SoCal Gas spent millions on astroturf ops to fight climate rules
Today (19 Aug), I'm appearing at the San Diego Union-Tribune Festival of Books. I'm on a 2:30PM panel called "Return From Retirement," followed by a signing:
It's a breathtaking fraud: SoCal Gas, the largest gas company in America, spent millions secretly paying people to oppose California environmental regulations, then illegally stuck its customers with the bill. We Californians were forced to pay to lobby against our own survival:
The criminal scheme is spelled out in eye-watering detail in a superb investigative report by Joe Rubin and Ari Plachta for the Sacramento Bee, which names the law firms and individual lawyers involved in the scam.
Here's the situation: SoCal Gas is California's private, regulated gas monopoly. They are allowed to lobby, but are legally required to charge their lobbying activities to their shareholders, and are prohibited from raising customer rates to pay for lobbying.
The company spent years secretly violating this rule, in the sleaziest way possible: working with corporate cartels like the California Restaurant Association and BizFed, the monopoly paid BigLaw white-shoe firms to procure people who posed as concerned citizens in order to oppose climate regulations that are essential to the state's very survival.
The bill topped $36 million – and it was illegally charged to its customers, the Californians whose immediate health and long-term survival these efforts opposed. SoCal Gas refuses to disclose the full extent of the spending, as do its lawyer-procurers, who cite legal confidentiality and a First Amendment right to secretly seek to influence policy in their refusal to disclose their profits from this illegal conduct.
The law firms involved are a who's-who of California's most prominent corporate fixers, including Reichman Jorgensen and Holland & Knight. The partners involved have a long rap sheet for anti-climate dirty tricking, most notably Jennifer Hernandez, notorious in climate justice history for an incident where activists claim she posed as one of them, infiltrating a campaign to force corporate despoilers to clean up their pollution in order to sabotage it, while secretly on a wealthy, prominent landowner's payroll.
Hernandez claims to care about the environment and says that her longstanding, corporate-funded, extensive campaigns and lawsuits against state environmental regulations are motivated by concern over their impact on working people. Her firm, Holland & Knight, denies serving SoCal Gas in opposing gas regulations, but it received $594k in ratepayer dollars, and submitted comments opposing the rules on its own behalf. Those comments were nearly identical to the comments submitted by SoCal Gas.
Hernandez also represents an obscure organization called The Two Hundred for Home Ownership in "a flurry of lawsuits" over California Air Resources Board rules on pollution, seeking to overturn the state's landmark climate change regulations.
Two Hundred for Home Ownership was founded by Robert Apodaca, who told the Bee that Hernandez's work for him is pro bono and not funded by SoCal Gas, but his entry into the fray occurred just as SoCalGas was founding an astroturf group called Californians for Fair and Balanced Energy (C4BES), which pretended to be an independent organization, disguising its relationship with SoCal Gas.
Apodaca is also founder of United Latinos Vote, an organization that had been largely dormant for seven years, not receiving any donations, until 2018, when the California Building Industry Association gave it $99k. The CBIA is a large-dollar recipient of donations from SoCal Gas, and its CEO insists that it was not acting on SoCal Gas's behalf when it made its unpredented donation to Apodaca.
The CBIA donation to United Latinos Vote was forerunner to a flood of corporate donations from the likes of Chevron, Marathon and Phillips 66. Shortly after receiving this cash, United Latinos Vote ran a full page ad in the LA Times, accusing the Sierra Club of pushing for anti-gas appliance rules that would harm working class Latino families.
This ad, in turn, featured prominently in advocacy by the SoCal Gas front group C4BES, funded with $29.1m in ratepayer money, which it then spent seeking to link clean appliance rules with anti-Latino racism. A quarter of California's carbon emissions come from home gas use.
SoCal Gas is regulated by the California Public Utility Commission (CPUC), which tolerated this mounting illegal conduct for many years, even as the company circulated internal memos as early as 2015 discussing its plans to oppose electrification in the state on the basis that it constituted "a significant risk to our business."
But last year, CPUC fined SoCal Gas $10m. Now, CPUC's Public Advocate office has filed a damning, extensive report on SoCal Gas's unlawful conduct, seeking $80m in rate cuts to compensate Californians for the funds misappropriated to protect the company's shareholder interests:
Additionally, the Public Advocate is demanding $233m in fines for the company's refusal to allow investigators to audit its books and discover the full extent of the fraud.
SoCal Gas is the nation's largest utility, but (incredibly), it's not the dirtiest. That prize goes to Ohio's FirstEnergy, which handed $60m in ratepayer dollars to state politicians in illegal bribes in exchange for coal and nuclear subsidies and cancellation of state climate rules. That scandal led to GOP speaker of the Ohio House Larry Householder being sentenced to 20 years in prison:
There is something extraordinarily sleazy about using ratepayers' own money to lobby against their interests. SoCal Gas and its Big Law enablers have funneled millions in Californian's money into campaigns to poison us and boil us alive, and they did it while using workers and racialized people as human shields.
I'm kickstarting the audiobook for "The Internet Con: How To Seize the Means of Computation," a Big Tech disassembly manual to disenshittify the web and make a new, good internet to succeed the old, good internet. It's a DRM-free book, which means Audible won't carry it, so this crowdfunder is essential. Back now to get the audio, Verso hardcover and ebook:
http://seizethemeansofcomputation.org
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Excerpt from this story from The American Prospect:
The Clean Air Act (CAA) has been fiercely opposed by polluters and their allies since its passage in 1970. Industry has never quite stopped fighting to prevent the government from protecting American lives and communities at the expense of even a bit of their profits. But over the past few years, opposition to the law has reached new feverish heights. Multiple cases seeking to gut the CAA have been filed by (or with the support of) oil and gas organizations, their dark-money front groups, and their political allies since 2022.
The ringleaders of this effort are the usual trade groups driving climate apocalypse, including the American Fuel and Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API), as well as oil giants themselves, like ExxonMobil.
Yet the coordinated attacks on this lifesaving, popular, and historically successful regulation go beyond the singularly destructive interests of the oil industry alone. And they go beyond the federal rule too, and are working their way into litigation against state enactments of the CAA.
Of course, many of the companies driving these suits are some of the biggest names in corporate greenwashing, like Amazon, FedEx, SoCalGas, and more.
These companies have continuously insisted that they are committed to leading the clean-energy transition, even while they fight for the right to poison the general public for profit, and have endeavored—at every turn—to destroy any opportunity the public may have to pursue recourse for it.
Last year, the Truck and Engine Manufacturers Association (EMA) threatened a lawsuit against the California Air Resources Board (CARB) over the state regulator’s Advanced Clean Fleets (ACF) rule.
The rule, which would mandate a “phased-in transition toward zero-emission medium- and heavy-duty vehicles,” threatens the transportation sector’s historically noxious way of doing business; the sector accounts for more than 35 percent of California’s nitrogen oxide emissions and nearly a quarter of California’s on-road greenhouse gas emissions. CARB’s rule could go a long way toward actualizing rapid reductions in the state’s annually generated emissions.
However, later that year EMA and some major truck manufacturers reached an agreement with CARB not to sue over the rules, in exchange for the state’s loosening of some near-term emissions reductions standards.
EMA has by and large kept its promise to not intervene with the regulation in courts, but litigation challenging CARB’s rule would soon be picked up by the California Trucking Association (CTA). Enforcement of the rule has since been on hold, as CARB waits to be issued an ACF-related waiver from the EPA in return for CTA not filing for preliminary injunction against the law.
Even despite these agreements, some of EMA’s own members—and even some of those specifically signed on to the CARB deal—pop up on CTA’s member rolls, as per CTA’s own 2023 membership directory. Daimler Trucks North America and Navistar, Inc., are specifically listed as Allied Members of CTA for 2023.
Amazon is listed among CTA’s Carrier Members, while separately making routine promises to be a partner in the fight against climate change. While Amazon announced its “Climate Pledge” in 2019 of reaching net-zero emissions by 2040 to great fanfare, and has since branded itself a climate leader, the Center for Investigative Reporting has detailed how the e-commerce giant is overselling its green credentials by drastically undercounting its carbon emissions.
In truth, Amazon’s emissions have increased more than 40 percent in the time since it issued the pledge. Amazon also remains the largest emitter of the “Big Five” tech companies, producing no less than 16.2 million metric tons of CO2 every year. Without question, the corporation should be regarded as an industry leader in greenwashing, rather than in actual climate action.
FedEx is also a CTA Carrier-level member. Like Amazon, the company has also made promises “to achieve carbon neutral operations by 2040,” an initiative FedEx has labeled “Priority Earth.” In the years since, FedEx has funneled intensive time and resources into lobbying directly against climate action while pushing its net-zero greenwashing narrative.
UPS is another CTA Carrier-level member. UPS has historically been less effusive in its climate promises than have other corporations on this list, but the delivery giant has continuously reinforced its stance that “everyone shares responsibility to improve energy efficiency and to reduce GHG emissions in the atmosphere.”
At a Planning and Design Commission Meeting last week, associate city planner Laura Tuller disclosed that Sacramento will back off — at least for now — on enforcing what has been touted as a key policy in combating climate change.
“The city will not currently preclude mixed fuel development,” Tuller told the city council-appointed commission. during an update on the city’s building electrification strategy.
Her statement referred to enforcing an ordinance passed by the council that would, with some exceptions, ban natural gas hookups in new construction projects starting in 2023.
Methane from natural gas is a potent contributor to greenhouse gases and climate change. State and local leaders in California have identified what is called “building decarbonization” — relying on cleaner electric power — as a crucial way to achieve its zero carbon emissions goal by 2045.
Tuller explained that the decision to pause enforcement is the result of a recent court ruling. Other cities such as San Luis Obispo and Santa Cruz have made the same determination.
In April, The Ninth U.S. Circuit Court of Appeals overturned the City of Berkeley’s building electrification ordinance in a lawsuit backed by the Sacramento-based California Restaurant Association. The court said that the city had stepped on the federal government’s role regulating energy markets.
The ruling has, for the moment, put a chill on what building decarbonization advocates say is a sensible movement. Prior to the Berkeley ruling, 76 cities from Los Angeles to Sacramento had passed electrification ordinances banning natural gas hookups in new construction. Sacramento leaders say they can’t enforce the gas ban until they see what happens with the City of Berkeley’s appeal of the decision.
State policymakers are similarly nervous about the implications of the Berkeley ruling.
A Sacramento Bee investigation earlier this month found that donations to CRA and its foundation from SoCalGas, the nation’s largest gas utility, soared after CRA launched its lawsuit.
Critics of SoCalGas as well as the California Public Advocate’s Office, which is an independent state watchdog arm of the California Public Utilities Commission, have accused SoCalGas of financially backing the Berkeley lawsuit with millions of dollars.
“It strains credibility to suggest that the utility did not fund research that supported the California Restaurant Association’s litigation,” the watchdog said in a filing this month.
The restaurant association has vigorously denied any coordination with Southern California Gas Co. on the lawsuit. The CRA said its motivation for the lawsuit was purely to protect new restaurants who prefer using gas, especially Chinese restaurants that prefer gas-powered woks.
SoCalGas has vehemently denied that it in any way funded the CRA’s lawsuit.
The recent Bee investigation noted that contributions to the CRA and its foundation from SoCalGas and its parent company Sempra grew from $174,594 in years 2015 to 2018 to $1.8 million from 2019 to 2022 — a tenfold increase.
The original Sacramento electrification ordinance passed in 2021 and went into effect, albeit briefly, on Jan. 1. Restaurants, however, were exempted until 2026. But through its role as members of a technical advisory panel advising the city, the CRA along with two allies connected to Chinese restaurants, argued the gas ban was culturally insensitive to the tradition of wok cooking.
Several Asian chefs that The Bee spoke to, including celebrity chef Martin Yan, pointed out that induction wok cooking is becoming more common in Asia, and that the industry needs to do its part to combat climate change. Many chefs believe cooking with electric-powered induction woks —although more expensive — is better than cooking with gas-powered woks, especially when environmental and health effects are considered.
At the technical advisory panel’s recommendation, in November 2022, the city council adopted “infeasibility waiver guidelines” that included a key clause;: If the business was found to make a legitimate claim that precluding them from using natural gas would “prohibit socio-cultural traditions that communities practice,” they could be exempted.
“I was shocked when I read that. It just felt like this secret gutting,” Rosie Yacoub an activist with the climate group 350 Sacramento told The Bee. She added, “What does that even mean? It seems like anyone could make that case.”
At a City Council meeting on Tuesday, Mayor Darrel Steinberg and City Council member Katie Valenzuela said that The Bee investigation raised questions about the city’s conflict of interest policy for advisory groups like the technically advisory panel, though stopped short of any specific suggestions for reforming the process.
Charlie Spatz, research manager at the Energy and Policy Institute, said that the conflict of interest issue raised thorny questions.
“The question here is whether the utility money was motivating or influencing the restaurant association’s engagement with the city council,” he said. “There’s nothing wrong with restaurants engaging in electrification policy, but it’s important to remember that gas utilities are spreading disinformation to restaurants with the goal of blocking electrification policy.
“It’s a bad faith campaign designed to drive unfounded fear in the restaurant industry and it only serves the interests of gas utilities.”
That disinformation, Spatz and others note, centers on what they believe are dubious studies that try to undermine research such as that performed by Stanford University that concludes gas cooking can be harmful without proper ventilation.
There are signs that even if the Berkeley decision is not overturned, market conditions at least in Sacramento, which has through SMUD some of the lowest electric rates in California, are pushing new construction to be all-electric.
A tool that the city links to called Xerohome appears to typically show cost savings in utility bills of $600-$1,100 annually when homeowners opt for modern all-electric appliances.
Brian Hanly, President of Next Generation Capital, says his company has increasingly opted for all-electric developments in Sacramento, including the 21-unit development, Icon @14C, which was completed in 2020.
“We were a bit afraid of the consumer response in the beginning,” Hanly told The Bee. He added, “It’s above my pay grade to understand the environmental ramifications between natural gas and electric, but we’ve had a positive experience.”
Rancho Palos Verdes faces more gas shutoffs amid land movement
Southern California Gas Co. is shutting off natural gas service to 54 more Rancho Palos Verdes homes because of additional land movement in the area.
The utility on Thursday announced service would be suspended indefinitely for 29 homes in the western Seaview neighborhood and 25 homes in the Portuguese Bend Beach Club area starting about 3 p.m. Friday.
The decision followed a sudden gas line break on Exultant Drive in Seaview on Aug. 30, as well as new geological hazard surveys, SoCalGas said in a statement.
Land movement has also impacted the gas line on Palos Verdes Drive South, which serves the Portuguese Bend Beach Club community.
In both cases, SoCalGas determined it was no longer possible to safely continue service.
“At this time, SoCalGas does not know when it will be safe to restore service to these communities,” the utility’s statement said.
A complete list of affected streets is available online.
Emergency disaster relief may also be available to customers affected by the shutoffs. More information can be found on the SoCalGas website.
Residents whose service has been turned off should not attempt to restore service themselves or connect alternative fuels like propane to their natural gas meters, because it is dangerous.
The Portuguese Bend neighborhood continues to be the only one in Rancho Palos Verdes that is under a city-issued evacuation warning. No such advisories are in place for Seaview or Portuguese Bend Beach Club.
The gas service shutoffs are the latest hardship dealt to residents of Rancho Palos Verdes’ rolling hillsides. In late July, SoCalGas shut off gas for 135 homes in the Portuguese Bend neighborhood, citing worsening land movement in the area.
And over Labor Day weekend, Southern California Edison shut off power to more than 200 homes in Portuguese Bend and Seaview — a decision designed to reduce the risk that the shifting earth could spark a wildfire if power lines remained electrified, officials said.
City officials said residents in these neighborhoods can choose to remain in their homes without gas or electricity, and many have done so. But authorities continue to warn that residents should be prepared if their homes become subject to a shutoff amid the ongoing land movement.
During a special City Council meeting earlier this week, Edison officials said they are considering shutting off power to the Portuguese Bend Beach Club area as well, but couldn’t definitively say whether that will occur. The decision will be based primarily on whether land movement conditions change.
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Cory Doctorow:
America's largest gas company, secretly paid millions for people to oppose California climate rules, then illegally stuck its customers with the bill. Californians were forced to pay to lobby *against our survival*: It's breathtaking fraud: @socalgas https://pluralistic.net/2023/08/19/cooking-the-books-with-gas/#reichman-jorgensen
Caroline Kennedy sees possibility of ‘resolution’ in Assange case | The Hill
"U.S. Ambassador to Australia Caroline Kennedy said there “could be a resolution” in the case of WikiLeaks founder Julian Assange, who was arrested in 2019 over his publishing of classified materials and has since fought in British court to avoid being extradited to the U.S.
Assange, an Australian citizen, was arrested by British authorities on behalf of the U.S. in 2019 and expelled from the Ecuadorian Embassy after almost seven years in asylum there. Since then, he has spent the past four years in a London prison fighting against extradition.
Asked by the Sydney Morning Herald if the U.S. and Australia could reach a diplomatic outcome with regards to Assange’s extradition, Kennedy said it was an “ongoing case,” being handled by the Department of Justice.
“So it’s not really a diplomatic issue, but I think there absolutely could be a resolution,” Kennedy said.
Assange faces 17 counts under the Espionage Act and one count of conspiracy to commit computer intrusion. American prosecutors allege he conspired to hack a government computer in connection with WikiLeaks’s publishing of sensitive government files in 2010. With the help of former Army intelligence analyst Chelsea Manning, Assange allegedly obtained and published Afghanistan and Iraq war logs as well as secret diplomatic cables.
During Secretary of State Antony Blinken’s visit to Australia earlier this month, Australian Prime Minister Anthony Albanese, who will be visiting the U.S. in October, said his government stands firm against the U.S. prosecution of Assange. Blinken rebuked that position, noting Assange is accused of “very serious criminal conduct.”
Kennedy reportedly pointed to Blinken’s comments and said, “But there is a way to resolve it,” adding, “You can read the [newspapers] just like I can.”
Court sides with kids who sued Montana over climate changeCalifornia secures settlement with SoCalGas over ‘misleading’ claims that natural gas is ‘renewable’
The Morning Herald asked the ambassador whether U.S. authorities could come to a plea deal agreement with Assange, and she repeated that the case is “up to the Justice Department.”
Earlier this year, a group of Democrats sent a letter to Attorney General Merrick Garland calling on him to drop the case against Assange, arguing that the charges “pose a grave and unprecedented threat” to journalism practices and the First Amendment. The lawmakers referenced a separate letter from a group of news organizations published last year that also called for the dismissal of Assange’s charges."
Those were not real Democrats, but Leftists. If Australia didn't want Julian Assange convicted, they shouldn't have harbored the cults that helped build him. Anybody who keeps a diary is a journalist. Assange is not. He is a Chaos agent, sent to fuck up America's national security and international standing, just in time for the black president's run. What he did was extremely serious and a danger to US. I want Julian Assange convicted.
How SoCalGas' soaring prices are enabled by secrecy
The doubling and in some cases quadrupling of Southern Californians’ natural gas bills in recent months stemmed from rapid price spikes in the so-called spot market, a real-time wholesale market for the fuel. The lack of transparency in California’s spot market for gasoline played a similarly major role in the pummeling California drivers took at the pump last year.
The secrecy surrounding…
Amid talk of SoCalGas rate hikes, groups urge L.A. city attorney to investigate utility
Twenty organizations called on Los Angeles City Atty. Hydee Feldstein Soto to investigate SoCalGas for 'potential price gouging and market manipulation.'
Natural gas pipelines that are made from steel that rust are an environmental hazard to the population at large. The state of California and the Federal government are liable for this environmental cost to the planet. Dig it up and replace the defective piping.
SoCalGas Achieves Important Milestone for Green Hydrogen Infrastructure System
@socalgas
@bizfed
December 18, 2022
The California Public Utilities Commission (CPUC) has approved Southern California Gas Co.’s (SoCalGas’) request to track costs for advancing the first phase of Angeles Link, a proposed green hydrogen pipeline system that could deliver clean, reliable, renewable energy to the Los Angeles region.
As envisioned, Angeles Link could be the nation’s largest green hydrogen pipeline…