Video 1: Scott Walker on right-to-work and Obama criticism.

Video 2: Scott Walker on Iran, Russia and Keystone XL.

Video 3: Scott Walker on medical marijuana, same-sex marriage.

Video 4: Scott Walker advances immigration plan.

Video 5: Scott Walker on winning the millennial vote.

Video 6: 2016 Showdown: Scott Walker vs. Jeb Bush.

It’s no secret that Brown, now 75 years old, would like to be the longest-serving governor in California history. Although he hasn’t formally announced, he is all but sure to run for re-election in 2014.

This likely comes as a major disappointment to several Democratic political stars in California. Attorney General Kamala Harris, Lt. Gov. Gavin Newsom, former Los Angeles Mayor Antonio Villaraigosa and current Los Angeles Mayor Eric Garcetti all want to be governor. Political handicappers — and even some of these politicians themselves — have said as much.

However, they’ll all have to wait until 2018 to significantly raise their political profile — an eternity in politics — unless one chooses to mount a primary challenge against Gov. Brown. Largely because of his political power and fundraising prowess, that’s unlikely. (Should Sen. Barbara Boxer retire in 2016, each could plausibly seek her seat.)

Brown’s Republican rivals are in an even weaker position. As of June 30, Assemblyman Tim Donnelly, R-Hesperia, had only $27,000 cash on hand and $13,000 in debt. Former Lt. Gov. Abel Maldonado only had $45,000 cash on hand, less than half a percent of Brown’s massive $10 million war chest.

There is, however, one man with the potential to beat Brown in 2014. He’s not a Republican. Nor has he ever held elected office. But he has the money, national political connections, and — if he has his way — the name recognition to mount a serious challenge.

Meet Tom Steyer

Tom Steyer, described recently in The New Yorker as “a fifty-six-year-old billionaire, former hedge-fund manager, and major donor to the Democratic Party,” has made a name for himself in national and statewide political circles over the last few years. A standard establishment Democrat, Steyer has found a niche in environmental causes.

CalWatchdog.com has covered several of his recent escapades in California. First, in 2010, he opposed Proposition 23, which would have repealed the Global Warming Solutions Act, a law limiting carbon emissions signed by Gov. Schwarzenegger in 2006. Steyer donated more than $5 million to the “No on 23” campaign, and his political profile grew accordingly. Later, in 2012, he gave over $20 million to support a ballot proposition that would require multi-state corporations to pay taxes in California — with money going toward renewable energy projects. The $25 million wasn’t much for Steyer, who is worth nearly $1.5 billion.

He has also generously spread his money around the country. After involving himself in a Massachusetts special election earlier this year, he drew a rebuke from Rep. Ed Markey, who was pursuing former Sen. John Kerry’s old seat. (Steyer supported Markey, but the congressman took issue with an outsider spending in his race. Steyer has nevertheless vowed to continue donating heavily in races throughout the country.)

Steyer has also been a major Democratic Party donor on the national scene, hosting a fundraiser for President Obama at his home in San Francisco’s swanky Sea Cliff neighborhood. He also raised money for then-Sens. John Kerry and Hillary Clinton when they were pursuing the presidency in 2004 and 2008, respectively.

But beyond just throwing his money at Democratic causes, Steyer has moved to become a star himself. Opposition to Keystone XL, a transnational pipeline that would transfer oil sands from Canada to the Gulf of Mexico, is his vehicle to political fame. He has donated money, attended rallies, and otherwise done everything in his power to stop the pipeline.

Keystone XL

Recently, he starred in several anti-Keystone XL commercials, which the New Yorker noted had a very theatrical feel:

Steyer put on a pair of khakis, changed into a blue shirt, and read his script aloud. “I’m Tom Steyer, I evaluate investments and help grow companies,” he said. “Being successful means learning the difference between a good investment and a bad deal. Today, we look at who profits when Keystone is built. Here’s a hint: it’s not America. We’re on the Gulf Coast at one of the largest refineries in the world, owned by Royal Dutch Shell and Saudi Refining. It’s where tar-sands oil piped from Canada will be refined and loaded on ships to be sold overseas to countries like China.” […]

Steyer’s boat motored through the inlet in search of another backdrop, and stopped at a refinery owned by Valero, the Texas company that happened to be his opponent during his California proposition fight in 2010. The Sanko Amity, a green-and-red tanker, was sitting idle in front of the refinery. Its ballast tank was largely empty, so the ship towered above the water. After anchoring and setting up the shot, Margolis’s partner, J. Toscano, looked into a monitor and was thrilled. “It’s so good, it’s going to seem like Green Screen,” he said.

A makeup artist touched up Steyer’s face, and he stood in front of the Valero tanker reading the script from a teleprompter, as Margolis shouted instructions. “Less angry, more factual,” he said. “More in sorrow than in anger.” After two dozen takes and some B-roll of Steyer floating past the refineries looking at pipelines, they were finished. The ad followed Steyer and Lehane’s California formula: foreign oil from Canada was being sold to foreign refiners in the Gulf and shipped to China, while the oil companies profited.

As political theatre, it was a pretty good ad. Steyer appeared honest and confident[…]

And he’s also pulling political stunts to draw attention, such as buying a “clean energy barn” to put in the path of Keystone XL.

Despite his environmental activism, he is still a businessman. Until recently, he had invested in several fossil fuel companies, including one that had planned to build a pipeline similar to Keystone XL, according to the New Yorker. (He only agreed to divest once Republicans pointed out the hypocrisy of such investments.)

Still, Steyer’s future as a potential political star is bright — and mostly limited by his own decisions.

But what does he want?

Steyer’s political ambition is obvious, though he will soon have to start making choices about where to go from funding ballot propositions and activist campaigns. As a politically conscious billionaire, he has two options. He can go the way of the Charles and David Koch, who spend heavily in politics without running themselves. Or Steyer could become a politician himself, as Michael Bloomberg has.

He hasn’t announced any plans to run for office. But given his decision to place his face — and not just his money — at the front of his campaign against Keystone XL, it’s clear where his activism is headed.

Jerry Brown would be wise to take note.

By Chriss Street

Life is getting more difficult for crony capitalists. President Obama and a bipartisan group of senators was unable convince their pals in Congress to extend ludicrously large subsidies for supposed renewable energy projects under the deceptive label, “The American Energy and Job Promotion Act.”  The senators included Mark Udall, D-Colo Michael Bennet, D-Colo.; Chuck Grassley, R-Iowa; Scott Brown, R-Mass.; and Dean Heller, R-Nev.

The short delay was too much for the largest potential beneficiary of the legislation, as the Blythe Solar Power Project in the Southern California desert filed for bankruptcy.  But it seems that the American taxpayer may have dodged a big bullet since Blythe Power had been approved since April 2011 for a $2.1 billion loan guarantee from the U.S. Department of Energy.  Creditors gasped when bankruptcy papers disclosed that Blythe’s parent company, Solar Millennium, estimated they only have $10 million in assets, and already had between $50 million and $100 million in liabilities.
California is no stranger to renewable energy boondoggles.  Zond Energy was founded in 1980  as America’s first wind-energy company.  Powered by tax credits, Zond promoters raise lots of money from tax shelter-investors and placed hundreds of non-functioning windmills on pristine mountains in Northern California.  When the company filed for bankruptcy in January 1997, Ken Lay as CEO of the infamous Enron Corporation acquired Zond.

Enron then lobbied the state of Texas to enact a broad electricity restructuring bill with a “renewable portfolio standard” that mandated private electric utilities buy a minimum 2,000 megawatts of qualifying renewable energy by 2009; and 10,000 megawatts by 2025.  Enron also lobbied Congress to successfully amend Title XXII of the Energy Policy Act of 1992 to direct the federal government to authorize tax incentives for renewable energy technologies.

Lay’s wheeling and dealing eventually drove Enron’s leveraged empire into bankruptcy four years later.  His scams cost investors $10 billion. and more than 20,000 employees lost their jobs and retirement benefits in the largest bankruptcy in American history.  Lay died prior facing a possible life sentence for his crimes. But Enron’s crony tax credits, mandates and regulations did not die with him.  In May 2002, General Electric acquired Enron Wind Systems and renamed it GE Wind Energy.

Imagine cronyism

GE’s corporate motto is “Imagination.” But it was lobbying muscle that drove wind power.  GE’s $23 million lobbying in 2005 was rewarded with congressional passage of the Energy Policy Act of 2005, that provided more tax incentives and loan new guarantees for renewable energy.

As GE lobbying rose to $26 million in 2009, Congress amended Section 406, the Energy Policy Act of 2005, to authorize added loan guarantees any “innovative technology that avoids greenhouse gases.”

In 2010, GE lobbying soared to $39 million, as the American Recovery and Reinvestment Act of 2009 spiked Congressional funding to $27.2 billion for renewable energy.

Wind power and other renewables have had so much in the way of accelerated depreciation tax breaks, production tax credits, and renewable energy credits that GE has been able to recoup its capital investments within a few years.  The concept of actually selling power has been far down the list of priorities for renewables.  Under law, if renewable sources of energy are available, utilities are required to pay approximately twice the going rate for any wind power that is transmitted to their power grid.

The extension of the crony renewable energy subsidies was originally buried deep in the legislation authorizing the Keystone XL pipeline. But the Senate rejected the measure on a largely party-line vote.  With the GE lobbying machine and bipartisan support, the American Energy and Job Promotion Act appeared headed for easy passage.  But California scandals and high costs may have made green crony capitalism un-renewable.

Feel free to forward this Op Ed and or follow our Blog at www.chrissstreetandcompany.com
Thank you also for the success of Chriss Street’s latest book: “The Third Way.”
Available in hard copy or for Kindle at: www.amazon.com

By CHRISS STREET

Gov. Jerry Brown and other California environmental activists are enthusiastic about advancing “sustainable” energy, such as windmill and geothermal. But oil and natural gas exploration are rapidly advancing — if they’re allowed to happen.

With America on the verge of achieving energy independence in the next five years by dramatically expanding domestic energy production, why should anyone be surprised that it’s Big Oil money that’s out to kill the Keystone XL Pipeline to prevent competition?

Most Americans were stunned when, in an election year, the U.S. State Department on January 18 denied the Keystone XL building permit to construct a 1,661-mile pipeline through Montana, South Dakota Nebraska, Kansas, Oklahoma and Texas. 

The media blamed the rejection on opposition from environmental activists, such as Robert Redford, who commented: “Canada wanted to send the dirtiest oil on the planet through the heart of America so that they could access export routes.”  But polls demonstrated the promise of 6,000 unionized construction jobs and lower-energy costs fostered 67 percent support to build the pipeline and only 25 percent against.

For the last three years, the mantra of the Obama Administration, Gov. Jerry Brown and the Agenda 21 “sustainability” crowd had been the coming of “Peak Oil.” That’s the point in time when the maximum rate of global petroleum extraction would be reached, then the rate of production would terminally decline and the prices would rise exponentially.

“Peak oil” justified more money worldwide for the first time being invested in alternative vs. traditional energy sources to generate electricity.  Projects for wind, sun, water and biomass captured $187 billion, while only $157 billion went into coal, oil and gas.

Unfortunately for “sustainable” investors, this was before the realization that “fracking” and other technology was drastically increasing U.S domestic energy production, causing the gas price to be cut in half.  Based on the U.S. Energy Information Administration data, wind now costs 50 percent more, photovoltaic 300 percent more and solar almost 500 percent more in comparison to burning natural gas to generate electricity.  Retail utility rates in California are 220 percent higher than natural gas due to alternative supply mandates.

Big Oil Backs Alternative Energy

Big oil and gas producers with proven energy reserves quietly supported the Obama Administration’s alternative energy initiatives because they expected the ludicrously high cost of alternatives to drive up prices for their production.  According to the Bureau of Labor Statistics, since Barack Obama has been president, the price of a gallon of gasoline has jumped by 83 percent.

Historically, domestic energy companies drilled for oil and got natural gas as a side product.  If there wasn’t a pipeline to transport the gas in the neighborhood, they usually burned it off at the well head.  Almost all the domestic oil companies at one time had oil and gas pipelines, but the business is highly regulated and allows only annual price increases equal to inflation plus 1.5 percent.

Consequently, energy companies spun off pipelines to the public in the form of highly leveraged Master Limited Partnerships.  Currently, there are 2.3 million miles of oil and gas pipeline in America. Much of that pipeline is ready 40 years old and needs to be updated and replaced.  Pipeline capacity had been growing by only 3 percent per year due the $609,000 construction cost per mile and the expectation domestic production would soon “terminally decline.”

Fracking and other technologies have hugely expanded domestic energy production potential.  Wildcatters are now drilling for spectacular amounts of natural gas and getting oil as the bonus product.  With only five local gas pipelines to service North Dakota’s portion of the Bakken field, drillers have focused on oil production, which skyrocketed to 558,000 barrels a day from 6,000 in 2006.  In just two years, the active drilling rig count vaulted from 33 to 181.

100 Years of Natural Gas

President Obama, who went gaga funding alternative energy projects, admitted in his State of the Union speech last month, “We have a supply of natural gas that can last America nearly 100 years,”  He added, “And my administration will take every possible action to safely develop this energy.  Experts believe this will support more than 600,000 jobs by the end of the decade.”  But that will never happen without big pipelines to transport new oil and gas production to market.

Since the cancellation of the Keystone XL Pipeline, the U.S. average retail price of gasoline for the month of January jumped to its all-time high at $3.51 per gallon, while the price of Bakken oil fell from $95 to $70 due lack of transportation capacity.  Cancellation of the Keystone XL pipeline has been bad for American workers, bad for American consumers and bad for America’s energy independence!  But it sure has been sweet for Big Oil.

Feel free to forward this Op Ed and or follow our Blog at www.chrissstreetandcompany.com

If you would like Chriss Street to speak to you organization, please e-mail chriss@chrissstreetandcompany.com.

Thank you also for the success of Chriss Street’s latest book: “The Third Way,” available in hard copy or for Kindle at: www.amazon.com.