Peabody Energy dumps retirees in to company "created to fail," then cuts their pensions and benifits
Peabody Energy, the largest coal company in the US and one of the largest in the world, is once again embroiled in controversy over shady treatment of employees. In 2007, Peabody Energy created Patriot Coal, a spin-off company comprised of Peabody’s eastern US mines. According to lawsuits involving the United Mine Workers (UMW), Patriot was formed as a place to stash union mines in West Virginia and the Midwest, along with the significant pension and health-care obligations that these eastern mines held. According to UMW, Patriot was essentially a "company created to fail," to give Peabody Energy and Arch Coal (another major US coal company who sold union mines to Patriot) an easy way to avoid paying union pensions and health-care benefits, while continuing to profit from their giant, nonunion surface mines in the Powder River Basin of Montana and Wyoming.
Once Patriot declared bankruptcy, which it did last July, all of the pensions and medical benefits Peabody was obligated to pay their workers were put on the chopping block, just as Peabody had hoped. If Peabody succeeds, 10,000 retirees and another 10,000 dependents will lose the benefits promised them. Now, retired mine workers who labored for Peabody under the promise that they would receive health care and pensions, are outraged. Protests have forced Peabody to move its annual meeting to Wyoming, to avoid the civil disobedience by coal miners in the east. This is just the latest chapter in a long history of deceptive and exploitative practices by Peabody Energy and the coal industry in general. The American Coalition for Clean Coal Electricity (ACCCE), a coal front group funded by Peabody claims “Coal = Jobs.” But Peabody’s callous treatment of pensioners exposes what math the coal industry really cares about.
Twenty four hours before the first presidential debate, the American Coalition for Clean Coal Electricity (ACCCE), a front group for the coal industry, has launched a new ad as part of a $35 million dollar PR campaign.
The new ad, now playing on television stations around the country, is typical of the coal industry propaganda prominent in this year's presidential election. Candidate Mitt Romney has mirrored coal industry messaging, releasing political ads decrying President Obama's"war on coal" and announcing "I like coal" during the first presidential debate.
A Greenpeace investigation that looked in to the history of coal funded advertising has revealed that the coal industry has been using the same scare tactics designed to limit regulation since the 1970's, when the Clean Air Act and Acid Rain legislation forced the industry to invest in a modicum of environmental protection, like scrubbers for smokestacks.
In this new campaign, Big Coal’s PR flaks at ACCCE have recycled the same tactics of attacking the EPA, promoting the myth of clean coal, threatening economic catastrophe, and stoking nationalist fears that the industry has used for decades.
ACCCE’s newest ad, released October, 2:
With emotive piano riffs and sweeping shots of baseball diamonds for backdrop, the narrator in ACCCE’s latest creation praises the “proven clean coal technologies that have resulted from a can do attitude,” with all the sappy sincerity of a political ad. The ad continues with a stern warning that “heavy handed EPA regulation” and “fads” like renewable energy are “giving those countries who are wisely increasing their reliance on coal an economic advantage,” while pictures of the great Wall of China scroll over the screen.
ACCCE’s brand new $35 million dollar ad campaign relies on the myth of clean coal, attacks on EPA, and an appeal to xenophobia…sound familiar? It should.
Take this other recent ad by the coal front group American Coalition for Clean Coal Electricity (ACCCE) attacking the EPA:
In this 2012 ad a narrator warns that EPA regulations designed to reduce the amount of mercury released by coal fired power plants will “throw even more of us out of work.” The ad makes no mention of the dangers of mercury, a pervasive toxin that causes serious mental and physical issues, especially in children and pregnant women. However it does make one of the most common coal industry threats – that people must choose between the environment and a healthy economy.
Compare the bull riding bombast in the ad above to this 1974 ad, attacking the Clean Air Act:
The ad claims that the Clean Air Act, a seminal piece of legislation that has drastically reduced air pollution and saved countless lives, will cause “galloping unemployment.” Regulate coal – lose your job.
As you can see from these similar ads, using economic threats to scare people away from pollution regulation has been a tactic of the coal industry for a long, long time. (FYI – Gross Domestic Product has tripled since the Clean Air Act was passed.)
Are you scared yet?
Well how bout some good old fashioned xenophobia:
This 2007 ad reminds us that regulating coal makes dictators smile, because coal regulations force America to buy natural gas from unfriendly foreigners. Yep, having clean air and water plays right in to Hugo Chavez’s hand. Who knew?
But making autocrats grin seems trivial compared to the threats outlined in this 1974 ad:
According to American Electric Power, (which is now a major funder of ACCCE) legislation to stop acid rain will result in middle-eastern petro-princes buying all of America’s coal. The ad says “The middle east oil companies are fast capturing the world’s money. There isn’t much they’re incapable of buying. So it could happen.” Almost as chauvinist as it is logically incongruous, this ad underscores the coal industry’s reliance on completely baseless claims designed to scare legislators and the public into inaction.
Next they will be telling us that attempts to measure air pollution will make the lights go out and we won’t be able to watch TV!
Which they did in 1974:
This ad (right) warns us that the EPA’s plan to measure pollution at the top of coal smoke stacks would shut down power generation, causing blackouts. Terrifying! Except the EPA went ahead and measured pollution from the top of the coal stacks, and there were no blackouts due to EPA regulation in 1975, or since.
So what does that tell us about claims by pro-coal politicians that EPA regulations will cause blackouts this year in 2012? Senate republicans claim that “EPA’s train wreck of new regulations on energy providers will destroy jobs, raise electricity prices, threaten the reliability of the electric grid, and increase the chance of blackouts.” Should we believe them? Or is this just one more lie from a fear mongering industry that has been making the same idle threats for almost four decades?
Written by Greenpeace's Bonnie Barclay with input from Connor Gibson.
It might surprise quite a few who know me, but I'm actually quite a shy and introverted person. So what exactly moved me to show up at a Congressional hearing and put on a tin foil hat? Two words: Climate Deniers.
Denying climate change is as bizarre and out-of-touch as tin foil hat conspiracies. Congressional climate deniers need to accept the science and bolster the President's actions with a tax on carbon pollution. That's why we brought our tin foil hats to yesterday's hearing, called together by the U.S. House of Representatives Energy & Power subcommittee chairman Ed Whitfield (R-KY). It focused on the Obama Administration’s Climate Action Plan, with Environmental Protection Agency Administrator Gina McCarthy and Energy Secretary Earnest Moniz testifying.
Whenever the members of Congress started saying false things about climate change, we tossed on the tin foil hats. By the end of the three-hour hearing, the silly tin hats were on our heads for almost half of the entire event.
Of all the politicians in yesterday's hearing who are known climate change deniers, West Virginia Rep. David McKinley gets the tin foil hat award for his completely false assertions about climate change science. Check out this CSPAN clip, starting at 2:01:26.
First, Rep. McKinley said, "Over the last forty years, there's been almost no increase in temperature." He was attempting to undermine the reliability of climate models, which in reality have underestimated climate change.
Worse, my jaw dropped when I heard Rep. McKinley claim that Arctic sea ice increased by 60% from last year to this year, a false figure he apparently got from a typo in a bad newspaper article! H/T @RLMiller--see NASA for the facts on how consistently and rapidly the ice cap has melted in recent years.
Finally, McKinley completely misrepresented the United Nations Intergovernmental Panel on Climate Change (IPCC), saying, "Most experts believe by 2083--in 70 years--the benefits of climate change could outweigh will still outweigh the harm."
Ummm...that is completely wrong. The IPCC has made it crystal clear that global warming is a very serious problem that demands immediate policy action if we have any chance of solving it. Perhaps the $391,000 McKinley has received from the coal industry explains some of his scientifically-irrelevant opinions--McKinley wrapped his speech up by promoting the coal industry.
My first Congressional hearing....
- Climate deniers in Congress make their points not by stating factual information from peer-reviewed studies, but by quoting newspaper headlines. I'm pretty sure those were meant to sell newspapers, not settle a debate.
- The hearing was packed. People do care about what Congress is OR isn't doing on climate change.
- It's actually not the "do-nothing Congress," as Rep. Henry Waxman (D-CA) pointed out, it's much worse! "On Climate we're doing worse than nothing--we are affirmatively obstructing progress." [CSPAN, 38:25].
Luckily there were a few members of Congress who seem to get it, including these three:
Representative Waxman called out his elected peers for their obstruction and no serious proposals to solve the problems posed by global warming:
- "What's your plan? It's easy to criticize other people's solutions, but if all you did is criticize you're either a climate denier because you don't think anything needs to be done--'the science doesn't warrent it, it's not happening'--or, they're [sic] ignoring the warning of scientists." [CSPAN, 42:35]
Representative Eliot Engle (D-NY):
- "It's time for us to act and Congress has been ducking this issue, even going so far as to deny the basic science behind climate change. I've seen the devastating effects right in my area when hurricane Sandy hit New York, New Jersey and Connecticut. My district suffered huge devastation. Rising seas, stronger storms and flooding will only increase if we choose to do nothing[...]." [CSPAN, 2:55:35]
Representative Doris Matsui (D-CA) pointed out the key logical disconnect with the naysayers who try to scare us into inaction:
- "My Republican colleagues are quick to argue that tackling climate change will hurt the economy. But in reality, climate change itself poses an enormous economic risk and failure to address it could be disaster to the global economy." [CSPAN, 1:59:43]
Climate Change Denial and Extreme Weather
In a week where we're seeing people's lives lost and communities devastated in Colorado by extreme flooding, the type of disaster we can expect more frequently thanks to climate change, one would think the urgency to act to avoid future economic devastation and loss of life would become crystal clear to those who we elected to represent us. Unfortunately, nothing seems to cause Congress to take action. It's like they missed the last year of weather events!
You can see the distortion of climate denial in Greenpeace's recent report, "Dealing in Doubt", which summarized how industrialists like the Koch brothers have funding fake science and sheer misinformation to make us question the hard truth about climate change. So it comes as no surprise that Koch Industries is the second highest donor this election cycle to the chairman of yesterday's hearing, Rep. Ed Whitfield (R-KY), as well as other Representatives on the subcommittee, like Koch's hometown favorite Mike Pompeo, and Texas politicians Joe Barton and Pete Olson.
I'm tired of seeing members of Congress put their head in the sand and deny climate change. It's an appalling manipulation of our future potential by people who are meant to represent us and do the right thing.
So why'd I show up for the hearing yesterday? People's lives and livelihoods are on the line. The strength and future resilience of our country and our communities and all we've built as a nation are at risk if we don't do anything. We're not do-nothing people. We're Americans. We lead. We work. We improve. We build. We innovate.
Written by Cindy Baxter, crossposted from Greenpeace: Dealing in Doubt.
Who likes being lied to by people paid by the oil industry who pose as “experts” on climate change?
Did you know it’s been going on for 25 years?
In a couple of weeks, the UN’s official advisors on climate change science, the Intergovernmental Panel on Climate Change (IPCC) will update its global assessment on the issue. Yet in the background, more attacks on the climate science are underway
For the last quarter century, the climate science denial machine, its cogs oiled by fossil fuel money, has been attacking climate science, climate scientists and every official US report on climate change, along with State and local efforts – with the aim of undermining action on climate change.
Our new report, Dealing in Doubt, sets out the history of these attacks going back to the early 90s. These are attacks based on anti-regulatory, so called “free market” ideology, not legitimate scientific debate, using a wide range of dirty tricks: from faked science, attacks on scientists, fake credentials, cherry-picking scientific conclusions: a campaign based on the old tobacco industry mantra: “doubt is our product”.
We give special attention to perhaps today’s poster child of the climate denial machine’s free market think tanks, the Heartland Institute, which is about to launch a new version of its “NIPCC” or “climate change reconsidered” report next week in Chicago.
Unlike the real IPCC, with thousands of scientists involved from around the world, the Heartland Institute’s handful of authors is paid. Several of them claim fake scientific credentials. They start with a premise of proving the overwhelming consensus on climate science wrong, whereas the real IPCC simply summarizes the best science to date on climate change.
More recently, less visible channels of funding have been revealed such as the Donors Capital Fund and Donors Trust, organization that that has been called the “ATM of the conservative movement”, distributing funds from those who don’t want to be publicly associated with the anti-environmental work product of organizations like the Heartland Institute.
In the last week we’ve seen new peer-reviewed science published, linking at least half of 2012’s extreme weather events to a human carbon footprint in the atmosphere and on the weather and climate.
As the scientific consensus strengthens by the day that climate change is happening now, that carbon pollution is causing it and must be regulated, the denial machine is getting increasingly shrill. But today, while they are being increasingly ignored by a majority of the public, their mouthpieces in the US House of Representatives, for instance, have increased in number.
They’re still fighting the science – and they’re still being funded, to the tune of millions of dollars each year, to do it.
Dealing in Doubt sets out a history of these attacks. We show how the tactics of the tobacco industry’s campaign for “sound science” led to the formation of front groups who, as they lost the battle to deny smoking’s health hazards and keep warning labels off of cigarettes, turned their argumentative skills to the denial of climate change science in order to slow government action.
What we don’t cover is the fact that these organizations and deniers are also working on another front, attacking solutions to climate change. They go after any form of government incentive to promote renewable energy, while cheering for coal, fracking and the Keystone pipeline.
They attack any piece of legislation the US EPA puts forward to curb pollution. Decrying President Obama’s “war on coal” is a common drumbeat of these anti-regulation groups. One key member of the denial machine, astrophysicist Willie Soon from the Smithsonian Institute for Astrophysics, has portrayed himself as an “expert” on mercury and public health in order to attack legislation curbing mercury emissions from coal plants.
This recent history, as well as the prior history of denial by the tobacco companies and chemical, asbestos and other manufacturing industries, is important to remember because the fossil fuel industry has never admitted that it was misguided or wrong in its early efforts to delay the policy reaction to the climate crisis. To this day, it continues to obstruct solutions.
The individuals, organizations and corporate interests who comprise the ‘climate denial machine’ have caused harm and have slowed our response time. As a result, we will all ultimately pay a much higher cost as we deal with the impacts, both economic and ecological.
Eventually, these interests will be held accountable for their actions.
Crossposted from Greenpeace's The Witness.
Shenanigans at the front door of the U.S. Chamber of Commerce yesterday reveal that the Chamber has dropped its lawsuit against the Yes Men, the activist duo famous for their elaborate prime-time pranks against Dow Chemical, Chevron, the World Trade Organization, and other giant entities known for putting their profit margins before people and the planet.
The Yes Men went to the Chamber yesterday morning in attempts to convince the business front group not to drop the lawsuit. Here's some footage of the announcement and confusion over who does and doesn't work for the Chamber:
That's right. The Yes Men want to be sued by the U.S. Chamber of Commerce. According to their press release:
"Just as their case against us was finally heating up again, the Chamber decided to drop it," said former defendant Andy Bichlbaum of the Yes Men. "The Chamber knew this was our chance to challenge their silly claims and, since they claimed we had 'damaged' them, investigate the details of their finances through the discovery process. It's the height of rudeness to deprive us of this great opportunity." "The Chamber's lawsuit represented the only time in 17 years that anyone has been stupid enough to sue us," said former defendant Mike Bonanno. "This was the chance of a lifetime, and we profoundly deplore the Chamber's about-face."
Apparently, revenge isn't a strong enough reason for the Chamber to to cough up information on their secret financial backers or their obstruction on solving the critical issue of global climate change, the issue which sparked the original Yes Men parody press event and ensuing lawsuit. The Chamber sued the Yes Men in 2009 for holding a press conference at the National Press Club on the Chamber's behalf, announcing a reversal on the Chamber's efforts to block climate change legislation. The false event was interrupted by an actual Chamber official named Eric Wohlschlegal, who told attending press, "This guy is a fake! He's lying!" See this video:
The stunt threw the Chamber off balance as it had to clarify it would not stop obstructing national climate change policy. The following lawsuit was unprecedented for Yes Men hijinks. Even Dow Chemical didn't sue them, despite losing $2 billion worth of stock when Yes Man Andy Bichlbaum posed as a Dow official on a live BBC interview and took responsibility for the Bhopal chemical disaster (which Dow still won't own up to despite the death of 20,000 people). Yes Lab has a summary of the announcement at the Chamber's front steps in Washington, DC, including a list of questions the Yes Men wish the lawsuit's discovery process could have answered:
Some of the things we could have asked in court had they not withdrawn their lawsuit:
- Why does the U.S. Chamber lie even more than the American Petroleum Institute about the number of jobs created by the Keystone XL pipeline?
- Why did the U.S. Chamber design a teaching program for US schools that favors coal over clean energy sources?
- And who pays them to lie to children... and adults?
- Why does the U.S. Chamber expend so much money to call into doubt the most mainstream climate science, and insult the most respected scientific bodies?
- Why does the U.S. Chamber fight not only unions, but even just shareholder activists?
- Why do they fight even tiny increases in the federal minimum wage?
- Why has the U.S. Chamber's law firm hired spies in try to discredit anti-Chamber activists?
- And finally, why is the U.S. Chamber fighting so hard to keep corporations from having to reveal their political spending?
PolluterWatch has more on the U.S. Chamber of Commerce and its anti-environmental practices.
Rarely do we meet those who have made careers selling us lies. Consider the oddball doctors who took tobacco money to deny a link between cigarette smoking and cancer, or the handful of scientists who take oil and coal money to discredit global warming science, or the people who have done both.
Last week, students in Wisconsin and Michigan stepped up to such an opportunity when CFACT Campus, the student arm of a well-known cabal of fossil fuel apologists, hosted climate change denier Willie Soon at several campus events around the country.
Dr. Willie Soon is a Smithsonian Institution astrophysicist paid by Charles Koch, ExxonMobil, the American Petroleum Institute and coal utility Southern Company to write papers dismissing climate change, publish op-eds saying coal pollution won't affect our health, refute the seriousness of ocean acidification, and apparently anything else he can be paid to deny. Dr. Soon has misrepresented himself by repeatedly claiming affiliation with Harvard University and using his credentials as an astrophysicist to make people believe he's a climate expert, and he shows no sign of stopping. Indeed, he told students in Madison, "I am as as qualified as anyone on the planet on this topic."
In both Madison, Wisconsin and East Lansing, Michigan, Dr. Soon was caught with his pants down. As the Michigan State News documented in its article and accompanying audio interview, Soon claims that all the scientists around the world who study and recognize the seriousness of climate change are motivated by money, yet somehow his funding from coal and oil companies for his extremely marginalized viewpoints doesn't matter.
Here is the dialog with Willie Soon at the University of Wisconsin, Madison, with direct links to key clips below:
1) Willie Soon insinuates ExxonMobil will no longer fund him (emphasis added):
"I have been receiving money from whoever that wants to give me money. I write my scientific proposal. I have received money from ExxonMobil, but ExxonMobil will no longer give me any money for a long time. American Petroleum Institute, anything you wish for, from Southern Company, from all these companies. I write proposal and let them judge whether they will fund me or not, always for a very small amount. If they choose to fund me, I'm happy to receive it." Click to watch (starts @ 1:52).
2) Dr. Soon stands behind his attempts to discredit the Intergovernmental Panel on Climate Change with help from ExxonMobil lobbyists:
"I was trying to bring down IPCC--is that what you imply?! [...] Let it be known that I do not like IPCC, because IPCC does not stand for science, it is corrupting science." Click to watch (starts @ 3:32).
After a question referencing emails with ExxonMobil lobbyists to undermine climate research at the United Nations before it even hit publication, Dr. Soon quickly loses his cool over his record of global warming denial, peppering the student with mild insults before owning up to his actions.
3) Dr. Soon thanks anyone who uses petroleum products or electricity from coal for supporting his work:
"I really want to thank her, because she's receiving the electricity used for her house, she's driving cars, she's doing all of these things because you are funding me. It's not an oil or coal company. They are a company that provides a service to humanity--to people who want to use electricity." Click to watch (starts @ 5:14)
Anyone looking at Southern Company's record of pollution and political interference would be skeptical about its commitment to serve humanity. Soon continues with an aggressive rant claiming that the student isn't qualified to question his fossil fuel payments until she stops driving, using electricity, and wearing nylon.
4) Willie Soon states "I don't like to claim that I am an expert on anything," despite listing himself as an "expert in mercury and public health" for a discredited Wall Street Journal op-ed dismissing health concerns over mercury pollution from coal plants. Soon invented similar credentials for another opinion piece in the Washington Times, before he swapped back to being a 22-year veteran of "researching the relationship of solar radiation and the Earth's climate," research Dr. Soon did on the dime of oil and coal companies.
Basically, Willie Soon is an expert in whatever problems vested industries will pay him to deny. Michigan State students note how Willie Soon now refutes research indicating adverse impacts from ocean acidification, a global crisis that is married to climate change (both problems stem from humans burning fossil fuels and releasing carbon dioxide into the atmosphere).
That's effed up. This man makes a career lying to the public, not to mention our lawmakers, about some of the most serious issues of our time. Climate change is already contributing to the deaths of 400,000 people each year and costing global GDP about $1.2 trillion, according to a report commissioned by multiple nations. 98% of actual climate scientists (a distinction Dr. Willie Soon does not earn) agree that global warming is real and primarily drive by humans burning fossil fuels like coal and oil.
Not only has Dr. Soon lied to us and our lawmakers about the seriousness of global warming--he even lied directly to Congress in 2003 about his sources of funding at a time when he was promoting his study funded by the American Petroleum Institute, the $200 million/year oil and gas lobbying group. The Guardian wrote last year:
"In 2003 Soon said at a US senate hearing that he had "not knowingly been hired by, nor employed by, nor received grants from any organisation that had taken advocacy positions with respect to the Kyoto Protocol or the UN Framework Convention on Climate Change."
This is why it's crucial to demand accountability of people like Willie Soon. He is a public relations tool of oil and coal companies, and as a scientist attempting to publish in fields well outside of his expertise, that oil and coal money is crucial to recognize.
Here are some of the best examples of Soon's pseudo-science paid for by Big Oil and King Coal:
- 2003: An American Petroleum Institute-funded study claiming that the earth's global temperature hasn't risen. Three editors of the publishing journal resigned in protest over low scientific standards demonstrated by publishing Soon's work.
- 2005: A paper mis-attributing arctic temperature changes to solar variability, a thoroughly debunked notion that was funded by the American Petroleum Institute (API).
- 2007: A non-peer-reviewed paper refuting concerns over global warming's impact on polar bears, funded by API and the Charles G. Koch Foundation.
- 2009: A paper building upon Soon's 2005 research attempting to claim the sun is mostly responsible for temperature changes. This work was funded by API, ExxonMobil and Southern Company.
- 2013: Soon's ongoing "research" funding is now hidden through Donors Trust, a network used by the Kochs and other secretive interests who don't want their financial influence to be traced. Donors Trust is the sole source of almost half of recent budgets for CFACT, which paid for Soon's campus tour.
Dr. Soon's work is like a joke, but not the type you'd laugh at. While he cracks these fossil-funded zingers, reputable scientists warn that humanity is running out of time to stop climate change from self-reinforcing to the point that it spirals out of human control. As quoted by the Michigan State News, young conservatives on campus had trouble taking Dr. Willie Soon's presentation seriously:
“I’m not a science major, but I think (Soon’s presentation) has got valid points, but also other scientists who disagree with him have valid points,” Sobecki said. “I’m not crazy enough to think that six billion people don’t have an effect on climate in the world we live in.”
Science majors attending the MSU event didn't agree that Soon's points were particularly valid. See this account from a MSU Greenpeace student activist on PolluterWatch for more details.
Willie Soon’s fossil fuel-funded career
Questionable Climate ‘Science’
Dr. Soon adds Ocean Acidification Denial to his Growing list of Specialties
Soon’s Limited Audience
Exxon- and Koch-funded scientist Willie Soon confronted at University of Wisconsin over discredited climate research
Written by Hannah Noll.
I was just getting out of class last Tuesday when Dan Cannon, Greenpeace Student Network Coordinator, called to inform me that Dr. Willie Soon was coming to University of Wisconsin-Madison the following night to “challenge the Global Warming status quo.” I attend school an hour away, but I just couldn’t allow myself to pass this opportunity up. I had prior knowledge that there are climate deniers that are funded from Big Coal and Big Oil, but what I learned about Willie Soon's funding, motives, works published, and past (and present) controversies shocked me.
Recounting the day’s events:
"I don't like to claim that I am an expert on anything, but I have enough knowledge about climate science and climate system to be able to write scientific papers and go to meetings and talk about monsoon systems and talk about any other things that you want to discuss about climate science issues. I'm as qualified as anybody that you know on this planet on this topic"
Mr. Soon, a natural scientist at Harvard, is an expert on mercury and public health issues.
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.
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: