Energy Interests Spending Big to Stop California Emissions Law

In 2012, a California law aiming to reduce greenhouse gas emissions in the state by roughly 25 % over the next decade, is scheduled to go into effect. The Global Warming Solutions Act of 2006  (or AB 32,) will give the California Air Resources Board sweeping new powers to set emissions limits and reduction measures—and set the stage for the creation of a regional cap and trade system called the Western Climate Initiative.

But a powerful group of business interests including 2 billionaire brothers who recently came into the public eye for their role in financing the Tea Party, are hoping to head off AB 32 with a ballot measure called Proposition 23, or "the California Jobs Initiative." Charles and David Koch, whose Koch Industries has an annual revenue approaching $100 billion—and has several times been ranked among the country's top air polluters—have donated $1 million to groups organizing for the law.

The campaign, which emanates from a series of political action committees, reportedly has received 98 percent of its funding from a group of oil companies led by Valero Energy Corp. and the Tesoro Corporation—with 89 % of that money coming from out-of-state. (Koch Industries is based in Wichita, Kans.)

View Full Story