Peabody

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.

ALEC Energy Director Misleads the Wall Street Journal

Todd Wynn: director of ALEC's Energy, Environment and Agriculture task force, formerly of Cascade Policy Institute. Cascade and ALEC are two of the many front groups coordinated under the umbrella of the State Policy Network.

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.

Follow Gabe Elsner on Twitter: www.twitter.com/GabeElsner

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

Crossposted from Greenpeace USA

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

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

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

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

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

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

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

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

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

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

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

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

American Legislative Exchange Council (ALEC): 

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

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

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

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

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

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

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

Americans for Prosperity:
 

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

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

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

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

Kansas Policy Institute

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

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

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

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

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

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

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

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

Chris Horner -- Competitive Enterprise Institute & American Tradition Institute

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

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

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

Grover Norquist and Americans for Tax Reform:

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

Junk scientists with Koch and Exxon ties:

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

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

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

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

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

State Policy Network

KOCH INDUSTRIES

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

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

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

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

 

 

Will ALEC block EPA coal pollution safeguards at Illinois' controversial Prairie State Energy Campus?

The U.S. Securities and Exchange Commission is investigating the Illinois-based Prairie State Energy Campus, a combined coal mine and power plant spearheaded by Peabody Energy, co-owned by eight public power companies based in the Midwest. Numerous cost overruns from construction delays and equipment problems at the Campus resulted in customers in several states having to pay for power well above market price.

While Peabody defends Prairie State Energy Campus (PSEC) from SEC scrutiny, a corporate front group has developed copycat legislation that could exempt dirty projects like PSEC from national clean air and water laws.

A model state bill developed by the American Legislative Exchange Council (ALEC) would block federal pollution regulations when coal is mined and then burned or altered within the borders of a single state. The "Intrastate Coal and Use Act," created within ALEC's Energy, Environment and Agriculture task force, is ideal for projects like Prairie State Energy Campus, which mines and burns coal on site.

By exempting the U.S. Environmental Protection Agency from overseeing permits for projects like Prairie State, ALEC's Intrastate Coal and Use Act leaves regulation to state agencies, which may have weaker pollution standards or simply lack enough staff to do their jobs, as the gas fracking boom has demonstrated.  

Peabody itself is a member of ALEC's anti-environmental task force, which readied the Intrastate Coal and Use Act for national distribution, and a member of ALEC's Private Enterprise Board, which may explain ALEC's role in promoting the Prairie State Energy Campus.

Materials leaked to Greenpeace after ALEC's most recent conference in Washington DC show that the American Coalition for Clean Coal Electricity, a coal front backed by companies including Peabody, was showcasing Prairie State at ALEC's conference. Files in a USB drive branded with the ACCCE logo contained three promotional videos for PSEC while a paper folder with the ACCCE logo contained a promotional brochure for the Campus. 

The ALEC model does not appear to have been introduced in Illinois, although ALEC has been busy pushing a wishlist of state laws for its dirty energy members companies like Peabody, Duke Energy and ExxonMobil.

One of ALEC's national priorities this year is to un-legislate state incentives for clean energy under the false premise that they have an adverse impact on electricity rates. While there appears to be no significant correlation between state clean energy standards and raised utility rates, the Prairie State Energy Campus is raising electricity prices, as reported last July in the St. Louis Post-Dispatch:

The St. Louis suburb [Kirkwood] needed a stable, long-term power source. The plant’s developers needed customers. The parties struck a deal — a 30-year contract that would supply more than half of Kirkwood’s electricity beginning in late 2011. The kicker: The energy produced at Prairie State would be cheap compared with market power prices at the time.

But now, as the first of two 800-megawatt generating units at Prairie State begin operations — six months late — the plant hardly seems the bargain it did five years ago.

The $5 billion price tag is 25 percent more than when the city signed on, driving up the price of electricity that Kirkwood and other cities are obligated to buy. And construction delays mean the city is getting nothing for the monthly $296,000 checks it began writing to Prairie State’s owners in February.

Because ALEC peddles copycat laws that benefit dirty and expensive coal projects while attacking clean energy incentives, renewable energy interests like the American Wind Energy Association and the Solar Energy Industries Association have abandoned ALEC.

History of ALEC's Adoption of the Intrastate Coal and Use Act:

An ALEC legislator in West Virginia named Gary Howell introduced a version of the Intrastate Coal and Use Act back in 2011; his bill inspired the current model bill that ALEC is distributing. Delegate Howell suggested that all of the top 20 coal producing states consider his legislation, indicating where watchdogs should keep their eyes peeled for ALEC's model legislation.

While the bills weren't passed in 2011, West Virginia is again considering the Intrastate Coal and Use Act in the 2013 session, renewing their attempts to keep the EPA from overseeing permits to burn coal from mountain top removal.

Another version of the Intrastate Coal and Use Act has surfaced in Kentucky.

In fact, it was the Kentucky-based Bluegrass Institute that sponsored ALEC's Intrastate Coal and Use Act within ALEC's anti-environmental task force, apparently based off of what WV Del. Howell has been introducing into his own legislature. Like ALEC, the Bluegrass Institute is a member of the State Policy Network, an umbrella organization for state and national think tanks and interest groups that are usually funded by the Koch brothers and company.

Coal's Broken Promises: Not Cheap, Not Clean

A 2005 Peabody company newsletter shows that PSEC was supposed to cost $2 billion, less than half its actual price. The cost estimate was later doubled to $4 billion before reaching its actual $5 billion price tag. According to a 2012 report by the Institute for Energy Economics and Financial Analysis:

Instead of being a source of low cost electricity, the first year cost of power from Prairie State is 40 to 100 percent higher than the current cost of power in the Midwest wholesale markets and is expected to remain higher than market prices for the next ten to thirteen years, if not longer.

The Campus proposal was supported by former Illinois Governor Rod Blagojevich (currently serving a 14-year prison sentence for corruption charges), who publicly supported construction of the plant and ate up Peabody's false promises of cheap energy. In Big Coal, author and journalist Jeff Goodell notes that Peabody's desire to build its own coal plant was to help burn its own reserves of high-sulfur coal from Illinois, which the market did not have much of an appetite for. A representative of the Illinois Office of Coal Development told Goodell, "Most power plants are built in order to generate electricity. Prairie State was really conceived more as a platform to burn Peabody coal." While Peabody sold all but 5% of its stake in PSEC to eight nonprofit power companies, it has been the driving force behind the Campus since 2001.

Goodell noted that even with its highly-touted pollution control equipment, PSEC is still a dirty coal plant. It still emits hazardous particulates, acidic gasses and heavy metals. It still dumps immense amounts of carbon dioxide into our atmosphere, the key greenhouse gas that is contributing to global climate change:

"Prairie State will emit more than 11 million tons [of carbon dioxide] a year, marginally less than a similar size coal plant built thirty years ago, but more than twice as much as every vehicle sold by the Ford Motor Company in a single year."

Illinois' bind demonstrates the lose-lose situation promoted by the coal industry: drink and breathe our pollution now, and pay more...now and later.

As clean energy becomes increasingly viable, even without considering the costs of fossil fuel pollution and climate change, some cities are taking matters into their own hands, including [the ironically-named] Carbondale Illinois, which recently established that 100% of its power will come from clean energy. Cincinnati, Ohio dumped Duke Energy and made a similar commitment, as have all municipal facilities in Austin, Texas.

But clean energy advocates be warned: the more the American public recognizes that 19th Century energy like coal is a thing of the past, the more the dirty energy industries are going to spend big to desperately defend their bottom lines.

Duke Energy and ALEC Attack North Carolina Renewable Energy Portfolio Standard

NC Rep. Mike Hager: ALEC member and former Duke Energy employee.

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.

ALEC's Electricity Freedom Act model bill was written by the Heartland Institute, a shill group made infamous for comparing those who recognize climate scientists to terrorists like Ted Kaczynski.

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.

Coal Utility CEO dismisses link between Hurricane Sandy and Climate Change

Image source: Knoxville News Sentinal

Duh. That's probably what you thought to yourself when you read my headline.

Yes, as American families on the east coast are reeling from an unprecedented weather disaster, Southern Company CEO Thomas Fanning told CNBC:

“I don’t think the data supports that the storms are more frequent or unusual than they have been in the past. But the point is right now that we are not dedicated to getting into an ancillary argument.” (h/t The Hill)

Fanning probably considers the much-needed conversations considering Hurricane Sandy and climate change as "ancillary" because Southern Company plays a very central and very inconvenient role in creating global warming. Apparently, Fanning's home and livelihood weren't damaged by superstorm Sandy, although his birthplace of Morristown, NJ was hit by the storm. Lucky him--out of sight, out of mind! Apparently there's no need to talk about the deeper issue of global warming. (Greenpeace photos of damage from Sandy).

See, not only is Southern Co one of the nation's largest coal-burning utilities, but it creates more carbon pollution than any other utility in the country and ranks #7 in global power company carbon emissions. Southern Co is responsible for dumping over 145 million tons of carbon dioxide into our atmosphere each year, making it a key culprit in the global climate crisis.

In turn, global warming creates conditions that can make cyclones like Hurricane Sandy more intense than they naturally would be, not to mention increasing the likelihood of other extreme weather events like droughts, floods, and heavy storms. If you live in the U.S., you know this year was particularly suspicious in terms of climate-related disasters.

Suspicious unless you have your head in the sand, as Mr. Fanning appears to. What's worse is how much Thomas Fanning's company has paid money to stuff other people's heads in the sand with them.

While aggravating global warming through its immense greenhouse gas emissions, Southern Company has also been a key manipulator in our national dialog over global climate change:

  • Funding shill groups: Southern Co. is a member of the Electric Reliability Coordinating Council, a front group run by coal utility lobbyists at the law firm Bracewell & Giuliani. Through ERCC lobbyists Scott Segal and Jeff Holmstead, Southern Co and other dirty utilities bitterly opposes any requirements for coal companies to reduce their pollution or greenhouse gases causing global warming. Southern Co is also a member of the American Coalition for Clean Coal Electricity (ACCCE), another front group opposing strong environmental standards for coal pollution. You may be familiar with ACCCE for its multimillion dollar ad buys around the election, or for its involvement in a scandal where forged letters were sent to Congress to oppose climate legislation in 2009.
  • Buying politics: Since 2008, Southern Co. has spent over $61 million lobbying our federal government, much of which was to block environmental laws and legislation addressing climate change. Southern Co. has spent over $10 million each year on federal lobbying since 2004. To support its lobbying expenditures, Southern Co. has also sent over $1.6 million to federal politicians and registered political groups since the 2008 election cycle.
    • In the 2012 presidential election, Southern Co. has sent $46,650 to Republican candidate Mitt Romney and $8,580 to President Barack Obama (OpenSecrets).

Unfortunately for the climate and those who are now suffering from weather disasters, Southern Company is just one of many companies funding our politicians and then paying lobbyists, setting up front groups and financing hack scientists to push politicians even farther into an anti-science fantasy-land. Along with Southern are other key bad actors like Duke Energy, Peabody, ExxonMobil, Chesapeake Energy, Koch Industries and other fossil fuel interests that also want to stomp any mention of global warming out of politics, protecting billions in profit and limiting their liability over pollution problems.

Understanding how these behemoths operate and coordinate makes it less surprising, though no less offensive, that we didn't hear about climate change in the first presidential debate series in over 20 years.

It doesn't matter if global warming is an "ancillary" issue to Southern Company after disasters like Hurricane Sandy, or if the presidential contenders won't be honest with Americans about the problem. Our changed climate is only going to keep changing.

What's on ALEC's polluter agenda tomorrow?

Tomorrow, the American Legislative Exchange Council--known as ALEC--will host their 2012 Spring Task Force summit in Charlotte, NC. At tomorrow's meeting, the corporate front group will round up its various committees and prepare to peddle new state-level legislation to attack clean energy laws, protect polluting industries, privatize education, and suppress voters, among other big business schemes.

Need a refresher on ALEC? It's the group that brings state legislators to the table with representatives from major corporations in the sectors of energy, healthcare, tobacco, private prisons, and other groups to manipulate state politics to maximize their profits and limit their liabilities. These companies help craft template bills for state legislators to bring home and introduce in their respective statehouses.

Documents obtained and published by Common Cause now give us a roster of specific attendees at ALEC's environmental meetings, a consortium of state legislators and a who's who of the most offensive polluting political heavyweights including: Koch Industries, ExxonMobil, Duke Energy and Peabody. Participating legislators know well they're walking into a dirty party, sometimes using state taxpayer money to foot the bill.

The corporations that fund ALEC are well known for their political spending on both sides of the aisle. ALEC funders include Koch Industries, known for its coordinated political spending against President Obama, and Duke Energy, which is laying down a ten million dollar line of credit to host the Democratic National Convention in their hometown of Charlotte, NC. But these polluting companies are co-conspirators under the banner of ALEC, where partisan politics are set aside to focus on the mission of destroying environmental protections, clean energy competition and liability for crimes against both people and the ecosystems sustaining us.

So what exactly are ALEC and these oil, coal, chemical and public relations companies focusing on tomorrow?

According to their newest meeting memorandum, ALEC's Energy, Environment and Agriculture task force is going to discuss some pending model laws that ALEC will likely be approved for state distribution:

  • The "Electricity Freedom Act" (really? Electricity Freedom?!) is a new attack on states with plans requiring companies to get a certain percentage of their electricity from renewable sources. This new bill is similar to other legislation ALEC has already peddled in several states and compliments an "email and telephone campaign" against state renewable energy standards, according to the Guardian.
  • The "Coal Intrastate and Use Act" serves to prevent EPA from overruling state permits for coal mining and producing dirty coal products (like liquid coal for fuel) if all the coal operations are conducted within the borders of a single state.
  • The "Resolution on U.S. Conference of Mayors Climate Protection Agreement Accountability" mandates a report be filed on cities and states that have fallen short of their goals to reduce greenhouse gases through the Mayors Climate Protection Agreement, which has over 1,000 signatories. ALEC's new resolution then demands that any program that hasn't met its goal be canceled out right, voiding the Climate Protection Agreement altogether. Keeping in mind that ALEC's members like Koch and Exxon have fought greenhouse gas programs at every turn for years, it is obvious that this ALEC bill is meant for one thing, attacking programs that address carbon emissions.
  • A resolution demanding the passage of the notorious federal REINS Act, which would give Congress the power to block the enforcement of just about any federal protection--clean air and water laws, safeguards for mine workers, prohibiting tobacco sales to kids, protection from discrimination, you name it. It's the ultimate gift from Congress to their corporate fundraisers who would like to avoid responsibility for...everything.
  • The exhaustively-titled "Resolution Supporting a Reasonable Compliance Timeline and Economy-wide impact study of EPA’s Mercury and Air Toxics Rule" has a simple purpose: delay when coal-burning utilities have to reduce mercury pollution and other severely hazardous emissions. For major mercury polluters like Energy Future Holdings, American Electric Power, and Duke Energy, this is likely to be a popular item tomorrow.

Documents obtained and published by Common Cause also show us what ALEC's focal points have been for other meetings in the last two years. Here are a few examples:

  • A resolution urging Congress and the State Department to push through TransCanada's Keystone XL tar sands pipeline. ALEC recycles a lofty jobs lie in their reasoning for this resolution, ignoring State Department KXL job estimates under 2,000 and a Cornell study warning that "There is evidence to suggest that the effects of KXL construction could very well lead to more jobs being lost than are created." How many jobs does ALEC assume? 120,000 -- see Greenpeace's letter to the SEC to understand how they were calculated by politics rather than reality. Go figure--the American Petroleum Institute and its largest members were in the room when this resolution was forged.

Who exactly attends these events? Beyond ALEC staff and dozens of corporate representatives, industry front groups are also represented. Tomorrow will feature John Felmy of the American Petroleum Institute in a presentation on gas prices (spoiler alert: this crowd will probably blame the President). Next up: presentations from representatives of the Edison Electric Institute (utility trade group) and the Nuclear Energy Institute (nuclear industry lobby).

Perhaps most intriguing will be a chat about "The Dirty Truth Behind Reusable Bags" led by Charles Gerba, who will warn attendees that reusable bags will give them "projectile vomiting and diarrhea." Gerba may not mention this dramatic and messy sickness can be avoided by simply washing one's reusable bags, since Mark Daniels of Hilex Poly (a plastic bag company) regularly attends these meetings, and Gerba serves as an advisor to Hilex Poly.

ALEC always gets some of industry's most interesting mouthpieces to set the rhetorical tone for those attending ALEC's anti-environmental jamborees. Looking back to last August at ALEC's Energy, Environment, and Agriculture task force meeting in New Orleans, presenters included:

  • Robert Bradley of the Institute for Energy Research, which made press recently when its sister group the American Energy Alliance spend $3.6 million on ads blaming the President for high gas prices. IER has a former Koch lobbyist on staff and has received $175,000 from Koch foundations in recent years as part of the climate denial network.
  • Gerry Angevene of the Fraser Institute, another longtime player in the Koch- and Exxon-funded climate denial machine
  • Craig Idso, whose nutjob Center for the Study of Carbon Dioxide and Global Change has been paid by the coal industry and the Heartland Institute to tell people that global warming is good for the planet. Craig Idso explained this nonsense to state legislators in August. As is the pattern here, see the Center's history of Koch- and Exxon-funding, as well as Idso's former employment at Peabody and work for the Western Fuels Association.
  • Stephen Miller of the American Coalition for Clean Coal Electricity, which spends big on national advertisements promoting the idea that perhaps coal isn't inherently dirty, dangerous and deadly (it is). Miller, who is resigning from ACCCE this year after serving as a dilligent coal apologist for the last decade, came under Congressional fire in 2009 when it was revealed that ACCCE contractors forged letters on behalf of groups "representing senior citizens, minorities and veterans," including the NAACP.

Likely due to the publicity of ALEC Exposed and the recent mass migration of 16 companies and 34 state politicians away from ALEC (in response to controversial bills on voter suppression and Stand Your Ground laws that protected Trayvon Martin's killer), ALEC no longer includes the specific members of its task forces in the documents it mails to participants beforehand. ALEC's Energy task force as of June, 2011 shows the nefarious people who run this dirty operation, by name. People representing the following groups have been consistently present at recent ALEC meetings over the last couple years:

Oil and gas industry:

  • ExxonMobil
  • Shell Oil
  • BP
  • Chevron
  • American Petroleum Institute
  • Occidental Petroleum
  • Marathon Oil
  • Continental Resources
  • American Gas Association (trade association)

Coal mining

Coal-burning utilities:

  • Duke Energy & Progress Energy (which are merging into the nation's largest utility company)
  • Energy Future Holdings
  • American Electric Power
  • PacifiCorp (a MidAmerican subsidiary, owned by Warren Buffet's Berkshire Hathaway)
  • Alliant Energy
  • Pinnacle West
  • MDU Resources
  • NiSource
  • NV Energy
  • Edison Electric Institute (trade association, membership includes all utilities above)
  • American Coalition for Clean Coal Electricity (membership includes AEP, Peabody, and Energy Future Holdings subsidiary Luminant)
  • Salt River Project
  • National Rural Electric Cooperative Association (an aggressive lobbying group for electrical utility cooperatives and top political donor in the energy sector)

Nuclear Industry:

  • EnergySolutions
  • Nuclear Energy Institute (trade association)
  • Duke, Progress, AEP, and Pinnacle West all have notable nuclear generation capacity

Other major polluters:

Front groups, all involved in climate science denial (Koch funding since 2005):

 

 

 

Public Relations Firms 

Dezenhall Resources, which Businessweek calls the "Pit Bull of Public Relations." Dezenhall Resources is currently included in a Greenpeace lawsuit due to its role in hiring spies on behalf of chemical companies to track Greenpeace's internal campaign plans.

Climate Denial University? The Heartland Institute's Toxic Presence in Higher Education

PolluterWatch: Greenpeace Investigates Heartland Institute Leaked Documents -- click to see investigation and ongoing updates.

As Greenpeace questions universities about payments to faculty members from the Heartland Institute for its campaign to discredit climate science, we have made some interesting discoveries. Our newest letter is to the University of Missouri concerning professor Anthony Lupo, who leads the schools Global Climate Change Group and is slated to receive a total $18,000 from the Heartland Institute from 2011-2012 as a consultant for "Climate Change Reconsidered" reports. As you would expect from a Heartland Institute project, these reports are designed to confuse the scientific conclusions of 97% of climate researchers around the world.

While credible climate scientists and institutions have understood global warming for decades now, Anthony Lupo's position on climate has fluctuated significantly. A thorough article in the Kansas City Pitch back in 2008 revealed the following evolution of Dr. Lupo's public statements on global warming:

  • In 1998, Tony Lupo boasted that climate skeptics outnumbered the consensus view that global warming is happening and caused by people, proclaiming, "there is no scientific consensus whether global warming is a fact and is occurring." This is despite the fact that in 1995 the Intergovernmental Panel on Climate Change (IPCC) said "the balance of evidence suggests a discernible human influence on global climate." Dr. Lupo has participated in the IPCC as a reviewer, one of the few scientists involved who rejects the IPCC's research conclusions.
  • In 2000, Dr. Lupo cited an influential oceanographer calling for more study on global warming in "recent statements"...after the oceanographer had been dead for nine years.
  • In 2005, Dr. Lupo contradicted his previous op-ed statements and told the Kansas City Star that "the climate is warming" but that the warming was not "unprecedented."

  • In 2007, Dr. Lupo said that because of increasing global surface temperatures, "Columbia's [Missouri] probably become a more ideal place to live." This notion is consistent with that of industry apologist Craig Idso, who coordinates the work of Heartland's Climate Change Reconsidered reports.

Our new letter to Mizzou quotes Dr. Lupo this year telling the Columbia Daily Tribune that he still doubts humans are the primary cause of global warming, contrasting the explicit climate statements of scientific institutions he is affiliated with, such as the American Geophysical Union and the American Meteorology Society. Anthony Lupo's work for the Heartland Institute even flipped a long-time climate skeptic columnist at the Daily Tribune, who publicly explained why the scandal convinced him that global warming is indeed occurring.

Questions posed to other schools have unearthed more potentially scandalous activity. First and foremost, we want to know why the Heartland Institute has Michigan Technological University (MTU) professor David Watkins listed in their budget. When we wrote to MTU asking if Watkins had disclosed his Heartland payments, they were shocked at the association. Turns out, Watkins is neither a climate skeptic nor a Heartland Institute contractor, something the Heartland Institute has not explained.

As Michigan Tech made it clear they want nothing to do with Heartland's junk science, Harvard University again confirmed that career climate denier and Heartland contractor Willie Soon has no formal affiliation with the school beyond office space on their campus. This hasn't stopped Willie from claiming he's a "natural scientist at Harvard" while dismissing the dangers of mercury pollution in the Wall Street Journal. Last year Greenpeace revealed that Willie Soon is exclusively funded by fossil fuel interests like Koch Industries, ExxonMobil and Southern Company, a major contributor to mercury air pollution from its coal plants.

Moving southwest, a meeting with Greenpeace student activist Erica Kris prompted an "investigation" at Arizona State University (ASU), although there was no third party involved to prevent bias. ASU's longtime climate skeptic Robert C. Balling continues to reject conclusive scientific evidence that humans are the primary cause of global warming and was listed as a recipient of prospective payments in Heartland's leaked budget for work on their "Climate Change Reconsidered" reports. According to Arizona State Vice President for Academic Personel Mark Searle, who conducted the review of Dr. Balling's disclosure forms to the school, Balling isn't going to review Heartland's latest climate denial report:

"With respect to any consulting work with the Heartland Institute, other than the previously reported $1000 honorarium Dr. Balling received for giving a speech some years ago, he has not received any compensation from them. The purported budget from the Heartland Institute was prospective and was not a commitment and Dr. Balling told me he has not engaged in any such activity."

Historically, Dr. Balling has taken plenty of money from fossil fuel interests, which brings in funding not only to Balling's predetermined "research," but hundreds of thousands of dollars in overhead payments to Arizona State University (see Balling's 1997 testimony to the Minnesota News Council). Balling teamed up with oil industry scientist Pat Michaels at the Exxon- and Koch-funded Cato Institute to write three books that have served as faux counter-arguments to settled science. Two of those books were published by Cato, while The Heated Debate was published by the Pacific Research Institute (PRI), another cog in the climate denial machine. Balling claimed to know "nothing" about the Pacific Research Institute even though PRI and published his book promoting global warming doubt:

"I know nothing of their history. I'm aware that they have been a conservative public policy group. But I did not investigate who these people were that asked me to prepare a book for them." --From Ozone Action's Ties that Bind [PDF]

Dr. Balling has reluctantly owned up to hundreds of thousands of dollars in fossil fuel funding as well as direct research support from Exxon [PDF] and the Kuwaiti government [PDF] to downplay global warming. As part of an extremely small group of PR scientists for hire, both Michaels and Balling worked for the Western Fuels coal coalition and its fraudulent Greening Earth Society project, led at the time by Peabody coal lobbyist Fred Palmer.

Given his history as an oil and coal industry consultant who ignores 97% of working climate scientists worldwide, why doesn't Arizona State consider it a problem for Dr. Balling to promote his political positions as if they were factual? What about his role in ASU's Global Institute of Sustainability, of which climate change research and mitigation is listed as a top priority? What about his attempts to directly influence policy based on scientific misinformation? ASU's Office of Research Integrity and Assurance lists "Objectivity in Research" among its responsibilities to "support for the responsible conduct of research." Freedom of expression does not equate to freedom to repeatedly misrepresent scientific fact on behalf of industry policy groups like Cato, Pacific Research and Heartland.

Although Heartland's reputation has become increasingly toxic, most recently indicated by General Motors announcing it would stop sending money to Heartland, they haven't given up. Perhaps Heartland President Joseph Bast would be lost in a world where he's not paid to promote tobacco products, deny global warming, and force junk science into classrooms.

You can continue to follow Greenpeace's Investigation of Heartland Institute Leaked Documents on PolluterWatch.

Heartland Institute and ALEC Partner to Pollute Classroom Science

ALEC and Heartland: Classroom Climate Denial Peddlers

PolluterWatch: Greenpeace Investigates Heartland Institute Leaked Documents -- click to see investigation and ongoing updates.

UPDATE: After dropping support for ALEC, Pepsi distances itself from the Heartland Institute’s climate denial.

Perhaps the most outrageous revelation of "Denialgate," the leak of internal Heartland Institute budget and fundraising documents detailing their 2012 work plan to obstruct global warming policy, is a project to develop school curricula to teach K-12 students that there is doubt over the causes and implications of global warming.

What hasn't been reported is the complementary role of the American Legislative Exchange Council (ALEC), which has peddled laws written by corporate lobbyists through state legislatures that make it easy for its dirty energy members, such as Exxon, Koch Industries and Peabody coal, to influence how climate science is presented to students. The so-called "Environmental Literacy Improvement Act," which has been introduced in seven states and became law in at least three, would establish a state-level council to oversee all scientific material presented to students, allowing companies to smother classroom science with K street politics. This council would notably exclude anyone with environmental science credentials, instead composing itself in the following proportions:

 

 

 

Basically, it ensures that climatology will be underrepresented. Note that environmental science is interdisciplinary, open to a variety of natural science expertise in order to study complex natural systems that cannot be confined to a single topic of study. See our annotated version of the ALEC bill showing how ALEC's language can be used to peddle global warming denial in schools.

So where did this bill come from? We know that ALEC members include not only the Heartland Institute, but a who's who of dirty energy interests that stand to make money by denying climate change. More specifically, there appears to be a key industry operative who oversaw development of the ALEC bill. Her name is Sandy Liddy Bourne, the daughter of convicted Watergate criminal G. Gordon Liddy.

Alexandra "Sandy" Liddy Bourne runs an oil industry front group called the American Energy Freedom Center with former ExxonMobil lobbyist Randy Randol. Bourne is a longtime affiliate of both the Heartland Institute and ALEC, currently formerly a Heartland senior fellow for environmental issues and formerly Heartland's vice president for policy and strategy.  Prior to joining the Heartland Institute, Sandy Liddy Bourne was ALEC's Director of the Energy, Environment, Natural Resources and Agriculture Task Force for the from 1999-2004, before being promoted to Director of Legislation and Policy, where she oversaw all of ALEC's task forces and helped boost state enactment of ALEC's corporate bills from 11 percent to 20 percent. In Bourne's time directing ALEC's environmental task force, the "Environmental Literacy Improvement Act" was created and approved by ALEC's board in June, 2000.

While this ALEC bill was finalized, ALEC's Private Enterprise board chairman was Mike Morgan of Koch Industries. The Heartland Institute still promotes ALEC's "Environmental Literacy Improvement Act" on its website to this day.

Confused? Check out all the key players in this interactive ExxonSecrets map!

Heartland Payments to Federal Employee for Unscientific Climate Lesson Plan

The Heartland Institute repeatedly has shown it doesn't hold the scientific method in particularly high regard, even if their climate denial conferences are run under the banner "Restoring the Scientific Method." According to its 2012 fundraising document, Heartland is paying a US Department of Energy (DOE) official named David Wojick $5,000 a pop for modules teaching high school students that "whether humans are changing the climate is a major scientific controversy."

It's not. Regardless of whether David Wojick simply denies this reality or if he drank the Koch Industries Kool Aid, his climate credibility is zero.

The National Academy of Sciences found that 97% of actual climate researchers understand that global warming is happening and is primarily caused by humans burning fossil fuels. However, most K-12 students don't read the Proceedings of the National Academy of Sciences. I certainly didn't--I relied upon my teachers to teach science with unbiased integrity.

Craig Idso ALEC American Legislative Exchange Council benefits CO2 annual meeting New OrleansWojick has expertise not in climate science, but the philosophy of science. He has done contract work for the coal industry through the "Greening Earth Society," a fairy tale organization established to promote the absurd idea that more CO2 in our atmosphere, such as from burning coal and other fossil fuels, is unconditionally good for our planet. This fallacy is promoted by other notable non-experts, such as oil billionaire David Koch and junk scientist Craig Idso, who produced propaganda films for the Greening Earth Society (a coal industry front group). Idso presented "The Many Atmospheric Benefits of CO2" to ALEC's Energy and Environment task force at their August, 2011 meeting in New Orleans, where he told ALEC insiders that we “should let CO2 rise unrestricted, without government intervention” since “CO2 is definitely not a pollutant.”

The coal industry clearly wishes this were true, Mr. Idso.

In addition to accepting fossil fuel propaganda money alongside Mr. Wojick at the Greening Earth Society, Craig Idso also consults for the Heartland Institute. Idso's $140,000 contract with Heartland this year is to coordinate the anti-scientific "Climate Change Reconsidered" reports, an admittedly "political" project that includes contracts to two federal workers and multiple university faculty members. These payments US Interior Department (DOI) contractor Indur Goklany, who is under investigation by the Interior Department's Inspector General's office at the request of US Representative Raul Grijalva of New Mexico.

While the Heartland Institute is doing its best to make this unraveling scandal disappear, mainly by vilifying scientist Peter Gleick for embarrassing the Institute, Greenpeace is pushing for more. We continue to seek answers from federal bodies and universities whose employees are taking money from the Heartland Institute to attack science and disrupt the democratic process on behalf of tobacco companies, industrial giants and billionaire ideologues like the Koch brothers. Visit PolluterWatch for ongoing results of Greenpeace's investigation of the Heartland Institute leaked documents.

Key References:

ALEC EXPOSED: Polluter Front Group's Dirty Secrets Revealed

Crossposted from Greenpeace USA.

As revealed by The Nation and hosted by the Center for Media and Democracy’s new ALEC Exposed website, today marks a breakthrough in democratic transparency with the release of over 800 internal documents created by the American Legislative Exchange Council, or ALEC.

Who is ALEC?

Greenpeace has tracked the American Legislative Exchange Council and its role in the climate denial machine, along with the money it receives from polluters including Koch Industries and ExxonMobil to peddle doubt over established conclusions of climate scientists. Check out some of ALEC’s climate denier deeds at ExxonSecrets.


ALEC links state legislators with some of corporate America's largest and most dubious players—Exxon, Koch, coal giant Peabody Energy, and Reynolds Tobacco for example—to create model state legislation. State legislators who pay a small fee to become ALEC members are granted access to a large pool of draft bills and resolutions created by representatives of the corporate giants who finance ALEC, some of which also help govern the organization. ALEC creates a cover for state legislators who ultimately benefit from ALEC’s corporate supporters without having to disclose who pays for the corporate-handout policies they push in state houses across the country.

The Nation's John Nichols explains the ALEC agenda:

"ALEC's model legislation reflects long-term goals: downsizing government, removing regulations on corporations and making it harder to hold the economically and politically powerful to account. Corporate donors retain veto power over the language, which is developed by the secretive task forces. The task forces cover issues from education to health policy. ALEC's priorities for the 2011 session included bills to privatize education, break unions, deregulate major industries, pass voter ID laws and more. In states across the country they succeeded, with stacks of new laws signed by GOP governors like Ohio's John Kasich and Wisconsin’s Scott Walker, both ALEC alums."

ALEC's Dirty Assault on Environmental Causes

ALEC has long served corporate polluters in attacking or preempting environmental protections through state laws. A revealing article in Grist linked legislative repeals from the Regional Greenhouse Gas Initiative (RGGI) to ALEC's draft legislation, offering polluters like Koch Industries another avenue of attack to bolster the work of other front groups, including Americans for Prosperity's pressure on states participating in RGGI. Center for Media and Democracy Executive Director Lisa Graves and The Nation have more details on the connection between Koch Industries and ALEC.

The over 800 internal documents revealed at ALEC Exposed brings other laws drafted by and for corporate polluters to light. Examples include:

• A 2010 resolution [PDF] resisting long-overdue EPA classification of coal ash as hazardous material. Coal ash is a leftover product from burning coal containing neurotoxins, carcinogens and radioactive elements—not the type of material that should be less regulated than household garbage (as it currently is).
 
• A 2009 resolution to dodge federal oversight of hydraulic fracturing [PDF] for natural gas by promoting state-level regulation of hydrofracking. New York Times reporting has shown state fracking regulations are notably insufficient. Currently, the private sector chairs of ALEC's Energy, Environment and Agriculture Task Force are Tom Moskitis of the American Gas Association and Martin Schultz, a lobbyist for a large firm representing dozens of corporate heavyweights including the U.S. Chamber of Commerce, Warren Buffet's Berkshire Hathaway and oil supermajor ConocoPhillips.
 
• A 2008 resolution [PDF] to challenge the federal offshore drilling moratorium, which ignores the reality that offshore drilling won’t reduce gas prices. ALEC’s [Exxon-funded] language uses the American taxpayer as an excuse to push for more dangerous offshore drilling even as giant oil companies like Exxon take billions in taxpayer subsidies and make record profits. Currently, the private sector chair of ALEC's Civil Justice task force (which adopted the resolution) is Victor Schwartz of Shook, Hardy & Bacon, a law firm representing Peabody and the U.S. Chamber of Commerce.
 

The range of ALEC's model legislation provides a historical record of the most aggressive efforts to combat environmental protection. A resolution from 1998 getting states to oppose the Kyoto protocol [PDF] apparently passed in ten states and was introduced or passed by one legislative chamber in another ten states, according to an ALEC speech transcript. A resolution from 2002 shows ALEC’s role in early efforts to hijack chemical security legislation. After the U.S. Senate adopted a bill (S.1602) in July, 2002 that would have conditionally required the use of safer processes at high risk chemical plants, ALEC fought back, approving a Resolution in Opposition to S. 1602 [PDF] a month later. That fall, the chemical security bill fell on its face.

More to Come...

Greenpeace is continuing to research the contents of ALEC's documents. ALEC's template environmental bills repeatedly attack clean energy, push the most dangerous and dirty fossil fuel developments and try to roll back safeguards that reduce pollution. We will continue to update you on what we find.

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