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Ohio Clean Energy still in Koch & ALEC crosshairs

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

UPDATED November, 2016: Since late 2012, a nationally-coordinated attack on state RPS laws by State Policy Network and fossil fuel industry has largely failed. A handful of states took steps to reverse their commitment to clean energy development. The Energy and Policy Institute published a report on state-level attacks on clean energy policies in 2013-2014, and an update for 2015. NRDC's Aliya Haq has published research on state-level clean energy attacks in 2016.

UPDATE, 2015: 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. In Kansas, after three years of continued attacks, Koch Industries, Koch's Americans for Prosperity, the Koch-backed Kansas Chamber of Commerce and the state's wind industry lobby cut a deal to weaken the Kansas RPS law by making compliance voluntary. This was a largely symbolic political victory for Koch's lobbyists, since the state's utilities have already exceeded the 2020 target for renewable energy generation targets established by the law.

ORIGINAL POST:

Crossposted from Greenpeace’s blog: The Witness.

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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Duke Energy and ALEC Attack North Carolina Renewable Energy Portfolio Standard

  • Posted on: 15 January 2013
  • By: Connor Gibson

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

Corporate polluters are taking aim this year at states with renewable energy laws, starting with an attack on North Carolina's clean energy economy by a corporate front group known as ALEC with support from Duke Energy, ExxonMobil, and Koch Industries. North Carolina state Representative Mike Hager says he is confident that he has the votes needed to weaken or undo his state's clean energy requirements during his second term. Rep. Hager is a former Duke Energy engineer and a member of the American Legislative Exchange Council, or ALEC. Duke and Progress Energy (now legally merged) have given Rep. Hager $14,500 for his last two election bids, outspent only by the NC Republican Party.

This is where ALEC makes things awkward for Duke Energy: the law that Rep. Mike Hager is targeting (2007 SB3) was created with input from Duke Energy, and Duke explicitly opposes ALEC's "Electricity Freedom Act," the model law to repeal state Renewable Energy Portfolio Standards (REPS). Duke Energy re-asserted its support for North Carolina's REPS law to the Charlotte Business Journal last April and Progress Energy publicly supported the law before merging with Duke.

Apparently, Duke forgot about supporting North Carolina's clean energy incentives somewhere along the way. Duke Energy remains a paying member of the American Legislative Exchange Council.

Duke Energy and outgoing CEO Jim Rogers have dismissed over 150,000 concerned citizens demanding that Duke leave ALEC due to its role in protecting polluters, suppressing voters, increasing gun violence and other serious threats to the public on behalf of ExxonMobil, the National Rifle Association, Reynolds tobacco and other corporate interests with a rich history of negligence and dishonesty.

ALEC: The Polluter's Voice

The American Legislative Exchange Council (ALEC) creates model state laws rolling back protections on our health, our clean air and water, public safety, public education…public anything, really. State legislators that support a corporate ideology pay a small fee to become ALEC members, working alongside giant companies to create models bills that are then introduced in states across the country.

In contrast to Duke Energy's "Call to Action" supporting climate legislation and clean energy development, it has not abandoned ALEC's long record of denying climate science and blocking solutions to global warming. ALEC focuses this year on undoing state laws that increase production of clean energy like wind and solar power.

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

This dirty ambition is ALEC's self-stated priority on energy issues this year--repealing state laws that created Renewable Energy Portfolio Standards (REPS), including North Carolina's SB3. Todd Wynn, a corporate influence peddler who heads ALEC's Energy, Environment and Agriculture task force, named North Carolina as one of several states ALEC will focus its clean energy attacks, citing a debunked report from the Koch-funded Beacon Hill Institute of Suffolk University's economics department. Like ALEC, Beacon Hill is part of the Koch-funded State Policy Network. See the Morning Sentinel and a scathing Portland Press Herald editorial for important critiques of the Koch-funded Beacon Hill reports cited by Todd Wynn.

Actually...Clean Energy has Treated North Carolina's Economy Well!

We've known for decades that phasing out fossil fuels (coal, oil, gas) and ambitiously implementing clean energy not only slows our sprint toward irreversible, catastrophic climate change, but stimulates the economy and creates jobs that do not poison us. In North Carolina, SB3 has helped create the current 15,200 full-time equivalent clean energy jobs in NC, up 3% from the previous year, and generated $3.7 billion in economic activity in 2012 (North Carolina Sustainable Energy Association 2012 Industry Census).

While ALEC has touted a pile of Koch-funded reports written with the pre-determined conclusion that clean energy is ALWAYS too pricey, the Charlotte Business Journal reports that SB3 has a "negligible impact on customer bill increases" for Progress Energy Carolinas' customers, at about 41 cents per month.

If let be, North Carolina's Senate Bill 3 would ensure at least 3% of North Carolina's energy is from renewable sources this year, increasing to at least 12.5% by 2021. North Carolina appears to be one of the first states subjected to ALEC's dirty energy agenda this year.

What Next for the ALEC Attacks?

Expect similar ALEC attacks on clean energy laws in states around the country. According to its own documents, ALEC spent the last couple years monitoring states attempting to introduce state-level renewable energy portfolio standards in West Virginia, Vermont and Virginia as well as legislative attacks on REPS laws in New Hampshire and in Ohio (by Sen. Kris Jordan, an ALEC member).

Now with rumors of war appearing in North Carolina, it appears that ALEC has morphed from the opportunistic observer to the coordinator of attacks on our states' clean energy laws.

For more on how the American Legislative Exchange Council is degrading public policies across the United States, see ALECExposed.org.

This piece was crossposted on Greenpeace blogs.

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Americans for Prosperity's Lisa Thrun faces public scrutiny in NY RGGI lawsuit [VIDEO]

  • Posted on: 21 January 2012
  • By: rostry

States participating in the Regional Greenhouse Gas Initiative

“I’m not a scientist, I’m an event planner,” explained Lisa Thrun when I asked her if she believed burning coal and oil contributed to climate change. Oh really, Ms. Thrun? If you’re just an event planner, what are you doing giving a presentation on the economic impacts of a regional plan to reduce greenhouse gas emissions? See the video:

 
Lisa Thrun, the chair of grassroots for the New York Chapter of Americans for Prosperity, was invited by the Tompkins County Republican Committee to speak about the economic impacts of RGGI. Pronounced “Reggie,” the Regional Greenhouse Gas Initiative is a cap-and-trade program, which promises to reduce CO2 emissions 10% by 2018 among Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.  
Thrun is the lead plaintiff in a New York lawsuit against RGGI - a serious conflict of interest since Americans for Prosperity was started and is still funded by the oil billionaire Koch brothers. David Koch is the chairman of the Americans for Prosperity Foundation, AFP's sister group. It’s pretty ironic that the lead plaintiff in a suit against plant emissions works for an organization that is heavily involved in the ongoing orchestration of campaigns to sell doubt over climate science. When I asked Thrun about this conflict of interest, she responded, "You know what? I don't know what the Koch brothers do. It just goes to show you our independence from the Koch brothers."See the video:

 

 
AFP's ongoing suit against RGGI in New York is ironic for another reason: Koch Industries, which funnels profits to AFP through the Koch brother's foundations, was involved in the very first trade of physical carbon allowances under RGGI. Thrun’s main argument focused on economic implications for states (and families) involved in the cap-and-trade program. One slide during the presentation demonstrated how initiatives like cap and trade can be detrimental to big business. The charts proudly boasted the logos of groups including the Heritage Foundation, the Competative Enterprise Institute, and the Beacon Hill Institute - all three of which have been involved in Koch-funded scandals. Thrun continuously warned that RGGI is a costly program, even though the average residential bill increases less than 50 cents a month and RGGI participating states show $3-$4 benefits for every $1 invested. The invested money then goes into state-designed consumer benefit and strategic energy programs, like home weatherization which can reduce household heating energy needs by 15 to 30 percent. (source: RGGI Proceeds Report Press Release) In response, Thrun implied that winterizing homes helps to save us money and energy, but “we should be doing it on our own.”
 
As the New York lawsuit is pushed forward by the polluter apologists running Americans for Prosperity, we will see if AFP is can finish pushing New Jersey out of RGGI. Gov. Chris Christie caved to AFP pressure last year, announcing New Jersey's withdrawal from the profitable program and then bragging about it right to the Koch brothers faces at their private political meeting in Vail, Colorado.
 
The Koch brothers are not running out of money. Their wealth has increased by $13 billion each in the last five years (Forbes, 2006 and 2011) and they will continue to bankroll ideological attacks on environmental initiatives that threaten their billions in private profits. What Charles and David have lost is the ability to ghost run the country in secret.
 
PolluterWatch will continue to track the development of Koch-backed attacks on the Regional Greenhouse Gas Initiative and other dirty campaigns. For more, see PolluterWatch's profiles for Koch Industries and Americans for Prosperity.
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