Corporate polluters are taking aim this year at states with renewable energy laws, starting with an attack on North Carolina's clean energy economy by a corporate front group known as ALEC with support from Duke Energy, ExxonMobil, and Koch Industries. North Carolina state Representative Mike Hager says he is confident that he has the votes needed to weaken or undo his state's clean energy requirements during his second term. Rep. Hager is a former Duke Energy engineer and a member of the American Legislative Exchange Council, or ALEC. Duke and Progress Energy (now legally merged) have given Rep. Hager $14,500 for his last two election bids, outspent only by the NC Republican Party.
This is where ALEC makes things awkward for Duke Energy: the law that Rep. Mike Hager is targeting (2007 SB3) was created with input from Duke Energy, and Duke explicitly opposes ALEC's "Electricity Freedom Act," the model law to repeal state Renewable Energy Portfolio Standards (REPS). Duke Energy re-asserted its support for North Carolina's REPS law to the Charlotte Business Journal last April and Progress Energy publicly supported the law before merging with Duke.
Apparently, Duke forgot about supporting North Carolina's clean energy incentives somewhere along the way. Duke Energy remains a paying member of the American Legislative Exchange Council.
Duke Energy and outgoing CEO Jim Rogers have dismissed over 150,000 concerned citizens demanding that Duke leave ALEC due to its role in protecting polluters, suppressing voters, increasing gun violence and other serious threats to the public on behalf of ExxonMobil, the National Rifle Association, Reynolds tobacco and other corporate interests with a rich history of negligence and dishonesty.
ALEC: The Polluter's Voice
The American Legislative Exchange Council (ALEC) creates model state laws rolling back protections on our health, our clean air and water, public safety, public education…public anything, really. State legislators that support a corporate ideology pay a small fee to become ALEC members, working alongside giant companies to create models bills that are then introduced in states across the country.
In contrast to Duke Energy's "Call to Action" supporting climate legislation and clean energy development, it has not abandoned ALEC's long record of denying climate science and blocking solutions to global warming. ALEC focuses this year on undoing state laws that increase production of clean energy like wind and solar power.
This dirty ambition is ALEC's self-stated priority on energy issues this year--repealing state laws that created Renewable Energy Portfolio Standards (REPS), including North Carolina's SB3. Todd Wynn, a corporate influence peddler who heads ALEC's Energy, Environment and Agriculture task force, named North Carolina as one of several states ALEC will focus its clean energy attacks, citing a debunked report from the Koch-funded Beacon Hill Institute of Suffolk University's economics department. Like ALEC, Beacon Hill is part of the Koch-funded State Policy Network. See the Morning Sentinel and a scathing Portland Press Herald editorial for important critiques of the Koch-funded Beacon Hill reports cited by Todd Wynn.
Actually...Clean Energy has Treated North Carolina's Economy Well!
We've known for decades that phasing out fossil fuels (coal, oil, gas) and ambitiously implementing clean energy not only slows our sprint toward irreversible, catastrophic climate change, but stimulates the economy and creates jobs that do not poison us. In North Carolina, SB3 has helped create the current 15,200 full-time equivalent clean energy jobs in NC, up 3% from the previous year, and generated $3.7 billion in economic activity in 2012 (North Carolina Sustainable Energy Association 2012 Industry Census).
While ALEC has touted a pile of Koch-funded reports written with the pre-determined conclusion that clean energy is ALWAYS too pricey, the Charlotte Business Journal reports that SB3 has a "negligible impact on customer bill increases" for Progress Energy Carolinas' customers, at about 41 cents per month.
If let be, North Carolina's Senate Bill 3 would ensure at least 3% of North Carolina's energy is from renewable sources this year, increasing to at least 12.5% by 2021. North Carolina appears to be one of the first states subjected to ALEC's dirty energy agenda this year.
What Next for the ALEC Attacks?
Expect similar ALEC attacks on clean energy laws in states around the country. According to its own documents, ALEC spent the last couple years monitoring states attempting to introduce state-level renewable energy portfolio standards in West Virginia, Vermont and Virginia as well as legislative attacks on REPS laws in New Hampshire and in Ohio (by Sen. Kris Jordan, an ALEC member).
Now with rumors of war appearing in North Carolina, it appears that ALEC has morphed from the opportunistic observer to the coordinator of attacks on our states' clean energy laws.
For more on how the American Legislative Exchange Council is degrading public policies across the United States, see ALECExposed.org.
This piece was crossposted on Greenpeace blogs.
Written by Madhura Deshpande of Greenpeace's Frontline program.
On September 27th I had the opportunity to attend Jim Rogers’ first public appearance as CEO of Duke Energy Corp--which just completed a messy takeover of Progress Energy--and listen to his keynote speech about their future energy policy. The most surprising portion of this event was when Jim Rogers stated Duke’s mission is to provide clean, sustainable energy to its ratepayers. What a fantastic statement to make when comparing words to actions: Duke’s true, actionable mission is and has been to minimize the percentage of renewable energy in our portfolio and maximize funding for more coal, unregulated natural gas, and nuclear energy plants.
At the end of the event we asked Mr. Rogers why Duke Energy continues to support climate science denial (an obviously global and critical issue facing us today) and voter suppression by funding the American Legislative Exchange Council (ALEC), especially since Duke’s policies seem to oppose such efforts. Conveniently, Mr. Rogers declined to answer on the grounds that he was leaving the event and did not have any more time.
ALEC is a group of big industry leaders (oil, coal, gas, tobacco, healthcare, etc) that help create state bills that limit the responsibility of their companies, and thus make more money. How can they do this? It’s easy: they use the massive profits from their respective industries to rub elbows with State lawmakers and ‘ghostwrite’ bills to be passed. Through these meetings, ALEC has helped disseminate state laws that disenfranchise voters and policies that deny climate science and solutions to global warming.
It’s time for Duke Energy and Jim Rogers to commit: drop ALEC and match your rhetoric with your actions. This nation and our environment cannot afford to wait any longer.
UPDATE: Student activist Ben Wiley details his question to Duke Energy's Vincent Davis about support for ALEC, which was ignored.
Yesterday, members of Greenpeace, Energy Action Coalition, and other groups sent a message loud and clear to Duke Energy that we want them to dump ALEC (the American Legislative Exchange Council) before the end of the Democratic National Convention.
ALEC is a rightwing bill mill group that connects corporations with our elected officials to draft model legislation in support of corporate profits over the welfare of people and our planet. ALEC has written legislation including Arizona’s racist immigration law SB1070, Stand Your Ground Laws relating to the murder of Trayvon Martin in Florida, and many voter suppression laws such as Voter ID here in North Carolina. But that’s not all, ALEC also has an Energy, Environment and Agriculture Task Force which is working on legislation to stop regulation of coal fired power plants and to prevent laws from being passed that support renewable energy.
Duke Energy, headquartered in the heart of Charlotte and at the center stage at the 2012 Democratic National Convention this week, is a major contributor to this dirty front group. Last May, Duke Energy spent $50,000 to bring ALEC’s annual meeting to Charlotte. Especially in South Carolina and Indiana, Duke representatives work very closely with ALEC to draft such legislation.
This is why yesterday, dozens of activists gathered in Charlotte to ask Duke Energy’s CEO Jim Rogers to make the call and dump ALEC! We gathered in front of the Knight Theater where Rogers was speaking on a panel and urged passersby to make a phone call into the Duke Headquarters. Then we hand delivered 150,000 petition signatures that have been collected in the past week. At the same time in Ohio, local activists gathered to deliver the message to Duke’s Midwest corporate headquarters. And all throughout the day yesterday activists took action online on Facebook and Twitter sending their messages directly to Duke Energy.
We know that it’s working. We ran into Jim Rogers at an event and he said that he’s listening. The question remains, will Duke act?
I spoke with Duke Energy's Jim Rogers at the DNC. He's hearing from us! And 150k people. And Senators.
Written by Whit Jones, Energy Action Coalition Campaign Director, crossposted from We Are Powershift
Today Greenpeace joins a coalition of environmental, civil rights and democracy reform groups that are calling upon Duke Energy to join the 38 other companies that have left the American Legislative Exchange Council, or ALEC -- see the letter the coalition sent to CEO Jim Rogers this morning.
Why, you ask? And WTF is ALEC??
ALEC is a corporate bill mill--it brings companies like Duke, Exxon, Koch Industries, Phillip Morris and other bad actors together with conservative state lawmakers in order to draft laws. You may have noticed how certain controversial state laws spread like wildfire across the country, including voter suppression, union-busting bills, attacks on clean energy programs, and other items you wouldn't expect the average person to ask their politicians to do. ALEC was behind all of these on behalf of its corporate members, who are eager to dodge lobbying laws and get relatively cheap access to our Statehouses.
Duke Energy in particular has deep ties to ALEC, sending it tens of thousands of dollars in support, helping ALEC oversee state operations in South Carolina and Indiana, and supporting the creation of ALEC's anti-environmental bills.
Duke Energy has distinguished itself from other polluters with rhetorical commitments to tackling global warming and implementing clean energy, but stops short of meaningful action. By dumping ALEC, Duke would take a step in the right direction toward the potential it has to become a cleaner energy company.
The full text and coalition signatories of the letter is posted in full here:
We, the undersigned, a coalition of environmental, civil rights, and democracy reform groups are writing to express our concern for the extensive support provided by Duke Energy to the American Legislative Exchange Council (ALEC), and request Duke Energy disassociate and stop funding ALEC immediately.
ALEC is not only responsible for drafting model state laws attacking renewable energy programs and climate policies, it is also intentionally crafting and supporting Voter ID bills and other legislation designed to suppress people from voting and participating in our democracy. We are concerned about this fundamental attack on our democracy and civil rights, and Duke Energy’s support for it.
Duke Energy has repeatedly stated concern over climate change, yet is participating in ALEC’s Energy, Environment and Agriculture task force, which includes notorious climate skeptics like the Heartland Institute and the American Coalition for Clean Coal Electricity (which we understand Duke Energy disassociated from in 2009 due to its role in obstructing national climate policy). In direct opposition to Duke Energy’s position on climate, ALEC’s Energy, Environment and Agriculture task force continues to advance legislative efforts that attempt to deny the realities of climate change.
ALEC more broadly demonstrates an attack against state action on climate change and renewable energy, promoting laws and resolutions that undermine state’s abilities to address climate change and expand clean energy. While Jim Rogers has called for the US to “wean [itself] from the use of foreign oil,”[viii] Duke works alongside multinational oil companies like ExxonMobil, BP, Shell and Chevron within ALEC, all of which are known for their heavy obstruction of U.S. climate and clean energy policies.
Perhaps most alarmingly, ALEC is spearheading attacks on our democracy and civil rights, promoting Voter ID legislation and other bills intended to make it more difficult for people to vote and participate in our democracy. These bills will most dramatically hit young people, people of color and poor people, suppressing them and their ability to vote.
You may have recently noticed that Duke Energy, the nation's largest utility, launched a major advertising campaign. This includes airing their first television commercials in 15 years. In light of the controversy surrounding their merger with Progress energy, it comes as no surprise they would attempt to repair their public image.
The ads all begin with someone flipping a power switch. A narrator explains how we “don't think about what it's connected to or how the power gets there,” but instead about what really matters in life, like family reunions, your son's basketball game, proposing to your wife... I think you get the idea. These ads try to illicit an emotional connection between us and Duke. Each ad ends with the line “You don't think about all that's going on behind that switch, because we do.”
Well Duke, we actually do “think about all that's going on behind that switch.” Last week, concerned members of the community came out to discuss the ways Duke works behind the scenes to maximize its bottom line. More importantly, we discussed what we as a community can do about it.
The meeting was held in Charlotte, NC, where Duke Energy has its headquarters. Greenpeace's NC field organizer, Monica Embrey, began by giving an overview of Duke's relationship with dirty energy. Duke owns dozens of coal-fired power plants, many just outside of Charlotte. Coal is the leading contributor to climate change, and releases harmful toxins into our water and air. This coal is obtained through a destructive strip-mining technique known as mountaintop removal . Embrey explained how we pay for dirty energy not only through out utility bills but ultimately through our healthcare costs.
Beth Henry, one of the leading experts on Duke, discussed how Duke uses our money to buy access to politicians in order to influence policy. Duke is on pace to become North Carolina’s largest political spender after having recently merged with Progress Energy. In the 2009-2010 election cycle, the companies collectively spent over $19 million on lobbying and state and federal campaigns. The company has a number of links to members of the NC Utilities Commission, a group that is supposed to regulate the industry. Henry explained how Duke has a long history of influencing legislators and regulators in its favor. Duke truly epitomizes the idea of the revolving door.
Henry also highlighted Duke's relationship with universities and charities. Duke essentially purchases allies and good PR through their contributions. Many of these institutions are beholden to Duke for funding. She gave specific examples of organizations reluctant to act or speak out against Duke due to this relationship.
I spoke about the relationship between Duke and the Democratic National Convention, which will be held in Charlotte. Duke's CEO, Jim Rogers, has been intimately involved in the fundraising process. He is co-chair of the the convention host committee and has personally given $100,000 to the group. Rogers has paid out of his own pocket to hire a personal assistant to work full-time on DNC fundraising. In fact, Duke is providing $1 million worth of uptown office space, rent-free, for the entire host committee. The company has even guaranteed the host committee a $10 million line of credit in case their fundraising runs short. Duke is also one of the leading contributors to New American City, Inc., a fund setup by the host committee in order to accept corporate money.
Tony Ndege, of Occupy Winston-Salem, described the troubling relationship between Duke and the American Legislative Exchange Council. Ndege explained how ALEC is essentially a corporate bill mill where corporations and special interests help craft model legislation. Duke has helped create bills attacking environmental regulations and attempts to reduce greenhouse emmissions. Corporations like Duke fund most of ALEC's operations. They sponsored ALEC's 2012 spring meeting in Charlotte. Duke has given ALEC $116,000 since 2009, according to the Charlotte Business Journal.
Afterward, members of the community engaged in an open discussion. People suggested what we can do to fight back against the destructive effects of dirty energy. Updates were given about key actions taking place around the state and nation. People were energized, inspired, and ready to act.
Now more than ever, people in Charlotte know what's “going on behind that switch.” No amount of Duke propaganda will hide the true facts of how they operate.
Missed the event but still want to hear what happened? Check out the video recorded live stream here.
In the lead up to this fall's Democratic National Convention, polluter giant Duke Energy has offered a $10 million loan. Good thing, since Duke CEO Jim Rogers has taken the lead on the remaining fundraising for the DNC and is now being criticized for doing a shoddy job of it amid his controversial takeover as CEO following a big merger with Progress Energy.
Lost amid this dramatic transition is Duke's ironic role in the American Legislative Exchange Council, or ALEC. ALEC is the infamous corporate bill mill that connects notably-conservative state lawmakers with lobbyists, PR agents and other representatives of companies ranging from Koch Industries to Phillip Morris to Pfizer. ALEC's agenda spans across Big Business priorities, creating template state laws that serve to deny climate change science, privatize schools, protect killers (as with the Trayvon Martin "castle doctrine" legislation) and disenfranchise voters through Voter ID laws.
Voter ID laws that Democrats call "suppressive," an ironic contrast to Duke's $10 million line of credit to the DNC.
Duke Energy is heavily invested in ALEC in several ways. Duke sponsors ALEC's meetings, dedicates its staff to help oversee ALEC's state operations, and consistently operates in ALEC's anti-environmental task force, a who's-who of polluters and apologists attacking clean energy legislation that Duke purportedly supports. Here's an overview of Duke's notable role in ALEC:
- Duke pays heavily for ALEC's operations--they have spent $116,000 on ALEC meetings since 2009, including $50,000 for ALEC's May 2012 meeting in Charlotte, NC where Duke is headquartered (Charlotte Business Journal). This well exceeds the top annual ALEC membership fee of $25,000.
- Duke representatives Chuck Claunch and Bonnie Loomis are liaisons to ALEC's Energy, Environment & Agriculture (EEA) task force, which ghostwrites state laws attacking regional climate programs, controls for hazardous coal ash storage, renewable energy standards, EPA enforcement of clean air and water laws, and numerous other polluter handouts written and approved by the oil, coal and public relations companies in the EEA task force's filthy roster.
- Progress Energy's Kathy Hawkins and Jeanelle McCain are also involved in ALEC's EEA task force, further bloating Duke's influence within ALEC now that Progress is part of Duke Energy.
Duke has told the press that it doesn't agree with all of the EEA model bills, specifically attacks on renewable energy and reductions in greenhouse gases. This is deceitful, since such laws are at the core of ALEC's anti-environmental task force and have constantly evolved to match changes in political trends. If Duke doesn't support the purpose of this task force, then why is it offering up Duke stafff and money beyond its ALEC membership dues?
Beyond Duke's active participation within ALEC's anti-environmental task force, Duke has also positioned its operatives in two states to help oversee further fundraising and recruitment for ALEC.
Duke and ALEC in South Carolina
Duke's South Carolina Regional Director Chuck Claunch was handpicked by ALEC's State Chairmen in South Carolina to help fulfill their obligations to recruit new ALEC members, raise money, and other responsibilities detailed in ALEC's own IRS tax filings [PDF p.36]. Since Mr. Claunch is also part of ALEC's anti-environment task force, it's possible he helped create model bills that became South Carolina law. Also acting as a private sector co-chair in South Carolina is Progress Energy's Jeanelle McCain, another member of ALEC's anti-environmental task force. With the Duke-Progress merger now made official, it is unclear how Mr. Claunch and Ms. McCain may shift roles, or if Duke's influence in South Carolina is expanding through ALEC.
- Rep. Dwight Loftis
- Rep. Nelson Hardwick
- Rep. Bill Sandifer
- Rep. Jeffrey Duncan
- Rep. David Wolkins (EEA task force chair, 2011 ALEC legislator of the year, ALEC State Chairman in IN)
- Rep. Wesley Culver
- Rep. Brian Bosma
- Rep. Heath Van Natte
ALEC: Duke Energy partners with Koch Industries, Exxon, Peabody, Heartland, ACCCE, Art Pope...
While over 25 companies have dropped ALEC, including Walmart, Best Buy, Coca-Cola, McDonalds, John Deere, Dell and numerous others, Duke continues to staff and fund ALEC alongside ExxonMobil, BP, Koch Industries, Peabody Energy, and other major polluters to dismantle state environmental protections across the country.
So even though Jim Rogers says we should wean off of foreign oil, Duke conspires with multinational oil companies to attack climate solutions.
The oil majors are only one example of Duke's secretive partnerships that contradict its statements on climate change and sustainability. ALEC's EEA task force includes operatives from climate science denying groups like the Heartland Institute, Americans for Prosperity, the Atlas Economic Research Foundation, the Goldwater Institute, and the John Locke Foundation, all of which have enjoyed support from the billionaire Koch brothers and North Carolina political overlord Art Pope.
By participating in ALEC's anti-environmental task force, Duke continues to partner with representatives of the American Coalition for Clean Coal Electricity (ACCCE), a front group that Duke abandoned in 2009 when ACCCE's aggressive lobbying against national climate legislation became an obvious conflict of interest (and when ACCCE was caught up in a scandal involving fraudulent letters to Congress opposing climate legislation). Let us not forget that national climate legislation in 2009 essentially became a handout for major polluters like Duke who helped write the legislation.
Greenpeace recently released a new report detailing a Clean Energy Roadmap for Apple, highlighting progress Apple has made in using clean energy sources for its Cloud data centers while stressing that Apple is still far too dependent on coal-burning utilities like Duke Energy for its energy. While Greenpeace calls upon Apple to help shift the energy market in a cleaner direction, we are also asking Duke Energy to make a dramatic shift away from dirty coal, especially from destructive mountain top removal mining. Responding to Greenpeace, Duke Energy told CBS, "In North Carolina, we are allowed to buy non-mountaintop coal as long as the cost is not higher than conventional coal supply. Even if we wanted to pay more, we couldn't because the state mandates it."
Come on, Duke--you gave money to 115 of the 170 North Carolina legislators elected in 2010 and spent $19 million on federal and state political contributions during that election cycle alone. You are wrapping up your scandalous merger into the nation's largest utility company. If Duke wanted to strike down a mandate to use coal from the most destructive sources available, they could do it. Instead, Duke plays to its major strength: using clean PR to hide the dirty money it spends to hold our air, water and climate hostage with outdated, 20th Century energy.
Amid the sudden ouster of former Progress Energy CEO Bill Johnson and conflicts with ratepayers in multiple states, Duke already has plenty to be embarrassed about. Using ALEC to partner with the world's worst corporate citizens and climate science deniers gives Duke's other shames a run for their money.
In the name of transparent democracy, Greenpeace challenges Duke to disclose which ALEC model bills they have supported at ALEC meetings, whether by vote or through Duke sponsorship. Better yet, Duke should join the 30 companies and organizations who have cut ties with ALEC and its poisonous role in American politics.
UPDATE 4/13/2012: The Indianapolis Star's John Russel has compiled a full timeline of this scandal: Prying Open the Duke Energy Scandal
Duke Energy is experiencing the departure of its second-top executive (after CEO Jim Rogers), utilities division president James Turner, making Turner the third Duke casualty in an ethics scandal that has already led to the firing of two other Duke officers and an Indiana state utility regulator.
Emails between Turner and David Lott Hardy, the recently-sacked chairman of the Indiana Utility Regulatory Commission (IURC), revealed that the two men had a particularly cordial relationship that extended itself into professional circumstances. As Duke negotiated positions for Michael Reed (coming from the state's Department of Transportation and with three years of experience in the IURC) and Scott Storms (an administrative law judge and general counsel for the IURC), Turner and Hardy frequently discussed the hiring process. The Indianapolis Star revealed that in one message to Turner, Hardy encouraged the executive to hire Reed, asking, "Is this decision yours and I don't need to sell Jim [Rogers, Duke CEO], or is his buy-in pivotal?"
In order to avoid honoring a customary yearlong pause before moving from the IURC to Duke, Storms was given an express pass through the IURC's ethics panel investigation with help from Reed and Hardy. Reed, concerned that Storms would not get the panel's go-ahead, urged Hardy to enlist the help of the IURC's ethics officer, Loraine Seyfried, who then wrote a memo to Storms denying any conflict of interest. The ethics panel mirrored Seyfried's conclusion and allowed Storms to move to Duke; Seyfried got his old job as administrative law judge. Reed and Storms were both fired in November, just before emails revealed the full extent of the scandal. While Seyfried was not fired along with Hardy, she was removed from cases involving Duke.
What made the Duke-IURC revolving door particularly improper was Scott Storms' role as a judge presiding over Duke cases while arranging to work for the utility giant. Chairman Hardy, Storms' boss, ignored the clear conflict of interest, which included Storms' approval of a utility ratepayer hike in order to cover massive cost overruns of Duke's new Edwardsport coal plant.
The new Edwardsport plant, which is intended to both replace an existing facility built in the 1940s and to demonstrate integrated gasification combined cycle (IGCC) technology, has swelled in costs originally estimated at $1.5 billion to just under $3 billion. The difference in costs will be reflected in the estimated 16% ratepayer increase that Storms approved before joining Duke. Indiana's Citizens Action Coalition, which has been a strong voice of opposition to the Edwardsport plant, warns that other hidden expenses will likely wind up in utility bills as well.
The debacle's most recently disgraced figure, James Turner, boasted Duke's second highest annual compensation--$4.3 million--after CEO Jim Rogers ($6.9 million). The Indianapolis Star insinuated that part of Turner's "incentive pay" (last year an almost $800,000 portion of his total compensation) could have been a result of the very revolving door relationships that forced him out of the company. While we can hope the lesson in this case is "don't cheat the system," industry sentiment is much more likely to be, "don't get caught like Duke did."
Important to consider is how similar scandals could be possible on the federal level. Duke has a total of five lobbyists with former experience in the U.S. Environmental Protection Agency, including Bill Tyndall, who was announced as one of the individuals reporting directly to Jim Rogers following Turner's departure.
David Lott Hardy: "Don't tell the utilities I'm being accommodating -- bad for my reputation."
James Turner: "Don't worry. Your reputation in this regard is unalterable."
See Martin Smith question the CEOs of the three greatest CO2 emitters in the country. Of particular highlight is Smith's grilling of Southern Company's David Ratcliffe for spending money lobbying against renewable energy, funding industry front groups that deny or belittle the seriousness of climate change, and fund politicians willing to roadblock progress on addressing global warming.
Martin Smith, Frontline, Oct 21, 2008