Last-minute oil millions flowing to moderate California Democrats are a ‘double-edged sword’

Oil companies are spending big on California legislative candidates in the closing weeks of the fall campaign, especially moderate Democrats they hope will be friendly if elected.

A political action committee with a freight train of a name — Coalition to Restore California’s Middle Class, Including Energy Companies Who Produce Gas, Oil, Jobs And Pay Taxes — is funded by Chevron, Valero, Phillips 66 and Marathon Petroleum. They’ve dumped millions into Sacramento-area state Senate and Assembly races in October.

Since Oct. 10, the PAC has spent more than $2.6 million on independent expenditure ad campaigns supporting Assembly District 10 candidate Stephanie Nguyen and Senate District 8 candidate Angelique Ashby, according to campaign finance records from the Secretary of State’s Office.

Independent expenditure mailers and television spots come directly from PACs. Candidates and their campaigns have no control over how the money is spent and cannot communicate with PACs about the ads.

The last-minute largesse is coming as oil companies have have taken a PR beating. California gas prices recently spiked and remain about $2 higher than the national average, according to AAA. Gov. Gavin Newsom recently announced plans to call a special legislative session in December to discuss slapping a windfall profits tax on “greedy” oil companies he claims are gouging drivers at the pump.

Moderate Democratic strategists don’t necessarily balk at oil PACs entering the midterm fray. But they can see how it gives more progressive candidates a chance to tie their opponents to an unpopular industry in the final days of the campaign.

“It’s definitely a double-edged sword,” said Steve Maviglio, a Democratic consultant who supports Ashby. “When I saw that ad with the disclaimer with the oil companies and Angelique, I’m like, ‘This is not helpful.’”

Oil spending in Assembly, Senate races

Both Nguyen, an Elk Grove City Councilwoman, and Ashby, a Sacramento City Councilwoman, are seen as business-friendly moderate Democrats. They are competing for seats held by Assemblyman Jim Cooper, D-Elk Grove, and Sen. Richard Pan, D-Sacramento, both of whom were well-known moderates.

The Coalition to Restore California’s Middle Class has spent more than $948,000 to support Nguyen, nearly $800,000 of which went to TV ads. One playing on Sacramento-area TV stations touts endorsements from Cooper and Pan, directly telegraphing Nguyen’s moderate bona fides.

The PAC has also spent more than $1.6 million backing Ashby, with about $1.2 million going to TV.

Both candidates took money from oil companies or PACs with oil funding ahead of the June primary. Nguyen received $3,000 from Valero in May. Ashby got into hot water during her primary when she accepted $4,900 from Californians for Jobs and a Strong Economy, a PAC that backs moderate Democrats and gets a portion of its funding from oil companies.

Big oil puppets?

Nguyen and Ashby’s opponents are using the PAC spending and direct donations to paint the candidates as puppets of big oil.

Michael Soneff, a consultant for former insurance commissioner Dave Jones, who’s running against Ashby, said in an email that oil companies “will spend whatever it takes and say whatever lie it takes to try to buy this election for Angelique Ashby.”

Soneff said Jones, who supports Newsom’s windfall tax proposal, is a target for oil companies because of his pro-environment stances.

Sacramento City Councilman Eric Guerra, Nguyen’s opponent, released a statement on Wednesday saying oil companies “are rightly afraid that I will go to the Assembly and fight to stop the Big Oil rip-off at the pump.”

Guerra pledged to push for Newsom’s windfall tax if he is elected.

Jones and Guerra have both sent ads to voters depicting Ashby and Nguyen as shady figures beholden to oil interests.

A recent Guerra mailer says, “Big Oil is all in for Stephanie Nguyen,” with a pair of hands on the front pushing a pile of poker chips.

“Big Oil obviously took a close look at Assembly candidate Stephanie Nguyen and liked what they saw,” the mailer reads in part.

A pro-Jones PAC, The California Alliance, A Coalition of Consumer Attorneys, Conservationists and Food and Commercial Workers, recently held a “Big Oil Loves Ashby” rally. Climate activists came together with unions representing nurses and food, commercial and service workers to attack Ashby for receiving support from oil companies.

Ashby, Nguyen, moderates on oil

However, Ashby, Nguyen and moderate Democratic strategists take issue with claims that PAC spending will ensure candidate support.

Ashby said in an Oct. 12 Twitter thread that she “(denounces) support from Big Oil.”

“I look forward to working with the Governor on his proposal to stop windfall profits by oil companies and out-of-control gas prices,” she wrote.

Andrew Acosta, Nguyen’s campaign consultant, said it’s “hard to comment on legislation that doesn’t exist.”

“When there’s something concrete and she’s in the Legislature, it’s a conversation worth having,” Acosta said.

Acosta also hit back at Guerra, citing attacks from groups that support him, like the real estate interest PAC that claimed the nonprofit Nguyen runs hadn’t paid its taxes.

“Hundreds of thousands of dollars are being used to attack Stephanie by independent groups,” he said. “I haven’t heard Eric Guerra tell his supporters to stop.”

David Townsend, a Democratic strategist who runs the Californians for Jobs and a Strong Economy PAC, said the helpfulness of oil spending can be assessed on a case-by-case basis.

“Doesn’t hurt you in the Central Valley, it would hurt you in Berkeley,” he said. “But, I mean, oil is pretty important to our economy. And they should certainly be able to have a voice in elections.”

He said all politicians eventually end up aligned with various interest groups.

“There’s not a candidate running for office who doesn’t play for a team,” Townsend said.

This story was originally published October 31, 2022 at 4:30 AM with the headline "Last-minute oil millions flowing to moderate California Democrats are a ‘double-edged sword’."