AUSTIN -- Dan Grant knows he faces an uphill battle.
A former Pentagon contractor who organized elections in Iraq and Afghanistan, the Austin Democrat is now hoping to unseat a four-term Republican incumbent in conservative Central Texas.
"People in this state are angry that our Congress has not been doing its job, and its primary job is getting the economy moving, and they'd rather play games," Grant told KVUE in an interview at KVUE's Steck Ave. office.
Even as an official map for Texas' 10th Congressional District remains up in the air, Grant has fired his first salvo accusing Congressman Michael McCaul of pushing for approval of the Keystone XL Pipeline while owning stock in the pipeline's parent company, the TransCanada Corporation.
According to 2010 personal financial disclosure documents obtained by KVUE, McCaul reported that his spouse and a dependent child owned assets in TransCanada worth between $115,000 and $300,000.
According to the same report, two purchases of between $15,001 and $50,000 each of TransCanada stock --- one on Nov. 18 and another on Dec. 21 of 2010 -- were attributed to McCaul's spouse. Two purchases of between $1,001 and $15,000 each were attributed to a dependent child on the same dates. A separate sale of between $1,001 and $15,000 worth of TransCanada stock was attributed to each on April 23. McCaul reported a total of more than 700 assets in 2010 worth between $250 million and $500 million.
McCaul is one of five members of Congress who have reported personal or family-owned assets in TransCanada, including Rep. Thad Cochran (R-MS), Rep. Judy Biggert (R-IL), Rep. Carolyn McCarthy (D-NY) and Rep. Vernon Buchanan (R-FL). McCaul was one of dozens of lawmakers who signed a letter dated Dec. 22, 2010, urging Secretary of State Hilary Clinton to move forward with the pipeline project.
House ethics guidelines regarding members of Congress and companies and organizations in which they may have a financial interest are broadly written. According to the House Ethics Manual, members of Congress are regularly permitted and at times required to vote on legislation that affects companies they own stock in. They are also not necessarily prohibited from advocating for similar legislation. Rather than a specific violation of ethics code, what's at stake may be a broader issue of perception. Regardless, Grant sees a problem.
"You shouldn't be going to Congress to support legislation that profits you personally. That's the definition of insider trading, and it's deeply troubling," said Grant, who says he would support an ethics investigation into any members of Congress who vote on or advocate for companies in which they have a financial interest.
McCaul spokesperson Mike Rosen denies any untoward behavior on the Congressman's part, and in a written statement to KVUE said McCaul is not personally involved in the management of his or his family members' investments:
"Congressman McCaul does not, and has not during his tenure in Congress, personally traded or instructed anyone to trade any security on his behalf, and he is legally precluded from having any involvement or knowledge of specific investment decisions made with regard to securities listed as his wife's separate property which are disclosed in his annual personal financial disclosure."
McCaul, who himself is a member of the House Committee on Ethics, is a co-sponsor of the STOCK Act as introduced in the House and says he plans to vote for it if it comes to the floor. The STOCK Act would apply to lawmakers whose committee appointments make them privy to inside information pertaining to certain companies, and prohibit them from using that information for financial gain.
In a statement to KVUE, McCaul reiterated his support of the pipeline that would carry crude oil from Canadian tar sands to Texas refineries:
"The Keystone Pipeline would create thousands of jobs in several states – many of them in Texas. When operational, it would represent nearly 10 percent of U.S. petroleum imports and decrease our reliance on oil from the Middle East and countries such as Venezuela that don't like us. I have and will continue to support projects and policies that strengthen America's economic and national security."
For his part, Grant isn't opposed to the project either, so long as certain precautions are attended to.
"I would back it if it's done properly, if it addresses the necessary concerns and is done right," said Grant. "There are many pipelines going across the United States that are constructed in just such a fashion so that they are safe and they help grow jobs."
Austin Republican Ernie Beltz, Jr. has also filed as a primary challenger to McCaul. Both of McCaul's opponents face a major hurdle in fundraising.
McCaul reported more than $347,000 cash on hand in December of 2011, compared to more than $28,000 for Grant. Reports for Beltz were unavailable. Whether it will be enough to wage a competitive contest for the Central Texas seat remains to be seen.
