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Koch Industries Funding Fight Against Climate Change Law, Via Subsidiary

Mary Catherine O'Connor | Friday September 3rd, 2010 | 6 Comments

The Yes on 23 Committee, a.k.a. the California Jobs Initiative, a.k.a. the November ballot initiative Proposition 23 which would suspend AB32, California’s climate change law, became $2 million richer yesterday. The funding came through $1 million donation from Flint Hills Resources, a subsidiary of Koch Industries, and another $1 million by another oil refiner, Tesoro, reports the Sacramento Bee.

Flint Hills Resources, based in Wichita, Kansas, is an oil refiner and chemical supply company. Katie Stavinoha, a spokesperson for Flint Hills Resources, told Triple Pundit that the company made the $1 million donation to Yes on 23 because it believes that “implementation of AB32 will cause significant job losses and higher energy costs in the state of California and sets a bad precedent for future regulation in other states and by the Federal government.”

Koch Industries, also based in Wichita, and one of the largest private companies in the world, also owns two pipeline companies and a number of firms outside petroleum, including makers of chemicals, polymers and fertilizers. Oh, and paper. Georgia-Pacific is an indirect wholly-owned subsidiary.

Run by brothers David and Charles Koch, Koch Industries has a deep record in fighting any legislation that seeks to boost environmental regulations. As we’ve reported, it does this by funding initiatives such as Prop 23, as well as supporting think-tanks and political groups who oppose regulation. (The New Yorker recently ran an expose on the firm.)

Jobs Debate

Tesoro and Valero, also a major funder of the ballot initiative, also claim that implementing the climate change law, which strives to reduce California’s emissions of greenhouse gasses to 1990 levels by the year 2020, will hurt business and cost jobs—claims that have been refuted by a number of independent studies. And Google’s green energy czar William Wiehl says that AB32 has already helped create 500,000 cleantech jobs in California.  If Prop 23 passes, those jobs would be threatened.

Calif. Governor Schwarzenegger, who signed AB32 into law in 2006, has hedged on the topic a bit, suggesting that implementing some parts of the law should be done more slowly. But he opposes Proposition 23.

When asked how AB32 could impact Flint Hills’ operations, Stavinoha noted that the company, while it does not have direction operations in California, does have affiliates that operate there.


▼▼▼      6 Comments     ▼▼▼

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  • Earl Richards

    The California Jobs Initaitive (CJI) is an oil corporation farce and fraud. There is no connection, whatsoever, between greenhouse gas emission reduction and the loss of jobs. This notion is an insult to the intelligence of the people of California. In fact, there is job growth in the clean, renewable energy industry. Chevron employs 65,000 worldwide and CJI is not going to change this. The only jobs created by the oil industry are clean-up jobs after oil spills and deep water, blow-outs and pump-handler jobs. CJI will make fantastic profits for the oil industry, increase air pollution, especially in communities around their refineries, and there will not be lower gas prices. Both Valero and Tesoro super Enrons. Since when did the oil companies start to show any concern for the unemployed and their families?

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  • http://www.facebook.com/profile.php?id=1155551944 Ron Kilmartin

    God Bless the Koch Brothers, Valero, Tesaro and Occidental for helping us Joe and Jane Sixpack Californians suspend the anti-CO2 AB 32, which will otherwise put us in the poor house without jobs. With all the $$ millions being focused against Proposition 23 by billionaire cap and traders; by green gadgeteers feeding at the public trough; by a raft of enviro-kook organizations peddling George Soros money, and by funding from other clandenstine progressive-Marxist groups supporting the AB 32 scam on the people, we need all the help we can get. We know that this AB 32 gang has a powerful propaganda machine and will pour $$ millions into fighting Proposition 23, since if they loose they loose big time not only in California, but country-wide and even world-wide. Let this election be the beginning of the end of the CO2 scam foolishness and let ruling-class AB 32 supporters sweat on honest jobs like the rest of us, instead of picking our pockets, destroying our economy, and instituting yet more CARB tyranny.

    • Earl Richards

      Ron:

      Obviously, you do not live a near an oil refinery.

      Earl Richards

    • Nick Aster

      I’m sensing sarcasm here, but not 100% sure :-)

      • TonySal

        I think I agree with you. But, I’ve read it twice and I’m not sure either.

  • d brown

    Remember Karen Silkwood and the movie made about her. She was working for Koch Industries. And they are big in the start of the tea party. The FBI taped them cheating Indians out of oil pumped from their land. Before trail Ronnie got in and the case was given to a new (GOP) lawyer. He stopped working on it till the clock ran out and then the Feds gave Kocht all the proof.

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