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Pollution Politics 2000: California Political Expenditures of the Automobile and Oil Industries, 1997–2000 8/29/2000 Pollution_Politics_2000.pdf

Executive Summary

As the new home of CALPIRG's environmental work, Environment California can be contacted with any questions regarding this report.

Fully 95% of Californians live in areas that fail to meet health-based air quality standards, with much of the pollution coming from cars and trucks. Recognizing that we cannot meet our air quality goals by making incremental improvements in tailpipe emissions, the California Air Resources Board has been working to stimulate the introduction of zero emission vehicles (ZEVs) by requiring that a small percentage of all vehicles sold in the state in coming years will be ZEVs. This program is reviewed every two years.

During the current round of debate over the ZEV Program, the oil and auto industries have spent heavily in their efforts to influence California public policy. Through lobbying, campaign contributions, and public relations campaigns, these industries are obstructing efforts to promote clean cars.

An analysis of public records held by the California Secretary of State shows that oil companies, automakers, dealerships, and their trade associations have spent $32 million to influence state policy and electoral races since 1997 — $26.5 million on lobbying and $5.7 million on campaign contributions.

Atlantic Richfield and Chevron were the top spenders among individual oil companies for both lobbying expenses and campaign contributions. Among automakers, Ford spent the most money. The most active lobbyist from any industry was the Western States Petroleum Association.

As the Davis administration will make the final decision on whether to uphold or roll back the ZEV standards, industry influence has been targeted in particular at the governor’s office.

• The oil and auto industries have contributed over $1.1 million to Davis since 1997.

• The majority of these contributions have come since Davis was elected.

When he was running for office in 1997–98, the two industries donated $387,000 to his campaign. Since Davis has been in office, while the ZEV review has been under way, the industries have donated $780,000 to his re-election committee, even though he will not run again until 2002.

• During the 1998 gubernatorial campaign, the oil and auto industries gave nearly three times as much to Dan Lungren, the candidate with a more anti-environmental record, than to Gray Davis: $1,045,000 vs. $387,000.

• The auto industry has hired a lobbyist for this issue who has close ties to the Governor — former Sacramento Mayor and legislative leader Phil Isenberg, a longtime friend and former advisor to Gray Davis.

Further investigation has revealed an ongoing campaign to sway public opinion and pressure the legislature and state agencies to eliminate the ZEV Program. In 1996, the Big Three U.S. automakers hired a public relations firm with the declared objective to “inundate the California public with informational materials,” undertake “aggressive media efforts,” and initiate “a California Legislative and Executive Branch education program” in a “million dollar plus statewide campaign” against the ZEV standards. That campaign continues today, building on the contact database, focus group results, and personal relationships developed in 1996 by the public relations firm in charge of the effort. The campaign is now supported by an expanded list of automakers, including thirteen of the largest car companies from the U.S., Europe, and Asia.