Fracking North Carolina:
In North Carolina, Halliburton and other fracking industry interests helped write a fracking chemical disclosure bill. But when that bill ended up requiring disclosure of harmful chemicals to the state environmental agency, the bill was killed and replaced with one that further limited disclosure of the chemicals used in fracking.
A cache of emails obtained by Greenpeace has revealed the cozy relationship between the hydraulic fracturing industry and North Carolina’s Mining and Energy Commission.
The Mining and Energy Commission (MEC) was set up after an errant vote by a state senator legalized fracking in North Carolina. Because the state had not seen oil and gas drilling in recent history, the Mining and Energy Commission was tasked with writing oil and gas regulations, specifically for fracking. The 15 members of the MEC propose regulations for fracking, which are then passed on to the North Carolina legislature to be turned into law.
Emails and meeting schedules from members of the North Carolina’s Mining and Energy Commission reveal how various fracking companies and national lobby groups, including America’s Natural Gas Alliance (ANGA), Energy in Depth (EID), Halliburton, and Koch Industries, influenced the Mining and Energy Commissioners, in regards to disclosure of chemicals used in fracking.
Halliburton has played a significant role in shaping potential fracking regulations in North Carolina. In March of 2013, the Commissioners approved a chemical disclosure bill in committee which would have required fracking companies to disclose to the North Carolina Department of Environment and Natural Resources (DENR) the chemical ingredients in fracking fluid, many of which are extremely toxic. However, Halliburton, a major fracking services company, raised some reservations which killed the bill, as AP reporter Michael Biesecker confirmed:
In an interview with AP, Mining and Energy Commission Chairman Jim Womack acknowledged that before deciding to delay the vote, he spoke with a senior Halliburton executive.
“They indicated to me in a phone conversation that there may be other options than what was written in that rule,” Womack said.
The bill was taken off the agenda by Womack, and sent back to be rewritten by the chemical disclosure committee.
Commissioner Womack himself is not worried about water contamination from fracking. He once said:
“You’re more likely to have a meteorite fall from the sky and hit you on the head than you are to contaminate groundwater with fracking fluid percolating up from under the ground.”
Halliburton has always cast a long shadow over the MEC. Commissioner Vikram Rao was at Halliburton for over 30 years, ultimately as the company’s Senior Vice President and Chief Technology Officer. He maintains a significant financial stake in Halliburton, and also has over $10,000 invested in BioLargo, a company involved in disposal of fracking wastewater.
Rao has also called the idea of disclosing the contents of frackfluid “a joke.”
Documents obtained by Greenpeace also reveal that the shale industry was close with one commissioner in particular.
George Howard, the pro-fracking conservationist
George Howard serves as vice chairman of the MEC, and as the chairman of the chemical disclosure committee, which is tasked with creating regulations for frack fluid and other fracking chemicals. He was appointed by North Carolina’s Senate President Pro-Tem Philip E. Berger to serve in one of two “conservation” slots on the MEC. Berger received $46,700 in campaign contributions from fracking interests between 2009 and 2011.
In his tenure as Mining and Energy Commissioner, George Howard has been a strong proponent of hydraulic fracturing. He has said that public fears around fracking are exaggerated and that responding to public pressure is “pandering.” He has also claimed “it is physically impossible for hydraulic fracturing – the full industry term for fracking – to contaminate underground aquifers.”
In addition to serving as commissioner for the MEC, Howard is the founder and CEO of Restoration Systems, an environmental remediation company. Through Restoration Systems, Howard has a significant financial stake in the fracking industry, including a multi-million dollar shale play project in Pennsylvania. Howard has also invested in the area of North Carolina most likely to be leased by fracking companies.
Howard is connected to other top regulators, especially John Skvarla, the Head of North Carolina’s Department of Environmental and Natural Resources (DENR), who was president of Restoration Systems before becoming an environmental regulator. DENR would be the agency responsible for enforcing fracking laws recommended by the MEC.
Halliburton/Koch Industries Lobbyist Pushed ALEC fracking bill
Documents obtained by Greenpeace include correspondence between George Howard and various representatives of the oil and gas industry during the creation of the first chemical disclosure bill. Howard had multiple meetings with the American Petroleum Institute (API) and spoke with high-ranking members of the American Natural Gas Association (ANGA). Howard specifically requested help from Energy In Depth (EID), an oil and gas front group run by the PR firm FTI Consulting and funded by the fracking industry. Howard asked Steve Everley, the spokesman for EID and an FTI Consulting operative, to help him prepare for a MEC meeting on chemical disclosure.
Although George Howard met with and solicited information from multiple shale industry groups, one lobbyist was particularly influential. Bowen Heath, who represents Halliburton, Koch Industries, and various other oil and gas interests for the lobbying firm McGuireWoods, had unparalleled access to the Commission. Emails reveal a chummy relationship between George Howard and Heath, who spent evenings together and went for beers in the afternoons.
Heath used that access to advocate for a fracking chemical disclosure system that allows generous exemptions for chemicals that companies deem “trade secrets.”
Heath provided a fracking chemical disclosure bill to Howard that the shale industry and its political allies previously passed in Colorado. The Colorado bill was based on a model bill from the American Legislative Exchange Council (ALEC), a corporate-funded group dedicated to passing legislation approved by ALEC’s corporate funders, including fracking companies like Chesapeake Energy. Bo Heath has longstanding ties to ALEC, and has attended ALEC annual meetings.
A New York Times investigation found that the Colorado chemical disclosure bill was the handiwork of one ALEC funder in particular, ExxonMobil.
As part of the push for the ALEC fracking bill passed in Colorado, Bo Heath arranged for Colorado ex-governor Bill Ritter to fly down to North Carolina to meet with George Howard and the MEC. The AP confirmed that Ritter’s fees and expenses were not paid by the MEC, and Bo Heath’s lobbying group refused to comment on Ritter’s funding.
Hallmarks of the ALEC fracking bill include generous exemptions from disclosure for “trade secrets,” and reliance on the FracFocus website for disclosing chemicals to the public. FracFocus’s operational costs are paid for by the oil and gas industry lobbying groups American Petroleum Institute (API) and America’s Natural Gas Alliance (ANGA). FracFocus was found to be “severely lacking” as a regulatory tool by a recent Harvard study.
Heath continued to advocate for the industry/ALEC approach to chemical disclosure, and even brought in a key member of FracFocus, Mike Paque. Paque is the executive director of the Ground Water Protection Council (GWPC). The GWPC has long been an ally of the oil and gas industry, receiving funding from the American Petroleum Institute and other industry affiliates. Reports produced by GWPC are the backbone of the oil and gas industry’s claims about the safety of fracking. The GWPC also runs the FracFocus website, and advocates for its use.
Taking up his drinking buddy's suggestion, George Howard selected Paque as an expert witness for the MEC. Paque presented the industry-funded FracFocus website in an unrecorded meeting on December 18, 2012.
The New Bill Further Limits Disclosure
In the end, even though the bill that George Howard passed through committee was shot down by Jim Womack and Halliburton, it contained most of what Bo Heath and other industry lobbyists wanted. It used the API, ANGA funded website FracFocus for disclosure of chemicals, and exempted chemicals deemed trade secrets from being disclosed to the public on that website. However, Halliburton killed the bill because it required disclosure of all chemicals to the Department of Environment and Natural Resources.
The new bill, which has passed through the MEC committee and is headed for ratification in the State House of North Carolina, included a requirement to use the FracFocus website, following the ALEC fracking model legislation passed in multiple states. And like those states, trade secrets are not disclosed the state, or the public.
SHOWTIME's Years of Living Dangerously series just aired a segment featuring James Taylor, a lawyer who has been paid to confuse the public over the reality of climate change, its causes, and its impact on humanity. The Heartland Institute, where James Taylor works, is know for alienating its corporate supporters by comparing people like you and me--assuming you recognize the reality of climate change--to the Unabomber, Charles Manson, and Osama bin Laden.
I wish I was joking, but I'm not.
The joke was on James Taylor, last night. Taylor made an easily disprovable boast to America Ferrera, claiming, "I'm a scientist by training as well," apparently in addition to his law degree. See a teaser of that interaction here:
When pushed for an explanation--since Taylor holds no degree in science--he misrepresents himself:
"I successfully completed Ivy League atmospheric science courses, so I'm a scientist by training."
Who'd would've thought? Apparently if we all want to be scientists, we just need to take a course or two in science!
That means there must be thousands, perhaps millions of people in this country who qualify as scientists in James Taylor's world. Unless, of course, you have to take your science classes at the Ivy Leagues--I'll follow up with Taylor about that and let you know what he thinks.
After trying to spin his lack of expertise as full credentials, Taylor invokes the long-debunked "Oregon Petition" as supposed proof against climate change, despite the petition's inception as a tactic of the fossil fuel industry, its lack of climate experts as signatories, and its inclusion of fictitious characters like the Spice Girls.
As Lisa Graves at the Center for Media and Democracy explains in the Years of Living Dangerously segment,
"The scientific evidence is really against them, but they say things so boldly and stridently that it makes some people believe that they must be telling the truth."
She's right. It has to take a lot effort, creativity and sheer willpower to make a career pretending the obvious does not exist.
Imagine if The Heartland Institute's staff spent their time and money working on real solutions to these problems. Imagine if people like Koch and Murray felt the inevitable need for a shift, and put their skills as businesspeople into solutions-based entrepreneurship.
Unfortunately, these fossil fuel executives would rather fight against inevitable future trends, just like the Tobacco industry fought tooth and nail against scientific evidence of the dangers of smoking. In fact, The Heartland Institute continues to wage Big Tobacco's campaign. Check out this recent video of Heartland's president, Joe Bast, caught in an embarrassing contradiction of his own claims denying the health impacts of smoking:
The Heartland Institute, the American Legislative Exchange Council, Americans for Prosperity and other fossil fuel industry front groups have united to kill incentives for wind energy in Kansas. Affiliated under the banner of the State Policy Network, these groups have also coordinated against clean energy in states like North Carolina and Ohio, where dirty energy giants may score a victory against renewable industry jobs.
So far, most of the State Policy Network attacks on clean energy have failed. As Years of Living Dangerously examines in Kansas, leasing land for wind farms has benefited farmers like Pete Ferrell, who faced impossible economic conditions from recent extreme droughts, made worse by climate change, leasing land to the wind industry has provided crucial income.
Because of farmers like Pete, and blue-collar wind workers and other citizens who are pleased with getting energy from sources that doesn't poison their air, water or climate, Kansas politicians have now defeated attacks on renewable energy incentives three times in the last two years. More are likely to come, as companies like Duke Energy and Peabody coal don't want clean energy competitors, while executives at Koch Industries and Murray Energy Corporation still combat the science of climate change with the finance of misinformation.
That means we will continue to see people like James Taylor, popping up on our TV sets and our state legislatures, lying about whatever he's paid to lie about. Keep your eyes peeled.
Heartland Institute lawyer James Taylor, as illustrated in Greenpeace's report on climate change deniers: "Dealing in Doubt"
Written by Gary Cook, crossposted from Greenpeace's The EnvironmentaLIST: Google, other IT companies should end support for climate denying groups like ALEC
At Google’s annual shareholder meeting today, the company faced an uprising from stakeholder groups and shareholders over its membership in and financial support for lobbying groups that include some of the biggest opponents to climate change and renewable energy on offer in Washington, DC, a town which boasts quite a collection.
If the notion that Google supports climate change deniers and fossil fuel interests makes you scratch your head, you’re not the only one. After all, Greenpeace has been vocal in our praise of Google for its leadership in building a green internet, powering its data centers with renewable energy, and investing in the solutions to climate change.
Google is the most prominent technology company that on one hand embraces the science of climate change, while on the other supports institutions dedicated to denying climate science, but it unfortunately is not the only one.
Here is a quick rundown of the “stink tanks” - front groups for the oil, gas and coal industries that attack clean energy and climate science - with which some otherwise pro-clean energy tech companies are cavorting, and samples of their dirty energy agendas:
The American Legislative Exchange Council (ALEC), allows member corporations to pay to ghostwrite model legislation and then promote it in states around the country, mostly among right-wing state legislators. ALEC is actively collaborating with many of the nation’s worst polluters to kill clean energy and climate policies. In 2013, ALEC pushed model legislation to repeal renewable energy portfolio standards in over a dozen states, though it failed across the board. The group’s 2014 agenda includes continued assaults on renewable energy laws, like net metering, which is critical to home and business owners with solar panels. ALEC is also targeting the Environmental Protection Agency’s effort to limit global warming pollution from coal-fired power plants.
Competitive Enterprise Institute (CEI)
The Competitive Enterprise Institute is a Washington, DC based think tank with a long history of denying the science of climate change and any efforts by government to address it. CEI has recently expanded to include a technology practice that has helped to bring in in new tech sector members, all of which otherwise support renewable energy development. Tech companies join CEI in spite of the fact that the oil industry-funded front group continues to be one of the most vocal opponents to addressing global warming pollution regulations inside the Beltway.
Tech Company Supporters: Google, Yahoo, Facebook, Microsoft
US Chamber of Commerce
The US Chamber of Commerce has been a key part of the corporate effort to block federal action on climate change and undermine the scientific consensus on the issue. It continues to lead the effort to block the Obama Administration’s plans to regulate global warming pollution from US power plants, which currently make up the largest single source of US global warming pollution.
State Policy Network (SPN)
The State Policy Network serves as a coordinating umbrella group to advance a far-right agenda across a broad range of US states, often working in close conjunction with SPN members like ALEC. These groups, via SPN coordination, aim to pass state legislation that would undermine renewable energy growth and action on climate change.
Tech Company Supporters: Microsoft, Facebook
So why are Google and other companies that use innovative strategies to power the internet with renewable energy undermining those very efforts by offering their political support to organizations which are actively committed to sabotaging the clean energy revolution?
It’s likely not because Google or other IT companies have a secret anti-clean energy agenda. IT companies, especially Google, have deliberately increased their ties to conservative groups in recent years as part of the pay-to-play politics that they think are necessary to push their agendas in D.C around a variety of issues.
But that’s not an excuse. Google, Facebook and others can support conservative groups or politicians if they feel it necessary without lending their brand, their integrity, and their money to organizations that actively deny climate science and fight to maintain oil, gas and coal industry supremacy.
The IT sector has shown its ability to speak in its own voice on a range of issues such as immigration reform, government surveillance, and net neutrality, often doing so with members of both parties. Companies that have shown integrity in other ways, by supporting clean energy or standing up to illegal government surveillance, don’t need to swim in the Beltway muck by supporting climate deniers like ALEC or CEI. We have repeatedly heard claims from tech sector companies over the years about efforts to reign in business associations from the inside, to counter their fossil fuel patrons and get them to take a more reasonable position. But as we can see from the never ending attack on sensible energy and climate policies, those efforts have clearly failed, and it’s time to abandon them.
If Google and other IT companies are serious about being leaders on climate change and clean energy solutions, then they should heed the ask of today’s shareholder resolution and disclose all of their lobbying positions and payments. Then they should discontinue their support for groups that deny the reality of climate change or attack the clean energy revolution that their companies are otherwise helping to catalyze.
Crossposted from Greenpeace's blog, The EnvironmentaLIST.
Over the last four years, Greenpeace has made a Valentine's Day tradition of spoofing the influence peddling of corporate lobbyists and captured politicians. This year's installment embodies the American Legislative Exchange Council, or ALEC, which reporters have characterized as a "dating service" for its role in pushing copycat, corporate-crafted laws through state legislatures.
This year, our PolluterHarmony story wrote itself. Online dating ads running on TV have featured a creepy middleman who plays third wheel on various peoples' dates. In real life, ALEC is that creepy middleman, creating a tax-deductible process for companies to vote as equals with state politicians on bad laws that appear in legislatures around the country. This all happens with little to no disclosure, away from the constituents who elected ALEC's member legislators.
This secretive attack on the public comes in many forms: privatizing education, weakening unions and public employee benefits, increasing gun violence, keeping legitimate voters away from the polls, denying climate change science, limiting the liability of corporations that harm people, and many other items on the Big Business wishlist.
Want examples? Check our humorous dating profiles (citing real-life events) on an ALEC senator in Ohio attacking clean energy incentives and an ALEC senator in Nebraska who was courted on a trip to the tar sands courtesy of ALEC, oil companies and the Canadian government.
ALEC has said that one of its top priorities in 2014 will be to make it harder for homeowners and businesses to put solar panels on their rooftops by introducing solar taxes on behalf of big utilities that are afraid of losing customers.
But thanks to increased public scrutiny, ALEC has struggled in recent years to avoid its own controversial shadow. ALEC's own leaked documents confirm it has lost at least 60 corporate members and 400 legislative members, thanks to ALEC's role in pushing Stand Your Ground laws and Voter ID legislation that keeps people with social minority status away from the voting booth.
While ALEC staff have given lip service to increased transparency, journalists like Washington Post's Dana Milbank and Mother Jones' Andy Kroll have shown how ALEC keeps its doors firmly shut on the public.
Even companies that are sticking with ALEC appear to be embarrassed by the association: Duke Energy has done all it can to not confirm renewed ALEC membership, ignoring repeated calls, emails and a 150,000-strong public petition delivered by a diverse coalition of organizations whose members don't appreciate how ALEC's bad policies make Duke appear two-faced.
Please share our video to help spread the word on ALEC, and send a message to state legislators at StandUpToALEC.org.
Crossposted from Greenpeace's blog, the EnvironmentaLIST.
Leaked American Legislative Exchange Council documents published by The Guardian recently offered a glimpse into ALEC's financial troubles, spurred by its role in peddling corporate laws through statehouses around the country. ALEC's controversial work has caused its member companies to abandon it, such as pushing the National Rifle Association's Stand Your Ground laws, efforts to undermine clean energy incentives and delay climate change regulations, and breaking workers unions.
The ALEC documents revealed its "Prodical Son" project [sic], a list of 41 corporate members the legislator-lobbyist matchmaker would like to entice back into its roster. ALEC has lost about 60 corporate members since 2011, the year ALEC Exposed was launched by the Center for Media and Democracy.
But there are some private sector members that ALEC doesn't want back. 60 companies left ALEC and it's asking 41 to rejoin...so who is missing from the Prodigal Son list?
Conspicuously, both the American Wind Energy Association (AWEA) and Solar Energy Industries Association (SEIA) are not on ALEC's secret Prodigal Son list. Not surprising, since an ALEC staffer accused residential solar rooftop owners of being "freeriders," despite how they feed extra electricity back into the grid and spare utilities the capital costs of installing those solar panels themselves.
The solar trade group SEIA left ALEC in the fall of 2012. Shortly before that, ALEC's Energy, Environment & Agriculture task force considered, but didn't ever approve, the Solar Streamline Permitting Act (see p. 18). It's pretty much what it sounds like--making it faster and easier for state governments to approve solar projects, a concept that you might assume ALEC's conservative member legislators would embrace.
But ALEC didn't pass the solar permitting model bill. At the same time, ALEC was incubating its assault on state clean energy incentives through The Heartland Institute's proposed Electricity Freedom Act, the repeal of state renewable portfolio standards, later introduced in some form in 15 states, according to ALEC.
ALEC's documents list SEIA among "Lapsed" members, with a note explaining "left because their bill did not pass the task force." SEIA was ALEC's only interest dedicated entirely to solar energy at the time, and with both SEIA and AWEA absent from ALEC's ranks, ALEC has no members predominantly focused on clean energy development.
Check out Rachel Maddow's recent interview with Guardian reporter Ed Pilkington for more on ALEC's work against clean energy and other revelations from ALEC's leaked documents:
ALEC's Energy, Environment and Agriculture task force: Hostile Territory for Clean Energy
Members of ALEC's EEA task force include Koch Industries, the engine of climate denial finance, not to mention many groups its billionaire owners fund and even helped create, like Americans for Prosperity, the Cato Institute and The Heartland Institute.
There's ExxonMobil and the American Petroleum Institute, the architects of the leaked 1998 master plan to publicly attack climate science and scientists, which included ALEC itself and other ALEC members like DCI Group.
There's Peabody Energy, which commands its PR spokespeople to deny global warming. There's Duke Energy and Arizona Public Service, two major utilities fighting to make residential rooftop solar energy more expensive for residents and small businesses owners in their respective regions. ALEC's utilities are joined by their top trade association, Edison Electric Institute.
And don't forget the American Coalition for Clean Coal Electricity, the heavily advertised "coalition that hates each other." ACCCE was caught subcontracting groups that forged letters to Congress against 2009's failed national climate policy.
Mining, petrochemical, utility, & agribusiness interests supporting ALEC:
Many dirty energy interests have recently sponsored ALEC's conferences, pay to participate in ALEC's Energy, Environment and Agriculture task force meetings, or both. ALEC's Energy, Environment and Agriculture task force is currently co-chaired by American Electric Power's Paul Loeffelman and Wyoming state Representative Thomas Lockhart.
*Companies with membership on ALEC's national corporate board are indicated with asterisks.*
*Koch Industries*--with business in oil and gas exploration, pipelines, refining and trading, coal and other carbon product logistics, timber and consumer paper products, commodities trading and investing, chemicals, fertilizer, ethanol, cattle and game ranching, glass, fiber optics, electronics and plenty of awkward public relations. The Charles Koch Foundation and Koch-controlled Claude R. Lambe Foundation both fund ALEC outside of Koch Industries' membership dues, together giving ALEC hundreds of thousands of dollars. ALEC has long depended on the Koch brothers.
- Atmos Energy
- Cheniere Energy
- Chesapeake Energy
- Continental Resources
- Devon Energy
- EnCana Corporation
- Energy Transfer
- Marathon Oil
- McMoRan Exploration Company
- OXY USA (Occidental Petroleum)
- QEP Resources
- Spectra Energy
- TransCanada Pipelines
- Williams Companies
Oil & Gas Lobby:
- American Petroleum Institute (API)
- American Gas Association (AGA)
- America's Natural Gas Alliance (ANGA)
- Center for Liquified Natural Gas
- *Peabody Energy*
- Cloud Peak Energy
Utilities (primarily Coal, Gas and Nuclear generation):
- American Electric Power (AEP)
- Arizona Public Service (APS)
- Dominion Resources
- Duke Energy
- *Energy Future Holdings*
- MDU Resources
MidAmerican Energy (all owned by Warren Buffet's Berkshire Hathaway)
- NV Energy
- PG&E Corporation
- Salt River Project (SRP)
Coal, Chemical & Fossil Fuel Product Shipping Railroad Co's:
- Burlington Northern Santa Fe (owned by Warren Buffet's Berkshire Hathaway)
- CSX Corporation
- Genessee & Wyoming Inc.
- Norfolk Southern
- Union Pacific
Coal & Utility Lobby:
- American Coalition for Clean Coal Electricity (ACCCE)
- Edison Electric Institute (EEI)
- Indiana Energy Association
National Rural Electric Cooperative Association (NRECA)
- Association of Missouri Electric Cooperatives (NRECA member)
- Nuclear Energy Institute (NEI)
Chemical, Agribusiness and Paper Industry Interests:
- LyondellBasell Industries
- American Chemistry Council
- American Plastics Council
- J.R. Simplot Company
- CropLife America (lobbying group for Monsanto & other agribusiness corporations)
- International Paper
Uranium Mining & Nuclear Technology:
- Virginia Uranium
State Policy Network, SPN members & SPN associate members:
- State Policy Network (umbrella for 64 state-based orgs and over 250 formally-affiliated allies--see full SPN member list)
- Americans for Prosperity
- Atlas Foundation
- Competitive Enterprise Institute (co-authors ALEC reports against U.S. Environmental Protection Agency pollution rules)
- The Heartland Institute (IL)
- Goldwater Institute (AZ)
ALEC notes show that SPN members the Commonwealth Foundation (PA) and John Locke Foundation (NC) have recently lapsed but would like to rejoin ALEC's ranks. Each of these SPN groups are part of the the Koch-funded climate denial machine.
Public Relations firms with known Fossil Fuel Clients:
- Dezenhall Resources (consulted for ExxonMobil)
- DCI Group (climate denial PR for Exxon, API; represents coal companies pushing for exports in the Pacific Northwest)
- Harris Deville & Associates (PR work for Koch Pipelines, American Petroleum Institute, Dow, and others)
If any companies have disassociated with the American Legislative Exchange Council, we will gladly update this post upon request.
Amid a dump of leaked American Legislative Exchange Council documents published by The Guardian last week, North Carolina is asking Duke Energy: Have you finally dumped ALEC?
NC WARN and ProgressNC have both raised the question, based on Duke Energy's inclusion in a list of "Lapsed" private sector ALEC members featured in The Guardian and an article in the Raleigh News & Observer.
ALEC's notes for Duke Energy's lapsed membership, as of April 22, 2013, only say "Merged with Progress Energy, new contacts," indicating that Duke's absence was only temporary as new personnel were assigned to participate in ALEC's work. Duke and Progress merged into the largest U.S. utility company last year.
Duke Energy, North Carolina's monopoly utility company, has long been a member of ALEC. Last year, Duke Energy refused to leave ALEC even after being petitioned, emailed and called by over 150,000 people to defect. ALEC's controversial legacy includes blocking climate change policies as part of Big Oil's 1998 master plan, the NRA's Stand Your Ground laws, which increase homicide rates, and "Voter ID" bills that suppress legitimate American voters, especially students, the elderly and people with brown skin.
While Duke Energy has resisted calls to dump ALEC, it has responded to the pressure by distancing itself from several items on ALEC's dirty lobbying laundry list:
- Duke has repeatedly pushed back on any association with ALEC's Stand Your Ground and voter suppression laws.
- Duke's call for action to address global warming clash with ALEC's legacy of climate change denial, including new draft policies to interfere with the U.S. Environmental Protection Agency's greenhouse gas rules, and a bill that forces teachers to misrepresent climate change science to their students, now law in at least four states, thanks to state legislators implementing ALEC's model bills.
- Duke has explicitly denounced ALEC's attacks on state Renewable Portfolio Standards-laws to increase utility electricity generation from cleaner sources. Duke takes credit for helping create North Carolina's RPS.
So why has Duke Energy resisted popular pressure to leave ALEC, including from its own ratepayers? If Duke doesn't like ALEC's history shilling for climate change deniers, nor the National Rifle Association, nor the Republican party's voter disenfranchisement strategies, what is making Duke stay?
ALEC's new attacks on rooftop solar electricity producer are right in line with Duke Energy's attempt to pay back 29% less to homeowners whose solar panels feed extra electricity back into the grid, despite the fact that these homeowners fronted the costs of installing and maintaining solar panels themselves.
Duke is terrified of the prospect of rooftop solar energy, which threatens its century-old monopoly business model. Duke is used to being the dominant company providing power to North Carolina residents, and they can basically charge customers as much as they want. More customers are choosing to install their own solar panels as the technology rapidly becomes cheaper, keeping money in the pockets of ratepayers rather than Duke's executives.
ALEC's Updating Net Metering Policies Resolution, discussed last week at its States and Nation Policy Summit in Washington, DC, would complement dirty utilities like Duke Energy that are working to make it more costly for people to feed their own solar power into the electrical grid. See here for ALEC's new anti-environmental resolutions.
Which Utilities will be Using ALEC's State Lawmakers to Attack Solar Energy?
The new ALEC resolution was crafted with help from lobbyists at Edison Electric Institute, the primary trade association for Duke and most other large U.S. utility companies.
EEI's roster also includes Arizona Public Service (APS), the utility that tried to force Arizona's residential solar electricity producers to pay $50 per month for feeding unused electricity back into the grid. In the end, the monthly fee was reduced to $5 per month, which still serves as a disincentive for homeowners to install their own solar panels.
As it sought to make net metering more expensive for small-scale solar producers, APS lied to the public, denying its funding of anti-solar TV advertisements run by Koch brothers front groups.
APS recently rejoined ALEC after disassociating for a short year. ALEC's Energy, Environment and Agriculture task force includes APS and presumably Duke Energy, among other dirty energy giants. The EEA task force is governed by American Electric Power's Paul Loeffelman and Wyoming state Representative Thomas Lockhart, friend of the coal industry.
Duke Can Still Do the Right Thing
Duke Energy needs to make its intentions clear.
The company can go with the Koch brothers, ALEC, and companies like APS, and financially punish North Carolinians who choose to produce their own electricity. Or, it can finally dump ALEC, its bad policies and anti-democratic processes and shift to a business model that embraces the power of the sun. It can continue to plan around a cost on carbon emissions and phase out dirty coal that aggravates everything from climate change to water pollution to asthma.
We hope to get the right answer from Duke Energy soon.
Last week, the Center for Media and Democracy and ProgressNow released a series of reports on how the State Policy Network coordinates an agenda carried out by affiliate "Stink Tanks" in all 50 states. Responding to questions from reporters, SPN's CEO Tracie Sharp demanded that each of the seemingly independent groups were "fiercely independent."
But Jane Mayer at the New Yorker reports Tracie Sharp said the opposite to attendees of SPN's recent annual meeting. In Oklahoma City last September, Ms. Sharp plainly told her associates how to coordinate a broad agenda and pander directly to the interests of billionaire funders like the Koch brothers and the Searle family for grants:
Sharp went on to say that, like IKEA, the central organization would provide “the raw materials” along with the “services” needed to assemble the products. Rather than acting like passive customers who buy finished products, she wanted each state group to show the enterprise and creativity needed to assemble the parts in their home states. “Pick what you need,” she said, “and customize it for what works best for you.” During the meeting,
Sharp also acknowledged privately to the members that the organization’s often anonymous donors frequently shape the agenda. “The grants are driven by donor intent,” she told the gathered think-tank heads. She added that, often, “the donors have a very specific idea of what they want to happen.” She said that the donors also sometimes determined in which states their money would be spent.
Tracie Sharp responded to the New Yorker with a generic statement that didn't address her contradictory statements. And who knows if there's anything useful she could say at this point, The State Policy Network was just caught with its pants down.
For those who don't spend their days reading about the inner workings of the corporate-conservative political machine, the State Policy Network isn't a familiar name. But it's an important entity. SPN serves as the umbrella of ALEC (American Legislative Exchange Council) and all of its state and national allies pushing a coordinated corporate-friendly agenda through all 50 states.
SPN and ALEC have led the coordinated attack on clean energy in states like North Carolina, Kansas and now Ohio. Dozens of SPN groups are longtime players in the Koch-funded climate change denial movement. By orchestrating against policies to lessen global warming impacts or by directly undermining the science, SPN's efforts have ranged from urging inaction on global climate treaties and forcing teachers to misrepresent climate science to their students.
Beyond shilling for the coal, oil, gas and nuclear companies bankrolling ALEC and SPN's operations, these coordinated entities attack public employee unions, wages and pensions, block Medicaid expansion, suppress legitimate voters, push to defund and privatize schools, and undermine choice in women's health.
And who pays for SPN's work in all 50 states?
SPN's main purpose is to advance the interests of its corporate funders: dirty coal and petrochemical industries, the tobacco giants, agribusiness, pharmaceutical companies, private education firms, tech and telecom companies, and the usual web of trade associations, law firms and lobby shops paid to represent each of those industries. Corporations use SPN to advance political campaigns they are typically embarrassed to associate with publicly.
The State Policy Network also serves to advance an ideological agenda that tends to undermine the interests of most Americans in favor of those who are particularly wealthy and well-connected.
The Koch brothers fit this description, of course. But they're joined by a legion of lesser known multi-millionaires and billionaires, sometimes coordinating directly with the Kochs.
These SPN funders include Richard Mellon Scaife, Phil Anschutz, Art Pope, the Coors family, the DeVos family, the Searle family, and the remains of the Bradley family fortune, to name a few of the better known of these sources of dark money. Few citizens recognize the names of this quiet minority of political puppetmasters, but people still feel the bruise of plutocratic spending as state and national politics are pushed to new extremes.
Ohio is currently fighting this year's final battle in a nationally-coordinated attack on clean energy standard laws, implemented by the American Legislative Exchange Council (ALEC) and other groups belonging to the secretive corporate front group umbrella known as the State Policy Network (SPN).
ALEC and SPN members like the Heartland Institute and Beacon Hill Institute failed in almost all of their coordinated attempts to roll back renewable portfolio standards (RPS) in over a dozen states--laws that require utilities to use more clean energy over time. After high profile battles in North Carolina and Kansas, and more subtle efforts in states like Missouri and Connecticut, Ohio remains the last state in ALEC's sites in 2013.
ALEC Playbook Guides the Attack on Ohio Clean Energy
After Ohio Senator Kris Jordan's attempt to repeal Ohio's RPS went nowhere, ALEC board member and Ohio State Senator William Seitz is now using ALEC's new anti-RPS bills to lead another attack on the Ohio law--see Union of Concerned Scientists.
ALEC's newly-forged Renewable Energy Credit Act allows for RPS targets to be met through out-of-state renewable energy credits (RECs) rather than developing new clean energy projects within Ohio's borders. RECs have varying definitions of renewable energy depending on the region they originate from, lowering demand for the best, cleanest sources of power and electricity.
Sen. Bill Seitz's SB 58 takes advantages of existing provisions of Ohio's RPS law and tweaks other sections to mirror the key aspects of ALEC's Renewable Energy Credit Act. His RPS sneak-attack is matched by House Bill 302, introduced by ALEC member Rep. Peter Stautberg.
Just five years ago, Senator Seitz voted for Ohio's RPS law. Now, Seitz calls clean energy incentives "Stalinist."
Attacks on Ohio's Clean Energy Economy: Fueled by Dirty Energy Profits
Most of ALEC's money comes from corporations and rich people like the Koch brothers, with a tiny sliver more from its negligible legislator membership dues ($50/year). This includes oil & gas giants like ExxonMobil ($344,000, 2007-2012) and Big Oil's top lobbying group, the American Petroleum Institute ($88,000, 2008-2010). Exxon and API just two of dozens of dirty energy interests paying to be in the room during ALEC's exclusive Energy, Environment and Agriculture task force meetings.
Other polluting companies bankrolling ALEC's environmental rollbacks include Ohio operating utilities like Duke Energy and American Electric Power. AEP currently chairs ALEC's Energy, Environment and Agriculture task force. Some of these companies (like Duke Energy and the American Petroleum Institute) pay into a slush fund run by ALEC that allows Ohio legislators and their families to fly to ALEC events using undisclosed corporate cash (see ALEC in Ohio, p. 6).
Ohio Senator Kris Jordan used corporate money funneled through ALEC to attend ALEC events with his wife (ALEC in Ohio, p. 7). With electric utilities as his top political donors, Sen. Jordan has dutifully introduced ALEC bills to repeal renewable energy incentives (SB 34), along with other ALEC priorities like redirecting public funds for private schools (SB 88, 2011), and blocking Ohio from contracting unionized companies (SB 89, 2011).
Koch-funded Spokes & Junk Data Bolsters the ALEC Attack
The behavior of Senator Bill Seitz indicates he's more beholden to ALEC and the dirty energy utilities dumping tens of thousands of dollars into his election campaigns* than his constituents. There is support from a majority of Ohioans for utilities to obtain at least 20% of their electricity from clean sources. Ohio veterans spoke up for the RPS for increasing the state's energy security and lowing wholesale energy costs.
Rather than listening to these voices from Ohio, Senator Seitz has sided with out-of-state Koch-funded mouthpieces invited to testify against the Ohio RPS. Back in March, Seitz heard anti-RPS testimony from The Heartland Institute's James Taylor, who repeated false claims that the RPS will make electricity unaffordable.
Taylor's assertions mimicked those made in a debunked series of reports written for ALEC's RPS attacks. The Ohio anti-RPS report was co-published by the Koch-funded Beacon Hill Institute and the American Tradition Institute (ATI), sister group to the Koch-funded Competitive Enterprise Institute. ATI, now known as the Energy & Environment Legal Institute, was largely funded by Montana petroleum millionaire Doug Lair.
Senator Seitz also heard testimony from Daniel Simmons of the Institute for Energy Research (IER), who recited long-debunked statistics from the so-called "Spanish study" and "Danish study." Koch-funded groups have used these two papers for years to stifle clean energy growth in the United States. Daniel Simmons previously worked for ALEC and the Mercatus Center, which was founded by the Kochs. Heartland and the Institute for Energy Research have financial or personnel ties to the Kansas billionaire Koch brothers.
RPS and Energy Efficiency Are Helping Build Ohio's Economy
Thanks in part to energy efficiency incentives and the RPS law, Ohio's clean energy economy is expanding rapidly, with 25,000 Ohioans employed by 400 companies in the sector. Wind energy is set to expand rapidly, with the American Wind Energy Association projecting $10 billion in investments over the next decade, thanks to the RPS targeted by ALEC and its dirty companies through loyal politicians like Senator Seitz.
Not content to just weaken incentives for clean energy growth, Bill Seitz's SB 58 would also undermine energy efficiency standards, another item on ALEC's agenda. This despite a projected $2.7 billion in savings for Ohio by 2012, as directed by the efficiency and RPS laws.
No wonder ALEC got dumped by its wind and solar trade members.
*Since 2007, Senator Seitz has received $46,450 from coal utilities that are ALEC member companies:
- $21,500 from American Electric Power (AEP)
$15,300 from Duke Energy
- $4,800 of this bundled from Duke Employees in Ohio, Kentucky and Indiana during the 2008 election cycle
- $4,000 from NiSource
- $3,000 from Dominion
- $2,650 from the Ohio Rural Electric Cooperatives, a member of the nation's top dirty energy lobbying heavyweight, the National Rural Electric Cooperative Association.
If you add contributions from FirstEnergy, AES subsidiary Dayton Power & Light, and the Ohio Coal Association, Sen. Seitz's coal money since 2007 tops $66,000.
ALEC's December, 2012 meeting in Washington, DC was heavily sponsored by coal companies, including AEP, the National Rural Electric Cooperative Association (NRECA), and Edison Electric Institute, the utility trade group whose membership includes Duke Energy, AEP, NiSource, Dominion, AES and FirstEnergy.
Data aggregated by the National Institute for Money in State Politics - FollowTheMoney.org
Written by Cindy Baxter, crossposted from Greenpeace: Dealing in Doubt.
Who likes being lied to by people paid by the oil industry who pose as “experts” on climate change?
Did you know it’s been going on for 25 years?
In a couple of weeks, the UN’s official advisors on climate change science, the Intergovernmental Panel on Climate Change (IPCC) will update its global assessment on the issue. Yet in the background, more attacks on the climate science are underway
For the last quarter century, the climate science denial machine, its cogs oiled by fossil fuel money, has been attacking climate science, climate scientists and every official US report on climate change, along with State and local efforts – with the aim of undermining action on climate change.
Our new report, Dealing in Doubt, sets out the history of these attacks going back to the early 90s. These are attacks based on anti-regulatory, so called “free market” ideology, not legitimate scientific debate, using a wide range of dirty tricks: from faked science, attacks on scientists, fake credentials, cherry-picking scientific conclusions: a campaign based on the old tobacco industry mantra: “doubt is our product”.
We give special attention to perhaps today’s poster child of the climate denial machine’s free market think tanks, the Heartland Institute, which is about to launch a new version of its “NIPCC” or “climate change reconsidered” report next week in Chicago.
Unlike the real IPCC, with thousands of scientists involved from around the world, the Heartland Institute’s handful of authors is paid. Several of them claim fake scientific credentials. They start with a premise of proving the overwhelming consensus on climate science wrong, whereas the real IPCC simply summarizes the best science to date on climate change.
More recently, less visible channels of funding have been revealed such as the Donors Capital Fund and Donors Trust, organization that that has been called the “ATM of the conservative movement”, distributing funds from those who don’t want to be publicly associated with the anti-environmental work product of organizations like the Heartland Institute.
In the last week we’ve seen new peer-reviewed science published, linking at least half of 2012’s extreme weather events to a human carbon footprint in the atmosphere and on the weather and climate.
As the scientific consensus strengthens by the day that climate change is happening now, that carbon pollution is causing it and must be regulated, the denial machine is getting increasingly shrill. But today, while they are being increasingly ignored by a majority of the public, their mouthpieces in the US House of Representatives, for instance, have increased in number.
They’re still fighting the science – and they’re still being funded, to the tune of millions of dollars each year, to do it.
Dealing in Doubt sets out a history of these attacks. We show how the tactics of the tobacco industry’s campaign for “sound science” led to the formation of front groups who, as they lost the battle to deny smoking’s health hazards and keep warning labels off of cigarettes, turned their argumentative skills to the denial of climate change science in order to slow government action.
What we don’t cover is the fact that these organizations and deniers are also working on another front, attacking solutions to climate change. They go after any form of government incentive to promote renewable energy, while cheering for coal, fracking and the Keystone pipeline.
They attack any piece of legislation the US EPA puts forward to curb pollution. Decrying President Obama’s “war on coal” is a common drumbeat of these anti-regulation groups. One key member of the denial machine, astrophysicist Willie Soon from the Smithsonian Institute for Astrophysics, has portrayed himself as an “expert” on mercury and public health in order to attack legislation curbing mercury emissions from coal plants.
This recent history, as well as the prior history of denial by the tobacco companies and chemical, asbestos and other manufacturing industries, is important to remember because the fossil fuel industry has never admitted that it was misguided or wrong in its early efforts to delay the policy reaction to the climate crisis. To this day, it continues to obstruct solutions.
The individuals, organizations and corporate interests who comprise the ‘climate denial machine’ have caused harm and have slowed our response time. As a result, we will all ultimately pay a much higher cost as we deal with the impacts, both economic and ecological.
Eventually, these interests will be held accountable for their actions.
New internal documents obtained by the Center for Media and Democracy (CMD) reveal new methods that fossil fuel companies, agrochemical interests and corporate lobbying groups will influence certain state policies in the coming months through the American Legislative Exchange Council, or ALEC.
ALEC's annual meeting is taking place in Chicago this week, just as Common Cause and CMD have filed a complaint to the IRS over ALEC's corporate-funded "Scholarships" for state legislators--ALEC is a tax exempt non-profit despite their mission of facilitating an exchange of company-crafted laws with state legislators in closed-door meetings.
ALEC's Energy, Environment and Agriculture task force is drafting new model bills on behalf of its members like Duke Energy, ExxonMobil, Koch Industries and Peabody. ALEC's anti-environmental agenda in Chicago is available for viewing (see E&E PM and Earthtechling). These are the new model bills ALEC and its energy, chemical and agricultural interests are finalizing this week.
The Market-Power Renewables Act and the Renewable Energy Credit Act: ALEC and other Koch-funded State Policy Network groups like the Heartland Institute haven't had much success with their attempts to repeal state renewable portfolio standard (RPS) laws through the ALEC/Heartland Electricity Freedom Act. The Market-Power Renewables Act and Renewable Energy Credit Act are two newer, more subtle attempt to weaken RPS laws by phasing in a renewable power voluntary program, creating space for existing and out-of-state energy credits to displace new clean energy, and eventually repealing the RPS requirements entirely.
To slow the growth of clean energy competition, ALEC's fossil fuel members wrote these bills to allow increasing portions of a states clean energy generation requirements to be fulfilled by Renewable Energy Credits, or RECs. RECs are allowed to qualify in some states' RPS laws already, often in limited amounts, and they are not created equal. For instance, the benefits of burning gas leaking from landfills--something waste management companies would be selling anyway--are not on par with the societal benefits from building new sources of clean energy and displacing older, dirtier sources. You can see why ALEC member companies like American Electric Power or Duke Energy may take issue with this, given their reliance on coal and gas electricity generation.
Increasing the amount that RECs can qualify for state RPS targets means allowing more out-of-state energy. This could displace in-state jobs and economic benefits from clean energy development. The RECs may also come from sources that aren't defined as "renewable" in some states' RPS laws, or are only allowed in limited amounts, such as hydropower, biomass or biogas, creating a lowest common denominator effect. At the end of any given year, the ALEC bill would allow states to bank any extra energy generated from RECs beyond what the RPS law requires and use them to meet RPS targets for the following year. This could continually delay the growth of new, clean energy.
Resolution in Opposition to a Carbon Tax: Despite support for a carbon tax from ALEC members like ExxonMobil, ALEC is creating a model bill to weigh in on what will become the keystone policy battle for climate change science deniers, a battle that is already creating a rift among conservative groups, like the Koch-funded Heritage Foundation and the Heartland Institute against the R Street Institute. R Street formed when Heartland's Fire, Insurance and Real Estate program split away last year, after Heartland's insurance company funders were uncomfortable with the group comparing those who acknowledge climate change to the Unabomber.
Pre-Emption of Local Agriculture Laws Act: This bill would prevent governments under the state level (cities, towns, counties) from creating new laws or enforcing existing laws that have to do with the regulation of seeds and seed products--ie crops, flowers, and pretty much all food products grown in a state. This would allow companies like Monsanto (indirectly represented in ALEC through its membership in CropLife America, an agrochemical front group and ALEC energy task force member) to bottleneck regulations of their GMO seeds and products at the state government level and stop community resistance to their abusive patent laws and enforcement through lawsuits.
For examples of what ALEC has already been busy with this year, check out PR Watch's roundup of 77 anti-environmental ALEC bills that have popped up in state legislatures in 2013, supporting the Keystone XL tar sands pipeline project, rolling back renewable energy incentives and making it illegal to document animal abuse, among other issues.
More info on ALEC's broader corporate agenda can be found on ALEC Exposed.