by Denise Roth Barber | 2009-09-17
OVERVIEW
Major energy companies and environmentalists took their battles to the voters in three states last November, with mixed results.
Two ballot measures requiring utilities to generate a certain percentage of their power from renewable sources met with decidedly different fates. Energy companies spent millions defeating Proposition 7 in California, yet offered no resistance to a similar measure (Proposition C) in Missouri, which passed.
Oil companies large and small spent nearly $12 million defeating a measure in Colorado that would have increased severance taxes paid on oil and gas development. The supporters, whose war chest was half the size at just over $6 million, were soundly defeated.
A $5 billion bond measure in California that would have provided rebates of up to $50,000 for the purchase of alternative-fuel vehicles went down in flames, despite millions poured into the campaign by companies affiliated with Texas oil tycoon T. Boone Pickens. Although opponents raised very little money (less than $200,000), the unpopular measure was thoroughly rejected by the voters.
State | Measure | Description | Status |
---|---|---|---|
Colorado | AMENDMENT 58 | Oil and gas severance tax increase | FAILED |
California | PROPOSITION 007 | Require all utilities to generate 50 percent of their power from renewable energy by 2025 | FAILED |
California | PROPOSITION 010 | Alternative fuel vehicles and renewable energy | FAILED |
Missouri | PROPOSITION C | Require investor-owned electric utilities to generate or purchase electricity from renewable energy sources | PASSED |
Energy companies and special interest groups provided the lion's share of money raised for the campaigns. By contrast, individual donors provided just 13 percent of the money. Interestingly, not one individual gave in opposition — all money given by individuals went to support the measures.
Out-of-state donors provided one-third of all the money raised around the four measures. In Colorado, outside oil and gas companies gave nearly $9 million to fight the proposed oil and gas severance tax increase; alternative energy companies, environmentalists and others from outside Colorado gave $4.5 million to support the measure. The California measures provide a sharp contrast in funding sources: three out-of-state donors gave $12.5 million to support the measures, yet all the money raised in opposition came from within the state.
Four donors financially supported both Colorado's Amendment 58 and Missouri's Proposition C.
*Includes contributions from the group's State Action Fund
CALIFORNIA: PROPOSITIONS 7 & 10
Although California is seen by many as a leading green state, California voters soundly rejected the two energy-conservation–related measures on their ballot in November 2008. Proposition 7 would have, in the main, required all utilities to generate half of their power from renewable energy by 2025. Proposition 10 would have authorized $5 billion in bonds for cash payments to purchasers of high-fuel-economy and alternative-fuel vehicles.
In terms of campaign contributions, these were the two most heavily contested of the 12 measures on the ballot. However, just 24 donors provided the entire $61.7 million given to fund the campaigns around both measures.
Proposition 7
![Money Raised For And Against California Proposition 7](/assets/press/Reports/images/EnergyCaCoMo/Prop7.png)
Two energy giants—PG&E Corporation and Edison International—each provided more than $13 million to defeat Proposition 7. A third, Sempra Energy, gave an additional $2.1 million.
Support for the measure came almost entirely from Arizona billionaire Peter Sperling, vice-chair of Apollo Group, which runs the University of Phoenix.1 Sperling gave $9 million to "Californians For Solar and Clean Energy." Sacramento political consultant Jim Gonzalez, along with his company Jim Gonzalez and Associates, provided an additional $356,304.
Though they dug deep, these two major donors were still outgunned financially by a 3 to 1 margin. The measure was defeated with 64 percent of the votes cast in opposition.
*Includes money from his company, Jim Gonzales and Associates
Proposition 10
The campaign to promote Proposition 10 was primarily bankrolled by Clean Energy Fuels Corporation, founded by Texas oil tycoon, T. Boone Pickens.2 The company, which provides natural gas for vehicle use, gave nearly $19 million to support the measure.
![Money Raised For And Against California Proposition 10](/assets/press/Reports/images/EnergyCaCoMo/Prop10.png)
Chesapeake Energy, another company with ties to Pickens,3 gave $3 million. Aubrey McClendon, Chesapeake's CEO, gave half a million dollars to support the measure. Westport Fuel Systems, a Long Beach company that makes natural gas engines for heavy-duty trucks, gave a quarter million.
Despite the millions poured into the campaign by companies with ties to Pickens, very little money ultimately was needed to defeat this vastly unpopular measure. "When it comes to support, Prop 10 will be remembered as one of the most universally opposed ballot measures in California history."4 Five labor unions gave about $173,000 in opposition—pocket change by comparison, but enough to declare victory on Election Day.
COLORADO: AMENDMENT 58
The state's powerful oil and gas industry spent nearly $12 million defeating Amendment 58, a measure strongly backed by Gov. Ritter that would have increased the amount of state severance taxes paid by oil and natural gas companies on oil and gas extracted in the state. Environmental groups and other supporters, who raised half as much as the opposition, were defeated at the ballot box.
BALLOT COMMITTEES | TOTAL |
---|---|
Proponents | |
A Smarter Colorado | $5,010,728 |
Sierra Club State Action Fund Colorado | $976,500 |
Responsible Colorado* | $149,305 |
Colorado Prosperity* | $100,100 |
Conservation Colorado A Project Of The Conservation Campaign | $21,300 |
African American Voter Registration And Information Project* | $2,981 |
Proponents' Total | $6,260,914 |
Opponents | |
Coloradans For A Stable Economy | $11,967,500 |
Focus On The Family Action Issue Committee* | $4,446 |
Opponents' Total | $11,971,946 |
TOTAL | $18,232,860 |
* Committee was active on other measures on the November ballot
Oil and gas companies provided almost all of the money raised to defeat the measure. Focus on the Family Action, the political sister organization of Focus on the Family, gave $4,446 to the Focus on the Family Action Issue Committee, which opposed this measure. Eight companies provided 76 percent of the money.
Environmental groups gave nearly $4 million, providing about two-thirds of the money raised in support. Two organizations gave over $1 million each: The Nature Conservancy, with nearly $1.6 million (including contributions from its Colorado chapter), and the Sierra Club State Action Fund, $1.3 million.
Out-of-state donors supporting and opposing the measure were the primary financial backers of the campaigns. Environmental groups outside of Colorado gave $3.4 million, more than half of the $6.3 million raised to support the measure. Other out-of-state supporters provided an additional $1 million. For opponents, out-of-state oil and gas companies gave $8.8 million, three-quarters of the money raised to defeat the measure.
* Includes contributions from the Colorado chapter of TNC
**Contributions list a Colorado address, company headquarters are in Texas
No individuals gave in opposition to the measure. In stark contrast, 245 individuals gave nearly $1 million ($982,780) in support. Connecticut billionaire Paul Tudor Jones5 was the largest individual donor, giving $250,000 in support of the measure.
In the end, the powerful and well-heeled oil and gas industry, which outspent environmental interests nearly 2 to 1, was victorious.
MISSOURI: PROPOSITION C
Proposition C, on Missouri's November ballot, passed with the support of two-thirds of the voters. The measure requires investor-owned electric utilities to generate or purchase electricity from renewable energy sources, such as solar, wind, biomass and hydropower. Renewable energy sources must equal at least 2 percent of retail sales by 2011 and increase incrementally to at least 15% by 2021, including at least 2% from solar energy.
The measure was brought to the voters after the Missouri House of Representatives twice voted down the plan.6
None of the three investor-owned utilities in the state affected by the measure came out in opposition. In fact, Kansas City Power & Light, the primary utility provider for the greater Kansas City area, supported the measure.7 The other two—Ameren UE and Empire District Electric—took a neutral stance.
In the face of no opposition from the utility companies, no committee raised money to oppose the measure. Only one committee, Missourians for Cleaner Cheaper Energy, formed to support the measure, and it raised just over $1 million.
Alternative energy companies and environmental groups combined provided 87 cents of every dollar raised to promote the measure. Alternative energy companies alone provided half of the money raised to support the measure. The largest donor, at $250,000, was the American Wind Energy Association, the national trade association for the wind energy industry.8 Tradewind Energy, which specializes in developing and managing wind energy projects in the Heartland9 gave $125,000, followed closely by $100,000 from WindCapital Group, the leading wind energy firm in the Midwest, headquartered in St. Louis, Missouri.10
![Top Contributors Supporting Proposition C](/assets/press/Reports/images/EnergyCaCoMo/PropC.png)
*Includes $90,000 in contributions from LCV's Missouri chapter, Missouri Votes Conservation.
Environmental organizations also gave heavily, contributing a total of $362,708. The Sierra Club gave $120,000. The League of Conservation Voters (LCV) gave $105,000, with $90,000 of it from the Missouri Votes Conservation chapter, and $15,000 from LCV's national office in Washington, D.C.
In-state donors provided just $342,473, one-third of the money raised around the measure. Donors from Washington, D.C gave $391,000. Donors from nine other states also pitched in.
Individual donors played a small role in financing the campaign: 94 individuals gave a total of $30,290—just 3 percent of the total raised.
- 1. "About Apollo Group," Apollo Group, available from http://www.apollogrp.edu/About.aspx, accessed May 27, 2009.
- 2. Nancy Vogel, "T. Boone Pickens Backs Proposition 10, From Which He Would Profit," LA Times, Sept. 25, 2008, available from http://74.125.155.132/search?q=cache:OG112a9HSdcJ:articles.latimes.com/2008/sep/25/local/me-pickens25+Proposition+10%22+pickens&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a, accessed May 27, 2009.
- 3. "T Boone Pickens Buys Chesapeake Energy Corp., Devon Energy Corp., Halliburton Company., Tenaris S.A., Sells Titanium Metals Corp., GuruFocus.com, available from http://www.gurufocus.com/news.php?id=33899, accessed May 27, 2009.
- 4. "Every Major California Newspaper and Environmental Group - Including Labor, Consumer, Taxpayer Groups All Agree - Vote No on 10!," NoOnTen, Nov. 3, 2008, available from http://www.noonproposition10.org/?p=799, accessed May 27, 2009.
- 5. "400 Richest Americans," Forbes.com, available from http://www.forbes.com/lists/2008/54/400list08_Paul-Tudor-Jones-II_L6IH.html, accessed May 27, 2009.
- 6. Kyle Bosch, "Missouri Ballot Issues: Proposition C," KSPR TV, Oct. 29, 2008, available from http://www.kspr.com/vote/33497379.html, accessed Sept. 14, 2009
- 7. Kyle Bosch, "Missouri Ballot Issues: Proposition C," KSPR TV, Oct. 29, 2008, available from http://www.kspr.com/vote/33497379.html, accessed Sept. 14, 2009
- 8. American Wind Energy Association, availble from http://www.awea.org/, accessed Sept. 1, 2009.
- 9. Tradewind Energy, available from http://www.tradewindenergy.com/, accessed Sept. 1, 2009.
- 10. WindCapital Group, available from www.windcapitalgroup.com, accessed Sept. 1, 2009
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