Connect with us
[bsa_pro_ad_space id=12]

Daily Caller

‘A Tough Place To Do Business’: Chevron Exec Details Company’s Decision To Move HQ Out Of California

Published

5 minute read

From the Daily Caller News Foundation

By Nick Pope

 

A top Chevron executive detailed his company’s decision to move its headquarters out of California in a Thursday roundtable with reporters.

Andy Walz, president of Chevron Americas products, said that California’s crusade against conventional energy producers played a role in the company’s decision to move its headquarters to Texas. Measures like California’s 2035 ban on internal combustion engine vehicles and its emissions cap-and-trade rules were specific headwinds that played a role in the company’s decision to move its headquarters to Houston, Walz said.

“It is a difficult place to do business. It’s a difficult place to be headquartered. And we finally said, ‘Hey, that’s enough. We’ve got critical mass, we’re gonna move.’ We’re also going to improve our performance by getting everybody in the same location,” Walz explained.

Walz made clear that part of the reason for Chevron’s headquarters relocation is that parts of its operations and senior leadership have already been stationed in Texas, and that the company believes its performance can improve if employees and executives are in the same place. The company is not walking away from its assets in California, andChevron plans to continue operating them into the future, Walz said.

“California is a tough place to do business. It’s a tough place to recruit people. It’s a tough place to move employees. A lot of our employees move up through the company, they gain experiences in different geographies, different locations, and we have a lot of people that will not move to California. That makes it difficult,” Walz said. “California is a tough place to have a big employee base. It’s tough, its cost of living is expensive, and we were not able to get employees that didn’t live there to move there. And that’s not sustainable for us, to be honest.”

California has the third-highest cost of living of all states, trailing only Hawaii and Massachusetts, Forbes Magazine assessed in July. Overall, California has seen net outflows of population in recent years, with more than 800,000 people moving out of the state in 2022 alone, according to Forbes.

Additionally, more than 350 companies moved their headquarters out of the state between 2018 and 2022, according to Forbes.

“California has said, ‘Hey, you cannot buy a new car that has an internal combustion engine in it after 2035.’ So, that’s a headwind against investing in a refinery. On the books, they have a windfall profits tax or penalty, they’re evaluating how to deal with that, they want to cap the amount of profits you can make in your refinery. That is a headwind for anybody that would want to put money into it to try to get a return on their investment,” Walz said. “And the third thing that maybe is even a bit more crippling is this: they have a program called cap and trade, where they tax your CO2 emissions in the state of California. And that tax continues to go up every year, and it gets more burdensome every single year. So those three regulations, those three policies, really make it hard for me to want to put more capital into the state of California. Therefore, I think the business case there is really challenging.”

“Our competitors are looking at the exact same equation I’m looking at, and our money is going other places, and California can’t get supplied from Houston,” Walz said. “It doesn’t work.”

The Environmental Protection Agency’s (EPA) recently-finalized tailpipe emissions standards for light- and medium-duty vehicles — which have been characterized by critics as an “EV mandate” — are another policy that Walz believes will have “consequences” if implemented.

Walz’s comments on the business environment in California echo Chevron CEO Mike Wirth’s recent remarks to The Wall Street Journal, in which he said that “California has a number of policies that raise costs, that hurt consumers.”

As news of Chevron’s headquarters relocation broke earlier in August, the office of Democratic California Gov. Gavin Newsom told the Daily Caller News Foundation that the company’s decision was the “logical culmination of a long process that has repeatedly been foreshadowed by Chevron.”

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Daily Caller

Union Bigwigs Decline To Endorse Anyone For President Despite Rank-And-File Members Overwhelmingly Backing Trump

Published on

From the Daily Caller News Foundation 

By Robert Schmad

The International Brotherhood of Teamsters on Wednesday declined to make an endorsement in the 2024 presidential election just hours after releasing internal polling data showing that the workers it represents strongly favor former President Donald Trump.

Among rank-and-file members of the major union, 59.6% surveyed said they believe the Teamsters should endorse Trump, compared to just 31% voicing support for Vice President Kamala Harris, a more than 25-point gap that remained more or less unchanged after the union ordered a subsequent survey after the Sept. 10 presidential debate. Despite the poll results, the union refused to make an endorsement as there was “no majority support” for Harris and a lack of “universal support” for Trump, it revealed on Wednesday.

A Teamsters spokesperson did not immediately clarify why the union had different standards for the two candidates. 

“The Teamsters thank all candidates for meeting with members face-to-face during our unprecedented roundtables,” Teamsters General President Sean O’Brien said. “Unfortunately, neither major candidate was able to make serious commitments to our union to ensure the interests of working people are always put before Big Business. We sought commitments from both Trump and Harris not to interfere in critical union campaigns or core Teamsters industries — and to honor our members’ right to strike — but were unable to secure those pledges.”

The union cited Trump’s refusal to commit to vetoing right-to-work legislation as part of its reasoning for not issuing an endorsement.

The Teamsters, which have historically supported Democrats and often donate to left-of-center causes, made an effort to court Republicans this election cycle. The union made a donation to the Republican National Committee, met with Trump, and O’Brien was even invited to speak at the Republican National Convention. Some on the right have resisted the union’s attempt to ingratiate itself among conservatives, like the Center for Union Facts which put up billboards outside the Republican National Convention calling the Teamsters “two-faced” over its history of liberal spending.

While Republicans were generally open to the Teamsters, the Democratic National Convention snubbed O’Brien by not allowing him to speak at the event, according to The Associated Press.

Harris is considerably less popular among rank-and-file Teamsters than President Joe Biden, who only trailed Trump by about 8 points in a survey ordered by the union prior to his withdrawal from the race. Union leadership met with Harris for a roundtable discussion on Monday, The Hill reported.

“We represent everybody from airline pilots and zookeepers, and we don’t just represent registered Democrats,” O’Brien said to reporters.

The Teamsters’ endorsement could have had a significant impact if it went to either candidate given the concentration of its members in the swing states of Michigan, Nevada and Pennsylvania, according to Reuters.

Continue Reading

Daily Caller

Biden-Harris Admin’s Multi-Billion Dollar Electric School Bus Program Is A Huge Gift To China, House Report Finds

Published on

From the Daily Caller News Foundation 

By Owen Klinsky

The Biden-Harris administration’s $5 billion Clean School Bus Program uses nearly 400% more taxpayer dollars per school bus and benefits the Chinese Communist Party (CCP), a House report revealed Tuesday.

The 51-page report from the House Committee on Energy and Commerce found promoting electric school buses and other electric vehicles (EVs) enriches the CCP as the EV supply chain is roughly 90% dependent on China, raising both national security and human rights concerns. It also highlighted immense expenses for taxpayers, with the average electric school bus under the first iteration of the Clean School Bus Program — the first of three iterations — costing $381,191, nearly four times that of a typical full-sized diesel school bus.

“It is clear the $5 billion Clean School Bus Program is overall a failure and, in many cases, a waste of Americans’ hard-earned taxpayer dollars,” Republican Congresswoman Cathy McMorris Rodgers, who chairs the House Committee on Energy and Commerce, said in a statement regarding the report’s findings. “The program, led by the radical Biden-Harris EPA [Environmental Protection Agency], props up a market that relies heavily upon a supply chain dominated by the Chinese Communist Party.”

Funded by the 2021 Bipartisan Infrastructure Law, the Clean School Bus Program provided the Biden-Harris EPA with funds over five years to “replace existing school buses with zero-emission and clean school buses.”

China currently accounts for approximately two-thirds of global EV battery cell production, while the U.S. manufactured just 7% as of 2022, raising national security concerns as the U.S. would likely have to depend on Chinese EV technology for its electric school buses, according to the report. Furthermore, the government-subsidized purchases of electric school buses under the Clean School Bus Program incentivize pre-existing human rights abuses in the EV supply, including the use of Uyghur forced labor in China’s Xinjiang region.

The report also identified limited range as an issue, with standard electric school buses from leading manufacturer BlueBird able to travel just 120 miles on a single charge, while some propane models can travel 400 miles before needing to refuel. The range problem can also be exacerbated by cold and warm weather conditions, with a study from the National Renewable Energy Laboratory finding electric transit buses lose roughly a third of their range at 25 degrees Fahrenheit compared to ideal conditions.

Electric school buses also increase the risk of fraud due to a lack of documentation requirements for contractors, with the EPA relying solely on self-certified applications and estimates created by applicants, according to the report. A separate July report from a Maryland county’s Office of the Inspector General resulted in millions of dollars in “wasteful spending.”

“The EPA launched the Clean School Bus program without sufficient safeguards and considerations for practical hurdles applicants may face. For example, the EPA did not require documentation for some of the required application information and allowed contractors enthused at the opportunity to receive federal funding to apply on behalf of unknowing school districts, some of which eventually withdraw from the program,” the report states. “The EPA failed to account for the considerable electric infrastructure upgrades that electrifying a school bus fleet could require, potentially leading to delays for schools in utilizing their new buses.”

The White House did not immediately respond to a request for comment.

Continue Reading

Trending

X