Consumer Watchdog Report Explains Why Powerful Electric Worker Lobbyist Scott Wetch Flipped On Plans To Turn CA Climate Laws Over To Trump; Self-Interest & AI Data Center Push Behind SB 540 Exposed

Posted on April 17th, 2025 | Filed under Press Releases

LOS ANGELES, April 17, 2025 /PRNewswire/ — A new investigative report by Consumer Watchdog explains the sudden reversal by electric worker and corporate lobbyist Scott Wetch to support a controversial energy bill SB 540 (Becker), known as “Pathways,” which cedes control over California environmental laws to Trump.

“Once a vocal opponent of California entering a regional energy grid, Wetch now backs the very policy he previously claimed would devastate California’s environment, raise rates, and cost millions of jobs,” said Justin Kloczko, author of “Dirty Deal: How A Corporate Utility Fixer Is Poised To Turn Over California Climate Law To Trump.” “To understand Wetch’s flip, you just need to follow the money.”

The report traces the economic motivations for Wetch’s change of heart and the massive wealth the worker lobbyist has accumulated, including a $13 million real estate portfolio with a $4 million dollar ocean view home in Maui, which he notoriously shopped for on the Fox Business TV show “American Dream Home.”

The longtime influential Sacramento lobbyist previously blocked multiple grid regionalization efforts—including Assembly Bill 813 in 2018 and AB 538 in 2023—citing fears of ceding California’s energy policy to a Trump-controlled Federal Energy Regulatory Commission (FERC). Now, with SB 540, Wetch is not only backing the proposal but actively lobbying for it under a new Trump regime, said the California nonprofit. Other building trades unions – including the laborers, iron workers, and boilermakers — oppose moving forward with SB 540 based on concerns about Trump.

These are the main findings:

PacifiCorp, a Western utility owned by Warren Buffet that has coal power plants and is a main backer of the Pathways proposal, signed a lucrative new contract in 2024 with International Brotherhood of Electrical Workers (IBEW) Local 659 – cementing an alliance with IBEW, Wetch’s big client.

Data centers, and their need for more energy to power the AI revolution are driving the rush to a Western Regional Organization, and IBEW workers are the principal beneficiaries of the growth of data centers. The data centers are being built by IBEW workers in what has been described as a gold rush for unionized electricity workers. Wetch has pushed for more data centers, and his newfound support for Pathways is consistent with getting more data centers online regardless of the cleanliness of the power that runs them.

The biggest driver of Pathways is no longer just PacifiCorp, but Amazon, Google and Microsoft, and the rest of the Magnificent Seven stocks that need more and more electricity for their AI operations. Amazon is a Wetch client, and the future synergies for his new lobbying firm Actum are evident. The two biggest shadow backers of Pathways are Wetch and Governor Newsom, whose fealty to AI and Silicon Valley’s goals is clear in his legislative record. SB 540’s author Senator Josh Becker, known as an environmentalist, also represents the Silicon Valley, and his financial disclosure forms show he has lucrative investments of between $250,000 and $3.5 million in an AI-driven stock portfolio. He also reports more than $100,000 in income as a paid “advisor” for one of the companies, SB Technology, which emerged from Alphabet, the parent company of Google. Becker reportedly told multiple people around the Capitol he promised the Governor and Wetch he would get SB 540 done. Becker has thus far refused to take a pledge, proposed by Consumer Watchdog, to resign from public office if California’s Renewable Portfolio Standard (RPS), is invalidated by Pathways.

SoCalGas is a client of Wetch, according to disclosures from a state commission Wetch sits on, and his new firm Actum. SoCalGas and its parent company Sempra will benefit under the Western grid as Sempra owns a company that builds transmission lines and more lines will be needed and financed by ratepayers. The utility previously created an Astroturf front group to fight electrification across California that, according to IRS forms obtained by Consumer Watchdog, lists Wetch as a board member.

Pacific Gas & Electric, the employer of IBEW, will also benefit from the Western grid because of the incentive to build more transmission lines and to charge more for their power under the Regional Organization scheme. Wetch has long had an alliance with PG&E in the Capitol, fronting through the IBEW for various PG&E proposals. On legislative issues, he’s aligned labor with PG&E and SoCalGas to fight environmental, consumer rights, and affordable housing bills.

The investigation also turned up numerous personal transgressions by Wetch. The utility worker union lobbyist has three times had liens filed against him for failing to pay utility bills. In 2013, Wetch was charged with driving under the influence in Sacramento County, to which he pleaded no contest to a reduced charge, and was sentenced to a maximum of nine days in jail and three years’ probation, according to court records on LexisNexis. His divorce revealed how Wetch is willing to wield his wealth and influence as a cudgel to silence those who stand in his way. In one particularly provocative text message attached to the court, Wetch said: “I have the access to capitol and earnings capacity to litigate you to death. You have f**ked with the wrong guy.… You want to go to the ground, bring it on b**ch!!!!!!!”

As the report documents, under Pathways, Trump’s FERC and any market participant will have the legal right to invalidate our environmental goals and force California to buy coal-powered energy, said Consumer Watchdog.

“Pathways is now being quietly driven by Amazon, Google, and Microsoft,” the report states.

“The fundamental question is are we good selling our environmental laws out to the Silicon Valley so it can run more data centers?” said Jamie Court, president of Consumer Watchdog.

“It’s a battle of tech bros versus California climate laws,” said Court. “What other force would be great enough to have California subject its climate laws to Trump other than the power of the Magnificent Seven tech companies? Governor Newsom will be out of office in a year and half but every legislator who votes on SB 540 will have to deal with the day that Trump’s FERC undoes our Renewable Portfolio Standard and forces us to pay for coal. It’s inevitable if we give FERC that power, soot will be on the hands of every legislator who makes this change.”

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