Lisa Nelson, the new CEO of the American Legislative Exchange Council, or ALEC, doesn't know her organization's position on climate change.
Funny enough, just a week before, ALEC posted its "Position Statement on Renewables and Climate Change," in response to heightened attention to its role in denying climate change.
The surge of attention is due to recent and very public departures by Google, Facebook, Yelp, Yahoo and even Occidental Petroleum, specifically citing ALEC's backwards work on climate change.
Google CEO Eric Schmidt said people working for ALEC are "literally lying" about global warming, announcing that Google's staff didn't wish to continue supporting such work (after Google's failed attempts to get ALEC to support clean energy).
ALEC's history of climate change denial runs deep. In addition to blocking policy solutions to global warming, ALEC helps to smother competition of clean energy industries for its fossil fuel company members, specifically working to repeal state clean energy standards and impose fees on "freerider" homeowners who feed excess energy back into the electrical grid from their solar panels. Most recently, ALEC has called for "guerrilla warfare" against the Environmental Protection Agency's first rule to limit carbon pollution from U.S. power plants.
ALEC is a dating service for lobbyists and state legislators. It helps corporations write model bills that its legislator members then introduce in states around the U.S., tax free for its corporations. Its operations are kept secret from the public.
As Greenpeace has documented, ALEC has no bills to remove handouts or subsidies for fossil fuel companies, and plenty of bills promoting oil, gas and coal projects. Meanwhile, ALEC has no bills promoting renewable energy projects and plenty of bills attacking incentives for clean energy.
Confronted on this contradiction, ALEC stays mum, consistent with its pattern of avoiding public accountability.
Click here to add your voice: tell Dominion to Dump ALEC!
- Bill Euille - Mayor of Alexandria VA
- Joe Romm - Physicist and Founder of Climate Progress
- Jonathan Lykes - Co- Chair Black Youth Project 100, D.C. Chapter
- Jorge Aguilar - Southern Region Director at Food & Water Watch
- Priscilla Lin - Recent graduate of William and Marry College and Volunteer with Oceana
- Ivy Main - Chair Sierra Club Virginia Chapter and member of Virginia Governor’s Climate Commission
- Seth Heald - Vice Chair, Sierra Club Virginia Chapter
Building Pressure on Dominion to Dump ALEC:
@PolluterWatch Live Tweets from the Protest:
.@climateprogress Joe Romm: @domvapower support for @ALEC_states is "immoral." 'Corps dont need livable #climate, people do.' #alecexposed — Polluter Watch (@PolluterWatch) September 4, 2014
Romm: Thomas Jefferson wouldnt support ALEC disregard 4 sustainability, #climate policy interference. #alecexposed pic.twitter.com/jdMJTBuIJw — Polluter Watch (@PolluterWatch) September 4, 2014
.@sierraclub's ishmael buckner moderates ALEC protest calling on @domvapower to #DumpALEC! #alecexposed pic.twitter.com/tWztkOwP1s — Polluter Watch (@PolluterWatch) September 4, 2014
Creative paraphrasing of @jonathanlykes: @Domvapower - dont #StandYourGround on bad ALEC anti-person policies! pic.twitter.com/mGmOfs6k2W — Polluter Watch (@PolluterWatch) September 4, 2014
Protest wrapping up - time for @domvapower to #ActOnClimate and dump @alec_states! #alecexposed #standuptoalec pic.twitter.com/bREoWKSfiE — Polluter Watch (@PolluterWatch) September 4, 2014
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.
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.
Amid public outrage over the acquittal of George Zimmerman after the fatal shooting of unarmed teenager Trayvon Martin, Koch Industries wants to clarify something: they did not finance Zimmerman's legal defense...but they did and do continue to fund the American Legislative Exchange Council (ALEC), which took up the NRA's Stand Your Ground law in Florida and spread it to over two dozen other states.
Using their Koch "Facts" website, lobbyists at Koch Industries pushed back on the Zimmerman rumor and cite Snopes, a popular reference for confirming or debunking rumors. Snopes explains how Koch has backed ALEC's operations, including peddling Stand Your Ground laws that increase homocides:
"A rumor claiming that Koch was paying the legal fees of George Zimmerman, the defendant in the Trayvon Martin shooting case, and calling for a boycott of Koch-owned paper companies began to spread in mid-April 2012. This rumor appears to be tied to a combination of George Zimmerman's launching a web site soliciting donations for his lawyers and living expenses and news reports linking Koch to the American Legislative Exchange Council (ALEC), a conservative policy group "that came under attack after the Trayvon Martin shooting for pushing Stand Your Ground gun laws nationwide".
ALEC's work for Koch and other companies has resulted in a barrage of bad state policies, taken home by ALEC's member state legislators who then turn a wishlist of corporate-crafted bills into law. Koch in particular is interested in ALEC's polcies to prevent action on climate change at every opportunity, blocking accurate teaching of climate science in K-12 schools, promotion of fossil fuel extraction, attacking clean energy incentives, limiting liability for corporations when their actions harm the public, and other cynical tactics that undermine the public interest.
Koch Industries is a member of ALEC's Energy, Environment and Agriculture task force. Koch lobbyist Mike Morgan sits on ALEC's national corporate board and the Koch brothers' foundations have given hundreds of thousands to ALEC's general operations, supporting a wide variety of issues including the dissemination of the NRA's Stand Your Ground laws. 49 corporations and 6 nonprofits have stopped supporting ALEC due to Stand Your Ground, Voter Suppression and other controversial policies, including Wal-Mart, the nation's largest gun retailer. Meanwhile, Koch has stood behind ALEC during controversy after controversy.
Every "fact" that Koch Industries posts comes with an invisible asterick that readers must fill in themselves. Koch uses KochFacts to intimidate, lie and bend the truth, and will continue to do so in attempts to prevent reporters and watchdogs from highlighting its bad behavior.
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.
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.
Written by Gabe Elsner of the Checks and Balances Project. Crossposted with permission from Huffington Post: ALEC Energy Director Misleads the Wall Street Journal
In Friday's Wall Street Journal story, "States Cooling to Renewable Energy," American Legislative Exchange Council (ALEC) Energy, Environment and Agriculture Task Force Director Todd Wynn claimed, "I have not received one dime to work directly on renewable-energy mandates." Wynn may not have received a check where the memo read: "For your efforts to attack clean energy policies" but his ALEC paycheck certainly comes (in part) from fossil fuel interests.
ALEC received approximately 98 percent of its budget from corporations, trade associations and corporate foundations, according to IRS 990 tax forms from the organization in 2009.
The members (as of June 2011) of Mr. Wynn's task force include at least 23 fossil fuel companies and utilities, like ExxonMobil, Continental Resources, Peabody Energy and Duke Energy, that have a direct financial interest in slowing the growth of clean energy. Task force members fund almost all of ALEC's operations.
ALEC corporate members each pay between $7,000 and $25,000 or more to be members. The corporate task force members also pay fees to have a vote on what pieces of "sample legislation" should be sent to state legislators. And, last fall, the energy task force members voted to push the "Electricity Freedom Act," which repeals state clean energy standards, through state legislatures across the country.
So it's no surprise these bills are showing up and being pushed by fossil fuel interests and front groups in states across the country. Wynn probably received at least a few dimes to coordinate this effort to attack clean energy policies. If ALEC wants to provide some transparency on its budget, Checks and Balances Project would be happy to take a second look.
Koch Industries funds ALEC and State Policy Network front groups to kill Kansas clean energy standard
Crossposted from Greenpeace USA.
UPDATE 2015: after three years of continued attacks, Koch Industries, Koch's Americans for Prosperity, the Koch-backed Kansas Chamber of Commerce and the state's wind industry lobby cut a deal to weaken the Kansas RPS law by making compliance voluntary. This was a largely symbolic political victory for Koch's lobbyists, since the state's utilities have already exceeded the 2020 target for renewable energy generation targets established by the law. This followed many failed attempts by ALEC legislators to freeze or repeal RPS laws in North Carolina, Kansas, and many other states, ALEC legislators in Ohio froze its RPS law, effectively gutting the clean energy and energy efficiency incentives. Ohio state Senator and ALEC member Troy Balderson sponsored SB 310, which passed and was signed by early ALEC alumni Governor John Kasich. Troy Balderson, the third ALEC member senator in Ohio to introduce RPS attack legislation, is listed in ALEC's Energy, Environment and Agriculture task force rosters from 2011 (see ALEC EEA agendas from Cincinnati and New Orleans, from Common Cause's whisteblower complaint to the IRS about ALEC's lobbying activities). Balderson's ALEC affiliation was unfortunately unreported by Ohio press and bloggers. Despite a nationally-coordinated State Policy Network and fossil fuel industry attack on state RPS laws, Ohio is the only state that has allowed ALEC and SPN to undermine its own clean energy incentives, after quietly passing the RPS law with support from ALEC legislators back in 2008.
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.
- $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.
- State Policy Network member (and vice-versa)
- $858,858 from Koch foundations since 1997
- Ongoing funding from Koch Industries and numerous coal, oil & gas interests
- $45,000 grant from Donors Trust and Donors Capital Fund since 2010
- Koch lobbyist Mike Morgan sits on ALEC's corporate board
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 (a member of ALEC's anti-environmental task force that created the Electricity Freedom Act)
- State Policy Network member; ALEC anti-environmental task force member
- $55,000 from Koch foundations since 1997
- $14.5 million from Donors Trust since 2002
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 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
$534,500 from Donors Trust and Donors Capital Fund, 2009-2011
- $340,000 in 2010--49% of 2010 budget
- $125,000 in 2011--20% of 2011 budget
- Member of ALEC; member of the State Policy Network
- KPI Trustee George Pearson is a Koch family friend who "worked for nearly three decades for the Koch family as manager of various Koch Foundations and for Koch Industries." Pearson helped Charles Koch start the Cato Institute as one of Cato's original shareholders and worked for the Institute for Humane Studies at George Mason University, one of Charles Koch's most heavily-financed projects.
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
- Competitive Enterprise Institute (CEI):
American Tradition Institute (ATI):
- Member of the State Policy Network
- 75% of 2010 funding from oil businessman Doug Lair
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.
Grover Norquist and Americans for Tax Reform:
- $60,000 from Koch foundations since 1997
- $172,100 from Donors Trust since 2004
- Member of the State Policy Network
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
- Umbrella organization to all groups listed above
- $49,000 from Koch foundations since 1997
Over $10 million from Donors Trust & Donors Capital Fund since 2002
- Donors Trust provided over 36% of SPN's 2010 budget and over 40% of SPN's 2011 budget (budgets for both years listed in their 2011 IRS filing).
- 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: