renewable portfolio standard

NC to Duke Energy: Have You Dumped ALEC Yet?

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

Amid a dump of leaked American Legislative Exchange Council documents published by The Guardian last week, North Carolina is asking Duke Energy: Have you finally dumped ALEC?

NC WARN and ProgressNC have both raised the question, based on Duke Energy's inclusion in a list of "Lapsed" private sector ALEC members featured in The Guardian and an article in the Raleigh News & Observer.

ALEC's notes for Duke Energy's lapsed membership, as of April 22, 2013, only say "Merged with Progress Energy, new contacts," indicating that Duke's absence was only temporary as new personnel were assigned to participate in ALEC's work. Duke and Progress merged into the largest U.S. utility company last year.

Duke Energy, North Carolina's monopoly utility company, has long been a member of ALEC. Last year, Duke Energy refused to leave ALEC even after being petitioned, emailed and called by over 150,000 people to defect. ALEC's controversial legacy includes blocking climate change policies as part of Big Oil's 1998 master plan, the NRA's Stand Your Ground laws, which increase homicide rates, and "Voter ID" bills that suppress legitimate American voters, especially students, the elderly and people with brown skin.

While Duke Energy has resisted calls to dump ALEC, it has responded to the pressure by distancing itself from several items on ALEC's dirty lobbying laundry list:

  • Duke has repeatedly pushed back on any association with ALEC's Stand Your Ground and voter suppression laws.
  • Duke's call for action to address global warming clash with ALEC's legacy of climate change denial, including new draft policies to interfere with the U.S. Environmental Protection Agency's greenhouse gas rules, and a bill that forces teachers to misrepresent climate change science to their students, now law in at least four states, thanks to state legislators implementing ALEC's model bills.
  • Duke has explicitly denounced ALEC's attacks on state Renewable Portfolio Standards-laws to increase utility electricity generation from cleaner sources. Duke takes credit for helping create North Carolina's RPS.

So why has Duke Energy resisted popular pressure to leave ALEC, including from its own ratepayers? If Duke doesn't like ALEC's history shilling for climate change deniers, nor the National Rifle Association, nor the Republican party's voter disenfranchisement strategies, what is making Duke stay?

ALEC's new attacks on rooftop solar electricity producer are right in line with Duke Energy's attempt to pay back 29% less to homeowners whose solar panels feed extra electricity back into the grid, despite the fact that these homeowners fronted the costs of installing and maintaining solar panels themselves.

Duke is terrified of the prospect of rooftop solar energy, which threatens its century-old monopoly business model. Duke is used to being the dominant company providing power to North Carolina residents, and they can basically charge customers as much as they want. More customers are choosing to install their own solar panels as the technology rapidly becomes cheaper, keeping money in the pockets of ratepayers rather than Duke's executives.

ALEC's Updating Net Metering Policies Resolution, discussed last week at its States and Nation Policy Summit in Washington, DC, would complement dirty utilities like Duke Energy that are working to make it more costly for people to feed their own solar power into the electrical grid. See here for ALEC's new anti-environmental resolutions.

Which Utilities will be Using ALEC's State Lawmakers to Attack Solar Energy?

ALEC's utility member companies The new ALEC resolution was crafted with help from lobbyists at Edison Electric Institute, the primary trade association for Duke and most other large U.S. utility companies.

EEI's roster also includes Arizona Public Service (APS), the utility that tried to force Arizona's residential solar electricity producers to pay $50 per month for feeding unused electricity back into the grid. In the end, the monthly fee was reduced to $5 per month, which still serves as a disincentive for homeowners to install their own solar panels.

As it sought to make net metering more expensive for small-scale solar producers, APS lied to the public, denying its funding of anti-solar TV advertisements run by Koch brothers front groups.

APS recently rejoined ALEC after disassociating for a short year. ALEC's Energy, Environment and Agriculture task force includes APS and presumably Duke Energy, among other dirty energy giants. The EEA task force is governed by American Electric Power's Paul Loeffelman and Wyoming state Representative Thomas Lockhart, friend of the coal industry.

Duke Can Still Do the Right Thing

Duke Energy needs to make its intentions clear.

The company can go with the Koch brothers, ALEC, and companies like APS, and financially punish North Carolinians who choose to produce their own electricity. Or, it can finally dump ALEC, its bad policies and anti-democratic processes and shift to a business model that embraces the power of the sun. It can continue to plan around a cost on carbon emissions and phase out dirty coal that aggravates everything from climate change to water pollution to asthma.

We hope to get the right answer from Duke Energy soon.

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Ohio Clean Energy still in Koch & ALEC crosshairs

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

Crossposted from Greenpeace’s blog: The Witness.

UPDATE: After ALEC legislators failed to freeze or repeal RPS laws in North Carolina, Kansas, and many other states, ALEC legislators in Ohio froze its RPS law, effectively gutting the clean energy and energy efficiency incentives. Ohio state Senator and ALEC member Troy Balderson sponsored SB 310, which passed and was signed by early ALEC alumni Governor John Kasich. Troy Balderson, the third ALEC member senator in Ohio to introduce RPS attack legislation, is listed in ALEC's Energy, Environment and Agriculture task force rosters from 2011 (see ALEC EEA agendas from Cincinnati and New Orleans, from Common Cause's whisteblower complaint to the IRS about ALEC's lobbying activities). Balderson's ALEC affiliation was unfortunately unreported by Ohio press and bloggers. Despite a nationally-coordinated State Policy Network and fossil fuel industry attack on state RPS laws, Ohio is the only state that has allowed ALEC and SPN to undermine its own clean energy incentives, after quietly passing the RPS law with support from ALEC legislators back in 2008.

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

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

ALEC Playbook Guides the Attack on Ohio Clean Energy

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

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

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

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

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

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

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

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

Koch-funded Spokes & Junk Data Bolsters the ALEC Attack

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

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

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

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

RPS and Energy Efficiency Are Helping Build Ohio's Economy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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ALEC Energy Director Misleads the Wall Street Journal

  • Posted on: 2 April 2013
  • By: Connor Gibson

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
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Wind Group Dumps ALEC, Duke Energy Continues Contradicting Itself with ALEC Membership

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

Image: Checks & Balances Project - ALEC Attacks Clean Energy Standards: Ohio & Virginia

An article in Greenwire today revealed a few interesting things about the American Legislative Exchange Council's attacks on state clean energy laws through its "Electricity Freedom Act."

First, ALEC was recently abandoned by the American Wind Energy Association (AWEA) due to ALEC's efforts to repeal state renewable portfolio standards--laws that ensure a growing percentage of electricity comes from clean energy. AWEA joins over 45 companies and organizations that have dropped ALEC due to its support for voter legislation, Stand Your Ground and other NRA gun laws, climate science denial, racial profiling laws, and other measures against the public interest.

Not only did AWEA leave ALEC, but they're warning other ALEC affiliates about their steadfast opposition to clean energy (which ALEC denies--see below):

Now, AWEA is warning state lawmakers not to be taken in by ALEC's message, one that [Peter] Kelley said is driven by fossil fuel companies. He pointed out that conservative think tank and climate skeptic Heartland Institute told The Washington Post last year that it had joined ALEC to write language to revise state renewable energy mandates in 29 states and the District of Columbia.

"We want to warn our former fellow members of ALEC about that misinformation because we won't be around to protect them," he said.

Greenwire notes contradictory statements from coal polluter Duke Energy, which betrayed its own past support for North Carolina's clean energy standard, the law that ALEC's Rep. Mike Hager is targeting:

Duke Energy, a member of ALEC and large player in North Carolina, is trying to sidestep the debate.

Duke spokesman Dave Scanzoni said the utility hasn't taken a formal position on the bill, and the decision to implement or repeal renewable portfolio standards should be "state specific."

"Though we're a member of ALEC, we don't always agree with every issue that the organization or any other organization of which we're a member takes," he said, adding that Duke is a member of a wide array of liberal and conservative groups.

But a spokesman for Duke told the Charlotte Business Journal last May that the utility indeed opposes Hager's bill and helped craft North Carolina's RPS. Duke also opposes ALEC's position to curb U.S. EPA's ability to regulate carbon emissions and coal ash storage and set standards for mercury emissions, the spokesman said.

But wait! Not only does Duke Energy still pay ALEC, but Duke is member to the "Electric Reliability Coordinating Council," A.K.A. coal lobbyists from Bracewell & Giuliani paid by Duke and others to block EPA rules on mercury pollution from power plants. Duke and Progress Energy ranked 12th and 22nd respectively of the top 25 mercury polluters in 2011 before they merged last year.

Meanwhile, Duke Energy lobbyists like Bill Tyndall have worked on blocking effective controls for coal ash, which contains neurotoxins, carcinogens and radioactive elements. Duke has a coal ash pollution monopoly in North Carolina, with tests confirming they are contaminating groundwater near their storage sites. Duke's opposition to coal ash regulations is also inherent in their membership with yet another front group, the American Coal Ash Association.

So maybe Duke Energy doesn't support ALEC's opposition to reducing mercury and coal ash pollution, they just support other groups willing to do those things for them.

Finally, ALEC's Todd Wynn is either dishonest or has a short memory.

In the Greenwire article, Todd Wynn was trying to make the point that ALEC legislators, not the corporate interests funding ALEC and driving its agenda, are taking the reins on repealing renewable energy. Greenwire quotes Wynn, emphasis added:

"Members are driving the debate. ... Our state legislators have taken up the torch on these issues," he said. "But ALEC itself isn't driving an energy mandate repeal campaign."

To that point, Todd Wynn fully contradicts himself--check out his own blog on the clean energy attacks, titled "ALEC to States: Repeal Renewable Energy Mandates." 

It's also ridiculous for Wynn to assert that ALEC legislators have "taken up the torch" on repealing clean energy laws--ALEC's model was written by climate science deniers at the Heartland Institute, not state legislators.

Mr. Wynn's job is to keep this debate centered around debunked economic arguments that obscure the ideological corporate agenda he is paid to advance. As an operative of the Koch-funded State Policy Network, an aversion to reality is a necessary component of his resume. Wynn previously worked for a SPN member group called the Cascades Policy Institute promoting climate science denial.

Todd Wynn says that ALEC isn't against clean energy, just against government favoring one energy industry over another. Yet ALEC has done nothing to repeal subsidies to the oil and coal industries, or loan guarantees to the nuclear industry, or any other comparable measure to their attacks on clean energy. That's because ALEC's anti-environmental legislation is supported and even written by ExxonMobil, Koch Industries, Duke Energy, and other major polluters.

No wonder groups like AWEA and the Solar Energy Industries Association abandoned ALEC shortly after joining. ALEC's polluter agenda is already set, backed by dirty money, and not open for discussion.

The full article can be found in Greenwire, E&E Publishing: Wind, solar groups quit ALEC as conservative powerhouse targets clean-power programs 

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