koch industries

The Keystone XL Coverup: The State Department's Attempt to Hide Oil Industry Connections

  • Posted on: 21 March 2013
  • By: JesseColeman

Mother Jones Magazine has uncovered a new twist in the fight against the Keystone XL pipeline. As it turns out the authors who drafted the environmental review of the Keystone XL pipeline worked for TransCanada, Koch Industries, Shell Oil, and other oil corporations that stand to benefit from building the Keystone XL. Not only did the State Department know about these conflicts of interest, they redacted this information from public filings in attempt to conceal the truth.

For background, the Keystone XL is a proposed oil pipeline that would ship sour crude oil from the Canadian tar sands to the Gulf coast of Texas. The oil would then be refined and shipped abroad.

In order to build the pipeline, Transcanada, the company who proposed Keystone XL, must get the OK from the State Department. The State Department bases its decision on whether or not to approve the pipeline on an environmental review, conducted by a third party group overseen by the State Department and paid for by Transcanada.

This review, called the "draft supplemental environmental impact statement" was released earlier this month.  It has been widely criticized as downplaying the impact that building Keystone XL will have on the climate, and all but paving the way for approval for the project.

The review was conducted by a company called Environmental Resources Management (ERM). When ERM released its review of Keystone, it also released a 55 page filing claiming that there was no conflicts of interest in writing the report. However, the State Department redacted information from this filing, including the biographies of key experts involved in writing the report.

According to Mother Jones, those redactions were meant to keep ties between the report authors and Transanada a secret from the public. Here is what the State Department was covering up:

  • ERM's second-in-command on the Keystone report, Andrew Bielakowski, had worked on three previous pipeline projects for TransCanada over seven years as an outside consultant. He also consulted on projects for ExxonMobil, BP, and ConocoPhillips, three of the Big Five oil companies that could benefit from the Keystone XL project and increased extraction of heavy crude oil taken from the Canadian tar sands.
  • Another ERM employee who contributed to State's Keystone report—and whose prior work history was also redacted—previously worked for Shell Oil;
  • A third worked as a consultant for Koch Gateway Pipeline Company, a subsidiary of Koch Industries. Shell and Koch* have a significant financial interest in the construction of the Keystone XL pipeline. ERM itself has worked for Chevron, which has invested in Canadian tar sands extraction, according to its website.

However, this is not the first time that the State Department has been criticized for conflicts of interests involving TransCanada and Keystone XL.

From Mother Jones:

In October 2011, Obama's reelection campaign hired Broderick Johnson, who had previously lobbied in favor of Keystone, as a senior adviser. Emails obtained by Friends of the Earth, an environmental group that opposes the Keystone pipeline, revealed a cozy relationship between TransCanada lobbyist Paul Elliott and Marja Verloop, an official at the US Embassy in Canada whose portfolio covers the Keystone project. Before he lobbied for TransCanada, Elliott worked as deputy campaign manager on Hillary Clinton's 2008 presidential bid. Clinton served as secretary of state until recently.


The question is, how can the State Department get away with routinely ignoring or burying connections between the oil industry and regulators responsible for Keystone XL?



Koch Brothers Front Groups Line Up in Defense of ExxonMobil Climate Change Denial

  • Posted on: 21 June 2016
  • By: Connor Gibson

The Kochs have spent over $88 million in *traceable* funding to groups attacking climate change science, policy and regulation. Of that total, $21 million went to groups that recently bought a full page New York Times advertisement defending ExxonMobil from government investigations into its systematic misrepresentation of climate science.

If you're an executive at a big oil company watching as ExxonMobil is finally exposed for studying climate change, covering up the science and spreading misinformation, you're probably worried now that state attorneys general are knocking on Exxon's door.

Charles and David Koch must be worried, anyway. Their foundations gave more than $21 million to the people and groups that signed a recent, full page New York Times advertisement that defends ExxonMobil's longstanding efforts to ruin the public's understanding of climate change science.

Here are the numbers:

Koch money to climate deniers signing 2016 CEI ad in NY Times

For comparison, Exxon itself spent half as much on the same people and groups, $10.1 million; money that the front groups spent on tactics like ... a $100,000-or-so full page ad buy in the New York Times! (More info at Climate Investigations Center from my former colleague, Kert Davies.)

The ringleader group behind the letter, the Competitive Enterprise Institute (CEI), is of particular interest. Exxon dumped CEI for its unsupportable climate stance back in 2006, a crushing blow for the aggressive beltway front group that continued to humiliate CEI staff for years.

But it appears that CEI is loyal to the cause of climate denial, despite being abandoned by Exxon a decade ago. Other financiers, like the Koch family and several coal and oil companies may explain why the denial campaign was sustained.

Traceable funds only represent a portion of the Koch family’s contributions to CEI. At CEI’s annual fundraising events, Koch Industries’ lobbying subsidiary has been listed as a sponsor. Full-disclosure tax filings published by PR Watch revealed that Koch Industries directly paid Americans for Prosperity, the Texas Public Policy Foundation, and other organizations.

PR Watch discovered another revelation in the full-disclosure tax documents that were leaked. Apparently, David Koch likes to cut CEI $100,000 checks straight from his own coffers. David Koch’s money was not sent through his nonprofit foundation, which would have had to report the grants to CEI.

This incomplete patchwork of previously-undisclosed funds from Koch Industries and David Koch adds $3,124,834 to the accounting on groups that co-signed the CEI ad. This raises the question: who else is just cutting a direct check to the climate deniers?

And then there’s the "Dark Money ATM" sister groups, DonorsTrust and Donors Capital Fund. The DonorsTrust franchise is run by CEI’s former president, Lawson Bader, who helps donors -- including Koch -- anonymize tens of millions of dollars that go to dozens of front groups each year. DonorsTrust & Capital Fund have funneled millions of dark money dollars to CEI.

But that's still not the end of the financial trail. Other mechanisms used by Charles Koch and his army of donor friends include Freedom Partners Chamber of Commerce, a dark money umbrella group that has hidden hundreds of millions of dollars in politically-charged cash, shuffled between various trusts, nonprofits, and limited liability corporations.

For the deep history, check out Kert Davies' post for the Climate Investigations Center, which spurred my own interest in the sponsors of the recent New York Times ad. Kert details the crucial history of some of the letter’s signatories, the role they have served in the climate denial machine over the years and the exact documents that inform his understanding.

I have reproduced Kert’s ExxonSecrets map (below) of the players involved, as it helps show how a small group of people funded by a few oil and coal companies can cast a shadow that is deceptively deep. The tobacco industry crafted this deceptive model, and fossil fuel companies have innovated it since. It helps that the same people doing tobacco science denial moved on to climate science denial.

One of those tobacco denial alumni, lawyer Steve Milloy, himself an aggressive defender of ExxonMobil, knows that a small group of people can have an outsized impact with enough funding -- even in the face of 97-99 percent of the world’s climate scientists. Milloy once said, “There’s really only about 25 of us doing this. A core group of skeptics. It’s a ragtag bunch, very Continental Army.”

This indicates that folks like Milloy aren’t just deceiving the public, but themselves. If I was taking Charles Koch’s money to attack science, I too would probably have to constantly remind myself of my American heroics.

Mr. Koch is as awkward as ever in his half-hearted attempts to understand climate change science (you'd think a MIT alumnus would get it), he has been wary of climate laws and regulations for a long time.

That's probably why he has rained cash on the organizations that stage the fight, groups that have given room for a top U.S. CEO, with a background in chemical engineering, to demonstrate such scientific ignorance. Since 1997, the Kochs have spent more than $88 million in *traceable* dollars into the network of groups that attack climate science, the scientists doing the research, the potential policy solutions and the champions of those policies.

ExxonSecrets Map of the Players:

ExxonSecrets map of climate deniers signing CEI ad in NY Times 2016

Known Associates: 

$830,000 Dirty Dollars Fuel the Ohio Energy Mandates Study Committee

  • Posted on: 22 February 2016
  • By: Connor Gibson

A wolf pack of in-state utilities and out-of-state petrochemical billionaires has attacked Ohio's clean energy law, threatening to kill clean jobs and wreak further damage on the environment.  

This attack is led by Ohio state Senator Bill Seitz (R), who five years earlier voted for the law, but after accepting dirty energy money compared the law to Stalinism.   The latest step to stall and dismantle clean energy incentives is the so-called "Energy Mandates Study Committee," or "EMSC." The EMSC was established after previous failed attempts by Sen. Seitz and other Ohio Senators to repeal or weaken the clean energy law.

The EMSC's recent decision to indefinitely stall laws promoting clean, efficient energy and the jobs they produce, is a power grab by coal utilities paying dropping campaign contributions in exchange to the gutting pollution-free clean energy jobs in Ohio. 

A review of Ohio campaign finance data reveals some of the money behind these politicians' attack on successful clean energy incentives:

Quid Pro Coal: Dirty Energy funding to Ohio politicians on the "Energy Mandates Study Committee"

Data courtesy The National Institute on Money in State Politics - FollowTheMoney.org

Ohio Politician


Utility Industry

Coal Mining

Oil & Gas


Rep. Ron Anstutz X $83,100 $35,200 $90,686 $208,986
Sen. Bill Seitz X $79,125 $25,350 $20,425 $124,900
Sen. Cliff Hite X $50,085 $2,990 $64,855 $117,950
Rep. Kristina Roegner X $62,950 $2,150 $28,400 $93,500
Sen. Troy Balderson X $43,400 $2,450 $30,200 $76,050
Sen. Bob Peterson   $31,650 $3,600 $14,850 $50,100
Rep. Christina Hagan X $24,280 $2,050 $21,900 $48,230
Rep. Louis W. Blessing, III X $37,578 $1,200 $3,350 $42,128
Rep. Jack Cera   $11,000 $1,350 $9,200 $21,550
Rep. Mike Stinziano   $16,150 $0 $2,700 $18,850
Sen. Sandra Williams   $14,700 $500 $250 $15,450
Sen. Capri Cafaro   $12,200 $1,000 $0 $13,200








ALEC, Clean Energy, and Rigged Markets

The EMSC is stacked with politicians linked to the American Legislative Exchange Council (ALEC), the corporate bill-mill whose state legislator members help dirty energy lobbyists forge laws rolling back clean energy incentives. Some of ALEC's top "private sector members" include Koch Industries, ExxonMobil, Peabody, and Duke Energy.

At recent ALEC meetings, many of these companies sent their lobbyists to rub elbows with state politicians and create template laws in meetings closed to the public. ALEC facilitated the creation of several model bills intended to trip up the booming clean energy industry.

Legislators violate ALEC's core mission of promoting "free markets," giving their fossil fuel sponsors a pass and attacking incentives for their clean competitors at the expense of human health, clean air, clean water and a stable climate. ALEC's cookie-cutter attacks on clean energy have taken various shapes in Ohio, North Carolina, Kansas and a dozen other states.

Quid Pro Coal - What Lobbying Looks Like

Public emails recently published by Energy & Policy Institute show Sen. Seitz recruited help from utility lobbyists as he crafted SB 58.

The utilities gave the bulk of $466,218 to 12 politicians on Sen. Seitz's committee, documented above. This includes companies directly coordinating with Sen. Seitz, according to his emails.

Ohio utility companies -- FirstEnergy, American Electric Power, Duke Energy, NiSource, AES subsidiary Dayton Power & Light, and the Ohio Rural Electric Cooperatives (OREC) -- were directly solicited for input on Seitz's clean energy freeze bill, SB 58, a placeholder bill that preceded Sen. Seitz's study committee. See this timeline, courtesy of Energy & Policy Institute.

Ohio Rural Electric Cooperatives is part of a massive consortium of smaller-scale electric co-ops called the National Rural Electric Cooperative Association (NRECA). NRECA is the top contribution to national politicians among all dirty energy interests, even outspending Koch Industries PAC. NRECA's Ohio affiliate gave Sen. Seitz $4,250 in 2012. The next year, OREC lobbyists helped write Sen. Seitz's bill, SB 58, telling a Seitz staffer, "As we discussed,nbsp;attached is suggested language for inclusion in SB 58 with slight modifications."

No such opportunities were provided to clean energy advocates in communication with Sen. Seitz, including several small businesses, the Sierra Club and affiliates of unions like the Steelworkers and AFL-CIO. 

Seitz repeatedly dismissed an Ohio State University study, commissioned by Ohio Advanced Energy Economy (OAEE), a group of Ohio businesses advocating for clean energy in Ohio. OAEE President Ted Ford warned Senator Seitz in a letter:

"[W]e can report that the results [of SB 58] are worse for ratepayers than we initially thought. The Ohio State University Study (version 2.0) finds that the bill is a massive giveaway to Ohio utilities, and would cost consumers almost $4 billion between now and 2025. The study also finds the standards have already saved Ohioans 1.4% on their electric bills."

A handwritten note on the letter, apparently written by Senator Seitz, says "more complete fabrications from people with zero credibility." The letter and handwritten commentary were circulated by a Seitz staffer to lobbyists at Duke Energy, American Electric Power, First Energy and others.

Seitz shot back a letter to OAEE and the Ohio Sierra Club, loaded with questions attacking the credibility and relevance of their data, also sourced from the Ohio State University Study. 

It turns out, Sen. Seitz prefers his data from out-of-state universities, financed by none other than Kansas billionaire Charles Koch.

Koch University, Inc. - Utah State University

Ohio's coal-burning utilities aren't the only interests helping Seitz behind the scenes. The ALEC senator's study committee relied on data using dishonest measurements from professors at Utah State University (USU) in a department that has taken over $1.6 million from Charles Koch since 2005. USU is among the Charles Koch Foundation's top-funded universities.

It begs the question: Why would Ohio politicians look to Utah professors, financed by a Kansas billionaire, for the data on Ohio's clean energy and efficiency efforts?

The Koch-funded Institute for Political Economy at USU has produced a series of reports that give politicians the bad data needed to attack clean energy. The Koch professors are USU, like the Suffolk professors before them, appear to be intentionally misleading. Foundations affiliated with Koch Industries have backed these Utah professors in identical attacks on renewable energy standards, in Kansas and North Carolina.

Disproved data aside, USU professor Randy Simmons hid his financial conflicts of interest in a national op-ed for Newsweek. 

These aren't the only Koch-funded professors stepping up to the plate to bat against wind. Before Utah, it was the Koch-funded Beacon Hill Institute at Suffolk University. And recently, Kansas University Professor Art Hall was caught taking payments from Koch to study the Kansas renewable energy standard, not long before he told the Kansas legislature to erode the incentives. Hall's previous job: Koch Industries' chief economist.

Koch Industries' executives are pushing "fake it till you make it" into the unknown.

Why the Freeze Makes Zero Sense

It's not the affiliations that matter so much as the false data and backwards hype involved.

The American Wind Energy Association (AWEA), the U.S. wind energy trade association, has revealed basic flaws in all three of these Koch-funded professors' reports out of Utah State University. AWEA's Michael Goggin:

Instead of only going back to EIA’s 2013 renewable cost estimates like they did in their Kansas report, in their Ohio report they go back to 2008 cost data to develop their estimate of how the cost of wind energy compares against alternatives.

No explanation is provided for why they did not use EIA’s more recent 2015 and 2014 data, which show that wind energy imposes no net cost relative to conventional sources of energy even after removing the impact of federal incentives. Of course, the authors could have also used recent data from real-world market prices and found that wind energy provides significant net benefits for consumers, as we did above. Instead, using obsolete data allows them to miss how the cost of wind energy has fallen by more than half over the last five years, as documented by both government and private investor data.

Jobs, lower energy bills, less wasted energy...frozen by Senator Seitz

Samantha Williams at Natural Resources Defense Council surveys the data that Senator Seitz refuses to accept:

As of 2013, Ohio was home to over 400 advanced energy companies that employed over 25,000 Ohioans and was leading the country in the number of facilities manufacturing components for wind technology and second in the number of solar equipment providers. A report by the Pew Charitable trusts shows Ohio attracted $1.3 billion in private clean energy investment from 2009 to 2013. Similarly, Environmental Entrepreneurs (E2) reported that, just prior to the passage of the SB 310 clean energy freeze, Ohio's clean tech economy had grown to support 89,000 jobs.

Unfortunately, much of that hard-earned momentum was a casualty of the freeze as well as HB 483, which basically tripled setbacks for wind turbines and made future commercial-scale development unviable.The renewable sector is particularly lagging, in the E2 report showing a scant 1.5 percent job growth in Ohio far lower than the national wind and solar rate.

Pancake Politics: They Liked this Law in 2008

Sen. Seitz voted along with a large majority of Ohio lawmakers in 2008 to pass the clean energy law. Five years later, Seitz was comparing the clean energy law to "Joseph Stalin's five-year Plan." 

Ohio is in the midst of a fossil-fueled flip-flop.


ALEC CEO Lisa Nelson has a Climate Science Problem (VIDEO)

  • Posted on: 4 December 2015
  • By: Connor Gibson

The third and final meeting of the year for the American Legislative Exchange Council (ALEC) just wrapped up in Scottsdale, Arizona, last week.

On the day of ALEC's board meeting, Greenpeace attempted to ask ALEC's board of directors and executives about climate change science. ALEC CEO Lisa Nelson was not keen on speaking to us.

ALEC has a long history of denying climate change. It continues to take payments from fossil fuel companies like Koch Industries, ExxonMobil, and Peabody Energy. It was part of the American Petroleum Institute's leaked plan to manipulate the public's trust in climate scientists, spelled out in an eerie memo from 1998.

The group even hosts privately-funded events where ALEC legislators are taught how to deny climate change science by public relations consultants who have ties to fossil fuel companies.

As for Lisa Nelson, she is on the board of a Libertarian think tank that promotes solutions to climate change. The Niskanen Center was named after the late co-founder of Charles Koch's Cato Institute, whose recent death led to an attempted coup of the organization by the Koch brothers. Some of Niskanen's staff are former Cato executives, who now support a carbon tax, perhaps the most viable policy solution to global warming. This has caused a rift between the Libertarian purists and the Koch network's hacks-for-hire, like Pat Michaels, the disgraced climatologist at Cato.

Since Ms. Nelson  has taken the helm of ALEC, she has lost over a dozen corporate members. Some of those companies--Google, SAP, and Shell--even condemned ALEC specifically for peddling doubt over climate change in their statements explaining why they have abandoned the lobbying group.

[UPDATE: Since publishing, ALEC was abandoned by American Electric Power (AEP), a major U.S. coal-burning utility that has even lent staff to help govern ALEC's anti-environment task force. AEP states that ALEC's interference with the US Environmental Protection Agency's Clean Power Plan is the reason they are leaving. AEP remains a member of the utility trade group, the Edison Electric Institute, itself a member of ALEC.]

Ms. Nelson has inherited a big problem. After decades of helping companies lie to legislators about climate change, the companies themselves and many of their front groups will no longer deny that humans are responsible for unnatural climate variability. But ALEC legislators have not received the memo, and if you ask them about climate change, they sound woefully uninformed. Almost as if they were paid to.

More to come on that.


Charles Koch: CO2 Causes Climate Change...and I Don't Care

  • Posted on: 30 April 2015
  • By: Connor Gibson

Charles Koch, chosing Tobasco over Sriracha at the Koch Industries cafeteria.
Photo: USA Today

As the nation warily watches every Republican presidential candidate kiss the ring of billionaire donor Charles Koch for a shot at his network's $300,000,000 pool of presidential cash, Charles Koch did something unusual. Last week's USA Today interview with Charles Koch noted his shifting opinion on what he calls climate change "hysteria:"

For the record, Koch says this of climate change: "You can plausibly say that CO2 has contributed" to the planet's warming, but he sees "no evidence" to support "this theory that it's going to be catastrophic."

Wait...Charles Koch just accepted that the planet is warming? Hold your applause. Clearly, Mr. Koch still denies that there's a problem - which means he's missing the entire point of discussing climate change. But any movement from Charles on the 5 Stages of Climate Denial--from #1 down to #3--is a big deal. This is the same guy who has poured $80 million into organizations that have misrepresented climate change science to the public and advocated against any viable solutions to the problem.

Koch's Right-Hand-Man: "Charles is ahead of me on this."

Last June, leaked recordings surfaced from Koch's regular meeting of millionaires and billionaires who are coordinating $889 million in spending around the 2016 election. Charles's Koch top strategist Richard Fink indicated that we may see a shift in Koch's rhetoric on climate change. Fink, aka "Charles Koch's Brain," told attending prospective donors what they wanted to hear: donate to us, and we'll fight the crazy commie hippies and their pesky science. From the Undercurrent:

“The environmental movement. Occupy Wall Street. These kids are searching for meaning. They're protesting the 1 percent. They are the 1 percent, but they're protesting the 1 percent. The environmental movement and climate change. It's not about climate change. I studied climate change for six years. I can't figure it out, quite frankly. Charles is ahead of me on this. I'm not a climatologist, but I'm not completely stupid. I can tell you I meet with people, particularly in California, that are convinced the world is going to burn up in you know, a year or two. They don't know the answer -- they don't even know the question, because it's not about climate change. It's about a cause. It gives their life meaning.”

For context, you should probably know that Fink told the room's billionaires that the minimum wage would lead to fascism, comparing today's low-income Americans to pre-Nazi Germany citizenry. Not exactly a room full of academics. And since one of the people that Mr. Fink 'meets with' was a scientist that he funded to study global temperature data, you have to wonder how much experience Rich Fink has with willful ignorance.

When Charles Koch Accidentally Proved Global Warming

Charles Koch cannot deny is that he's seen the global temperature record data. In 2011, through the Charles Koch Foundation (CKF), CKF president Richard Fink funded a high-profile study on global surface temperature data. This dataset, which was an unnecessarily redundant reproduction of several other similar studies, was constructed by a scientist who at the time was a climate change denier.

BEST data compared with previous reconstructions of global surface temperature data.

Dr. Richard Muller's Berkeley Earth Surface Temperature Study (BEST) made headlines when he announced his acceptance of what climate scientists had already been saying for over 15 years--yes, people are responsible for unnatural climate variability that scientists have documented--and surprised the country by becoming an advocate for solutions to global warming.

This put Mr. Koch in an awkward spot. Koch's $150,000 grant to Dr. Muller made him the project's top single donor, and Muller was a celebrated skeptic before his dramatic change-of-heart.

Add to that Mr. Koch's background in science--a chemical engineering degree at the Massachusetts Institute of Technology. For such an educated, celebrated albeit controversial high-society businessman, the refusal to acknowledge science that is understood by middle schoolers guaranteed to undermine the sensible reputation that Koch Industries has spent a lot of money to put out there.

But Charles gets no credit here. Dumping almost $80 million into organizations that have attacked the scientists who study climate change and interfered with virtually every proposed policy and regulation to solve global warming isn't being a science-savy CEO. It's being a denier, and especially in the context of a self-serving petrochemical billionaire, that's pretty offensive to the rest of us.

We define climate change denial as "anyone who is obstructing, delaying or trying to derail policy steps that are in line with the scientific consensus that says we need to take rapid steps to decarbonize the economy." Mr. Koch remains a staunch denier in that regard.

The Koch brothers continue to finance campaigns to make Americans doubt the seriousness of global warming, increasingly hiding money through nonprofits like DonorsTrust and Donors Capital Fund.

Why focus on Charles Koch and David Koch? Many large foundations associated with corporate fortunes are active in financing climate denial groups - Anschutz, Bradley, Coors, DeVos, Dunn, Howard, Pope, Scaife, Searle, and Seid, to name a few. Unlike Koch, most of those fortunes did not come from owning a corporation like Koch Industries, historically rooted in fossil fuel operations. And none come as close as the Kochs in terms of decades-long focus on actively building a political influence network and coordinating other wealthy executives, corporations and families to dump amounts money into politics that not even the Koch brothers could afford.

Check out Greenpeace.org for more research on the Koch brothers crusade against climate science.

Known Associates: 
Company or Organization: 

NC to Duke Energy: Have You Dumped ALEC Yet?

  • Posted on: 10 December 2013
  • By: Connor Gibson

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?

ALEC's utility member companies 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.


Ohio Clean Energy still in Koch & ALEC crosshairs

  • Posted on: 30 October 2013
  • By: Connor Gibson

Crossposted from Greenpeace’s blog: The Witness.

UPDATE: After ALEC legislators failed 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.

Ohio is currently fighting this year's final battle in a nationally-coordinated attack on clean energy standard laws, implemented by the American Legislative Exchange Council (ALEC) and other groups belonging to the secretive corporate front group umbrella known as the State Policy Network (SPN).

ALEC and SPN members like the Heartland Institute and Beacon Hill Institute failed in almost all of their coordinated attempts to roll back renewable portfolio standards (RPS) in over a dozen states--laws that require utilities to use more clean energy over time. After high profile battles in North Carolina and Kansas, and more subtle efforts in states like Missouri and Connecticut, Ohio remains the last state in ALEC's sites in 2013.

ALEC Playbook Guides the Attack on Ohio Clean Energy

 After Ohio Senator Kris Jordan's attempt to repeal Ohio's RPS went nowhere, ALEC board member and Ohio State Senator William Seitz is now using ALEC's new anti-RPS bills to lead another attack on the Ohio law--see Union of Concerned Scientists.

ALEC's newly-forged Renewable Energy Credit Act allows for RPS targets to be met through out-of-state renewable energy credits (RECs) rather than developing new clean energy projects within Ohio's borders. RECs have varying definitions of renewable energy depending on the region they originate from, lowering demand for the best, cleanest sources of power and electricity.

Sen. Bill Seitz's SB 58 takes advantages of existing provisions of Ohio's RPS law and tweaks other sections to mirror the key aspects of ALEC's Renewable Energy Credit Act. His RPS sneak-attack is matched by House Bill 302, introduced by ALEC member Rep. Peter Stautberg.

Just five years ago, Senator Seitz voted for Ohio's RPS law. Now, Seitz calls clean energy incentives "Stalinist."

Attacks on Ohio's Clean Energy Economy: Fueled by Dirty Energy Profits

Most of ALEC's money comes from corporations and rich people like the Koch brothers, with a tiny sliver more from its negligible legislator membership dues ($50/year). This includes oil & gas giants like ExxonMobil ($344,000, 2007-2012) and Big Oil's top lobbying group, the American Petroleum Institute ($88,000, 2008-2010). Exxon and API just two of dozens of dirty energy interests paying to be in the room during ALEC's exclusive Energy, Environment and Agriculture task force meetings.

Other polluting companies bankrolling ALEC's environmental rollbacks include Ohio operating utilities like Duke Energy and American Electric Power. AEP currently chairs ALEC's Energy, Environment and Agriculture task force. Some of these companies (like Duke Energy and the American Petroleum Institute) pay into a slush fund run by ALEC that allows Ohio legislators and their families to fly to ALEC events using undisclosed corporate cash (see ALEC in Ohio, p. 6).

Ohio Senator Kris Jordan used corporate money funneled through ALEC to attend ALEC events with his wife (ALEC in Ohio, p. 7). With electric utilities as his top political donors, Sen. Jordan has dutifully introduced ALEC bills to repeal renewable energy incentives (SB 34), along with other ALEC priorities like redirecting public funds for private schools (SB 88, 2011), and blocking Ohio from contracting unionized companies (SB 89, 2011).

Koch-funded Spokes & Junk Data Bolsters the ALEC Attack

The behavior of Senator Bill Seitz indicates he's more beholden to ALEC and the dirty energy utilities dumping tens of thousands of dollars into his election campaigns* than his constituents. There is support from a majority of Ohioans for utilities to obtain at least 20% of their electricity from clean sources. Ohio veterans spoke up for the RPS for increasing the state's energy security and lowing wholesale energy costs.

Rather than listening to these voices from Ohio, Senator Seitz has sided with out-of-state Koch-funded mouthpieces invited to testify against the Ohio RPS. Back in March, Seitz heard anti-RPS testimony from The Heartland Institute's James Taylor, who repeated false claims that the RPS will make electricity unaffordable.

Taylor's assertions mimicked those made in a debunked series of reports written for ALEC's RPS attacks. The Ohio anti-RPS report was co-published by the Koch-funded Beacon Hill Institute and the American Tradition Institute (ATI), sister group to the Koch-funded Competitive Enterprise Institute. ATI, now known as the Energy & Environment Legal Institute, was largely funded by Montana petroleum millionaire Doug Lair.

Senator Seitz also heard testimony from Daniel Simmons of the Institute for Energy Research (IER), who recited long-debunked statistics from the so-called "Spanish study" and "Danish study." Koch-funded groups have used these two papers for years to stifle clean energy growth in the United States. Daniel Simmons previously worked for ALEC and the Mercatus Center, which was founded by the Kochs. Heartland and the Institute for Energy Research have financial or personnel ties to the Kansas billionaire Koch brothers.

RPS and Energy Efficiency Are Helping Build Ohio's Economy

Thanks in part to energy efficiency incentives and the RPS law, Ohio's clean energy economy is expanding rapidly, with 25,000 Ohioans employed by 400 companies in the sector. Wind energy is set to expand rapidly, with the American Wind Energy Association projecting $10 billion in investments over the next decade, thanks to the RPS targeted by ALEC and its dirty companies through loyal politicians like Senator Seitz.

Not content to just weaken incentives for clean energy growth, Bill Seitz's SB 58 would also undermine energy efficiency standards, another item on ALEC's agenda. This despite a projected $2.7 billion in savings for Ohio by 2012, as directed by the efficiency and RPS laws.

No wonder ALEC got dumped by its wind and solar trade members.


*Since 2007, Senator Seitz has received $46,450 from coal utilities that are ALEC member companies:

  • $21,500 from American Electric Power (AEP)
  • $15,300 from Duke Energy
    • $4,800 of this bundled from Duke Employees in Ohio, Kentucky and Indiana during the 2008 election cycle
  • $4,000 from NiSource
  • $3,000 from Dominion
  • $2,650 from the Ohio Rural Electric Cooperatives, a member of the nation's top dirty energy lobbying heavyweight, the National Rural Electric Cooperative Association.

If you add contributions from FirstEnergy, AES subsidiary Dayton Power & Light, and the Ohio Coal Association, Sen. Seitz's coal money since 2007 tops $66,000.

ALEC's December, 2012 meeting in Washington, DC was heavily sponsored by coal companies, including AEP, the National Rural Electric Cooperative Association (NRECA), and Edison Electric Institute, the utility trade group whose membership includes Duke Energy, AEP, NiSource, Dominion, AES and FirstEnergy.

Data aggregated by the National Institute for Money in State Politics - FollowTheMoney.org


GREENPEACE REPORT: Climate Change Denial Machine vs. Scientists

  • Posted on: 10 September 2013
  • By: Connor Gibson

Written by Cindy Baxter, crossposted from Greenpeace: Dealing in Doubt.

Who likes being lied to by people paid by the oil industry who pose as “experts” on climate change?

Did you know it’s been going on for 25 years?

In a couple of weeks, the UN’s official advisors on climate change science, the Intergovernmental Panel on Climate Change (IPCC) will update its global assessment on the issue. Yet in the background, more attacks on the climate science are underway

For the last quarter century, the climate science denial machine, its cogs oiled by fossil fuel money, has been attacking climate science, climate scientists and every official US report on climate change, along with State and local efforts – with the aim of undermining action on climate change.

Our new report, Dealing in Doubt, sets out the history of these attacks going back to the early 90s. These are attacks based on anti-regulatory, so called “free market” ideology, not legitimate scientific debate, using a wide range of dirty tricks: from faked science, attacks on scientists, fake credentials, cherry-picking scientific conclusions: a campaign based on the old tobacco industry mantra: “doubt is our product”.

We give special attention to perhaps today’s poster child of the climate denial machine’s free market think tanks, the Heartland Institute, which is about to launch a new version of its “NIPCC” or “climate change reconsidered” report next week in Chicago.

Unlike the real IPCC, with thousands of scientists involved from around the world, the Heartland Institute’s handful of authors is paid. Several of them claim fake scientific credentials. They start with a premise of proving the overwhelming consensus on climate science wrong, whereas the real IPCC simply summarizes the best science to date on climate change.

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

More recently, less visible channels of funding have been revealed such as the Donors Capital Fund and Donors Trust, organization that that has been called the “ATM of the conservative movement”, distributing funds from those who don’t want to be publicly associated with the anti-environmental work product of organizations like the Heartland Institute.

In the last week we’ve seen new peer-reviewed science published, linking at least half of 2012’s extreme weather events to a human carbon footprint in the atmosphere and on the weather and climate.

As the scientific consensus strengthens by the day that climate change is happening now, that carbon pollution is causing it and must be regulated, the denial machine is getting increasingly shrill. But today, while they are being increasingly ignored by a majority of the public, their mouthpieces in the US House of Representatives, for instance, have increased in number.

They’re still fighting the science – and they’re still being funded, to the tune of millions of dollars each year, to do it.

Dealing in Doubt sets out a history of these attacks. We show how the tactics of the tobacco industry’s campaign for “sound science” led to the formation of front groups who, as they lost the battle to deny smoking’s health hazards and keep warning labels off of cigarettes, turned their argumentative skills to the denial of climate change science in order to slow government action.

koch brosWhat we don’t cover is the fact that these organizations and deniers are also working on another front, attacking solutions to climate change. They go after any form of government incentive to promote renewable energy, while cheering for coal, fracking and the Keystone pipeline.

They attack any piece of legislation the US EPA puts forward to curb pollution. Decrying President Obama’s “war on coal” is a common drumbeat of these anti-regulation groups. One key member of the denial machine, astrophysicist Willie Soon from the Smithsonian Institute for Astrophysics, has portrayed himself as an “expert” on mercury and public health in order to attack legislation curbing mercury emissions from coal plants.

This recent history, as well as the prior history of denial by the tobacco companies and chemical, asbestos and other manufacturing industries, is important to remember because the fossil fuel industry has never admitted that it was misguided or wrong in its early efforts to delay the policy reaction to the climate crisis. To this day, it continues to obstruct solutions.

The individuals, organizations and corporate interests who comprise the ‘climate denial machine’ have caused harm and have slowed our response time. As a result, we will all ultimately pay a much higher cost as we deal with the impacts, both economic and ecological.

Eventually, these interests will be held accountable for their actions.


Exposed: ALEC's new anti-environmental agenda in Chicago this week

  • Posted on: 7 August 2013
  • By: Connor Gibson

New internal documents obtained by the Center for Media and Democracy (CMD) reveal new methods that fossil fuel companies, agrochemical interests and corporate lobbying groups will influence certain state policies in the coming months through the American Legislative Exchange Council, or ALEC.

ALEC's annual meeting is taking place in Chicago this week, just as Common Cause and CMD have filed a complaint to the IRS over ALEC's corporate-funded "Scholarships" for state legislators--ALEC is a tax exempt non-profit despite their mission of facilitating an exchange of company-crafted laws with state legislators in closed-door meetings.

ALEC's Energy, Environment and Agriculture task force is drafting new model bills on behalf of its members like Duke Energy, ExxonMobil, Koch Industries and Peabody. ALEC's anti-environmental agenda in Chicago is available for viewing (see E&E PM and Earthtechling). These are the new model bills ALEC and its energy, chemical and agricultural interests are finalizing this week.

The Market-Power Renewables Act and the Renewable Energy Credit Act: ALEC and other Koch-funded State Policy Network groups like the Heartland Institute haven't had much success with their attempts to repeal state renewable portfolio standard (RPS) laws through the ALEC/Heartland Electricity Freedom Act. The Market-Power Renewables Act and Renewable Energy Credit Act are two newer, more subtle attempt to weaken RPS laws by phasing in a renewable power voluntary program, creating space for existing and out-of-state energy credits to displace new clean energy, and eventually repealing the RPS requirements entirely.

To slow the growth of clean energy competition, ALEC's fossil fuel members wrote these bills to allow increasing portions of a states clean energy generation requirements to be fulfilled by Renewable Energy Credits, or RECs. RECs are allowed to qualify in some states' RPS laws already, often in limited amounts, and they are not created equal. For instance, the benefits of burning gas leaking from landfills--something waste management companies would be selling anyway--are not on par with the societal benefits from building new sources of clean energy and displacing older, dirtier sources. You can see why ALEC member companies like American Electric Power or Duke Energy may take issue with this, given their reliance on coal and gas electricity generation.

Increasing the amount that RECs can qualify for state RPS targets means allowing more out-of-state energy. This could displace in-state jobs and economic benefits from clean energy development. The RECs may also come from sources that aren't defined as "renewable" in some states' RPS laws, or are only allowed in limited amounts, such as hydropower, biomass or biogas, creating a lowest common denominator effect. At the end of any given year, the ALEC bill would allow states to bank any extra energy generated from RECs beyond what the RPS law requires and use them to meet RPS targets for the following year. This could continually delay the growth of new, clean energy.

Resolution in Opposition to a Carbon Tax: Despite support for a carbon tax from ALEC members like ExxonMobil, ALEC is creating a model bill to weigh in on what will become the keystone policy battle for climate change science deniers, a battle that is already creating a rift among conservative groups, like the Koch-funded Heritage Foundation and the Heartland Institute against the R Street Institute. R Street formed when Heartland's Fire, Insurance and Real Estate program split away last year, after Heartland's insurance company funders were uncomfortable with the group comparing those who acknowledge climate change to the Unabomber.

Pre-Emption of Local Agriculture Laws Act: This bill would prevent governments under the state level (cities, towns, counties) from creating new laws or enforcing existing laws that have to do with the regulation of seeds and seed products--ie crops, flowers, and pretty much all food products grown in a state. This would allow companies like Monsanto (indirectly represented in ALEC through its membership in CropLife America, an agrochemical front group and ALEC energy task force member) to bottleneck regulations of their GMO seeds and products at the state government level and stop community resistance to their abusive patent laws and enforcement through lawsuits.

For examples of what ALEC has already been busy with this year, check out PR Watch's roundup of 77 anti-environmental ALEC bills that have popped up in state legislatures in 2013, supporting the Keystone XL tar sands pipeline project, rolling back renewable energy incentives and making it illegal to document animal abuse, among other issues.

More info on ALEC's broader corporate agenda can be found on ALEC Exposed.


INFOGRAPHIC: Koch Bros, Getting Richer While the World Burns

  • Posted on: 19 July 2013
  • By: Connor Gibson

Charles Koch to Infographic: I don't trust you....you're too honest....

Originally posted on Republic Report and featured on Grist, by David Halperin. Information from Greenpeace's ongoing research on Koch Industries Secretly Funding the Climate Denial Machine is cited in the infographic.

Click to embiggen:

You may repost this infographic PROVIDED that you do not alter it in any way. Download



2. SMITH (NOAA) & Katz (NCAR)






This post also appears on Huffington Post and Republic Report.

David Halperin, an attorney, was the founding director of Campus Progress at the Center for American Progress and a White House speechwriter for President Clinton.

Check Greenpeace.org for more Koch Facts.

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