slamming efforts by any entity. Finally, if you read between the lines you will see the most Community Choice Efforts are supported and promoted by a small inner circle of people who in my opinion don't represent the whole. Thanks for your time. GoCalifornia