Steven Lucas, a San Rafael attorney who specializes in political law, is listed as the CFO and secretary for two of the groups, Californians for Affordable and Reliable Energy and Californians for Energy Independence. He also held the same roles with Californians Against Higher Taxes until last year.
Lucas did not respond to emails and voicemails requesting comment. The groups he operated were heavily funded by oil refineries and the Western States Petroleum Association, an industry trade group.
Environmentalists and consumer advocates said the advertising campaign is an example of how the oil industry used “astroturf” or “front” groups to try to kill Newsom’s proposal using misleading tactics.
“It’s designed to create the perception that there’s a grassroots movement that’s against oil industry accountability,” said Jamie Court, president of Consumer Watchdog, an advocacy group that pushed to cap soaring gas profits. “These are not real groups; these are phony groups created for the purpose of preventing the oil industry from facing accountability for its high prices and environmental crimes.”
Lawmakers ultimately passed Newsom’s proposal, though it was significantly scaled back after he got a lukewarm response from some moderate Democrats amid the oil industry’s ad push.
The bill Newsom signed into law gives state energy regulators the authority to place a cap on oil refiners’ profits in California — and to set the amount. They also now have the authority to fine companies that exceed the cap and require them to disclose information about their operations and prices.
The Democratic governor’s original proposal would have gone further by requiring legislators to set the amount of the profit cap. Still, the bill that passed was a major victory for environmentalists and consumer advocates who had failed, for decades, to pass measures designed to combat California’s highest-in-the-nation gas prices.
As lawmakers considered Newsom’s measure, the oil industry spent more than $9.4 million in the first quarter of 2023 on lobbying and public-influence campaigning, largely centered on Newsom’s oil profit proposal. About $5.2 million of that money was funneled into the three advocacy groups with ties to Lucas.
Combined, the oil-industry affiliated groups have run 568 social media ads on Facebook and Instagram since December, according to data from parent company Meta.
The ad tsunami started in late 2022, quickly after Newsom called a special session for lawmakers to consider measures to combat skyrocketing gas prices consumers were paying at the pump. He accused the oil refiners of “price gouging” Californians as the price of a gallon of regular gasoline soared to a statewide average of $6.42 last fall.
But opponents of the measure said the accusation that they used “astroturf” or deceptive tactics to stoke a perception of opposition is unfair and negates the concerns of a broad coalition of groups.
They said many business interests, including the California Chamber of Commerce and agricultural companies, also had concerns that Newsom’s approach, including the proposal that lawmakers ultimately adopted and his more aggressive earlier pitch, could have the unintended consequence of driving prices up if it causes oil companies to produce less gas in California.
In addition to Lucas, the three advocacy groups are headed by business association executives. Californians for Energy Independence listed Allan Zaremberg, the former leader of the state Chamber of Commerce who died this year, as its CEO. Californians for Affordable and Reliable Energy lists its CEO as Robert Lapsley, president of the California Business Roundtable, another association of business groups that includes oil companies.
Californians Against Higher Taxes, which was organized by Lucas and the law firm where he works, is now led by Jennifer Barrera, CEO of the Chamber of Commerce; and Thomas Hiltachk, a political attorney. Hiltachk did not respond to a request for comment.
Kevin Slagle, a spokesperson for the Western States Petroleum Association, said the notion that the opposition campaign cloaked its efforts is laughable. He said the groups had to report their spending, and that the effort through third-party groups was combined with ads directly funded and managed by oil companies and WSPA.
“It’s disingenuous to call these efforts fake. They’re very real and they’re based on legitimate policy concerns,” Slagle said. “Our political system has so much transparency built into it.”
Of the two dozen oil companies and trade associations that poured more than $9.4 million into California lobbying and influence campaigns, Chevron contributed more than half of that total. The company, the largest oil refiner in California, spent $4.9 million, including $3.63 million it contributed to Californians for Energy Independence.