If you were the Koch brothers and you wanted to connect better with Latino and Hispanic voters, after you just dumped millions of your own cash into a presidential election that didn't go in your favor, you'd probably be annoyed if one of your favorite front groups started undermining your voter outreach.
That's exactly what's happening with the Koch-funded Heritage Foundation. Heritage is having a public relations crisis after releasing a contentious report claiming that immigration reform would cost $6.3 trillion over the next 50 years, indebting taxpayers to support people who live in the U.S. illegally. The offensive kicker is that the Heritage report's freshly-resigned co-author, Jason Richwine, previously published a dissertation claiming that Hispanic and Latino immigrants have lower IQs than White people.
Here's a helpful meme for Mr. Richwine:
As Heritage Foundation is one of the billionaire Koch brothers' favorite groups to implement their political agenda--receiving more than $2.7 million from Koch-controlled foundations since 2005--this is a poor start for the Kochs' new interest in reaching Hispanic and Latino voters in the U.S.
Amid the fiasco, Heritage pulled out of Buzzfeed's forum on immigration sponsored by the Charles Koch Institute. See infighting over Heritage's assumptions about how so-called "illegals" contribute to the U.S. economy from the Koch-funded Reason Foundation, of which David Koch is a trustee.
Hispanic & Latino Voter Engagement is Central to the Kochs' Refined Political Plans:
After coordinating hundreds of millions of dollars to defeat President Obama with the direct help of other billionaires like Sheldon Adelson, Foster Friess, and Philip Anschutz, the Kochs are meticulously refining their methods of controlling U.S. politics from behind the scenes. Some of those methods already involve serious marginalization of U.S. immigrants from Latin-American countries, as I've previously written:
It’s worth noting that the Koch-funded American Legislative Exchange Council distributed Arizona’s controversial racial profiling law, SB 1070, to states around the country so private prison companies can rake a profit off the incarceration of immigrants.
At the Kochs' most recent political strategy and fundraising meeting, the Kochs prioritized outreach to Hispanic voters, according to leaked material published by Mother Jones. Kevin Gentry, a Koch Industries employee and Koch World's central fundraiser, explained the new priority in his invitation to "several hundred of America's top business owners and CEOs" attending last month's Koch meeting:
Among other topics, in April, we'll discuss how to more effectively engage growing demographic groups, such as Hispanic and Latino voters, and how to encourage principled and effective advocates of free enterprise to run for office.
Kevin Gentry then offered mild elaboration to invitees of the Koch meeting:
Hispanic, women and youth engagement. Allies will present an approach to more effectively communicate to these growing demographics, all of which will play a critical role in advancing free enterprise.
New Heritage President Jim DeMint's History with Koch World:
It's unclear if anyone from the Heritage Foundation attended the recent Koch meeting, although Heritage's new President and former U.S. Senator James DeMint has repeatedly attended the Kochs' secretive confabs in the past. In turn, the Kochs were one of the top contributors to Jim DeMint's political piggy bank while he ran and served in the Senate (2004-2012). Sen. DeMint's campaign and leadership PACs received a total $76,000 from Koch Industries and the Koch family (see p. 21 of Greenpeace's 2011 Koch report).
Either Jim DeMint and the Heritage Foundation didn't heed the notes from the Kochs' latest gathering, or Heritage staff didn't realize that calling people stupid isn't the best way to sell an ideology.
On a human level, the Kochs don't get it. Even ignoring the offensive work of the Heritage Foundation, ALEC, and other Koch front groups, the recent focus on Latino and Hispanic voter outreach is clearly a self-serving political tactic, where broadly-defined groups of people are used as a means to an end.
Koch Industries bid for U.S. Newspapers includes major Spanish outlets:
The Koch brothers could potentially influence U.S. Latino voters through Koch Industries' controversial bid for a pile of major U.S. newspapers owned by Tribune Company. Tribune Co's print news in Chicago and Los Angeles isn't limited to the Chicago Tribune and the LA Times; Tribune Co. owns Hoy, the nation's second largest daily U.S. newspaper published in Spanish, as well as two major weekly outlets in Florida: El Sentinel de Florida Central and El Sentinel del Sur de la Florida, published in conjunction with two Tribune daily papers written in English, the Orlando Sentinel and the South Florida Sun-Sentinel.
Tribune Company's widely distributed English newspapers also include the Baltimore Sun, the Hartford Courant, and the Allentown, PA's Morning Call and Hampton Road, VA's Daily Press.
While Koch Industries doesn't yet own any media, a network of Koch-friendly media has shown it is capable of spreading misinformation on key topics like climate change. Due to the high possibility of warped editorial reporting if Koch buys Tribune, ten public employee unions and groups like Free Press, FAIR, Forecast the Facts, Courage Campaign, Daily Kos, and the Center for Media and Democracy have all urged the public and owners of the Tribune Company to reject an offer from Koch Industries.
Duke Energy Ties to Gov. McCrory Increase Concerns over SB10 Proposal to Fire NC Utilities Commission
This guess post was written by Sue Sturgis for the Institute for Southern Studies' online magazine, Facing South.
This is a critical moment for North Carolina's energy future, as a packed public hearing held in Raleigh this week showed -- and there are growing concerns that the politician who might get to make key decisions about it has significant conflicts of interest.
On Monday, Feb. 11, about 180 people attended a N.C. Utilities Commission (NCUC) hearing on Duke Energy's plan for meeting its customers' power needs over the next two decades. Dozens of citizens testified against Duke's proposed Integrated Resource Plan, which calls for generating most of its energy from polluting sources: dirty coal plants (24 percent), natural gas plants (29 percent), and risky nuclear plants (29 percent). Efficiency would account for only 4.5 percent of Duke's generation mix, while wind and solar would make up only 2.25 percent. The plan would cost Duke's customers dearly, as the company -- which supplies electricity to over 95 percent of North Carolina customers since its merger with Progress Energy -- would quadruple rates within a decade.
Speaker after speaker called on commissioners to require Duke to increase its generation from renewable sources such as solar and to encourage greater efficiency. Many of those who testified cited the urgency of acting now, pointing to mounting signs that the climate has already been dangerously disrupted by unchecked greenhouse gas pollution.
"What are we waiting for, the next tragic super storm to strike?" asked Avram Friedman, executive director of the Canary Coalition, a nonprofit that advocates for clean air in western North Carolina. "What is it going to take for you to act in the public interest?"
But there are mounting concerns that the public interest will get even less consideration if North Carolina's legislature gets its way and gives Gov. Pat McCrory (R) sole control over the commission's membership.
A controversial bill recently introduced in the General Assembly would sweep out the current members of key state regulatory commissions including the NCUC and replace them with members appointed by the governor and/or the legislature. In the case of the NCUC, Senate Bill 10 specifies that the new appointments would be made by the governor and confirmed by the legislature. It would also downsize the commission from seven members to five. The bill has already passed the Senate and is now advancing through the House, both of which are controlled by veto-proof Republican super-majorities.
State Sen. Bill Rabon (R-New Hanover), one of the bill's primary sponsors along with Sens. Tom Apodaca (R-Buncombe) and Neal Hunt (R-Wake), told the Senate Rules Committee that the bill streamlines state government and allows key boards to be run by appointees who "are more like-minded and willing to carry out the philosophy of the new administration," as The News & Observer reported.
However, some watchdogs are protesting what they call "an unprecedented conflict of interest" created by the legislation because of McCrory's unusually close ties to Duke Energy.
In addition to having received generous campaign contributions from Duke Energy (the company, its political action committee, employees, and their families donated over $240,000 to McCrory's 2008 and 2012 gubernatorial campaigns and to the state Republican Party since he became the party's nominee, according to a recent report by the liberal advocacy group Progress NC), McCrory worked for the company for 28 years, starting out digging ditches and eventually making his way to a position as senior adviser with Duke's Business and Economic Development Group before retiring in 2007 to run for governor.
Because of that employment history, the clean-energy advocacy group NC WARN last month joined with the state AARP to ask the governor to recuse himself from making appointments to the commission and from appointing a new Public Staff director to represent consumers in utility cases because of his longtime association with Duke. This week NC WARN sent a letter to McCrory raising concerns about the commission overhaul proposal.
"If the bill passes, you would be required to appoint all the members of the Utilities Commission," NC WARN Executive Director Jim Warren wrote in the Feb. 11 letter. "The public perception would be inescapable that Duke Energy had captured its regulator, and had done so with the Governor's assistance."
But the governor's financial ties to the utility giant are not merely historic: Though he's no longer employed by Duke Energy, McCrory continues to hold a significant financial stake in the company. His latest statement of economic interest filed with the N.C. Ethics Commission and posted to the Indyweek.com website discloses that he holds stock in Duke valued at a minimum of $10,000. North Carolina ethics rules do not require reporting the exact value of the investment.
Notified of the holdings, Warren said they are "just more evidence that the governor has an unprecedented conflict of interest."
McCrory's history of conflicts
This is not the first time concerns have arisen over potential conflicts of interest related to McCrory's close ties to Duke Energy, as Facing South reported back in 2008.
In 1994, while working for Duke and serving as an at-large city councilman and mayor pro tem in the company's hometown of Charlotte, McCrory chaired a council meeting and voted on a matter that directly affected Duke's finances. City of Charlotte v. Cook involved Charlotte's efforts to condemn private farmland to build an underground water pipe for a project that would enable the city to purchase power from Duke instead of the electric membership corporation that was the authorized provider for that location.
The case eventually ended up in state Supreme Court. Though the court majority ultimately ruled there was no wrongdoing by the city, a dissenting opinion by Justice Beverly Lake Jr., a Republican, pointed to a conflict of interest on McCrory's part:
The record evidences multiple Duke Power internal e-mail messages and memoranda reflecting that Duke Power and the City collaborated to have the City acquire a fee simple title to the property in order that Duke Power could provide the power to the plant. These e-mail messages indicate that the mayor pro tempore of the City, an employee of Duke Power, as well as the project director had contact with Duke Power officials and discussed condemning a fee simple interest for the project. The mayor pro tempore chaired the 12 September 1994 City Council meeting where the subject of condemning a fee simple was discussed, and he voted in favor of a fee simple condemnation.
McCrory filed an affidavit saying he would not have participated in the meeting if he had known Duke was involved. However, the court pointed to evidence that McCrory did in fact know Duke was involved -- though it ruled that "an ethical problem involving the Council has to rise to a much higher level than this one for us to upset a decision by the Council."
In another action that raised conflict of interest concerns, McCrory went to Washington, D.C. in 1997 to testify as Charlotte mayor against federal clean air regulations for the city that would have cost his employer Duke Energy an estimated $600 million. As a local paper reported at the time:
When asked about a possible conflict of interest arising from his appearance on Capitol Hill as Charlotte's mayor to testify about a matter that would directly affect his employer, Duke Power (where he serves as manager of business relations), McCrory replied, "No, in fact it's quite beneficial because I'm very knowledgeable on the subject."
In the letter it sent to McCrory this week about the latest conflict of interest concern, NC WARN asked the governor to oppose the NCUC provision in the commission overhaul bill and to call for it to be removed from the House version of the legislation. It also asked McCrory to state that, should the section pass in spite of his opposition, he would appoint an independent panel to recommend candidates for the NCUC and abide by its recommendations.
If he fails to do so, NC WARN's Warren wrote, McCrory risks further alienating the people from the government that's supposed to serve them:
The Utilities Commission provisions of the bill would set the precedent that whenever legislative leadership and the governor changes party, the seated commissioners would be thrown out and replaced. It would do away with the Commission's institutional legitimacy as well as its knowledge base and continuity gained by handling its highly complex legal, technical, and policy issues. The public, already skeptical that utility regulation is in the public's interest, would see the Commission as just a rubber stamp wielded by politicians and their utility industry backers. Instead of bolstering faith in the integrity and effectiveness of state government, the bill would take cynicism to a new level.
Senator Jim DeMint (R-SC) has announced his departure from the U.S. Senate in order to become head of the Heritage Foundation, a conservative think tank with notable support from fossil fuel interests like the Koch brothers ($2.73 million, 2005-2010) and ExxonMobil ($250,000, 2005-2010).
Both Exxon and the Kochs are known for their heavy financial support to organizations that promote doubt over climate science, peddle fossil fuel use and attack clean energy on precedent. The Heritage Foundation has played a consistent role in promoting the oil ideology--see DeSmog, Greenpeace, ExxonSecrets and SourceWatch for documentation.
Senator DeMint, commonly associated with the tea party, has been a particular favorite of the Charles Koch and David Koch. In the 2010 election, David, Charles and Elizabeth Koch (married to Charles) funneled a collective $12,000 to Senator DeMint's election campaign committee, on top of a $10,000 contribution from Koch Industries. Only a handful of politicians were handpicked by the Kochs in the 2010 election for direct contributions--see p.22 of Koch Industries: Still Fueling Climate Denial).
Here is a breakdown of total donations from the Koch family members and Koch Industries to Sen. DeMint and his associated leadership PACs (the Senate Conservatives Fund and MINT PAC) during DeMint's Senate career. Each donation was the maximum legal contribution limit.
Total Koch money to Senator Jim DeMint, 2004-2012: $86,000
2011-2012: Sen. DeMint departs from the U.S. Senate after 2012
- $15,000 from Koch PAC to DeMint's Senate Conservatives Fund (OpenSecrets)
2009-2010: Jim DeMint was re-elected to the U.S. Senate in 2010
- $10,000 from Koch PAC to DeMint's campaign (OpenSecrets)
- $10,000 from Koch PAC to DeMint's MINT PAC
- $5,000 from Koch PAC to DeMint's Senate Conservatives Fund
- $4,800 from Charles Koch to DeMint's campaign (FEC filing 10020033939 and FEC filing 10020033940)
- $4,800 from David Koch to DeMint's campaign (FEC filing 10020033940)
- $2,400 from Elizabeth Koch to DeMint's campaign (FEC filing 10020033941)
2007-2008: Sen. DeMint was not up for election
- $10,000 from Koch PAC to MINT PAC (OpenSecrets)
2005-2006: Sen. DeMint first term began in January, 2005
- $10,000 from Koch PAC to MINT PAC (OpenSecrets)
2003-2004: Jim DeMint was elected to the U.S. Senate in 2004
- $10,000 from Koch PAC to DeMint's campaign (OpenSecrets)
I spoke with Duke Energy's Jim Rogers at the DNC. He's hearing from us! And 150k people. And Senators.
Written by Whit Jones, Energy Action Coalition Campaign Director, crossposted from We Are Powershift
Wake up and smell the frack fluid! But don't ask what's in it, at least not in Ohio, cause it's still not your right to know.
Ohio is in the final stages of making an Exxon trojan horse on hydrofracking into state law, and it appears that the American Legislative Exchange Council (ALEC) connected Exxon's lawyers with co-sponsors of Ohio Senate Bill 315: at least 33 of the 45 Ohio legislators who co-sponsored SB 315 are ALEC members, and language from portions of the state Senate bill is similar to ALEC's "Disclosure of Hydraulic Fracturing Fluid Composition Act."
...disclosure of fracking fluids? On behalf of ExxonMobil?!
Frack fluids include unknown chemicals that gas drillers mix with sand and large amounts of water. The mixture is pumped underground at high pressure in order to retrieve gas and oil by fracturing shale formations. These are the chemicals that have caused widespread concern among residents near gas fracking operations, concerns echoed by doctors who don't know how to treat patients harmed by exposure to chemicals that oil companies keep secret. Oil companies like XTO Energy, a subsidiary of ExxonMobil, the first company lined up to drill in Ohio's Utica shale.
Concern over unconventional energy like gas fracking may be the reason by Ohio SB 315 also addresses clean energy standards and drilling regulations. While the new law will allow doctors to obtain disclosure of fracking chemicals, it places a gag order on them...meaning some chemicals aren't disclosed to the public at all (Cleveland Plain Dealer). Instead, chemicals that subsidiaries of Big Oil use during fracking can remain exempt from public disclosure as "trade secrets," mirroring language of ALEC's model law.
What's most suspicious is that seven of the ten Ohio Senators co-sponsoring SB 315 are ALEC members, as are 26 of the 35 co-sponsoring Representatives.*
Among the co-sponsors are Ohio Senate President Tom Niehaus and state Senator Troy Balderson. Senators Niehaus and Balderson are members of ALEC's Energy, Environment and Agriculture task force, which approved the fracking "disclosure" bill internally sponsored by ExxonMobil, modeled after a Texas bill (see New York Times and ProPublica).**
Four of the co-sponsors of SB 315 attended ALEC's meeting in Scottsdale, AZ, although it is unclear which (if any) of them may have been inside the EEA task force meeting the day that the fracking chemical loophole bill was discussed and approved:***
- Rep. Cheryl Grossman
- Rep. Casey Kozlowski
- Rep. Louis Terhar
- Rep. Andrew Thompson
Some co-sponsors became ALEC members in the lead up to ALEC's late 2011 meeting in Scottsdale, AZ, where the fracking disclosure loophole model bill was finalized by ALEC's Energy, Environmental and Agriculture task force. Emails between representatives of ALEC, the Ohio state government and Time Warner Cable's Ed Kozelek show that last-minute recruitment of new ALEC members before the Scottsdale meeting brought in three state legislators who ended out co-sponsoring SB 315 (PDF pp. 71-76): Rep. Lou Terhar, Rep. Brian Hill and Sen. Bob Peterson (who was appointed to the Ohio Senate in 2012).
Head spinning yet? Let's summarize:
- Exxon pushed the fracking loophole bill through ALEC's [anti]environment task force,
- A couple of key Ohio legislators directly involved in that task force brought the bill back home...
- ...and then a pile of Ohio legislators used ALEC's model to mold Exxon's Ohio fracking disclosure loopholes into state law!
Beyond their involvement in these ALEC task force meetings, Exxon and API were involved in the creation of a similar fracking bill through the Council of State Governments before the ALEC model even existed. As if being a Private Empire isn't enough...
ALEC, CSG, OMG!
ALEC isn't the only group that peddles corporate-written state laws, as DeSmogBlog's Steve Horn pointed out in a blog on state fracking bills and the "Council of State Governments." With direct financial support from Exxon, API, TransCanada and others, the Council of State Governments (CSG) drafted a similar fracking chemical "disclosure" bill two months before ALEC's was internally approved, although they both appear to be modeled off of a Texas law.
While one of the co-sponsoring Senators of Ohio SB 315, Troy Balderson, is a member of CSG Midwest's Energy Committee, Ohio politicians aren't part of the Suggested State Legislature (SSL) committee that vetted the Council's version of the fracking bill. Because of that disconnect and the overwhelming influence of ALEC politicians sponsoring SB 315, ALEC appears to be the keeper of Exxon's fracking secrets in Ohio.
Regardless of the varying influence of groups like ALEC and CSG forging Big Business state laws, ExxonMobil is getting what it wants. According to Don't Frack Ohio!--a project of 350:
- Fracking companies can hide which chemicals they use in the fracking process by calling them ‘trade secrets’. That means they are exempt from telling you what they put in your water. What little they do disclose is 60 days after drilling takes place, too late for communities to test to show what was in their water before drilling, rendering the disclosure meaningless.
- The gas industry pays nothing for the mess they create. Gov. Kasich’s minor tax on individual wells is offset by new tax breaks on property taxes and other giveaways, which means the gas industry will pay less in Ohio taxes than they do in any other state in the country.
- No citizen notification or input will be allowed on any part of the fracking industry. There is no public notice, no public comment, and no right to appeal for drill sites, pipelines, or compressor stations.
Ohio Governor John Kasich has numerous ties to ALEC and was "involved with ALEC in its formative years," but he called for SB 315 to include full disclosure of chemicals used in hydraulic fracturing. Senators replaced true disclosure requirements with Exxon's loopholes and ALEC Representatives decided to leave them.
ALEC secrecy in Ohio
ALEC legislators have found ways to make their moves harder to track in light of repeated exposure of ALEC's pollution of democracy in the United States over the last year, and sometimes existing state laws don't help. Ohio's financial disclosure forms for legislators specifically mention that expenses or reimbursements from ALEC conferences do not need to be publicly disclosed. In Ohio and other states, ALEC dodges lobby laws through corporate-funded "scholarship" programs that are thoroughly documented by the Center for Media and Democracy through open records requests.
People for the American Way and Progress Ohio report that ALEC's scholarship fund in Ohio is financed donations from the American Petroleum Institute, Duke Energy, Reynolds Tobacco, and other major corporations interested in buying the loyalty of Ohio lawmakers.
I'm sure you'd understand if you were in the same position. Sometimes steak and cigars are more important than energy that doesn't poison us.
*Cross-referenced between a list of ALEC legislators listed in an Aug. 9, 2011 email from the legislative aid of ALEC's Ohio State Chairman, Rep. John Adams, obtained through a public records request (see PDF pp. 82-84 and PFAW p.12).
**ALEC documents published by Common Cause show that Sen. Balderson was a member of ALEC's EEA task force throughout 2011, although Sen. Balderson did not attend the ALEC task force meeting last December in Pheonix, AZ, according to a staffer at his office over the phone, nor is he listed in emails obtained through a public records request as attending the previous meetings in New Orleans (Aug. 2011) or Cincinnati (Apr. 2011). Ohio Senate President Tom Niehaus was a consistent member of ALEC's [anti]environment task force from August 2010-August 2011, the time period for which ALEC's EEA task force rosters are available. SB 315 co-sponsoring Representatives Carey, Damschroder and Derickson were all listed as members of ALEC's EEA task force as of August, 2011.
***Co-sponsors cross referenced with an email from ALEC Ohio State Chairman John Adams' legislative aid to Emily Petrovich of US Steel, dated 11/22/2011--eight days before the Scottsdale meeting (see PDF p. 138).