According to Capital & Main analysis, oil and gas interests spent four times more than environmental advocacy groups and nearly six times as much on lobbying efforts for clean energy companies in California between 2018-2021. This is due to the intensity of the industry’s efforts to influence policy in a state whose leaders have pledged to create an energy future without fossil fuels.
Lobbying groups representing oil and gas companies spent $77.5 million advocating the interests of the industry in Sacramento between 2018 and 2021. This is nearly 400% more than the $15 million spent by environmental advocacy groups during the same time period. It is 560% higher than the $11.6 million spent by renewable energy sector. (All figures in this report, as well as the other figures for lobbying, are based upon data from the Californiasecretaryof states office.
Even when combined the expenditures reported by the environmental and renewable energie lobbying groups are less than a quarter of what the oil-and-gas sector spent on lobbying over the same four year period.
It’s a situation that’s a bit like a David versus Goliath, said Brandon Dawson (director of Sierra Club California), who is the only chapter of the long-standing environmental organization that is exclusively focused on legislative and regulatory advocacy. He serves as the group’s chief lobbyist. However, he feels outmanned daily by the oil-and-gas industry. They have more lobbyists on their staff. They are able to entertain legislators better than the Sierra Club or other environmental organizations. He also said that they have the financial capacity.
His arguments are supported by the facts. Sierra Club California spent $510,000 last year lobbying for more than 200 pieces legislative legislation. The Western States Petroleum Association (WSPA), which represents the interests of the oil-and-gas industry, spent approximately $4.3 Million lobbying on 25 bills. It also used a lot more firepower to influence legislation.
Dawson claims that this kind of money is influential in Sacramento.
Dawson said that most legislators we speak to have concerns about WSPA’s stance on their bills. I believe they are the most sought-after opinion in Congress.
Dawson points out the fate of AB 1395, California Climate Crisis Act, to show the influence oil and gas lobbying has on legislation. Al Muratsuchi (D-Torrance), introduced the bill in February 2021. It would have codified 2045 states net-zero greenhouse gases emissions goal and banned oil companies from counting carbon captured towards those goals if they later used oil to recover new oil, a common industry trend.
Capital & Main has previously reported that emails between WSPA lobbyists with legislative staffers showed that oil and natural gas interests were ableto gain a change to the proposed legislation, which gave the industry more flexibility in meeting emissions targets, before it even went to a hearing in a committee. The bill was ultimately defeated but is up again for a vote this year.
Kevin Slagle is vice president of communications at WSPA. He stated that his main problem with AB1395 was that it codified emission reductions but did not provide a plan to achieve them. His reasoning is in line with a larger trend of unrealistic expectations and catchy slogans that the oil and gas industry is always fighting for.
Slagle said that the idea of a transition to an entirely electric economy in three or four years or less is unrealistic. Californians need to have a realistic understanding of what this means.
He said that dealing with vocal opposition is one reason why the lobbying bill for his associations is so high.
Slagle stated, “We have to cut through a lot o falsehoods and noise about who we are and how we do our jobs every day.” That takes effort and resources.
Dawson calls it blunt honesty, while Slagle calls noise.
Dawson stated that fossil fuels have been proven to be a deadly threat to the planet. We were simply stating the truth and making it clear that we want California to be more livable and more breathable.
This might be easier said than done.
WSPA spent almost $25.5 million on lobbying between 2018-2021. It is the largest group representing oil-and-gas interests in the state. Chevron Corporation (and its subsidiaries) are second, with $21,000,000 reported in lobbying disclosures for the same period. The Marathon Petroleum Corporation and its affiliates are a distant third with nearly $3.5 million in expenditures.
The top three oil and gas lobbying groups spent approximately two-thirds of all 42 organizations. The lobbying expenses of 33 of the 42 groups, or 79%, totalled more than $100,000.
The Sierra Club California has spent approximately $2.3million on lobbying efforts in the past four years. NextGen Climate Action came in second place with almost $2 million. This non-profit focuses on climate change policy and didn’t report any expenses for 2021. The Water Foundation was third with nearly $2 million. It spent approximately $1.1million lobbying state legislators.
These three groups spent approximately one-third of all 57 registered environmental lobbying organizations. Only 29 of them spent more that $100,000 on lobbying over the four-year period.
Sacramento is home to many of the largest players in the renewable energy industry. California Solar & Storage Association disclosed $2.2 million for the four years that began in 2018, followed closely by American Clean Power Association (which reported spending $1.2 million) and Vote Solar (which reported spending $1 million).
The top three sectors represent 37% of all the 30 registered lobbying groups representing renewable energy interests. Over the four-year period, 23 of them spent more that $100,000 on lobbying expenses.
Lobbying organizations for the oil & gas industry disclosed a median amount of $390,000. This is compared to $225,000 for groups representing renewable energy, and $110,000 for environmental groups.
This analysis doesn’t surprise Craig Holman, a expert on lobbying, election finance reform, and government ethics, who is a lobbyist for Public Citizen, which is a non-profit consumer advocacy group and think tank in Washington, D.C.
Holman said that the oil and gas industry is extremely powerful and can be seen in our policies. It is a huge force in lobbying.
This is not an exaggeration. The $77.5 million spent by oil and gas companies on lobbying in California over the past four year amounts to just 16% of the $482 million spent lobbying at federal level during that same period.
It’s not just about the money spent on lobbying. Holman states that influence peddling can also be used by the industry. Campaign contributions and the hiring of ex-government officials, a practice known as the “revolving door”, are two examples. The WSPA has contributed almost $60,000 to California legislators and political committees during the 2021-2022 election cycle. Comparatively, the Sierra Club contributed less than $4,760 to campaign contributions in this election cycle.
Holman says that the oil-and-gas industry has a large influence on Capitol Hill, as well as in the states and their governments.
