21st Century Muckrakersof the legislative process, there wouldbe even less of a chance for opposingviews to be publicly aired and coveredby the news media. Yet it seemed vitalthat consumers understood what wasabout to happen.Given my years of energy reportingin California, I could spot severalwarning signs early on; others tookadditional reporting to uncover. Thefirst red flag was visible right away.Positing this biofuels policy as atechnical solution to a multilayeredand complex set of energy and environmentalproblems was too goodto be true. Soon, the second red flagemerged when, a few days after hisannouncement, the governor <strong>issue</strong>dallows for a public airing and debateabout proposed statutory provisions.Furthermore, interactions amongstakeholders during hearings provideclues into what is going on behind thescenes from highlighting what really isat stake to showcasing the inevitablejockeying for power.The importance of such open andpublic decision-making hit homefor me well before the biofuels beatgrew in importance and complexity.When I covered California’s 2000-01energy crisis—a time when informationblackouts were far more prevalentthan power outages—then GovernorGray Davis and his top staff secretlynegotiated at breakneck speed $42governor pledged that rules wouldbe developed to ensure carbon-lightbiofuels would slash 13 million metrictons of carbon emissions in 13 years.By using crops and other plants tofuel transportation, Schwarzeneggerintimated that Californians would notneed to alter their energy-consumptivelifestyles.Red flag number three then surfaced.Although oft repeated, the devil is inthe details, yet few specifics abouthow any of this would work emergedat or after the governor’s announcement.Given the complexity and highstakes of this proposed developmentof a statewide alternative fuels policy,there was sure to be a lot of powerbrokering going on behind the scenes.To keep an eye on all of this, the presswatchdog was needed.Questions to Be AskedA woman in Indonesia harvests palm to be used as a biofuel. Photo by Tom Picken/Friendsof the Earth.an executive order—effective immediately—mandatingthat Californiaregulators create the low carbon liquidfuel standard blueprint.An executive order isn’t vetted asan actual bill would be over a courseof weeks and months. While the legislativeprocess is slower and morechallenging, it is also more open—fortaxpayers and the press. I’ve watchednumerous bills get tangled in tit-fortatlegislative politics and, in the end,be tabled. But the deliberative processbillion worth of energy contracts.Many of these deals were overpricedand mismatched to the state’s energydemand, and they significantly alteredthe energy landscape. It took utilitycustomers years to pay off the tab(and cost Davis his job). This debaclehighlighted the critical role the presshas to play in monitoring this kind ofclose-to-the-vest dealmaking and theabsolute necessity of public access tosuch information.Fast-forward to 2007, when thisAs our staff reported this story forCalifornia Energy Circuit, a subscription-basedand ad-free independentjournal read by those with a stake inenergy <strong>issue</strong>s in the West, we sat inon obscure meetings. We read densereports. We asked questions—lots ofthem—of scientists and other energyexperts. We also spent time figuringout how the terms of the debate werebeing defined—and by whom. We didthis because defining terms matters alot in this new energy arena. How aparticular word is defined and usedaffects decision-making and its implementation.As development of regulationsbegan, a lot of assumptions were onthe table. Primary among them wasthat fuels made from corn, sugar cane,soybeans and other plants would helpto slow climate change. Initial testsshowed that corn-based ethanol fuelproduces fewer carbon emissions thangasoline. However, the formula failedto take into account what happenswhen fields to grow corn expand intorainforests, wetlands and other sensitivelands. Add in those factors, andoverall carbon emissions are higher.On the global front, the expansionof crops to create biofuels to feedcars instead of people—supported by68 <strong>Nieman</strong> Reports | Summer 2009
Public Health, Safety and Trustthe European Union and the Bushadministration—already had causedprices of essential staples to soar. Peoplein struggling nations rioted in protestas the price of essential food stocksrose. That situation also had servedto shift the focus of policymakers andregulators from crop-based biofuels towaste feedstocks, such as biomass.Following the MoneyMarket forces also need to be broughtinto reporting about biofuels. For us,this meant keeping a watchful eye onthose in California seeking a pieceof the multibillion-dollar alternativefuels market. By what means wereindividuals and companies gaining afoothold? Were backroom deals part ofthe equation? The governor professedneutrality about which potential biofuelswould likely qualify under the lowcarbon fuels standard in California,while ethanol blends were ranked firstand second on a list of top 10. Andstanding on stage when the governormade his low carbon fuels standardannouncement in January 2007 wasBill Jones, a former secretary ofstate and Republican lawmaker whohad launched an ethanol productioncompany in California called PacificEthanol. Jones had also been at thegovernor’s side for his 2006 announcementof the Bioenergy Action Plan.Certainly, the press handling thisstory in California has had an importantinvestigative role to play in finding outto what degree taxpayers get stuckwith any of the tab for private sectorinvestments. No doubt this situationwill confront journalists in other statesas similar measures emerge.Digging into the financial interestsof the entity or person promoting anexisting or emerging energy source isessential. As things turn out, discoveringthe details of such transactions canbe hard. But sticking with the hunt isBy what means wereindividuals and companiesgaining a foothold? Werebackroom deals part ofthe equation?part of the fun. A few months afterthe governor’s biofuels’ announcement,British Petroleum (BP) announced a$500 million deal with <strong>University</strong> ofCalifornia, Berkeley and two otherpartners to create a bioenergy laboratory.BP’s proposal to own a part of apublic university, as well as the largesize of the agreement and its hiddenterms, generated significant publiccontroversy.I devoted weeks of reporting intrying to get hold of the agreement.I didn’t succeed and only could readthe terms of the deal once they werereleased and after the contract wasa done deal. When I finally read theagreement, it revealed that BP wouldbe permitted access to the work of theuniversity researchers. However, accessto the oil company’s work would berestricted.I’ve covered the energy beat fornearly two decades and rarely have Iseen this kind of skewed arrangementbetween public and private entities.Certainly, the practice of suppressingtechnology or scientific informationis not without precedent. Think“Who Killed the Electric Car?.” Whatwas worrisome and different, in thiscase, was not having the opportunityfor prior oversight by legislators—orjournalists—of such a major agreement,given its enormous implications forfuture energy policy.Navigating through this emergingbiofuels debate is challenging andfascinating. Trying to untangle itsintersecting <strong>issue</strong>s reveals the manycomplicated interconnections betweenthem and the global forces involved. AsFranklin D. Roosevelt once observed,“The throwing out of balance of theresources of nature throws out of balancethe lives of men.”It’s now more than two years later,and the biofuels revolution that GovernorSchwarzenegger unleashed inCalifornia is still underway. In workingto create a low carbon transportationfuels standard, the CaliforniaAir Resources Board encountered amorass of unintended and overlookedconsequences highlighted by a flood ofstudies and reports warning of biofuels’environmental downsides. Yet in April2009 the board adopted a standard. 1Mary Nichols, the board’s chairperson,observed that, “We are attempting toset in motion something that will takeseveral years to implement.”However, the answer to the key questionof which plant-based fuels havelighter carbon footprints than gasolineremains unclear. At the same time,the urgency of calls for curbing globalwarming are escalating worldwide andthe energy market—especially investmentsin alternative energy sources(biofuels, wind, solar)—has tumbledlike the rest of the economy.What this episode from the frontlinesin the energy wars teaches usis why reporters need to understandthe complexity of these <strong>issue</strong>s and bewilling to ask tough questions untilanswers are given. And it means monitoringthose who are gaining powerand poised to profit in the transitionto new sources of energy. Elizabeth McCarthy is the coeditorand co-publisher of California EnergyCircuit, an independent publicationthat reports on government policy andenergy and climate change <strong>issue</strong>s.1The board’s regulation requires providers, refiners, importers and blenders to ensurethat the fuels for the California market meet an average declining standard of “carbonintensity.” This is established by determining the sum of greenhouse gas emissionsassociated with the production, transportation and consumption of a fuel, also referredto as the fuel pathway. Economic mechanisms will allow the market to choose the mostcost-effective clean fuels, meaning those with the lowest carbon intensity.<strong>Nieman</strong> Reports | Summer 2009 69
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