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Posts Tagged ‘Proposition 23’

Stanford student gives $100,000 to No on Prop 23 campaign

Posted in Google, Proposition 23, tagged , , , on October 5, 2010| Leave a Comment »

I wrote this story for Grist, where it first appeared.

Talk about student activism: Lucy Southworth, a Stanford University doctoral student, has given $100,000 to the campaign to defeat Proposition 23, the California ballot initiative that would suspend the state’s global warming law.

If the name doesn’t ring a bill, try Googling. In Silicon Valley, Southworth is better known as the wife of Google co-founder Larry Page.

Her contribution follows the $500,000 earlier donated to the No campaign by Wendy Schmidt, wife of Google Chief Executive Eric Schmidt. (Disclosure: Wendy Schmidt serves on Grist’s board of directors.)

The No forces took in $200,580 in campaign contributions on Monday, following a $5 million haul in the previous week, according to California Secretary of State records. Applied Materials, the world’s biggest manufacturer of the machines that make computer chips, gave $25,000 on Monday; Chicago-based wind developer Invenergy donated $10,000; and William S. Fisher, San Francisco investor and an heir to the Gap clothing empire, donated $25,000, as did Sakurako D. Fisher.

All this check writing is to protect California’s climate change law, known as AB 32. The law requires the state to cut greenhouse gases to 1990 levels by 2020. Prop 23 would suspend AB 32 until the unemployment rate fell to 5.5 percent for four consecutive quarters, a rare occurrence in recent decades.

The Yes campaign, which is largely funded by two Texas oil companies, continues to lag far behind in the fundraising department of late. It logged one $5,000 contribution on Monday, from a Mississippi barge company that hauls petroleum and petrochemicals.

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Enviros step up Prop 23 effort, oil industry pleas for money

Posted in alternative energy, global warming, green policy, Proposition 23, renewable energy, tagged on September 17, 2010| Leave a Comment »

I wrote this story for Grist, where it first appeared.

The campaign against Proposition 23, the California ballot initiative that would suspend the state’s global warming law, took in more than a half million dollars in contributions this week. Meanwhile, fundraising by the oil companies backing the measure was so lackluster it prompted a plea for help from the petrochemical industry.

“A defeat for Proposition 23 in California could energize environmental fanatics around the country and in Washington to match California’s destructive policies with their own versions of AB32,” wrote Charles T. Drevna, president of the National Petrochemical & Refiners Association, in an email first reported by The New York Times. “We’ve raised about $6 million so far, but unfortunately in California’s expensive media market this is not enough to win the fight against environmental zealots led by Gov. Arnold Schwarzenegger, who seems hell-bent on becoming the real-life Terminator of our industry.”

“I am pleading with each you,” Drevna continued, “for our nation’s best interest and for your company’s own self-interest, please contact me and tell me how much you can contribute to this critical effort as soon as possible. Nov. 2 is drawing near.”

The Texas oil companies backing the initiative made news recently when they secured a $1 million donation from the billionaire Koch brothers, who bankroll various right-wing causes. But the only sizeable donation to the Yes on 23 campaign this week came from Tower Energy Group, a Southern California-based petroleum wholesaler, which contributed $100,000 on Monday. Meanwhile, according to campaign finance records, the anti-Prop 23 forces have been having a pretty good few weeks.

On Monday, Susan Packard Orr, yet another daughter of David Packard, the late co-founder of Hewlett-Packard, contributed $250,000 to the No campaign. She joins her two sisters who have given a total of $201,895 to the effort to defeat Prop 23.

On Wednesday, William Patterson of SPO Partners, a Marin County, Calif., private investment firm, also gave $250,000. The California chapter of the Audubon Society stepped up with a $100,000 donation last week. Earlier in the month, Environment California, a non-profit, made a $100,000 contribution.

Another non-profit, the San Francisco-based Tides Foundation, put in $40,000 while a high-profile San Francisco real estate magnate, Douglas Shorenstein, contributed $25,000.

The big Silicon Valley venture capitalists, who vociferously oppose a ballot initiative that could derail the billions of dollars they’ve invested in green technology startups, have largely remained no-shows on the No on 23 donor roll. Though Tom Baruch, founder of CMEA Capital, did give $25,000 on Wednesday, and John Doerr, a leading green tech investor with Kleiner Perkins Caufield & Byers, is a notable exception with his $500,000 investment to defeat Prop 23.

If Silicon Valley’s venture capitalists decide to open their checkbooks, game on.

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Anti-Prop 23 forces tap big donors in California climate fight

Posted in global warming, green policy, green tech, Proposition 23, tagged on August 25, 2010| Leave a Comment »

Photo: Todd Woody

I wrote this story for Grist, where it first appeared.

With the campaign season revving up, even more money is starting to flow into the campaign to defeat Proposition 23.

Prop 23 is the California ballot initiative that would suspend the state’s landmark climate change law. Its opponents had been relying mostly on the largesse of a California coalition of environmental groups and Silicon Valley’s venture capitalists and tech elite to finance their No on 23 campaign. But now No forces are tapping out-of-state donors.

On Thursday, they got $250,000 from New York investor Nicolas Berggruen. Berggruen is head of Berggruen Holdings, which has made investments in wind energy projects.

Also last week, Nancy Burnett of Lummi Island, Wash., deposited $100,000 in the anti-Prop 23 coffers. Burnett is a daughter of David Packard, co-founder of Silicon Valley tech giant Hewlett-Packard, and a supporter of Democratic candidates.

And this week, David Bonderman, a Texas investor with TPG Capital, donated $7,500.

Closer to home, Warren Hellman, the wealthy San Francisco investor, banjo player, and blue-grass aficionado, wrote a $75,000 check to the No campaign. The campaign’s supporters are fighting to preserve California’s Global Warming Solutions Act, popularly known as Assembly Bill 32. AB 32 requires the state to reduce greenhouse gas emissions to 1990 levels by 2020 and allows the creation of a cap-and-trade market to meet that mandate.

The bulk of the money financing the pro-Prop 23 campaign has come from two Texas-based oil companies, Tesoro and Valero, and other out-of-state fossil fuel interests. The most recent big donation came earlier this month when Valero gave $3 million to the effort.

Both sides expect the campaign spending to peak somewhere north of $100 million by the time Election Day rolls around in November, with huge amounts of cash rolling in when the traditional election season kicks off after Labor Day.

One person watching the Prop 23 battle closely is Lawrence Goldenhersh, chief executive of Enviance, a California firm that sells environmental compliance software and services — including those that track greenhouse gas emissions — to big industrial companies.

“If AB 32 is sustained by the voters of California, you will have the largest plebiscite in the history of the climate change debate cast by voters in the world’s seventh largest economy,” Goldenhersh told me Tuesday. “If AB 32 survives and Jerry Brown gets elected governor I think you’ll have cap-and-trade nationally by 2013.”

Enviance has clients on both sides of the Prop 23 fight — including Valero — and thus is not taking a position on the ballot measure, according to Goldenhersh. Still, he calls the election the “Normandy invasion of climate change.”

“If Prop 23 passes and AB 32 is suspended or killed then I think there will not be a lot of drive and political appetite to take on a piece of grand climate legislation in Congress,” he says. “People will say, ‘if it’s too expensive for California then it’s too expensive for a little state.’ “

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Texas oil vs. California clean tech: The battle over Prop 23

Posted in alternative energy, energy, environment, Environmental Defense Fund, global warming, green policy, Natural Resources Defense Council, Proposition 23, renewable energy, Sierra Club, tagged , , , , , , on August 17, 2010| 2 Comments »

photo: NRDC

I wrote this story for Grist, where it first appeared.

The climate war has shifted to California.

Proposition 23, an initiative that would suspend Assembly Bill 32 (AB 32), the state’s landmark global warming law, provides the first ballot box test for climate change legislation — and for the prospects of reviving a national cap-and-trade bill.

So far, much of the media attention has focused on Prop 23’s funding. It’s being underwritten by the Texas oil companies Tesoro and Valero along with other mostly out-of-state petrochemical and fossil fuel interests. Prop 23 supporters have contributed more than $6.5 million to the campaign.

But a review of opposition fundraising — for the No on 23 campaign — offers a revealing look at what amounts to a fight for the future, a struggle between the industrial behemoths of the old fossil fuel economy and a startup coalition of environmental groups, Silicon Valley technology companies, financiers, and old-line corporations looking to profit from decarbonizing California.

“The choice that is before California is between the new clean economy versus the dirty old economy,” says Annie Notthoff, California advocacy director for the Natural Resources Defense Council. “The Silicon Valley folks who are willing to invest in the new clean energy economy with their dollars are tangible evidence that this is an economic issue as well as an environmental one.”

The NRDC has emerged as one of the key fundraisers, funneling more than a million dollars to the No on 23 campaign to date. Big green groups such as NRDC and the Environmental Defense Fund took the lead on forging alliances with Fortune 500 companies in the unsuccessful effort to pass national climate change legislation. In contrast, the heavy hitters in California’s Prop 23 battle are green tech entrepreneurs and venture capitalists, who have traditionally shied away from electoral politics.

The last stand for climate change has brought John Doerr, a leading green tech investor with Kleiner Perkins Caufield & Byers, to the table. Doerr has given $500,000 to defeat Prop 23. And he’s not alone.

Wendy Schmidt, founder the 11th Hour Project, a Silicon Valley environmental grant-making nonprofit (and wife of Google chief executive Eric Schmidt), donated $500,000 to NRDC’s No Prop 23 Committee. (Disclosure: The Schmidt Family Foundation is a financial supporter of Grist’s, and Wendy Schmidt is a member of the Grist Board.)

Google itself hasn’t contributed to the No campaign, but last week the search giant’s green energy chief, Bill Weihl, assured a gathering at the company’s Silicon Valley headquarters that, “We’re strongly behind the No on 23 campaign” and the global warming law, known as AB 32.

When asked about Google’s potential financial support for the No campaign, company spokesperson Parag Chokshi said, “Google has been a very strong supporter of AB 32 and wants it to be implemented. We’ll continue to monitor the situation as we move forward.”

To date, the heaviest hitter on Team No is Thomas Steyer, the press-shy founder of San Francisco hedge fund Farallon Capital Management. Steyer, a big donor to Democratic candidates, has pledged $5 million and stepped forward to co-chair the No on 23 Committee with George Schulz, the Republican former secretary of state.

“I personally come at this issue as a businessperson who cares about the economic future of California as well as the environmental and security issues here,” Steyer said on a conference call late last month. “The right way to frame this is that we have a fairly stark choice to either move forward or turn back the clock.”

“We have 12,000 companies in California working on clean energy already,” he added. “It’s going to be one of the dominant spaces in the world and for us to excel and lead in this area we need a consistent regulatory framework for investment.”

Yet another mainstream investor is Robert Fisher, former chair of The Gap, the San Francisco-based clothing empire. Like Schmidt, Fisher has put up a half million dollars for the NRDC fund. And Southern California investor Anne Getty Earhart, an heir to the Getty oil fortune, donated $250,000 directly to the No campaign.

“What makes this unusual is that this is not your classic tree-huggers-versus-big business battle,” says Steve Maviglio, a longtime California Democratic operative and the chief spokesperson for the No on Prop 23 campaign. “Environmentalists, dyed-in-the-wool businessmen, tech companies — they have all been very active in fundraising, active on the lecture circuit and before editorial boards.”

You can read the rest of the story here.

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Silicon Valley: Prop 23 will kill off the Googles of green tech

Posted in alternative energy, environment, global warming, Google, green financing, green policy, green tech, tagged , , , , on August 12, 2010| Leave a Comment »

photo: eSolar

I wrote this story for Grist, where it first appeared.

As the traditional Labor Day kickoff to the fall election campaign approaches, the battle is intensifying over Proposition 23, the California ballot initiative that would effectively repeal the state’s landmark climate change law.

And thus the title of a gathering Tuesday at Google’s Silicon Valley headquarters: “Electric Bills & Oil Spills: Will California Continue to be a Clean Energy Leader?”

The not-so-subtle subtext: Not if Prop 23 passes.

“We’re strongly behind the No on 23 campaign,” Bill Weihl, Google’s green energy czar (yes, that’s his title), said as he kicked off the event in a company café packed with Bay Area green A-listers.

Not surprisingly, the panel focused less on the environmental consequences of Prop 23 than on the potential for the ballot initiative to derail California’s green tech revolution.

“Proposition 23 will kill markets and the single largest source of job growth in California in the last two years,” declared Vinod Khosla, a leading green tech investor, referring to the clean energy economy. “Not only that, it’ll kill investment in the long term for creating the next 10 Googles.”

Chipped in Weihl: “For California, we can either lead in this and invest in it and participate in this huge growth sector or cede that to China, India, and other places. It would be crazy for us to sit back and let others take that opportunity.”

Underwritten by Texas oil companies Tesoro and Valero and other out-of-state fossil fuel corporations, Prop 23 would suspend California’s global warming law — popularly known as AB 32, as in Assembly Bill 32 — until the unemployment rate drops to 5.5 percent for four consecutive quarters. (In other words, never.) AB 32 requires California to reduce greenhouse gas emissions to 1990 levels by 2020, which most likely would be accomplished through a cap-and-trade market.

Khosla and Weihl were joined on a panel by Mary Nichols, head of the California Air Resources Board, the agency charged with implementing AB 32; and Tom Bottorff, an executive with the utility PG&E.

“If you listen to the arguments of the proponents of Prop 23, their vision of California is a World War II or 1950s vision,” said Nichols, who before her appointment by Gov. Arnold Schwarzenegger was a longtime activist with the Natural Resources Defense Council. “They want to go back to a time when rubber factories and building of aircraft and automobiles were the main businesses of California.”

As the fight over Prop 23 heats up, expect to see a lot more of such talk from a place where the future is the main export.

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The Climate War comes to California

Posted in environment, global warming, green buildings, green tech, renewable energy, tagged , , , , , on June 29, 2010| Leave a Comment »

This post first appeared on Grist.

Eric Pooley came to San Francisco last Tuesday to talk about his new book, The Climate War, at the offices of the Environmental Defense Fund.

The book, subtitled “True Believers, Power Brokers and the Fight to Save the Earth,” is a riveting tale of the battle to pass climate change legislation in the United States. Pooley, deputy editor of Bloomberg BusinessWeek and the former editor of Fortune magazine, embedded himself with key combatants in the climate war, including Fred Krupp, EDF’s president. (Read a review by Grist’s David Roberts here.)

It is, of course, a book without an ending as efforts to enact a cap on greenhouse gas emissions start to resemble a not-so-funny legislative version of Bill Murray’s “Groundhog Day.”

The timing of Pooley’s Tuesday talk was appropriate, as that day a new front in the climate war opened up on the West Coast when an initiative to suspend California’s landmark global warming law qualified for the Nov. 2 ballot.

The Global Warming Solutions Act of 2006, popularly known by its legislative moniker, AB 32, requires California to reduce greenhouse gas emissions to 1990 levels by 2020. One of the options to do that is to implement a statewide cap-and-trade market to limit emissions by carbon polluters such as oil refiners.

Two Texas oil companies, Valero and Tesoro, are largely funding the anti-AB 32 ballot measure, which the California secretary of state in a bit of cosmic irony has designated Proposition 23 — a reversal of 32, get it?

Prop 23 would put AB 32 on hold until the unemployment rate falls to 5.5 percent for four straight quarters, which is as likely in California as the legislature delivering the state budget on time four years in a row.

It promises to be an epic battle of the Old Economy vs. the New Economy — Silicon Valley green tech startups, venture capitalists, and big corporations with a stake in the nascent renewable energy economy versus the old industrial giants with the most to lose from the new green order.

“If you look at investment in clean energy, China is now investing $9 billion a month with centralized control of the energy economy the likes of which we can’t equal,” Pooley told EDFers gathered on the 28th floor of a downtown San Francisco tower. “A price on carbon would change the rules of the road and take capital off the sidelines and put it to work building clean energy infrastructure and jobs here in this country. It could happen in California first as so many things have happened in California first.”

“But I really worry about this proposition,” he added. “It’s going to be tough to defeat.”

Pooley noted that the passage of AB 32 in 2006 helped put pressure on the federal government and an administration resolutely opposed to cap and trade. Suspension of AB 32 would take away a big playing card in the climate change poker game.

While the environment may be as Californian as the beach, redwood trees, and plastic surgery, the fight over Prop 23 makes environmentalists nervous, especially in a state with a sky-high unemployment rate.

Pooley asked Derek Walker, director of EDF’s California Climate Initiative, to handicap the electoral odds.

“When I’m asked that question, I would have said a year ago there’s no chance we’ll have a Republican senator from Massachusetts anytime soon,” Walker said. “But I think that all other things being equal, Californians have a very strong ethic for conservation and if there’s enough evidence of the green economy growing in California there’s a compelling case.”

As Pooley noted, “Nobody has done more than California to step up on this issue. There’s never going to be a perfect moment to do this. As if we all can wait for the golden day when all is in order and embrace the future. History does not work that way. Progress does not work that way. We have to rise up to meet the future or we’ll cede it to somebody else.”

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