While the foliage transforms into red and brown hues across California, a substantial amount of financial resources has been dedicated to influencing the perspectives of policymakers throughout this year.
Between January and September, a staggering sum exceeding $358 million was invested by nearly 4,000 entities—comprising companies, organizations, and local governments—in lobbying efforts directed at California’s government. This marks a nominal increase from the same period in 2022, when lobbying activities totaled $333 million. The overall expenditure for 2022 surpassed $437 million. Data for October through December of the current year awaits reporting until early next year. Historically, about 24% of lobbying funds are disclosed in the last quarter of the year.
The primary contributors to lobbying expenses this year were Chevron Corp. and the Western States Petroleum Association, allocating nearly $10 million and $5.3 million, respectively. This aligns with their consistent presence among the top three highest spending lobbying entities in the state over the past four legislative sessions. Cumulatively, since 2005, they have dispensed over $188 million in advocacy efforts.
Amid California’s ambitious climate goals, which include a ban on new gas-powered cars by 2035, the oil industry faced challenges. Governor Gavin Newsom’s initiation of a “windfall profit” tax aimed at regulating refining gasoline profits was a focal point. Although the bill was eventually diluted, with doubts raised by lawmakers, it marked a significant lobbying priority for oil companies.
The Hawaiian Gardens Casino emerged as the third-highest spender on lobbying activities in 2023, redirecting its annual expenditure trend. Having historically spent around $120,000 annually between 2013 and 2022, the casino devoted more than $5.1 million since January, emphasizing budget issues, licensing fees, and advocating for or against specific bills related to casino regulations and outdoor advertisements.
McDonald’s claimed the fourth position in lobbying expenses, notably intensifying its spending this year, primarily targeting AB 1228. This bill, amended through negotiations with labor unions, aims to elevate the minimum wage for fast-food workers to $20 per hour by April, accompanied by the establishment of a labor standards council. McDonald’s directed over $4.5 million of its lobbying funds to a group opposing AB 1228.
The Energy Foundation, a coalition of philanthropies concentrating on climate issues, allocated over $4 million to lobby the California Air Resources Board concerning regulations for transitioning the state’s truck and bus fleets to zero-emission vehicles. This spending represents about 40% of the foundation’s total advocacy expenditure since early 2021.
The Service Employees International Union’s California State Council ranked as the second-largest “lobbyist employer” in the state, expending $3.3 million this year. Since 2005, the council has dedicated over $78 million to lobbying Sacramento on behalf of public employees.
Beyond general lobbying expenses, disclosure reports for money spent on the California Public Utilities Commission, a powerful regulator of privately owned infrastructure, were also mandated. In 2023, 33 companies surpassed $2 million in lobbying this commission.
Lobbying firms, responsible for hiring lobbyists, reported receiving just under $219 million this year, constituting approximately 57% of the overall advocacy expenditure at the state level. Additionally, advocacy funds not involving lobbyists directly, such as digital advertising, amounted to nearly $25 million by the end of September.
Despite the substantial sums invested in lobbying activities this year, this expenditure is a relatively small fraction compared to the broader economic scope regulated by California’s government.
