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Frank D. Russo

The California Progress Report is published by Frank D. Russo, a longtime observer of and participant in California politics.

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Schwarzenegger Accepts $100,000 from Chevron as Californians Get Hit with Record Gasoline Prices: Citizen Petition Calls for Special Session

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By Frank D. Russo

The Foundation for Taxpayer and Consumer Rights (FTCR) has just unloaded on Governor Schwarzenegger for accepting a $100,000 donation from Chevron Corporation just as gasoline prices were hitting a new all-time record in California. They are calling for the Governor to return both the new donation and the rest of the $665,000 he and his political committees have taken from Chevron. Calls to return campaign contributions are usually like playing a baseball game under protest. Where there has been egregious action it usually makes the point, but it is exceedingly rare that contributions are returned.

The donation, posted on the state’s campaign disclosure web site today, was made May 1, a few days after Chevron reported another first-quarter profit record. Chevron is the West's largest refiner and has been raking in disproportionate profits on California gasoline prices that are 45 cents to 50 cents higher than in the rest of the nation.

The Foundation is not alone. Today, the San Jose Mercury News has an article questioning the Governor's fundraising that is raising the eyebrows of many good government groups.

What galls the FTCR even more is that Schwarzenegger recently offered special private meetings to those who gave $100,000 to his California Recovery Team, which amounts to a political slush fund, said FTCR. This is clearly laid out--in the donation document form which makes the offer of meetings and conference calls with the Governor a quid pro quo for the money contributed.

This, from Schwarzenegger, who is demanding campaign finance reforms be placed on the February 5, 2008 ballot limiting only the timing of contributions but not the amounts. Well, the timing could hardly have been worse than here, regardless of what stage we are in for the Governor of the legislature.

Ramping up the rhetoric, Jamie Court, President of the FTCR said: “If Gov. Schwarzenegger keeps Chevron’s cash and continues his political silence while Chevron robs California motorists blind, he’s not just a girlie man, he’s Chevron’s girlie man. It is scandal enough that Governor is still accepting big corporate donations even though he won’t be running again for governor or any other state office. But to take $100,000 from Chevron at the same time as gas prices in California surpassed record highs is to spit in the face of Californians.”

Judy Dugan, research director of the Foundation for Taxpayer and Consumer Rights and their site OilWatchdog.org bluntly asked: "Can Gov. Arnold Schwarzenegger break his peculiar silence on the biggest consumer crisis of his administration? Or will he be like Gov. Gray Davis during the California energy crisis of 2001, fumbling as the state nearly went dark?"

Dugan also said: “It is astonishing that no one in Schwarzenegger’s office, or the governor himself, could see that this stinks to high heaven. California is gripped by the highest gasoline prices in the nation as Chevron has doubled its profit margin on making gasoline in the West. Chevron’s donation can only be seen as a big thank-you for the governor’s silence on the issue. Arnold doesn’t have to care what it costs to fill his Hummer—that would be $112 for the H2. But he seems weighed down by the $3.8 million in contributions he and his committees have gotten from the oil industry."

FTCR is also asking the Governor to call a special session of the legislature on gasoline prices. They have launched a petition drive as part of their effort.

They say the most obvious solution is for the state to regulate refineries as though they were public utilities (like electric companies), and "require a supply that’s sufficient to prevent these ridiculous, profiteering price spikes."

FTCR also noted that California lawmakers have been silent on the price spikes, which are driven by the refusal of oil companies and refiners to provide sufficient gasoline supplies to California and the rest of the West.

Posted on May 09, 2007

Comments

What is Schwarzenegger's excuse?

I NEVER ASKED FOR IT. THEY GAVE IT TO ME, SO I TOOK IT.

Everyone in government should have gone through Ethis Class. Perhaps the Governor and his people should go again. I'll give them the benefit of doubt that they failed the class or have forgotten their lessons. There should be no excuse this time when they commit another ethic violation.

Posted by: Ehics at May 15, 2007 01:44 AM

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