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COLUMNISTS
TODAY'S STORIES
18.08.2008
Pelosi and Pickens, Sitting in a Tree...

The Washington Examiner has published an editorial marking some interesting cross-pollination going on between House Speaker Nancy Pelosi and billionaire crackpot-turned-climate warrior T. Boone Pickens, whose plan to build wind farms throughout the plains-state corridor has been getting massive airplay and quite a bit of traction among the Washington power class. He's met personally with John McCain and Barack Obama in the last week, and has been pressing the flesh among legislators and other powerful folks since rolling out his platform in July. He makes a reasoned case for public and private investment in renewables (the natural gas-in-cars boondoggle aside) and, it seems, Pelosi has favored the pitch for years:

[I]n May 2007, Pelosi invested between $100,001 and $250,000 to purchase public common stock in Pickens’ Clean Energy Fuels Corporation (CLNE). Pelosi's CLNE investment was first highlighted by Eric Odom on the #don'tgo blog.

CLNE is a cog in Pickens’ $6 billion plan to build a massive wind farm in west Texas and to switch millions of vehicles on American roads from gasoline to natural gas. Pelosi’s CLNE purchase is listed on her most recent congressional personal financial disclosure form, which can be viewed at Opensecrets.org.

A search of Pelosi’s official web site found no announcement of the investment in the Pickens operation. A request to the Speaker’s official spokesman yesterday for information about the investment went unanswered. Coincidentally, Pelosi’s investment came the same month as the House passed the Honest Leadership and Open Government Act of 2007, which she hailed as making the Congress over which she helps preside “the most open and honest in history.” There are numerous ways Pelosi could provide assistance to CLNE and Pickens, including helping secure federal tax advantages. Pickens expects at least 15 percent profits on the wind farm and associated initiatives. At CLNE’s $14 per share value, Pelosi appears to own between 7,000 and 17,000 shares.

Maybe I need a larger microscope, but I don't see any actual wrongdoing here--and "helping secure federal tax advantages" for renewables like wind and solar is something Pelosi has supported for ages--and is, in fact a fine idea that would lift all boats in the newer industries, not just CLNE's. I'd call it a smart investment--but I'm not the Speaker of the House. Pelosi, who's also one of the richest members of Congress, should answer to the conflict of interest, and if she does divest from Pickens, should at least draw attention to the market-based approach that will bring these industries to scale.

Adding to the intrigue is this story out of today's NYTimes, in which renewable energy has prompted lawless, There Will Be Blood-type skirmishing over land permits and local rights in upstate New York. Perhaps this calls for revisiting the adage--power corrupts, wind power corrupts...breezily? Read the whole Confessore piece for yourself.

--Dayo Olopade

Posted: Monday, August 18, 2008 12:12 PM with 6 comment(s)

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r-ennis said:

Pickens is no crackpot. Shame on you. He is risking his own money to have a substantial impact on our energy future. And he makes sense. Nothing wrong with Pelosi investing in CLNE.

August 18, 2008 3:06 PM

teplukhin2you said:

I'm with Dayo. The shift to alternative energies is rife with conflicts of interest. One little nudge in federal policy or funding is enough to send the ROI soaring for a green venture or venture fund, and the money guys know this.

The VCs, Pickens, investment bankers like Pelosi's hubby are going to be all over the alternative energy boondoggle. It's easy Pickens for a hungry investigative journalist.

Go get 'em, Dayo and Co.

August 18, 2008 5:41 PM

AlanSP said:

r-ennis,

The "crackpot" label has nothing to do with his current renewable energy campaign.  He's the guy who bankrolled the Swift Boat Veterans for Truth (to the tune of $3 million).  He also put out a challenge saying that he'd give $1 million to anyone who could refute the claims the group made about Kerry...and then backtracked when Kerry (and later the vets who served with him) accepted the challenge and produced documentation.

Hence, crackpot-*turned*-climate warrior.  Good for him.  No reason to turn away a guy who's willing to seriously invest in wind energy just because of his history as a slimeball.

August 18, 2008 6:54 PM

r-ennis said:

tep, your point is well taken. That is the main reason I am against subsidies of any kind. The government, through the EPA or something, should promulgate standards, including climate standards and let the free market pick the winners and losers. This is workable.

Alan SP, I was not aware of Pickens' involvement in Swift Boat affair. That makes him a "slimeball" if you are unhappy with the result. But a crackpot has the connotation that his actions are not rational. Would you call George Soros a crackpot?

August 19, 2008 11:55 AM

teplukhin2you said:

Sounds like a good approach, r-ennis. Journalism-- real journalism, not bloggery-- also is important here. Sunlight, disinfectant and all that.

August 19, 2008 12:01 PM

AlanSP said:

I tend to think of "crackpot" as being more about fanaticism than whether one's actions are "rational" in the sense of producing the desired outcomes.

At any rate, it actually has very little to do with my happiness about the result.  If a Democratic 527 put out Swift Boat type ads attacking McCain's service with outright lies, I'd call the guy bankrolling them a slimeball as well.  Sleaze is sleaze, even if it helps my guy.

August 19, 2008 2:22 PM