Global Warming Agency Head to Put Stock in Oil and Coal in Blind Trust

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Rather than sell the stocks, a San Fransisco Gate article reports that Nichols is planning to hold the stocks in a blind trust while she chairs the Air Resources Board. Her husband is an attorney who represents Exxon, and she has stated that the decision to retain the shares is a "joint decision" about "family money".

Nichols was appointed to the board by Gov. Schwarzenegger (R) and had held previous government appointments under then-Governor Davis (D). She is respected in the environmental community as a lawyer who specialized in environmental concerns, and from her stint on the Air Board under former Governor Jerry Brown (D). Some in the environmental community questioned the "greenness" of her investment portfolio.

Others questioned the legitimacy of utilizing a blind trust instead of divesting oneself of the stock altogether, especially given the nature of the Air Board's efforts to penalize and curtail the energy industry. It seems reasonable to ask how someone invested in a company could take any action that would harm that company's stock value?

The stocks were disclosed as part of a conflict of interest statement made by Nichols. All top-level government officials are required to disclose any holdings or relationships which might be directly impacted by decisions the official might have to make. The purpose of such conflict statements is to make public any circumstances that may affect government decision making.

The question is, will California citizens balk at the head of their environmental program owning stock in the companies the environmental groups blame for increased warming? They will have the chance to speak through their elected leaders as the California Senate votes to approve the appointment of Nichols to the post. The Senate has a year to take such a vote.