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Los Angeles' Bungled Solar Plan

How D'Arcy and Villaraigosa turned clean energy into a dirty dispute

Despite its sunny title, the “Green Energy and Good Jobs for Los Angeles Solar Initiative” is dogged by the fact that the plan to generate 400 megawatts from acres of glistening photo-voltaic panels creates city-government jobs while cutting the area’s hungry private solar firms out of a six-year bonanza.

Measure B landed on the March ballot after less public input than any billion-dollar government scheme in Southern California in recent memory. Criticism has grown intense even as a slick campaign embraced by many leading politicians to win over voters gets under way.

On February 5, City Controller Laura Chick, an often tough-minded fiscal watchdog, publicly broke with Mayor Antonio Villaraigosa to oppose Measure B, which she sees as a confusing, nontransparent, potentially greatly expensive, hurriedly-cobbled-together plan.

“It stinks,” Chick told L.A. Weekly. “The whole way this ended up on the ballot is wrong. It’s wrong not to have a thoughtful debate over the potential cost impacts.”

Chick says Villaraigosa and the City Council put the measure on the ballot despite knowing that a major evaluation of the troubled Department of Water and Power was in the works. That fresh audit questions its cost estimates — as well as the DWP’s ability to handle such long-term planning and analysis.

Chick, whose profile has risen even as her ally Villaraigosa’s has suffered, says, “No one has given a good explanation what we’re voting on, and why we have to vote on it now.”

It could cost $1 billion to $3.6 billion — nobody knows because Villaraigosa and City Council President Eric Garcetti rushed it so quickly onto the ballot. With about two weeks until the election, City Hall is awash in rumors that Measure B isn’t about bringing solar to L.A. — but was meant to provide Villaraigosa a flashy issue in case he faced a wealthy mayoral challenger, such as the developer of the Grove, Rick Caruso.

Sources at City Hall and DWP tell the Weekly that Villaraigosa was determined to place a nationally prominent issue on this ballot to keep his own political ambitions in the spotlight and ensure labor peace with a powerful union whose ranks will grow under Measure B.

Villaraigosa needn’t have worried. Caruso announced on November 7 he isn’t running for mayor — the same day Measure B sailed through the City Council and onto the March 3 ballot, with virtually no planning behind it.

Measure B proponents insist there’s nothing like L.A.’s solar plan — and that’s true.

Other investor-owned and public utilities are pursuing ambitious solar programs. But in sharp contrast to City Hall’s idea, they are keeping a close eye on the superstressed economy — opting to hire flexible contract workers to install solar panels so that crews can be cut as needed, and not swelling government payrolls.

In L.A., that’s not to be. Although Villaraigosa clearly supports large-scale solar, Measure B is the brainchild of the International Brotherhood of Electrical Workers Local 18 business manager Brian D’Arcy. He was assured that IBEW, representing most of the DWP’s 8,500 employees, would get the bulk, if not all, of the solar-installation work. Mostly unknown outside City Hall, the IBEW is feared by officials like Villaraigosa. The union can quickly jam City Council chambers with members wearing matching union T-shirts and threatening to strike. But its demands aren’t always a good idea. IBEW used bullying tactics a few years ago to ram through DWP an ill-conceived, $1.87 million unsecured city loan to a Hawaiian company to develop electric scooters and rechargeable-battery stations. The high-tech experiment flopped.

In 2005, shortly after Villaraigosa was elected — with IBEW help — the mayor handed D’Arcy and his union a five-year contract that guaranteed 16.8 percent in wage hikes, including a nearly unheard-of inflationary clause of up to 28 percent. Villaraigosa’s decision soon prompted other unions to demand the same.

By hurrying it onto the ballot, Villaraigosa avoided a rough road with D’Arcy, whose union historically has impeded green projects but who now sees the advantage to growing his union membership via solar projects.

“There’s a real short-term political benefit for the mayor, too,” the source says of the well-financed Measure B campaign. “In the short run, he gets face time before the cameras.”

Garcetti introduced the solar motion to the City Council on October 15, and Chief Legislative Analyst Gerry Miller reported on October 22 that it could be implemented, without voter approval. But City Attorney Rocky Delgadillo issued a November 4 opinion stating that only voters could approve the sweeping plan.

That’s because Measure B contains a power grab that requires a change to the city’s constitution, known as the City Charter. In its fine print, Measure B shifts significant oversight power away from the Department of Water and Power Commission and gives that power to the City Council, whose members have almost no educational or professional background in energy or technology.

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  • Harold L Katz 02/23/2009 1:10:00 AM

    I support solar energy over any other form of energy, including Wind, though I support Wind even thought the Windmills might be considered an eye sore or may end up killing a few birds. Lately some birds just killed 49 people in that air crash and they brought down a private plane with no deaths. That is life. Like everything the government does, the goal is to benefit the many while hurting the least. We here in California are blessed with both Sun Power and Wind Power. We are years behind in developing both sources of power. I attended Councilman Bill Rosendahl�s debate on Proposition B. To call it a debate is sort of a stretch in describing what really took place. For purposes of transparency I have opposed this Proposition from the beginning, not for its content but for the procedures followed in bringing this Charter Amendment to the Ballot, the fact that it is a Charter Amendment which like the Constitution should never be amended without clear and careful thought and true debate. Finally I opposed it because for the first time in my 38 years of civic activity, a group of eight private citizens who wrote the opposing argument against the Proposition were actually sued, and in my opinion with the blessings of the DWP and their Union. Fortunately the private citizens won in court and I hope they had their legal fees paid for. But I digress from the purpose of this piece. I would estimate that 70+% of the audience was made up of members of the International Brotherhood of Electrical Workers Local 18, whose Business Manger Brian D�Arcy is alleged to be the author of the Proposition. I say allegedly as I have not personally verified that fact. I have strong feelings about public hearings and debates that are loaded with Union members, not because I�m opposed to Unions, I was raised in a Teamster household and both my dad and brother retired on nice pensions from the Teamsters. Union�s are a critical offset to the power of big business. Regrettably, in most cases both sides try to put it to the other side and the pendulum swings from one extreme to the other. I�m from Detroit and I can tell you from first hand experience that the Auto Unions help put the big three where they are, assisted by some of the most stupid executives I have ever run across, but that is another story. That being said, I have recently appeared at public hearings in support of the plans for the Westfield development in Century City and there too 70+% of the audience were Union members in support of the project. So I make the following statement without bias, I don�t like it when a room is loaded with Union members on either side as it makes it impossible to have a real debate and public discussion. The cheers and jeers accomplish nothing. And Councilman Rosendahl�s asking for a show of hands of those opposed and those in support and those undecided was a total waste of time, and a loaded question. I realize that Union members have the right of free speech and they have the right to attend, and they have the right to cheer and jeer, but my point is that at around 9 P.M. I decided I had better things to do with my time. I�m glad I came and listened as it just supported my objection to Proposition B. I do not understand how one Union can lock all other Unions out of all DPW Solar Projects. Los Angeles will be held hostage to what ever demands the IBE makes. Also, how can a Charter Amendment be written by the head of the Union that is going to reap 100% of the benefits.

  • KB 02/16/2009 5:15:00 AM

    Regarding "Clean Money," ironically, the City Council President supports Clean Money yet so far has refused to debate his opponent nor participate in existing campaign finance reform restrictions. The real solution is not Clean Money (although it is a good start). The real solution is to hold office holders accountable and go out and vote and support candidates that are aligned with your positions. It is time for a change. Let's refresh our City Council with new faces, new ideas, and impose our own term limit that was extended by the incumbents.

  • Phil Jennerjahn 02/14/2009 5:58:00 AM

    Measure B is devious and dangerous behavior by the Mayor and the IBEW. Mayor Villaraigosa forces this measure on unsuspecting liberal voters who get hypnotized by the very mention of the words "Solar" or "Green". Uninformed voters vote for it, and the IBEW pockets a vast majority of the 3.6 billion dollar contract while diverting millions into the bank accounts of Antonio Villaraigosa in the form of campaign donations to repay his support of this non-competitive and no-bid contract. EVERY other candidate who is running against Antonio Villaraigosa for the office of Mayor has come out and said publicly that they are strongly against Measure B. The Mayor, not surprisingly, thinks Measure B is a great idea.

  • Wayne Williams 02/13/2009 8:36:00 PM

    With the way this measure was rushed though the City Council to the ballot, I can only hope they use the same oversight when a Full Public Funding - Clean Elections measure is presented to them, Voter Owned Elections is the only thing that will stop this kind of rush for payback process, whether in support of a powerful labor union or well financed corporate or private special interests looking to game public dollars for private benefit without intelligent review. For years, members of the City Council have talked the talk of supporting clean government, now they have a chance to prove it. To fix this mess (their reputations have taken a real hit), demand your city council member support Clean Money for LA and have them put a measure proposed by the public for full public funding of elections on the ballot. Have them take the project the Council requested studied (last year) by the California Clean Money Campaign (www.caclean.org) and put it on the ballot for our thumbs up, or thumbs down vote. At least that way we get to vote on it rather than waiting for hell to freeze over, for that is what we are doing now.

  • William Ernet Schenewerk 02/13/2009 3:41:00 AM

    By 2020 California total power use will vary between 30 GWe and 60 GWe in roughly a sine wave. Minimum power occurs at 04:00 AM and Maximum power occurs at 4:00 PM PDT in August. Problem is that load only drops from 60 GWe at 4:00 PM down to 55.6 GWe at sunset. This limits solar PV to 4.4 GWe statewide. More solar than this and backup power must come on line quickly to make up for when the sun sets. DWP load is roughly 15% of state power, limiting DWP solar to 660 MWe. The 4.4 GWe only runs between 1:00 PM and sunset, limiting daily solar daily generation to 17.6 GWh. Total CA daily power consumption in August would be 1080 GWh. Maximum CA usable solar generation will only be 17.6/1080 or 0.016 of total generation, 1.6 per cent.

 

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