In a state with a Democratic-supermajority Legislature and a reputation for being a “climate leader,” how does Big Oil get its way?
CalMatters Digital Democracy reporter Ryan Sabalow and data journalist Jeremia Kimelman dive into the curious alliance between oil companies and the powerful State Building and Construction Trades Council.
The 450,000-member union of Teamsters, boilermakers, iron workers and more has proven a key ally to Big Oil, helping to block several bills opposed by the industry this year. The council has also given big money to California’s labor-friendly Democrats, donating at least $427,000 to the campaigns of California’s legislators in 2023 and more than $3.5 million to legislative campaigns since 2019.
Many of the union concerns surrounding these bills relate to jobs. A 2020 study that was commissioned by the council found that fossil fuel jobs pay about $30,000 more per year than the solar industry, and that a 50% reduction in fossil fuel consumption could eliminate 57,000 jobs.
That concern is shared by the oil industry.
- Catherine Reheis-Boyd, president of the Western States Petroleum Association: “You (can call) it a coalition, an alliance; it’s people coming together to talk about common interests and deciding what to do about them. We don’t agree on everything…. But you would imagine that anything that has to do with jobs is going to be a topic of discussion.”
Interviews and analysis conducted by Ryan and Jeremia revealed that during the 2023 legislative session, half of the 20-some bills opposed by the oil industry were also opposed by the building trades union.
Among them were three measures by Sen. Lena Gonzalez that were ultimately stalled or killed: Senate Bill 252, which would have required two state pension funds to divest from fossil fuels and is now a tw0-year bill; SB 556, which would have made oil and gas companies liable for healthcare expenses related to respiratory illnesses; and SB 674 to create a statewide standard for petroleum refinery air monitoring systems.
Though the Long Beach Democrat said she has nothing against the trades unions (and the union has donated $27,800 to her campaigns since 2014), Gonzalez also said the oil industry wins with the union’s help: “I see them winning every single day. So I’m just wondering when California, the greenest state, is actually going to finally put our foot down in a more significant way.”
Then there was SB 842. Originally a measure on homelessness, it later morphed into a bill that would have required the California Energy Commission’s new watchdog division on oil prices to consult with oil industry stakeholders and labor groups “to avoid any adverse impacts.” That bill was authored by Democratic Sen. Steven Bradford of Inglewood, whose campaigns received more than $680,000 from the trades unions and at least $155,000 from the oil and gas industry since 2006, according to a CalMatters analysis. The bill was ultimately vetoed by Gov. Gavin Newsom.
For the union president Chris Hannan, the alliance with the oil industry shouldn’t be a surprise given that hundreds of thousands of jobs are on the line.
- Hannan: “If any time we come across as going hard for fighting for our members, you know, it’s true. We do come across strong for our membership, because our membership is strong, and that’s what they deserve.”
Reminder: When the oil and other industries don’t win in the Legislature, they often go to the ballot. Oil companies have already qualified for the November 2024 ballot a referendum to overturn a law (authored by Gonzalez) that requires setbacks of oil wells near homes and schools. Oil companies have poured tens of millions of dollars into killing the law, stalling any implementation of the policy in the meantime.
For more about Big Oil and the trades union, read Ryan and Jeremia’s story.
CalMatters events: Catch up on our 2023 events, with videos of sessions here. And it’s not too early to register for the first ones of 2024: Jan. 23 on California’s multi-billion-dollar overhaul of the troubled unemployment benefits system, and Feb. 13 on school battles over book bans and forced outing policies.