Americans for Prosperity

Tea Party ties to Koch Brothers Ignored by Media in IRS Scandal

10 out of 11 Tea Party spokespeople quoted in major news outlets regarding the IRS scandal have ties to the Koch funded Americans for Prosperity.

The Internal Revenue Service, not the most popular government agency to begin with, has been in the midst of a scatological squall for the past 3 weeks over their treatment of tea party groups. According to an agency spokesperson, organizations garnered additional scrutiny of their applications for non-profit status for having “Tea Party, Patriot, or 9/12” in the application materials. Non-profit status is granted by the IRS for “social welfare organizations” and federal law puts legal limits to the amount of overtly political things you can do if you are applying to be a non-profit, and thus tax-exempt.

In the coverage of this story, now a scandal, there are a couple of important facts that some of the reporting has missed.

First is the fact that the tea party is a creation of enterprising political and public relations professionals, constructed to accomplish a political purpose. A study published in the Tobacco Control Journal actually traced the origins of the tea party to “free-market” groups founded by tobacco corporations and the oil industry billionaires David and Charles Koch.

[caption id="" align="alignnone" width="738"]http://tobaccocontrol.bmj.com/content/early/2013/02/20/tobaccocontrol-2012-050815/F1.large.jpg This map, created by researchers at UC San Francisco, shows the historical links between tobacco corporations, moneyed interests like the Koch brothers, and the modern tea party.[/caption]

According to researchers at UC San Francisco:

“Rather than being a grassroots movement that spontaneously developed in 2009, the Tea Party organizations have had connections to the tobacco companies since the 1980s. The cigarette companies funded and worked through Citizens for a Sound Economy (CSE), the predecessor of Tea Party organizations, Americans for Prosperity and FreedomWorks, to accomplish their economic and political agenda.”

Citizens for a Sound Economy (CSE), was founded in 1984 by the Koch brothers.

There is even a tea party website registered to a Koch group in 2005, long before the conservative outcry we now know as the tea party began.

The second thing to keep in mind is that the tea party is still controlled by enterprising political and public relations professionals, funded by the David and Charles Koch. In coverage of the IRS scandal, there were 11 people who were involved in tea party groups quoted about IRS scrutiny. Of those 11, 10 have substantial ties to Americans for Prosperity (AFP). As you can see from the chart above, AFP (also founded and funded by the Kochs), is the direct descendent of CSE - one of the groups who registered a tea party site in 2005. Of those 10 with ties to AFP, 2 actually work for the organization currently. All 10 have received aid from AFP which included help with messaging and communication.

The tea party groups that were scrutinized by the IRS are not just separate grassroots citizen groups unfairly accused of political shenanigans, as the Koch associated spokespeople in the media would have you believe. They are one part of a wider political strategy, funded and managed by a very wealthy few. they have uniform and coordinated messages, such as attacking climate science and opposing environmental regulations.

As this IRS scandal progresses, it is important to keep in mind that many of the tea party groups in question deserve to have their non-profit, tax-exempt status questioned. The New York Times has already found that several tea party groups investigated by the IRS were engaged in activities that are illegal for tax exempt groups.

For the record, Greenpeace and Rainforest Action Network experienced expensive and debilitating audits by the IRS during George W Bush’s presidency. Those audits were most likely at the behest of an Exxon funded front group.

Tea Party Spokespeople with ties to Americans For Prosperity (AFP)

Tom Zawistowski: quoted in the Wall Street Journal and other sources

Margie Dresher: Quoted by ABC news

  • Currently works for AFP

Toby Marie Walker: Quoted by Business Insider

  • earned the "Watchdog of the Month" award in March and the “Tea Party Leader of the Year -2010” from Americans for Prosperity

Jennifer Stefano: Quoted by ABC news

Carol Waddell: Quoted by ABC news

Tim Savaglio: Quoted by the Associated Press

Jaime Radtke: Quoted in ABQ Journal, Newsday

Larry Norvig: Quoted by CNN

  • Norvig's tea party group is part of AFP campaigns
  • Norvig's tea party group in Virginia runs AFP funded campaigns and displays AFP messaging prominently on their website

Tim Curtis: Quoted by CNN

Susan McLaughlin: Quoted in Reuters

  • AFP ran tactics and messaging strategy training for Mclaughlin's group in Liberty Township, Ohio.
  • McLaughlin served on the Romney campaign's Conservative Leadership Coalition with representatives from AFP

Jay Devereaux: Quoted by Fox News

  • The only tea party spokesman quoted in the media with no obvious ties to AFP

 

 

GREENPEACE REPORT: Climate Change Denial Machine vs. Scientists

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.

This multi-million dollar campaign has been funded by anti-government ideologues like the Koch brothers, companies like ExxonMobil and trade associations like the American Petroleum Institute.Big Oil funding of climate denial declines. "Anonymous" funding through Donors skyrockets. Interesting.

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.

koch brosWhat 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.

Institute for Southern Studies: How renewable energy won in North Carolina

(Photo from the National Renewable Energy Laboratory.)

This article by Sue Sturgis was crossposted from Facing South, the online magazine of the Institute for Southern Studies.

A bill that would have ended North Carolina's renewable energy program was voted down this week by a state House committee in a bipartisan vote by a surprisingly wide margin.

House Bill 298 was backed by more than a dozen conservative advocacy groups including the American Legislative Exchange Council, Americans for Prosperity, the Competitive Enterprise Institute, and the John Locke Foundation -- organizations that have considerable influence in North Carolina's Republican supermajority-controlled legislature.

So how did the measure lose?

In a word: jobs.

From the moment talk of repealing the state's renewable energy standard began intensifying following last year's election among conservative groups that have long denied the reality of global warming, the state's sustainable energy industry and environmental advocates pushed back by focusing on the law's track record of creating jobs and other economic benefits.

The N.C. Sustainable Energy Association, an industry lobby group, commissioned an economic analysis of the law, which passed in 2007 by a wide bipartisan margin and was the first of its kind in the Southeast. Released in February, the study conducted by RTI International and La Capra Associates found that North Carolina's law has been a driver of clean energy development, which in turn as been an important job creator for the state.

The researchers found that while the state's economy lost more than 100,000 jobs from 2007 to 2012, clean energy development led to a net gain in employment of 21,162 "job years" (one job that lasts one year) over the same period. It also found that tax credits used by renewable energy projects were important revenue generators for state and local governments, and that the bill would save ratepayers millions of dollars over the long term by avoiding construction of costly new power plants.

In all, the study found that North Carolina has reaped $1.7 billion in total economic benefits from the law over the past six years.

When the repeal bill came up for its first public hearing earlier this month in a House Commerce subcommittee, the only people who spoke in favor of it were from Americans for Prosperity and the Civitas Institute, another conservative advocacy group. The overwhelming majority of speakers praised the renewable energy law's positive economic impact. Besides owners of clean energy companies, they included farmers who have begun investing in systems to generate power from livestock waste methane, which counts as a renewable under North Carolina's law. They were also joined by rural economic development advocates who spoke about how clean energy generation has created jobs and expanded the tax base in struggling rural communities.

It proved a convincing message in a state with the nation's fifth-highest unemployment rate and entrenched poverty in rural areas, where many of the state's renewable energy projects are located.

Though the repeal bill squeaked by in its first subcommittee vote by 11-10, two key Republicans voted against it. State Rep. Mike Hager (R-Rutherford), a former Duke Energy engineer and House majority whip who was one of the bill's four primary sponsors and its most outspoken proponent, saw that his proposal was in trouble. He has made several revisions to the measure in an effort to win support.

This week the proposal was scheduled to be heard in the House Environment Committee chaired by Rep. Ruth Samuelson of Charlotte -- one of the Republicans who voted against the measure in the Commerce subcommittee. But on Monday, the measure was re-referred to the House Public Utilities Committee, which is chaired by Hager himself, for an April 24 hearing.

It was there that the repeal bill appears to have been defeated with the help of a half-dozen of Hager's fellow Republicans, including three GOP leaders. After a relatively brief half-hour debate in which lawmakers noted that the policy has brought investments and jobs to their districts, the committee voted 18-13 to kill the bill. The wide margin surprised many observers, who thought it would likely go either way by a single vote.

"This vote to defeat the REPS repeal bill was not just a good outcome, it was the right outcome," said Ivan Urlaub, executive director of the N.C. Sustainable Energy Association. "North Carolina businesses, ratepayers, workers, and state and local economies all had a stake in this outcome, and they all won a victory today."

While the bill appears dead for now, the possibility remains that it could come back in a revised form. Hager told the Associated Press after the vote that the sponsors are "going to try and patch it up."

In the meantime, Dallas Woodhouse, director of the North Carolina chapter of Americans for Prosperity (AFP), told The News & Observer of Raleigh that Republicans who voted against the repeal "need to be held accountable." AFP and allied opponents of North Carolina's renewable energy law portrayed it as a burdensome tax on consumers. Duke Energy's residential customers pay 22 cents a month and Progress Energy's 42 cents to subsidize renewables under the law.

AFP had joined with the John Locke Foundation, a North Carolina think tank that has been a leading voice of climate science denial and an opponent of renewable energy initiatives, to launch a StopGreenEnergyTax.com website to promote the repeal bill. Following the bill's defeat, the Locke Foundation posted a statement saying the committee voted to continue a "raw deal for tax payers and rate payers."

The effort to repeal North Carolina's renewable energy law is part of a broader conservative attack against such laws in a number of states including Texas, Virginia, and West Virginia. Many of the groups involved in the repeal effort, including AFP, have financial ties to fossil-fuel interests.

Koch Industries bid for Tribune Co. newspapers could expand existing climate denial in Koch media

Brothers Charles and David Koch have spent decades and millions of dollars to influence the news we read in newspapers, see online and watch on TV. The Kochs regularly convene high security meetings with high society attendees, many of whom work in the media, influence it, or own it.   

Now reporters across the country are eyeing the Koch's first attempt to directly own media themselves. Last weekend's New York Times confirmed Koch Industries' bid for the Tribune Company as a way for the Kochs and their allies to "make sure our voice is heard." Tribune's newspapers reach tens of millions of U.S. citizens, an ideal captive audience for Charles Koch's self-serving philosophy to promote "economic freedom," and to end "crony capitalism," an ironic choice of words for the one of country's most infamous corporate political manipulators. Tribune Co. owns eight newspapers and 23 TV stations across the country including the L.A. Times, the Chicago Tribune and Hoy, the country's 2nd largest daily Spanish newspaper, a clear asset for conservative politicians still reeling from their underwhelming rapport with the U.S. Hispanic population in the 2012 election. Reaching Hispanic and Latino voters will be a major topic at the Kochs' secretive "billionaires caucus" next week, which was delayed three months so the Kochs could audit the results of their 2012 electioneering activities, bolstered by hundreds of millions of dollars raised at previous Koch meetings.{C}

It's worth noting that the Koch-funded American Legislative Exchange Council distributed Arizona's controversial racial profiling law, SB 1070, to states around the country so private prison companies can rake a profit off the incarceration of immigrants.

Existing Kochtopus Media Publishes Climate Science Denial

Preceding their bid for the Tribune Company, the Koch brothers' network ties them to media outlets promoting the climate change denial campaign infamously bankrolled by the Kochs. Read the slaughter of science yourself at the Wall Street Journal opinion page, the Weekly Standard, the National Review, the Washington Examiner, and Breitbart.com. A Greenpeace investigation detailed key media outlet owners and pundits with ties to the Kochs through their secretive strategy meetings, as did Lee Fang's ThinkProgress article on the Kochs' pet "journalists." Here are some of the Koch's key allies that own or work in the media:

  • Stanley S. Hubbard, the billionaire chairman and CEO of Hubbard Broadcasting, which owns TV and radio stations in major cities across the country, including Washington DC's WTOP and WFED.
  • Karl Eller, who founded the world’s largest outdoor advertising company, Clear Channel Outdoor, and launched numerous TV, radio and newspaper outlets that were absorbed by Gannett Company. Gannett owns USATODAY and dozens of other U.S. newspapers and television stations, and Clear Channel Outdoor stemmed from a Gannett advertising subsidiary purchased by Eller. Karl Eller served on the board of Turner Broadcasting, which owns CNN. He was chosen by the American Advertising Federation for its Advertising Hall of Fame in 2004.
  • Ramesh Pannuru, the senior editor of the National Review, an outlet funded by the Charles Koch Foundation. National Review's "Planet Gore" blog is dedicated to dismissing global warming.
  • Stephen Moore of the Wall Street Journal editorial board, contributor to the National Review and frequent TV news pundit. Stephen Moore used to work at the Cato Institute, which was founded by Charles Koch in the 1970's and continues to be directed by David Koch and other Koch Industries associates. Moore advises the Koch-funded American Legislative Exchange Council (ALEC) and regularly collaborates with the Heritage Foundation and Americans for Prosperity. In 2009, Moore told attendees of the 2009 RightOnline conference, "What would we do without the Wall Street Journal and FOX News, Right? And Americans for Prosperity?" Moore is a former director of Donors Capital Fund, according to 2010 IRS tax filings.
  • Steven Hayward, who is affiliated with numerous groups financed by the Kochs as well serving as treasurer and board member to Donors Capital Fund. DCF and sister group Donors Trust hide money from the Kochs and other corporate interests to groups like the Heartland Institute, the Franklin Center, CFACT, Americans for Prosperity, and many other groups connected to Hayward--read more on Steven Hayward and the Donors Trust network. Steven Hayward frequently dismisses global warming in the Weekly Standard, the National Review, and Powerline Blog, run by attorney John Hinderaker, whose firm has represented Koch Industries.
  • Glenn Beck, the former FOX News hysteric who thanked Charles Koch on air for providing misinformation on climate change he presented during his show.
  • Dixon Doll, the co-founder and General Partner of DCM, a venture capital firm involved in telecommunications. Dixon Doll sits on the board of directors of DIRECTV.

The New York Times included the brothers' connection to oil and gas billionaire Philip Anschutz, who owns the Weekly Standard, the Washington Examiner, and other outlets through Clarity Media Group (check out the Weekly Standard's  puff piece on the Kochs). Phil Anschutz, a fellow financier of climate science denial groups, is one of many elites who attends the Kochs' twice-annual strategy meetings, where millions of dollars are raised to influence politics through groups like the Heritage Foundation, Americans for Prosperity, the Franklin Center, and the other members of the State Policy Network. The State Policy Network and its affiliates often gin up their own astroturf media, with the Franklin Center's "Watchdog" websites dishing out content to bolster the campaigns of Koch's flagship SPN operations like Americans for Prosperity and ALEC. The Franklin Center is 95% funded by Donors Trust, the "Dark Money ATM" that hides money from the Kochs and other secretive political manipulators.

Pressure from advocates and Tribune employees to reject Koch bid

Media Matters reported numerous accounts from Tribune Co. paper employees concerned they would be a "conservative mouthpiece" for Koch Industries. As reporters from Tribune's various newspapers voice their discontent, Forecast the Facts and Courage Campaign have obtained over 100,000 petitions to the Tribune Company against the Koch bid, citing Tribune reporting on climate change that could be threatened by Koch ideology. The public pressure has been acknowledged by @TribuneCo on Twitter, though the company remains noncommittal.

This post was crossposted from Greenpeace's The Witness: Koch Bros Tribune Co? Climate change denial in Koch-friendly media

 

Koch Industries funds ALEC and State Policy Network front groups to kill Kansas clean energy standard

Crossposted from Greenpeace USA

Correction: this post listed Sen. Julia Lynn as a supporter of the RPS freeze--she is not and her name was removed from SB 82 co-sponsors below.

A recent flood of Koch-supported think tanks, junk scientists and astroturf groups from inside and outside of Kansas are awaiting the outcome of a bill this week that could stall progress on the growth of clean energy in Kansas.

States around the country, including Texas, Ohio, Missouri and North Carolina are poised to cut back on government support for clean energy jobs using model legislation from the American Legislative Exchange Council. ALEC, which brings companies together with state lawmakers to forge a wish list of corporate state laws behind closed doors, is coordinating this year's assault on state laws that require a gradual increase of electricity generated by clean energy sources.

ALEC and a hoard of other Koch-funded interests operating under the umbrella of the State Policy Network have hit Kansas legislators hard with junk economic studies, junk science and a junk vision of more polluting energy in Kansas' future. Koch Industries lobbyist Jonathan Small has added direct pressure on Kansas lawmakers to rollback support for clean energy.

This fossil fuel-funded attack ignores the good that wind energy has done for Kansas, a state known for its bipartisan support for its growing wind industry (see key report by Polsinelli Shughart). The state now has 19 operating wind farms that have brought millions to farmers leasing their land and millions more to the state, county and local levels (NRDC). The American Wind Energy Association says that Kansas wind industry jobs have grown to 13,000 with the help of incentives like the renewable portfolio standard.

Unfortunately, clean energy is not palatable to the billionaire Koch brothers or the influence peddlers they finance.

All of the following State Policy Network affiliates (except the Kansas Policy Institute) are directly funded by the Koch brothers, while most of the groups get secretive grants through the Koch-affiliated "Dark Money ATM," Donors Trust and Donors Capital Fund, which have distributed over $120,000,000 to 100 groups involved in climate denial since 2002.

Beacon Hill Institute
  • $53,500 grant from Donors Trust in 2007
  • Koch-funded (Washington Post)
  • State Policy Network member

Based out of Suffolk University's economics department, the Beacon Hill Institute wrote the fundamentally flawed analysis that ALEC is using to scare legislators into thinking that renewable portfolio standards will destroy the economy. In reality, electricity prices do not correlate with state RPS laws (see also Kansas Corporation Commission).

An extensive debunk of the Beacon Hill report was done by Synapse Energy Economics, and similar critiques can be read in the Portland Press Herald and the Maine Morning Sentinel, the Union of Concerned  Scientists, the Nature Resources Defense Council and the Washington Post.

The definitive Post article confirms that the Beacon Hill Institute is Koch-funded. This may be through $729,826 in recent grants (2008-2011) from the Charles G. Koch Foundation to Suffolk University. The Kochs tend to send grants to economics departments, causing controversy at Florida State University and other schools over professor hiring processes.

Beacon Hill's Michael Head co-authored the reports that ALEC and the State Policy Network are using in several states. Mr. Head specializes in STAMP modeling, a form of economic analysis that has been criticized for its limitations and poor assumptions in the case of energy analysis. Michael Head testified before the Kansas legislature on February 14th to promote the flawed findings of his report. Mr. Head testified alongside members of the Heartland Institute, Americans for Prosperity and the Kansas Policy Institute (see more on each, below), all of which are members of ALEC and SPN.

American Legislative Exchange Council (ALEC): 

ALEC is leading the nationally-coordinated attack on state renewable portfolio standards as part of an ambitious dirty energy agenda for the members of its anti-environmental task force, like Koch Industries, ExxonMobil, Peabody Energy, Duke Energy and other major oil, gas and coal interests.

ALEC's "Electricity Freedom Act" is a full repeal of state laws requiring increasing electricity generation from clean sources, although in some states the model has morphed into a freeze of those targets rather than a full repeal. Kansas is one of those states.

The bills running through Kansas' House and Senate are co-sponsored by legislators who are members of ALEC. The Senate Utilities committee sponsoring SB 82 has at least three ALEC members and the House Energy & Environment committee that introduced HB 2241 has at least three ALEC members:

  • Senators Forrest Knox, Ty Masterson and Mike Petersen.
  • Representatives Phil Hermanson, Scott Schwab, and Larry Powell (member of ALEC's anti-environmental task force that created the Electricity Freedom Act)
While it's unclear if the lead House sponsor Rep. Dennis Hedke is directly affiliated with ALEC, he spoke directly with a Koch Industries lobbyist about the bill and has a close relationship with the Heartland Institute, which promoted one of his books.
 
The Heartland Institute:

Heartland is based in Chicago and perhaps best known for its billboard comparing those who recognize climate change with the Unabomber (for which they lost over $1.4 million in corporate sponsorship along with the "mutiny" of their entire Insurance department, now the R Street Institute).

The Washington Post reports that ALEC's "Electricity Freedom Act" was created by the Heartland Institute. Heartland has long been a paying member of ALEC's Energy, Environment and Agriculture task force along with Koch, Exxon and others. Citing the flawed Beacon Hill reports, Heartland has encouraged a repeal of Kansas' clean energy incentives on its website.

Heartland lawyer James Taylor testified before the Kansas legislature in February, opining that the growth of Kansas' clean energy sector is "punishing the state’s economy and environment." James Taylor was flown into Kansas City for an Americans for Prosperity Foundation event intended to undermine the Kansas RPS law. The AFP Foundation is chaired by David Koch.

Americans for Prosperity:
 

Americans for Prosperity was created by the Kochs with help from Koch Industries executive Richard Fink after the demise of their previous organization, Citizens for a Sound Economy (CSE), which split into AFP and FreedomWorks in 2004.

In addition to hosting an event against the Kansas RPS law featuring Heartland's James Taylor, AFP's Kansas director Derrick Sontag testified before the Kansas House committee on Energy and Environment. AFP's Sontag urged for a full repeal rather than a simple RPS target freeze:

"We believe that HB 2241 is a step in the right direction, but that it doesn't go far enough. Instead, AFP supports a full repeal of the renewable energy mandate in Kansas."

Derrick Sontag apparently only cited a range of debunked studies (the "Spanish" study and the flawed Beacon Hill report) and information from Koch-funded interests like the Institute for Energy Research and "State Budget Solutions," a project of several State Policy Network groups including ALEC and the Mercatus Center, a think tank founded and heavily-funded by the Kochs.

Kansas Policy Institute

The Kansas Policy Institute (KPI) has been the central coordinating think tank within Kansas as outside interests have backed ALEC's attack clean energy laws. KPI co-published the debunked Beacon Hill Institute report that ALEC has used for its clean energy standard repeal in Kansas (see sources in Beacon Hill section above for debunking).

Kansas Policy Institute Vice President & Policy Director James Franko testified in the Kansas legislature alongside representatives of Heartland Institute, Americans for Prosperity and Beacon Hill Institute on Feb. 14 to weaken Kansas's renewable portfolio standard.

Reasserting the false premise that clean energy standards substantially increase electricity prices, James Franko told the legislature's Energy & Environment committee:

We have no objection to the production of renewable energy. [...] Our objection is to government intervention that forces utility companies to purchase more expensive renewable energy and pass those costs on to consumers.

James Franko's free market logic comes with the usual holes--no mention of the "costs" of coal and other polluting forms of energy that taint our air, water and bodies, nor any mention of how the government spends billions each year propping up the coal and oil industries.

After KPI's Franko testified before Kansas legislators on February 14, KPI hosted a luncheon for legislators at noon on the same day. The luncheon, hosted at the Topeka Capital Plaza Hotel, featured Beacon Hill's Michael Head. From KPI's email invitation:

"Given the importance of this issue, we would like to invite you to join us for lunch on Thursday 14 February to hear from the author of a study we published last year exploring the costs and benefits of the Renewable Portfolio Standard (RPS). Not only will we be discussing KPI’s study but offering a review of different studies that have been presented to the Legislature."

KPI has served as the glue for other State Policy Network affiliates entering Kansas to amplify the opposition to clean energy.

Chris Horner -- Competitive Enterprise Institute & American Tradition Institute

Chris Horner is a senior fellow at CEI and the lead lawyer at ATI, a close CEI affiliate known for its litigious harassment of climate scientist Michael Mann alongside Virginia attorney General Ken Cuccinelli, who just worked with coal utility companies to kill Virginia's renewable energy law. ATI was behind a leaked memo encouraging "subversion" among local groups opposed to wind energy projects.

Horner testified before the Kansas legislature on February 12 to encourage the false notion that the renewable energy portfolio standard is going to make consumer electricity bills skyrocket (again, there is no correlation between state RPS laws and electricity prices). He cited the long-debunked "Spanish" study, which Koch front groups have cited for years in attempts to undermine clean energy.

Chris Horner is affiliated with several other Koch- and Exxon-funded State Policy Network affiliates such as the National Center for Policy Analysis and Tech Central Station (set up by DCI Group).

Grover Norquist and Americans for Tax Reform:

ATR president Grover Norquist wrote a Feb. 27, 2013 letter supporting the Rep. Dennis Hedke’s House bill shortly before the bill was kicked back into the House Utilities commission. This Kansas letter followed an ATR op-ed in Politico encouraging rollbacks of state clean energy incentives, claiming they are a "tax," which is Norquist's consistent tactic against anything the financiers of ATR don't feel like supporting.

Junk scientists with Koch and Exxon ties:

Disgraced scientists Willie Soon and John Christy were flown in by Americans for Prosperity to assure state legislators that global warming isn't a problem (it's already a $1.2 trillion problem annually). Doctor's Soon and Christy themselves directly funded by Koch or directly affiliated with several Koch-funded interests like the Competitive Enterprise Institute and Heartland.

Willie Soon in particular has a habit of conducting climate "research" on the exclusive dime of coal and oil interests over the last decade:

  • ExxonMobil ($335,106)
  • American Petroleum Institute ($273,611 since 2001)
  • Charles G. Koch Foundation ($230,000)
  • Southern Company ($240,000)

Dr. Soon's questionable climate research now receives funding through the Donors Trust network--$115,000 in 2011 and 2012.

See Skeptical Science's profile of John Christy for a through explanation of why he is not a credible voice in the scientific community studying climate change, using peer-reviewed climate research as refutation.

State Policy Network

KOCH INDUSTRIES

  • Based in Wichita, Kansas
  • Operations in oil refining, oil and gas pipelines, fossil fuel commodity & derivatives trading, petrochemical manufacturing, fertilizers, textiles, wood and paper products, consumer tissue products, cattle ranching, and other ventures.
  • $115 billion in estimated annual revenue
  • 84% private owned between brothers Charles Koch and David Koch, each worth an estimated $34 billion (Forbes) to $44.7 billion (Bloomberg).
  • Member of ALEC's anti-environmental task force
  • Associated foundations fund State Policy Network, ALEC, Heartland Institute, Americans for Prosperity, Beacon Hill Institute, Competitive Enterprise Institute, Americans for Tax Reform and Dr. Willie Soon.
  • Koch brothers founded Americans for Prosperity and helped establish the Heartland Institute.

The money trail of the out-of-state groups inundating Kansas with their sudden interest in killing the state's incentives for wind energy leads back to the Koch brothers. While Koch Industries has deployed its own lobbyists to compliment the effort, the brothers who lead the company have tapped into their broader national network to aid the fight against clean energy in Kansas.

Charles and David Koch, the billionaire brothers who own Koch Industries, have spent over $67,000,000 from their family foundations on groups who have denied the existence or extent of global climate change, promote fossil fuel use and block policies that promote clean energy development.

The Kochs obscure millions more in annual giving through Donors Trust and Donors Capital Fund, which collect money from the Kochs and other wealthy corporate interests and pass it on to State Policy Network groups.  This video provides a visual overview of how the Koch-funded network amplifies unscientific doubt over climate science and blocks clean energy policies:

 

 

REVEALED: Donors Trust is the secret ATM machine for climate deniers

A new Greenpeace analysis released today shows that Donors Trust, a shadowy funding vehicle, has laundered $146 million in climate denial funding from 2002 to 2011. Yesterday’s article in the Guardian referenced part of the Greenpeace analysis. Today’s report is now up to date with the latest available funding from 2011.

In addition, a Center for Public Integrity report released yesterday illustrates the efforts of Donors Trust to set up conservative media megaphones in state capitals. Today, the Guardian reported that these ideological media outlets have been instrumental in anti-climate fights at the state level. These include state and regional attacks against wind power, solar power, and carbon pollution reduction programs.

As climate denial funding from traceable Big Oil sources like Exxon and the Koch brothers is declining, the anonymous money funneled through Donors Trust is skyrocketing.

 

This interesting coincidence is illustrated in a graph from the Greenpeace report:

 

The key findings of the Greenpeace analysis on Donors Trust:

  • Donors Trust and its associated organization, Donors Capital Fund, have funded 102 climate-denial organizations since 2002.
  • From 2002 to 2011, Donors Trust and Donors Capital Fund have provided $146 million to climate denial groups.
  • In 2010, a dozen climate denial groups received between 30% to 70% of their funding from Donors Trust, including the Koch-founded Americans for Prosperity, as well as Committee for a Constructive Tomorrow (CFACT)
  • Additional climate denial organizations that have received major funding in recent years by Donors Trust include the Heartland Institute, Competitive Enterprise Institute, Cato Institute and the James Partnership (Cornwall Alliance).

Wait, so what is Donors Trust, exactly? It’s a shadowy funding operation for anti-government extremists and climate deniers. The mission of Donors Trust is to provide ultra-conservative funders a way to support their controversial pet-causes without leaving fingerprints on the grants.

 

But don’t take our word for it – here’s an excerpt from the Donors Trust FAQ webpage:

 

Who is behind this untraceable money? It’s impossible to track all of the big-pockets hiding behind Donors Trust. One notable individual is Charles Koch, the secretive oil billionaire who was discovered to have funneled $8 million through Donors Trust from two of his foundations. And that’s only the amount that we can track – we don’t know the full extent of the Koch’s account with Donors Trust.

As posted yesterday on our blog and detailed in another great Guardian article, several climate denial organizations rely on Donors Trust for a large share of their budgets. The Heartland Institute, creator of the famously reviled “Unabomber billboard” and coordinators of the annual Denial-palooza conference, relies heavily on a single anonymous donor that sends money through Donors Trust. According to internal Heartland plans leaked to the public, this Anonymous Donor has been responsible for up to 60% of the organization’s annual revenue, with the majority of fund earmarked to “global warming programs.” Even though the leaked documents prove this money is specific for climate projects, the Donors Trust tax forms only disclose the funding’s purpose as “general operations.”

The deep dependence on Donors Trust by climate deniers goes far beyond the Heartland Institute. Marc Morano’s organization, the Committee for a Constructive Tomorrow, has received between 40% and 46% of its budget through Donors Trust in recent years. Morano was named 2012 “Climate Misinformer of the Year,” often found as a talking head on Fox News or CNN denying that human activity is affecting the climate. In response to the President’s 2013 State of the Union address, Morano published a point by point rebuttal to the section on climate change.

CFACT is among over a dozen organizations that get 30% to 70% of their total budgets from Donors Trust and Donors Capital Fund. Other noteworthy groups include Americans for Prosperity Foundation, the Cornwall Alliance (James Partnership), and the State Policy Network.

Study: Koch and Tobacco behind Birth of Tea Party

Americans for Prosperity is the Koch-controlled half of what formerly was known as Citizens for a Sound Economy.

A new report in the peer-reviewed academic journal Tobacco Control offers a deeper look at the history of the Tea Party. Commonly thought to be a grassroots uprising spurred by a TV rant in 2009, the report documents how tobacco companies and a front group established by Charles and David Koch were attempting to begin the revolt years earlier.

The study, titled "‘To quarterback behind the scenes, third-party efforts’: the tobacco industry and the Tea Party," shows that the Koch front, Citizens for a Sound Economy, set up a website in 2002 for the "U.S. Tea Party." Here is an archived image from that website, which is now owned by FreedomWorks.

As previously reported by DeSmogBlog's Brendan DeMelle on Huffington Post:

The two main organizations identified in the UCSF Quarterback study are Americans for Prosperity and Freedomworks. Both groups are now "supporting the tobacco companies' political agenda by mobilizing local Tea Party opposition to tobacco taxes and smoke-free laws." Freedomworks and Americans for Prosperity were once a single organization called Citizens for a Sound Economy (CSE). CSE was founded in 1984 by the infamous Koch Brothers, David and Charles Koch, and received over $5.3 million from tobacco companies, mainly Philip Morris, between 1991 and 2004.

The ties between the Koch brothers' Citizens for a Sound Economy and tobacco are extensive, with Charles Koch's right hand man, Richard Fink, getting direct praise from the Tobacco Institute for his leadership in urging the U.S. Surgeon General to avoid foreign trade restrictions on tobacco products. The Checks and Balances Project has a report on Koch Industries executive Richard Fink and tobacco:

In 1988, Fink wrote to the Surgeon General to express concern about the Interagency Committee on Smoking and Health’s inquiries into the subject of tobacco and U.S. trade policy. He warned that it would be unwise to suggest any foreign trade barriers, ending, “we hope that you will keep these thoughts in mind as your department discusses U.S. trade policy toward tobacco.” This letter was tracked down by the Checks & Balances Project in the Tobacco Archives, with an addendum from Samuel Chilcote – President of The Tobacco Institute – urging others to follow Fink’s lead and support.

For Fink’s efforts, Chilcote thanked Fink in a hand-signed letter on behalf of the tobacco industry, writing, “When an advisory body such as the Interagency Committee on Smoking and Health ventures into the field of U.S. trade policy, it is vitally important that the public record be balanced by the sound economic views and sensible business judgments that you provided.”

In summarizing the significance of the Koch-Tobacco-Tea Party insight from the report, DeSmogBlog's DeMelle hits the nail on the head:

Finally, this report might serve as a wake-up call to some people in the Tea Party itself, who would find it a little disturbing that the "grassroots" movement they are so emotionally attached to, is in fact a pawn created by billionaires and large corporations with little interest in fighting for the rights of the common person, but instead using the common person to fight for their own unfettered profits.

Americans for Prosperity and FreedomWorks have been successful in co-opting the Tea Party, directing millions in corporate and wealthy donor funding to steer the "grassroots" agenda of Tea Party activists.

Grassroots? Try astroturf.

Secret Climate Denial Finance: Koch and Others Hide tens of Millions through Donors Trust & Donors Capital Fund

For those familiar with the effort of ExxonMobil and the Koch brothers to bankroll a network of organizations denying basic climate science, a new article in the Guardian offers some revelatory information on the secret funding network that outweighs even top denier sugar daddies like Koch and Exxon.

Donors Trust and Donors Capital Fund, based out of the DC suburb of Alexandria, VA, have sent $118 million to the 'climate denial machine' from 2002-2010, according to a Greenpeace analysis featured in the Guardian. The graph above, from the article, illustrates the significance of this money as compared to giants like Koch and Exxon.

Of course, the Koch brothers are part of the Donors Trust network, using the DONORS groups to hide their own giving to a variety of corporate front groups. Because of the obscurity provided by DONORS, we don't know exactly who is getting exactly how much of the Koch payments to Donors Trust and Donors Capital Fund.

An accompanying article by the Guardian shows how the DONORS groups provide large portions of organisations' entire budgets, such as the Committee For A Constructive Tomorrow, which even among climate deniers is notably anti-scientific.

The support helped the Committee for a Constructive Tomorrow (Cfact), expand from $600,000 to $3m annual operation. In 2010, Cfact received nearly half of its budget from those anonymous donors, the records show.

The group's most visible product is the website, Climate Depot, a contrarian news source run by Marc Morano. Climate Depot sees itself as the rapid reaction force of the anti-climate cause. On the morning after Obama's state of the union address, Morano put out a point by point rebuttal to the section on climate change.

CFACT is among over a dozen organizations that get 30%-70% of their total budgets from the two DONORS groups. As we reported on PolluterWatch last October using 2010 IRS tax filings:

  • Americans For Prosperity Foundation got $7.6 million from DONORS groups in 2010, 43% of its budget. AFP Foundation is chaired by David Koch and has received millions in direct funding from Koch foundations since the Koch brothers founded it.
  • Committee For A Constructive Tomorrow (CFACT) got $1.3 million from DONORS in 2010, 45% of its budget.
  • Cornwall Alliance (through the James Partnership) got $339,500 from DONORS in 2010, 75% of its budget.
  • Heartland Institute got $1.6 million from DONORS in 2010, 27% of it's budget, which came from Chicago billionaire Barre Seid (see p. 67).
  • State Policy Network got 36% of its 2010 budget ($4.8 million) from DONORS. SPN members include just about every climate-denying organization and every conservative think tank in the country, including AFP and Heartland.

Koch is clearly embarrassed by the negative publicity (see press roundup below). Koch "Facts," the company's PR website that lashes back at unfavorable reporting on Koch, attempted to respond to the flood of press on the DONORS groups without mentioning them by name. Similarly, Donors Trust president Whitney Ball has done her best to keep Donors Trust and Koch from being synonymous. To be clear--they are not, but the Kochs and their operatives are key players in the Donors network, with people like Arthur Brooks of the American Enterprise Institute and Steven Hayward of the Pacific Research Institute helping oversee DONORS operations, including millions in funding to their own organizations.

Greenpeace has more coming on Donors Trust, Donors Capital Fund, Koch Industries and the ongoing misinformation pumping out of the climate denial machine. Stay tuned. Key articles on Donors Trust and Donors Capital Fund:

PR Watch on the Election's Fossil Fuel Advertising: Hurricane Sandy Endorses Obama

Hurricane Sandy as seen from Space. From The Guardian.

This guest article was written by Mary Bottari and Sara Jerving of the Center for Media and Democracy, crossposted from PR Watch.

The fossil fuel industry has paid a hefty price for the privilege of framing the political discourse about America's energy future. Hundreds of millions have flowed into campaign coffers from energy companies attempting to purchase complete freedom to drill, frack, and burn. Huge "dark money" groups, the Koch's, Karl Rove, the U.S. Chamber of Commerce, join dozens of oil and gas industry associations in pouring money into television ad campaigns demanding "energy independence," while trashing wind and solar.

Things were going great. Even though hurricanes had slammed into two Republican National Conventions in a row, no one seemed to notice, and Romney's only mention of climate changes was as a punchline. No reporter asked a single climate change question of Romney or Obama during the debates. Even though the U.S. now had 175,000 wind and solar jobs, pro-green energy forces were disappointed in Obama and were less active. For big oil and gas the White House and the Senate were within reach. Critically, they had to move fast before the majority of voters started to not only notice the changing climate patterns, but really started to worry about them.

Then something happened that completely scrambled the board.

Hurricane Sandy blew New Jersey out of the water and inundated New York. The massive storm threw the Romney campaign completely off-message. Not only did they have nothing to say about the serious issue of climate change and the potential for more frequent and more devastating monster storms, the Romney-Ryan message of "smaller government" and "fewer first responders" sank in the Brooklyn Battery Tunnel.

In an unprecedented, last-minute move, Independent Mayor Michael Bloomberg threw his support behind Obama yesterday. His statement "A Vote for a President to Lead on Climate Change" lays out the seriousness of the situation. "In just 14 months, two hurricanes have forced us to evacuate neighborhoods -- something our city government had never done before. If this is a trend, it is simply not sustainable," Bloomberg states.

It wasn't supposed to be this way.

Polluting High Rollers Dominated the Airwaves

Until Sandy rolled in, the airwaves were completely dominated by the fossil fuel industry.

According to The New York Times, by mid-September there had already been a $153 million spent on TV ads that promoted the fossil fuel industry. The analysis showed that energy topics were mentioned more frequently than any other issue besides jobs and the economy. This figure is four times what clean energy advocates were spending.

The numbers stand in sharp contrast to the last presidential election in which the green energy industry and other forces spent $152 million compared to $109 million spent on fossil fuel interests.

Broadly, the ads promote fossil fuels in the context of jobs, domestic security, and energy prices. Combined, they try to convince Americans that "energy independence" should be the nation's top priority. Yet they neglect to point out that solar and wind also create high-wage jobs and energy independence too. According to Open Secrets, oil and gas campaign contributions are at historic highs and are more lopsided than ever before with 90 percent of the funds going to Republican candidates. Top contributors include William Koch's Oxbow Corp, Chevron, Exxon Mobil, and Koch Industries, who have already contributed $59 million to federal candidates. Leading coal mining corporations, such as Alliance Resource Partners, Cumberland Development, and Murray Energy, have kicked in $11.6 million to federal candidates.

But the money does not stop there. The Citizens United Supreme Court decision has opened the door to unprecedented spending by "dark money" nonprofits, SuperPACs and new constellations of trade associations that are on track to spend over $1 billion to "educate" voters about the issues, including the urgent need to extract and burn every last bit of fossil fuel.

  • Karl Rove's Crossroads GPS, a "dark money" group and his American Crossroads SuperPAC, pledged to spend $300 million in this election, a large percentage on fossil fuel spin. There are dozens of ads in the presidential race and in Congressional races. One Crossroads ad blames Obama for higher gas prices. Another slams Obama for putting the Keystone Pipeline on hold. While Crossroads GPS does not disclose its donors, American Crossroads PAC does and it is loaded with fossil fuel contributors, including Alliance Resources Partners CEO Joe Craft who has given the group $1.25 million, Petco Petroleum which has given the group $1 million, and over $2 million from TRT holdings, which controls Tana Exploration, a Texas-based oil and gas company.
  • David Koch's Americans for Prosperity "dark money" group, pledged to spend over $100 million this year in support of Republican candidates. The group's ads also attack Obama and clean energy when talking about Solyndra and the stimulus bill which allegedly sent some clean energy jobs overseas. More recently they have pushed pro-coal "Stand with Coal" ads in Ohio and Virginia.
  • The U.S. Chamber of Commerce, an industry association and dark money group, has pledged to spend more than $50 million on the election and has fielded energy ads in key races such as Ohio with a messages like "Shale Works for Us," in promotion of expanding drilling for shale oil and gas.
  • The American Coalition for Clean Coal Electricity, a coal industry front group, has pledged to spend some $40 million on coal related ads. One ad, targeting Ohio's Sherrod Brown, criticizes the Senator for endorsing "higher energy taxes" linking him to "Washington's costly energy policies."
  • The American Petroleum Institute, an industry trade association, has pledged some $40 million this campaign season on efforts to push the expansion of oil and gas drilling. Two of their primary campaigns, "Vote 4 Energy" and "Energy Citizens" attempt to exert the aura of a grassroots base pushing for fossil fuel development. Their ads feature "energy voters" parroting fossil fuel talking points.
  • The American Energy Alliance, a "dark money" group run by former Koch Industries lobbyist Tom Pyle, is spending millions alleging that Obama's policies would lead to $9 a gallon of gas and a recent ad airing in Ohio and Virginia harps on Obama for comments he made about coal industry in 2008.

Rarely are voters seeing any counter-narrative. Alternative energy forces have spent only $2 million, and some environmental groups are weighing in with modest resources. New ads by the League of Conservation Voters saying U.S. Senate Candidate Tammy Baldwin (D-WI) will stop the offshoring of U.S. jobs and "will end big oil subsidies" -- with cheerful Wisconsin windmills and pumpkins in the background -- started only in the final days of the campaign. Is it any wonder that candidates have been able to ignore the serious issues?

"To ignore a global crisis that has been fully understood for over 15 years and is quickly slipping out of control shows just how far coal and oil money have drowned out constituents all the way from the Statehouse to the White House," said Greenpeace's Connor Gibson.

What Does the Fossil Fuel Industry Want?

Although environmentalists are not happy with what they perceive as Obama's timidity, the fossil fuel industry is apoplectic about the steps he did take as president. They have leveled blistering criticism about Obama's efforts to slow down the Keystone Pipeline; they don't like his new auto emissions standards; they are unhappy with new EPA mercury emissions rules for boilers; and they don't like the fact that permits for drilling and fracking on federal lands have slowed.

The industry is looking for a victory in the battle over TransCanada's Keystone XL pipeline project, which would carry heavy tar-sands crude oil from Canada to Gulf Coast refineries, exporting some portion of the oil overseas. Construction of the pipeline was confronted by an active movement of citizens concerned about the impact that the pipeline would have on communities and on the threat burning the tar sands posed to the planet. Burning all the available tar sands would be "game over" for the climate, according to NASA scientist Jim Hansen, one of the nation's most respected climate change experts. Romney has vowed to give the project clearance on his first day in office, while Obama has approved a portion of the segment, and has allowed for further environmental impact study of the northern portion.

The industry also wants carte blanche to use federal lands for the highly controversial practice of hydraulic fracturing or "fracking" for shale oil and gas. Fracking has the documented potential to contaminate drinking water sources and foul both air and land -- in addition to spoiling millions of gallons of fresh water as part of the drilling process.

The industry is calling for a streamline on the permitting process for fossil fuel development on all lands. While industry's ads have argued that increased drilling will decrease gas prices, global gas prices largely follow international trends.

The industry is also keen to hold onto to the billions of fossil fuel subsidies it receives each year from the federal government. According to the International Energy Agency, fossil fuel subsidies from the government are 12 times greater than renewable energy.

No matter who wins the presidency, there will be major battles on each of these issues. The question is, after years of fossil fuel propaganda, how engaged will the American public be in the effort to save the planet from the fossil fuel industry?

The Price of Fossil Fuel Propaganda

According to author and activist Bill McKibben, "This will be the warmest year in American history. It came with the warmest month in American history, July. It featured a statistically almost-impossible summer-in-March heat wave. It brought us a drought so deep that food prices have gone up 40 percent around the world. It brought us this completely unprecedented mega-storm, the biggest storm, as one weatherman put it yesterday, to hit New York since its founding in 1624," McKibben told Time.

The problem according to McKibben is that "there's been a 20-year bipartisan effort in Washington to accomplish nothing, and it reached its comedic height this summer when our presidential candidates, despite barnstorming through the warmest summer in American history, seemed not to notice. The reason is the incredible power of the fossil fuel industry. Until we can diminish that power, I imagine nothing very large will be done to deal with climate."

Hurricane Sandy has launched a full frontal attack on fossil fuel industry propaganda.

It is up to us to follow in her path.


Will Dooling contributed to this article.

EXPOSED: How Koch Bros Secretly Launder Donations to Dirty Front Groups

Earlier this year internal documents from the Heartland Institute, a major hub of climate change denial and right-wing extremism, were publicly leaked. The documents exposed the Heartland Institute's funders and strategies for attacking climate science, and led to a mass exodus of Heartland's corporate funders.

Today, a newly updated report based in large part on Heartland's internal documents has revealed two new insights into the way in which the anti-climate science movement has been supported and financed over the last decade.

  1. A billionaire named Barre Seid is the Heartland Institute's main sugar daddy. He is the "Anonymous Donor" listed in Heartland's fundraising plan who finances climate science denial operations to confuse children, the general public and policymakers over global warming. Seid has been the biggest booster behind Heartland's attacks on climate science, donating millions of dollars to keep the Heartland Institute's anti-science work afloat.
  2. The Koch brothers and other ultra-wealthy industrial ideologues are now hiding much of their donations to conservative political outlets through an obscure group of foundations that specialize in secrecy.

In total over $311 million has been put through twin organizations known as Donors Trust and Donors Capital Fund which share an address in Alexandria, Virginia. The people running these organizations are close to the Kochs and have numerous ties to the groups that the DONORS network funds, such as the Koch-founded Cato Institute, the Heritage Foundation, the Independent Women's Forum and the Manhattan Institute. The Kochs have a little-known foundation that only donates to these "DONORS" groups called the Knowledge & Progress Fund, according to the report detailing this network.

The report, written by a silicon Valley scientist turned public interest watchdog John Mashey, is titled "Fakexperts," and details how right-wing foundations associated with the Koch brothers, Richard Mellon Scaife, the Bradley family, and others have been using a secret finance network to support extremist right-wing groups. Most of these groups are associated with the State Policy Network, a band of corporate apologists who have made careers denying everything from the dangers of smoking cigarettes to the existence of climate change.

Some of the sketchy groups that have received big chunks of their 2010 budgets through Donors Trust and Donors Capital Fund, including top climate change science deniers:

  • Americans For Prosperity Foundation got $7.6 million from DONORS groups in 2010, 43% of its budget. AFP Foundation is chaired by David Koch and has received millions in direct funding from Koch foundations since the Koch brothers founded it.
  • Committee For A Constructive Tomorrow (CFACT) got $1.3 million from DONORS in 2010, 45% of its budget.
  • Cornwall Alliance (through the James Partnership) got $339,500 from DONORS in 2010, 75% of its budget.
  • Heartland Institute got $1.6 million from DONORS in 2010, 27% of it's budget, which came from Chicago billionaire Barre Seid (see p. 67).
  • State Policy Network got 36% of its 2010 budget ($4.8 million) from DONORS. SPN members include just about every climate-denying organization and every conservative think tank in the country, including AFP and Heartland.

The twin DONORS organizations are advertised as a way for very wealthy people and corporations to remain hidden when "funding sensitive or controversial issues groups," which creates a lack of accountability that is troubling. DONORS also promises to only funnel money to groups with an extreme anti-environmental bend, so industrial billionaires need not worry about their money winding up here at Greenpeace, as Donor's Trust co-founder Whitney Ball explains:

"...if a donor names his child a successor advisor, and she wants to give to Greenpeace, we’re not going to be able to do that."

Expect to hear more about Donor's Trust and Donor's Capital Fund as we continue to track the dirty money of Koch Industries and their allies. For more, check out PBS FRONTLINE's recent dig on climate deniers in a special called Climate of Doubt, which includes descriptions of the DONORS groups from Drexel University's Robert Brulle.

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