Written by Whit Jones, Energy Action Coalition Campaign Director, crossposted from We Are Powershift
Today Greenpeace joins a coalition of environmental, civil rights and democracy reform groups that are calling upon Duke Energy to join the 38 other companies that have left the American Legislative Exchange Council, or ALEC -- see the letter the coalition sent to CEO Jim Rogers this morning.
Why, you ask? And WTF is ALEC??
ALEC is a corporate bill mill--it brings companies like Duke, Exxon, Koch Industries, Phillip Morris and other bad actors together with conservative state lawmakers in order to draft laws. You may have noticed how certain controversial state laws spread like wildfire across the country, including voter suppression, union-busting bills, attacks on clean energy programs, and other items you wouldn't expect the average person to ask their politicians to do. ALEC was behind all of these on behalf of its corporate members, who are eager to dodge lobbying laws and get relatively cheap access to our Statehouses.
Duke Energy in particular has deep ties to ALEC, sending it tens of thousands of dollars in support, helping ALEC oversee state operations in South Carolina and Indiana, and supporting the creation of ALEC's anti-environmental bills.
Duke Energy has distinguished itself from other polluters with rhetorical commitments to tackling global warming and implementing clean energy, but stops short of meaningful action. By dumping ALEC, Duke would take a step in the right direction toward the potential it has to become a cleaner energy company.
The full text and coalition signatories of the letter is posted in full here:
We, the undersigned, a coalition of environmental, civil rights, and democracy reform groups are writing to express our concern for the extensive support provided by Duke Energy to the American Legislative Exchange Council (ALEC), and request Duke Energy disassociate and stop funding ALEC immediately.
ALEC is not only responsible for drafting model state laws attacking renewable energy programs and climate policies, it is also intentionally crafting and supporting Voter ID bills and other legislation designed to suppress people from voting and participating in our democracy. We are concerned about this fundamental attack on our democracy and civil rights, and Duke Energy’s support for it.
Duke Energy has repeatedly stated concern over climate change, yet is participating in ALEC’s Energy, Environment and Agriculture task force, which includes notorious climate skeptics like the Heartland Institute and the American Coalition for Clean Coal Electricity (which we understand Duke Energy disassociated from in 2009 due to its role in obstructing national climate policy). In direct opposition to Duke Energy’s position on climate, ALEC’s Energy, Environment and Agriculture task force continues to advance legislative efforts that attempt to deny the realities of climate change.
ALEC more broadly demonstrates an attack against state action on climate change and renewable energy, promoting laws and resolutions that undermine state’s abilities to address climate change and expand clean energy. While Jim Rogers has called for the US to “wean [itself] from the use of foreign oil,”[viii] Duke works alongside multinational oil companies like ExxonMobil, BP, Shell and Chevron within ALEC, all of which are known for their heavy obstruction of U.S. climate and clean energy policies.
Perhaps most alarmingly, ALEC is spearheading attacks on our democracy and civil rights, promoting Voter ID legislation and other bills intended to make it more difficult for people to vote and participate in our democracy. These bills will most dramatically hit young people, people of color and poor people, suppressing them and their ability to vote.
You may have recently noticed that Duke Energy, the nation's largest utility, launched www.bizjournals.com/charlotte/blog/power_city/2012/08/duke-energy-feel-g...">http://www.bizjournals.com/charlotte/blog/power_city/2012/08/duke-energy..." target="_blank">a major advertising campaign. This includes airing their first television commercials in 15 years. In light of the controversy surrounding their merger with Progress energy, it comes as no surprise they would attempt to repair their public image.
The ads all begin with someone flipping a power switch. A narrator explains how we “don't think about what it's connected to or how the power gets there,” but instead about what really matters in life, like family reunions, your son's basketball game, proposing to your wife... I think you get the idea. These ads try to illicit an emotional connection between us and Duke. Each ad ends with the line “You don't think about all that's going on behind that switch, because we do.”
Well Duke, we actually do “think about all that's going on behind that switch.” Last week, concerned members of the community came out to discuss www.nytimes.com/2012/08/15/us/politics/duke-energys-support-of-conventio...">http://www.nytimes.com/2012/08/15/us/politics/duke-energys-support-of-co..." target="_blank">the ways Duke works behind the scenes to maximize its bottom line. More importantly, we discussed what we as a community can do about it.
The www.facebook.com/events/285758381531066/">https://www.facebook.com/events/285758381531066/" target="_blank">meeting was held in Charlotte, NC, where Duke Energy has its headquarters. Greenpeace's NC field organizer, Monica Embrey, began by giving an overview of Duke's relationship with dirty energy. Duke owns dozens of coal-fired power plants, many just outside of Charlotte. Coal is the leading contributor to climate change, and releases harmful toxins into our water and air. This coal is obtained through a destructive strip-mining technique known as mountaintop removal . Embrey explained how we pay for dirty energy not only through out utility bills but ultimately through our healthcare costs.
Beth Henry, one of the leading experts on Duke, discussed how http://dirtyenergymoney.com/view.php?searchvalue=duke+energy&com=&can=&z..." target="_blank">Duke uses our money to buy access to politicians in order to influence policy. Duke is on pace to become North Carolina’s largest political spender after having recently merged with Progress Energy. In the 2009-2010 election cycle, the companies collectively spent over $19 million on lobbying and state and federal campaigns. The company has a number of links to members of the NC Utilities Commission, a group that is supposed to regulate the industry. Henry explained how Duke has a long history of influencing legislators and regulators in its favor. Duke truly epitomizes the idea of the revolving door.
Henry also highlighted Duke's relationship with universities and charities. Duke essentially purchases allies and good PR through their contributions. Many of these institutions are beholden to Duke for funding. She gave specific examples of organizations reluctant to act or speak out against Duke due to this relationship.
I spoke about the www.charlotteobserver.com/2012/08/17/3459900/duke-energys-rogers-ties-to...">http://www.charlotteobserver.com/2012/08/17/3459900/duke-energys-rogers-..." target="_blank">relationship between Duke and the Democratic National Convention, which will be held in Charlotte. Duke's CEO, Jim Rogers, has been intimately involved in the fundraising process. He is co-chair of the the convention host committee and has personally given $100,000 to the group. Rogers has paid out of his own pocket to hire a personal assistant to work full-time on DNC fundraising. In fact, Duke is providing $1 million worth of uptown office space, rent-free, for the entire host committee. The company has even guaranteed the host committee a $10 million line of credit in case their fundraising runs short. Duke is also one of the leading contributors to New American City, Inc., a fund setup by the host committee in order to accept corporate money.
Tony Ndege, of Occupy Winston-Salem, described the troubling relationship between Duke and the American Legislative Exchange Council. Ndege explained how ALEC is essentially a corporate bill mill where corporations and special interests help craft model legislation. Duke has helped create bills attacking environmental regulations and attempts to reduce greenhouse emmissions. Corporations like Duke fund most of ALEC's operations. They sponsored ALEC's 2012 spring meeting in Charlotte. Duke has given ALEC $116,000 since 2009, according to the Charlotte Business Journal.
Afterward, members of the community engaged in an open discussion. People suggested what we can do to fight back against the destructive effects of dirty energy. Updates were given about key actions taking place around the state and nation. People were energized, inspired, and ready to act.
Now more than ever, people in Charlotte know what's “going on behind that switch.” No amount of Duke propaganda will hide the true facts of how they operate.
In the lead up to this fall's Democratic National Convention, polluter giant Duke Energy has offered a $10 million loan. Good thing, since Duke CEO Jim Rogers has taken the lead on the remaining fundraising for the DNC and is now being criticized for doing a shoddy job of it amid his controversial takeover as CEO following a big merger with Progress Energy.
Lost amid this dramatic transition is Duke's ironic role in the American Legislative Exchange Council, or ALEC. ALEC is the infamous corporate bill mill that connects notably-conservative state lawmakers with lobbyists, PR agents and other representatives of companies ranging from Koch Industries to Phillip Morris to Pfizer. ALEC's agenda spans across Big Business priorities, creating template state laws that serve to deny climate change science, privatize schools, protect killers (as with the Trayvon Martin "castle doctrine" legislation) and disenfranchise voters through Voter ID laws.
Voter ID laws that Democrats call "suppressive," an ironic contrast to Duke's $10 million line of credit to the DNC.
Duke Energy is heavily invested in ALEC in several ways. Duke sponsors ALEC's meetings, dedicates its staff to help oversee ALEC's state operations, and consistently operates in ALEC's anti-environmental task force, a who's-who of polluters and apologists attacking clean energy legislation that Duke purportedly supports. Here's an overview of Duke's notable role in ALEC:
- Duke pays heavily for ALEC's operations--they have spent $116,000 on ALEC meetings since 2009, including $50,000 for ALEC's May 2012 meeting in Charlotte, NC where Duke is headquartered (Charlotte Business Journal). This well exceeds the top annual ALEC membership fee of $25,000.
- Duke representatives Chuck Claunch and Bonnie Loomis are liaisons to ALEC's Energy, Environment & Agriculture (EEA) task force, which ghostwrites state laws attacking regional climate programs, controls for hazardous coal ash storage, renewable energy standards, EPA enforcement of clean air and water laws, and numerous other polluter handouts written and approved by the oil, coal and public relations companies in the EEA task force's filthy roster.
- Progress Energy's Kathy Hawkins and Jeanelle McCain are also involved in ALEC's EEA task force, further bloating Duke's influence within ALEC now that Progress is part of Duke Energy.
Duke has told the press that it doesn't agree with all of the EEA model bills, specifically attacks on renewable energy and reductions in greenhouse gases. This is deceitful, since such laws are at the core of ALEC's anti-environmental task force and have constantly evolved to match changes in political trends. If Duke doesn't support the purpose of this task force, then why is it offering up Duke stafff and money beyond its ALEC membership dues?
Beyond Duke's active participation within ALEC's anti-environmental task force, Duke has also positioned its operatives in two states to help oversee further fundraising and recruitment for ALEC.
Duke and ALEC in South Carolina
Duke's South Carolina Regional Director Chuck Claunch was handpicked by ALEC's State Chairmen in South Carolina to help fulfill their obligations to recruit new ALEC members, raise money, and other responsibilities detailed in ALEC's own IRS tax filings [PDF p.36]. Since Mr. Claunch is also part of ALEC's anti-environment task force, it's possible he helped create model bills that became South Carolina law. Also acting as a private sector co-chair in South Carolina is Progress Energy's Jeanelle McCain, another member of ALEC's anti-environmental task force. With the Duke-Progress merger now made official, it is unclear how Mr. Claunch and Ms. McCain may shift roles, or if Duke's influence in South Carolina is expanding through ALEC.
- Rep. Dwight Loftis
- Rep. Nelson Hardwick
- Rep. Bill Sandifer
- Rep. Jeffrey Duncan
- Rep. David Wolkins (EEA task force chair, 2011 ALEC legislator of the year, ALEC State Chairman in IN)
- Rep. Wesley Culver
- Rep. Brian Bosma
- Rep. Heath Van Natte
ALEC: Duke Energy partners with Koch Industries, Exxon, Peabody, Heartland, ACCCE, Art Pope...
While over 25 companies have dropped ALEC, including Walmart, Best Buy, Coca-Cola, McDonalds, John Deere, Dell and numerous others, Duke continues to staff and fund ALEC alongside ExxonMobil, BP, Koch Industries, Peabody Energy, and other major polluters to dismantle state environmental protections across the country.
So even though Jim Rogers says we should wean off of foreign oil, Duke conspires with multinational oil companies to attack climate solutions.
The oil majors are only one example of Duke's secretive partnerships that contradict its statements on climate change and sustainability. ALEC's EEA task force includes operatives from climate science denying groups like the Heartland Institute, Americans for Prosperity, the Atlas Economic Research Foundation, the Goldwater Institute, and the John Locke Foundation, all of which have enjoyed support from the billionaire Koch brothers and North Carolina political overlord Art Pope.
By participating in ALEC's anti-environmental task force, Duke continues to partner with representatives of the American Coalition for Clean Coal Electricity (ACCCE), a front group that Duke abandoned in 2009 when ACCCE's aggressive lobbying against national climate legislation became an obvious conflict of interest (and when ACCCE was caught up in a scandal involving fraudulent letters to Congress opposing climate legislation). Let us not forget that national climate legislation in 2009 essentially became a handout for major polluters like Duke who helped write the legislation.
Greenpeace recently released a new report detailing a Clean Energy Roadmap for Apple, highlighting progress Apple has made in using clean energy sources for its Cloud data centers while stressing that Apple is still far too dependent on coal-burning utilities like Duke Energy for its energy. While Greenpeace calls upon Apple to help shift the energy market in a cleaner direction, we are also asking Duke Energy to make a dramatic shift away from dirty coal, especially from destructive mountain top removal mining. Responding to Greenpeace, Duke Energy told CBS, "In North Carolina, we are allowed to buy non-mountaintop coal as long as the cost is not higher than conventional coal supply. Even if we wanted to pay more, we couldn't because the state mandates it."
Come on, Duke--you gave money to 115 of the 170 North Carolina legislators elected in 2010 and spent $19 million on federal and state political contributions during that election cycle alone. You are wrapping up your scandalous merger into the nation's largest utility company. If Duke wanted to strike down a mandate to use coal from the most destructive sources available, they could do it. Instead, Duke plays to its major strength: using clean PR to hide the dirty money it spends to hold our air, water and climate hostage with outdated, 20th Century energy.
Amid the sudden ouster of former Progress Energy CEO Bill Johnson and conflicts with ratepayers in multiple states, Duke already has plenty to be embarrassed about. Using ALEC to partner with the world's worst corporate citizens and climate science deniers gives Duke's other shames a run for their money.
In the name of transparent democracy, Greenpeace challenges Duke to disclose which ALEC model bills they have supported at ALEC meetings, whether by vote or through Duke sponsorship. Better yet, Duke should join the 30 companies and organizations who have cut ties with ALEC and its poisonous role in American politics.
Dan DiMicco (picture right), CEO of Nucor, recently sent a letter to a concerned shareholder defending Nucor's support of the Heartland Institute. The letter contained numerous talking points commonly used by Heartland's campaign of climate science denial, and revealed DiMicco to be either pitifully ignorant of the state of climate change science, or a calculating executive willing to misinform his own shareholders.
From the letter:
"As you can see from Nucor’s website, We take environmental issues very seriously, including the debate surrounding “climate change.” (See http://www.nucor.com/responsibility/environment/issues/Warming/)"
Nucor doesn't take the realities of global climate change seriously if it's PowerPoint presentations on climate cite the Heartland Institute. Heartland is well known as a corporate front group that specializes in attacking science and confusing consumers, teachers and policymakers. Not long ago Heartland was denying the health effects of tobacco and opposing tobacco regulations, while being funded by the biggest tobacco corporations. As of last week, Heartland still claimed that the proven risks of smoking tobacco products are based on "junk science"....sound familiar? Now, Heartland denies the ill effects of carbon pollution, while on the payroll of major carbon polluters like Nucor. Note that the same PowerPoint also references the Institute for Energy Research, a group run by former Koch Industries lobbyist Tom Pyle with notable support from the Kochs and other vested interests (see Politico).
It is most likely that the information that formed the basis of your inquiry concerning the Heartland Institute (“Heartland”) had its genesis with a group entitled “Forecast the Facts,” whose activities are chronicled at http://fakegate.org/the-heartland-institute-replies-to-forecast-the-facts/.
Why would DiMicco cite "Fakegate," a website created by Heartland rather than a legitimate news source? The "fakegate" website was originally created to assault scientist Peter Gleick, who duped Heartland into releasing damaging internal funding and strategy documents. As Heartland's credibility slid from poor to nonexistent once their internal operations became transparent, they were desperate to shift focus away from the contents of the leaked information. Fakegate was the result.
As you can read from the webpage, much of the uproar is a result of stolen and fabricated documentation.
In this line, DiMicco is referring to a document leaked by scientist/activist Peter Gleick that Heartland claims is fabricated. There is no reason to believe the document in question is not genuine, and everything in the document is verifiable by Heartland's 2012 budget and 2012 fundraising plan, which Heartland does not dispute. In these documents, Nucor was outed as a direct supporter of Heartland's climate science denial program and the outrageous tactics associated with that campaign. Tactics paid for in part by Nucor include billboards asserting that only terrorists recognize climate science and an effort to teach climate science denial in K-12 school programs (Washington Post).
Heartland “does not ‘deny the existence of climate change.’”
Actually, Heartland's position on climate change is even less consistent than Nucor's. Consider the following statements by Heartland president Joe Bast, which all link to Heartland sources through PolluterWatch.
- "Most scientists do not believe human activities threaten to disrupt the Earth's climate" (Eight Reasons Why ‘Global Warming’ Is a Scam, Heartland Institute, Feb. 1, 2003).
- "A modest amount of global warming, should it occur, would be beneficial to the natural world and to human civilization" (2003, same article).
- “The wind has gone out of the sails of the global warming scare" (Heartland President addresses Common-Sense Environmentalism, May 29, 2004).
Notable also are interviews with Joe Bast this year where he contradicts his own position from one day to the next:
- Feb 22, 2012: "We believe that climate has warmed in the second half of the 20th Century, we believe that there is probably a measurable human impact on climate but it's probably very small, we think that natural forces probably overwhelm any impact that human activity can have, that computer models are too unreliable to forecast what the future might hold for climate and finally that a modest amount of warming is probably going to be, on net, beneficial both to human beings and the ecosystem. We think that that's pretty much actually the consensus of working scientists in this area." (Wall Street Journal Digital Network interview)
- Feb 23, 2012: "I'm confident that the scientific basis behind the threat has pretty much melted away. So I talk about the global warming ... delusion and how it's gradually unwinding." (ClimateWire interview)
None of this is new. Back in 1997 when the Kyoto Protocol sparked massive oil and coal interest in financing climate denial groups like Heartland, the Heartland Institute claimed "Satellite Temperature Records Show No Global Warming" in a headline of its June edition of Environment News.
Joseph Bast, Heartland's president, frequently contradicts or denies his own outrageous commentary, as demonstrated by his recent response to Forecast the Facts' aggregation of Bast's quotes in defense of the tobacco industry. (UPDATE: Popular Science notes that Joe Bast says he has a raspy voice "from years of smoking.") Bast claimed that Forecast had no citations for his own quotes (a lie, check the linked dates for yourself on Forecast the Facts' page) but admits he's not keen on finding the truth: "I have not tried to confirm the authenticity of the quotations attributed to me, and won’t."
Nucor and Pfizer continue to fund Heartland in the company of Altria and Reynolds American, major tobacco companies that are forced to turn to extreme groups like the Heartland Institute for their public relations campaigns.
The issues surrounding the “climate” debate are real and difficult questions to answer, but Nucor has been consistent in its support for scientific answers instead of political consensus. Heartland is just such an institution, “bringing together the world’s leading scientists and economists to study the issue.” It is entirely appropriate for Nucor and other like-minded companies and groups to fund The Heartland Institute. Working together we will ﬁnd solutions, so that our best days are still ahead of us.
Perhaps if DiMicco recognized the contemporary scientific conclusions of 97% of working climate researchers around the world, NASA, NOAA, the American Geophysical Union, other major US scientific institutions and all of the National Academies of Sciences for every industrialized country on the planet, he wouldn't think that these are "difficult questions to answer."
However, it is important to realize that DiMicco stands to profit substantially as long as carbon emissions are not regulated and not addressed. Nucor makes and recycles steel, which requires tremendous amounts of electricity and releases substantial amounts of CO2. If people doubt the science of climate change and ignore scientists' pleas to reduce carbon emissions, DiMicco can continue to externalize the cost of CO2 pollution, which raises Nucor's profit margins.
In addition, Dan DiMicco sits on the Board of Directors for Duke Energy, a major coal-burning utility known for its repeated doublespeak on issues of pollution and climate change. By delaying meaningful cuts in carbon emissions, Duke and DiMicco can continue to burn coal, spew greenhouse gas pollution, and reap large profits.
Full text of the letter is available here.
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).
The Environmental Protection Agency is holding a public hearing today in Washington DC on the first-ever rules to limit carbon pollution from new power plants. It's a popular rule, and EPA has already heard a lot about it: over a million comments supporting the rule were delivered to EPA last week.
But this is DC, so not everyone is thrilled. Scott Segal, a lobbyist at Bracewell & Giuliani, will be testifying on behalf of coal interests at the EPA hearing. When lobbying against clean air rules like the carbon pollution standard or mercury air toxics standard, Segal likes to use the title of director of the "Electric Reliability Coordinating Council" (ERCC); I suppose it sounds better than coal lobbyist. But what exactly is the ERCC? When he wrote a letter requesting a meeting about the carbon pollution rule with the Office of Management and Budget (OMB), Segal claimed that "ERCC is a group of power-generating companies." But OMB meeting records reveal that the only lobbyist that joined ERCC for that meeting was Arch Coal's Vice President of Government Affairs, Tom Altmeyer.
Arch Coal, of course, is not a power-generating company, but rather the second largest coal mining company in the US, and one increasingly focused on exporting US coal to foreign markets. Burning coal is a major source of carbon pollution, so it's no surprise that Arch is lobbying against rules that will help move us away from their dangerous product. But what about utility companies like Duke Energy, a known member company of ERCC? Does it secretly support ERCC's misleading attacks on clean air rules that will protect their ratepayers from mercury and carbon pollution, while encouraging investment in cleaner sources of electricity?
This is not the first time, after all, that ERCC's lobbying appears out of step with its member companies' public positions. Last year Greenpeace sent Duke CEO Jim Rogers a letter asking if Duke was a member of ERCC, and whether the company supported the ERCC's efforts to delay and weaken the mercury rule. In response, a spokesman for the company told the Charlotte Business Journal that Duke is a member of ERCC, “But, as with many organizations we are affiliated with, we don’t agree with them on every issue.”
Segal has avoided revealing the full list of ERCC member companies. When challenged in a debate by John Walke of NRDC to disclose ERCC's full list of member companies, Segal declined after naming just four companies: Southern Company, Duke Energy, Progress Energy, and EFH (Energy Future Holdings, which owns Luminant) - but made no mention of Arch Coal. Indeed, Segal and other lobbyists at Bracewell & Giuliani like Jeff Holmstead have used ERCC for more than a decade to obscure which coal mining companies and utilities are behind their efforts to weaken and delay clean air rules.
A New York Times article about the creation of ERCC in 2001 describes it as "a consortium of power companies that is so new that its spokesman could not name the 8 to 10 companies he said have joined so far." Right.. well, now that it has been over a decade, we'll see if Segal is able to recall - and willing to reveal - which companies are behind his efforts to weaken and delay clean air protections that will save thousands of American lives. In the meantime, public officials and reporters would be wise to question whose interests Scott Segal and Jeff Holmstead represent.
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.
- A deceptive ALEC bill pushed by ExxonMobil that "discloses" chemicals used by the oil industry in fracking operations, but actually inserts loopholes to avoid disclosure of certain fracking chemicals. This bate-and-switch comes at a time when doctors are concerned about signing confidentiality agreements if they ask for disclosure of fracking chemicals when treating people who are exposed to chemicals from gas drilling.
- A resolution that would prevent EPA from recognizing coal ash as a hazardous substance (it contains neurotoxins, carcinogens and radioactive elements). This may well have served as the model for the coal ash amendment that is currently being tacked on to the federal transportation bill by Rep. David McKinley (R-WV). Coal ash was a repeated topic of discussion at ALEC's energy task force meetings over the last two years, according to their meeting documents.
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
- James Taylor of the Heartland Institute, which has helped champion ALEC efforts to confuse K-12 students about climate science. Heartland is currently in the middle of a crisis as corporate funders are distancing themselves from its comparison of terrorists and serial killers to those who recognize the reality of global warming. Seriously, they put the Unabomber on a billboard saying, "Do you still believe in global warming? I do. www.heartland.org"
- 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:
- Shell Oil
- American Petroleum Institute
- Occidental Petroleum
- Marathon Oil
- Continental Resources
- American Gas Association (trade association)
- Peabody Energy
- Cloud Peak Energy
- 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
- 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 Energy Institute (trade association)
- Duke, Progress, AEP, and Pinnacle West all have notable nuclear generation capacity
Other major polluters:
- Dow Agrosciences
- International Paper
- American Chemistry Council (top trade association for chemical companies)
- Bayer Healthcare (Bayer is the country's top air polluter according the Political Economy Research Institute at U-Mass, Amherst)
- Honeywell (#31 on PERI's toxic air polluters list)
- General Motors (GM has a history of climate denial, although GM Foundation just dumped the Heartland Institute)
- LyondellBasell Industries (third largest chemical company in the world)
Front groups, all involved in climate science denial (Koch funding since 2005):
- Americans for Prosperity ($5,760,781)
- Atlas Economic Research Foundation ($152,600)
- Commonwealth Foundation ($84,532)
- Goldwater Institute ($70,427)
- John Locke Foundation ($47,472)
- Heartland Institute ($25,000)
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.
After years of delay, the Environmental Protection Agency is finally issuing safeguards that will protect Americans by reducing the amount of mercury pollution and other poisons emitted by coal plants around the country. It's good news for mothers, children, communities near dirty coal plants, people who eat fish - pretty much everyone, actually, so it's no surprise that Americans overwhelmingly support rules to reduce mercury pollution from power plants. So who isn't pleased? Well, lobbyists for the dirtiest utilities like Southern Company seem pretty down about it - Scott Segal, for example, called the upcoming rule "unfortunate."
You might remember Scott Segal from his appearance on The Daily Show, in a bit about how lobbyists kill legislation. Mr. Segal works for K Street lobby firm Bracewell & Giuliani, where he represents clients like Southern Company, Arch Coal, and Duke Energy, along with his colleague Jeffrey Holmstead. (Holmstead has worked for years against meaningful mercury protections, as a top George W. Bush EPA official and as an industry lobbyist - read our Jeff Holmstead profile and our new report: Jeffrey Holmstead: the Coal Industry's Mercury Lobbyist for much more). They’ve got the tough job of trying to weaken and delay these popular, life-saving rules so their clients can keep dumping mercury into our air and water without restriction.
To help hide this, Mr. Segal often represents himself as the director of a coal industry front group called the "Electric Reliability Coordinating Council." For example, a few weeks ago Mr. Segal, writing as the director of ERCC, sent a letter requesting a meeting with the Office of Management and Budget as it was analyzing the Mercury Rule. And when Mr. Segal testified before Congress against the Mercury Rule in April 2011, he also used his preferred title of director of ERCC, instead of, say, a lobbyist for Southern Company.
But what exactly is this "Electric Reliability Coordinating Council" that has spent much of the last year trying to weaken and delay these badly needed mercury safeguards? ERCC's website describes the group as "a broad-based coalition of energy companies committed to the continued viability of diverse, affordable and reliable electric power supply in the United States." But nowhere does its website list the member companies in ERCC's supposedly "broad-based coalition." When challenged in a debate on the Mercury Rule by John Walke of NRDC to disclose ERCC's full list of member companies, Mr. Segal declined after naming just four companies: Southern Company, Duke Energy, Progress Energy, and EFH (Energy Future Holdings, which owns Luminant).
It's no surprise for Southern Company and EFH - those companies have openly attacked the Mercury Rule, and were the second and third worst mercury polluters in 2010, after American Electric Power. But what about Duke Energy? Has it been using this front group to lobby against the Mercury Rule? After we sent Duke CEO Jim Rogers a letter asking if Duke was a member of ERCC, and whether the company supported the ERCC's efforts to delay and weaken the Mercury Rule, a spokesman for the company told the Charlotte Business Journal that Duke is a member of ERCC, “But, as with many organizations we are affiliated with, we don’t agree with them on every issue.”
So are ERCC's attacks on the Mercury Rule too extreme even for its coal industry member companies? Or is Duke Energy backing those attacks after all, and misleading the public about what exactly it has been doing with the $1.6 million it spent on lobbying in just the last three month period? Well as it turns out, Mr. Segal got that meeting he requested with the Office of Management and Budget. According to White House records, he was there with Jeffrey Holmstead, three executives from Southern Company - and Duke Energy's Vice President for Federal Affairs. It seems like Duke Energy has some explaining to do.
UPDATE 4/13/2012: The Indianapolis Star's John Russel has compiled a full timeline of this scandal: Prying Open the Duke Energy Scandal
Duke Energy is experiencing the departure of its second-top executive (after CEO Jim Rogers), utilities division president James Turner, making Turner the third Duke casualty in an ethics scandal that has already led to the firing of two other Duke officers and an Indiana state utility regulator.
Emails between Turner and David Lott Hardy, the recently-sacked chairman of the Indiana Utility Regulatory Commission (IURC), revealed that the two men had a particularly cordial relationship that extended itself into professional circumstances. As Duke negotiated positions for Michael Reed (coming from the state's Department of Transportation and with three years of experience in the IURC) and Scott Storms (an administrative law judge and general counsel for the IURC), Turner and Hardy frequently discussed the hiring process. The Indianapolis Star revealed that in one message to Turner, Hardy encouraged the executive to hire Reed, asking, "Is this decision yours and I don't need to sell Jim [Rogers, Duke CEO], or is his buy-in pivotal?"
In order to avoid honoring a customary yearlong pause before moving from the IURC to Duke, Storms was given an express pass through the IURC's ethics panel investigation with help from Reed and Hardy. Reed, concerned that Storms would not get the panel's go-ahead, urged Hardy to enlist the help of the IURC's ethics officer, Loraine Seyfried, who then wrote a memo to Storms denying any conflict of interest. The ethics panel mirrored Seyfried's conclusion and allowed Storms to move to Duke; Seyfried got his old job as administrative law judge. Reed and Storms were both fired in November, just before emails revealed the full extent of the scandal. While Seyfried was not fired along with Hardy, she was removed from cases involving Duke.
What made the Duke-IURC revolving door particularly improper was Scott Storms' role as a judge presiding over Duke cases while arranging to work for the utility giant. Chairman Hardy, Storms' boss, ignored the clear conflict of interest, which included Storms' approval of a utility ratepayer hike in order to cover massive cost overruns of Duke's new Edwardsport coal plant.
The new Edwardsport plant, which is intended to both replace an existing facility built in the 1940s and to demonstrate integrated gasification combined cycle (IGCC) technology, has swelled in costs originally estimated at $1.5 billion to just under $3 billion. The difference in costs will be reflected in the estimated 16% ratepayer increase that Storms approved before joining Duke. Indiana's Citizens Action Coalition, which has been a strong voice of opposition to the Edwardsport plant, warns that other hidden expenses will likely wind up in utility bills as well.
The debacle's most recently disgraced figure, James Turner, boasted Duke's second highest annual compensation--$4.3 million--after CEO Jim Rogers ($6.9 million). The Indianapolis Star insinuated that part of Turner's "incentive pay" (last year an almost $800,000 portion of his total compensation) could have been a result of the very revolving door relationships that forced him out of the company. While we can hope the lesson in this case is "don't cheat the system," industry sentiment is much more likely to be, "don't get caught like Duke did."
Important to consider is how similar scandals could be possible on the federal level. Duke has a total of five lobbyists with former experience in the U.S. Environmental Protection Agency, including Bill Tyndall, who was announced as one of the individuals reporting directly to Jim Rogers following Turner's departure.
David Lott Hardy: "Don't tell the utilities I'm being accommodating -- bad for my reputation."
James Turner: "Don't worry. Your reputation in this regard is unalterable."