The Maine Players Attacking Renewable Energy: The Koch Brothers

In a new report, the Maine Conservation Alliance asks: are we debating renewable energy, or the Koch brothers’ profits?”

Maine RPS StudyMaine’s renewable energy standards have been the prime target of the Koch Machine – front groups, think tanks, and legislators with financial ties to Koch Industries and its two billionaire owners: the Koch brothers.

The Renewable Portfolio Standard, which requires utilities to provide 30% of their energy through renewable sources, has led to $2 billion in investment and over 2500 local jobs. It has proven to be great for Maine’s economy – but it threatens the profit margins of fossil fuel companies like Koch Industries, which pumps 300 million tons of carbon into the atmosphere every year.

To dismantle the RPS, the Koch brothers have been extending influence through a legislative front group – the American Legislative Executive Council (ALEC). ALEC has contributed over $750,000 to political action committees, candidates, and parties in Maine. Senator Mike Thibodeau, one of the anti-RPS bill’s co-sponsors, has received over $15,000 from ALEC-affiliated organizations.

It is the civic duty of Mainers to decide for themselves what is best for the state’s environment and economy, not an out-of-state corporate interest. The Maine Conservation Alliance affirms that the economy is not for sale.

Americans for Tax Reform and Grover Norquist’s Deceptive Campaigns for Dirty Energy and Big Tobacco

JIM WATSON/AFP/Getty Images

JIM WATSON/AFP/Getty Images

Grover Norquist is a familiar player in Washington debates, renowned for convincing nearly every Republican in Congress to sign a pledge to not raise taxes. But Norquist’s main job is not as a principled advocate for his brand of limited government but functioning as a paid lobbyist for whatever corporate interests are ready to write him a check. Norquist is a prominent pundit for Big Pharma and Big Tobacco, and now, he’s also batting for Big Oil.

Norquist, President of Americans for Tax Reform (ATR), is at the forefront of the latest fight against renewable energy in the United States.

Conservative front groups and fossil fuel interests are attacking renewable energy standards in a coordinated assault to protect profits generated from fossil fuel-based electricity. Twenty-nine states have renewable energy standards and twenty-two of those have become fierce battlegrounds.

This coordinated attack on clean energy bears resemblance to the effort by Big Tobacco to prevent public health laws from impacting the profitability of tobacco companies. And it turns out, a lot of people working to dismantle renewable energy laws are deeply connected to Big Tobacco. Some, like Grover Norquist, even worked with Big Tobacco on their misinformation campaigns and are now turning their lobbying power to attack state clean energy policies.

The attacks on the Renewable Portfolio Standards (RPS) originated primarily from the American Legislative Exchange Council (ALEC), whose energy task force is comprised of fossil fuel companies and front groups members like ATR. In late February, several ALEC groups including ATR attempted to convince Kansas legislators to weaken their renewable energy law, which would require renewable energy to make up at least 20% of their energy portfolio.Norquist himself testified to the Kansas legislature to roll-back the RPS.

Americans for Tax Reform has received $525,000 from the American Petroleum Institute between 2008 and 2011 and $60,000 from foundations connected to Koch Industries between 2003 and 2011.

Fighting against renewable energy in the states isn’t Norquist’s only project working to protect fossil fuel interests. ATR is part of a Tea-Party “last stand” seeking to derail the U.S. Environmental Protection Agency’s effort to regulate carbon dioxide emissions. Last year, Norquist also made a public statement that there was “no conceivable way” he could support a carbon tax aimed at slowing global warming and pollution.

Norquist has a track record of defending industries engaged in massive denial of scientific knowledge. The dirty energy industries that fund ATR pretend that the climate change science is inconclusive despite broad scientific consensus.  But that approach is not new – it was refined through millions of dollars in lobbying, public relations and front groups by the tobacco industry, which denied the harms caused by smoking.

Americans for Tax Reform, run under Norquist, has been a longtime ally of the U.S. tobacco industry and a major player in pro-tobacco tax policies.  ATR’s history with Big Tobacco was pulled from hundreds of documents that live in the Tobacco Archives and documented by SourceWatch.

1990s: Big Tobacco Loses Public Opinion, Calls on Third Party Support

In the early 1990s, the government started increasing tobacco regulation via taxes and bans to compensate for the health costs of smoking. Philip Morris President Roy Marden wrote an internal memo calling attention to the need to “regain the upper hand” on public opinion of tobacco. In 1992, RJ Reynolds documented a campaign plan to “move public opinion in the right direction” – in order to weaken tobacco regulation.

One aspect of the plan was third-party coalition work, with ATR listed as a likely coalition partner. The reason: “Credible, non-tobacco voice for hearings and for generating information on issue to media, op-eds, letters, etc.” The draft plan also mentions Norquist specifically, noting, “Tim Hyde to work with Grover Norquist for possible by-line piece.”

The following year, ATR’s pro-tobacco campaign began. With the help of focus groups from eight different cities, ATR launched an advertisement in 152 newspapers targeting 51 Members of Congress. Their success was documented by Philip Morris, and used for even further campaigning.

ATR continued to campaign against tobacco taxes, so much that they were described in an internal Philip Morris review as a “staunch ally of PM for a number of years in many tax battles.”

Along with coalition support came monetary support. Philip Morris contributed $30,000 to the ATR Foundation in 1994, according to internal documents. The R.J. Reynolds Tobacco Company contributed $100,000 to ATR two years later and ATR received additional money from RJR in 1997 to continue PR support of lobbying activities, one month before Norquist went on the road to speak out against cigarette tax increases.

1999: Litigation against Big Tobacco Begins, Norquist and ATR continue support

President Bill Clinton announced that “the Justice Department [was] preparing a litigation plan to take the tobacco companies to court, and with the funds [they] recover, to strengthen Medicare” in his 1999 State of the Union Address. Less than one month after Clinton’s speech, Norquist had published a media release and letters to radio show hosts complaining about the litigation – without disclosing his own financial ties to tobacco. Weeks later, Norquist wrote a letter to Kirk Blalock of Philip Morris requesting $200,000 in continued support.

Norquist and ATR spent the next few years continuing to campaign against the litigation efforts, writing letters to warn Congressmen of dire consequences.

ATR continued to receive monetary support from Philip Morris, but Norquist campaigned for even more money from a coalition of tobacco groups. He sent a proposal to Lorillard and Philip Morris titled “No taxation through litigation – stopping the federal Medicare suit.” The proposal was seeking $582,672.

What came of the proposal was undocumented, but ATR has continued to lobby on behalf of the tobacco industry. They organized an anti-tobacco tax rally in 2010, using an email list paid for by Philip Morris. They list several appeals to oppose bills that would raise tobacco taxes on their website, including a 2011 Louisiana bill and an Arkansas House Bill.  In early 2012 they campaigned against California’s Proposition 29, another tobacco tax increase. Sacramento Bee editor Dan Morain asked Patrick Gleason, a Norquist aide, whether Americans for Tax Reform still accepted tobacco money, to no response.

A 2006 ruling by U.S. District Judge Gladys Kessler concluded that the tobacco industry has “lied, misrepresented and deceived the American public, including smokers and the young people they avidly sought as ‘replacement’ smokers, about the devastating health effects of smoking and environmental tobacco smoke.”

The lies and deception continue with climate change denial and attacks against renewable energy standards on behalf of the fossil fuel industry. It seems Grover Norquist and Americans for Tax Reform will campaign for anything, for the right price.

The Real Cost of Coal Exports and Fossil Fuels

With major fossil fuel projects ramping up across the globe, fossil fuel interests are ignoring the catastrophic costs that carbon pollution causes (and will cause) around the world. Meanwhile, critics of clean energy technologies continue to spread disinformation to discredit the emerging sector and promote fossil fuels as the only viable source of energy.

Coal exports are on the rise. U.S. coal exports exceeded the Department of Energy’s projections by 30% in 2012 as reported by Nate Aden, a PhD student from the Energy and Resources Group at the University of California, Berkeley. Coal demand is being driven in part by economic growth in China and other developing countries, but these developing countries are not alone. The World Resources Institute found that 1,100 coal-fired power plants are being proposed around the world. And, according to the U.S. Department of Commerce, countries in Europe were the destination for 45% of U.S. coal exports in 2012.

Australia and Indonesia also have major coal export projects underway. According to the Guardian’s Graham Readfearn, Australia is already the world’s largest exporter of coal, sending twice as much CO2 abroad than it emits at home.

Readfearn writes that exports of carbon fuels will come back to bite Australia in the form of climate disruption. In the past two months, Australia has been ravaged by hundreds of wildfires caused by the “biggest and longest heat wave on record in January.” This type of extreme weather is exactly what 97% of climate scientists have been warning our leaders for over two decades. The New Scientist cited Jon Nott who researches extreme weather events at James Cook University (in Australia) saying, ”The frequency of more intense events is going to increase” as a hotter world becomes the new reality.

The Washington Post reported, “If we want to avoid severe global warming, we’ll have to stay within a strict carbon budget in the decades ahead…” A new report by Greenpeace details the 14 biggest threats to the “climate stabilization budget” with the top three being China’s coal reserves in the western provinces, Arctic oil drilling and Australian coal exports. Coal exports account for three of the 14 fossil fuel projects under development that would “blow past [our strict carbon] budget.”

So, with these identifiable threats to stabilizing the earth’s climate, why aren’t we rapidly decommissioning fossil fuel projects around the world?

One answer lies in the powerful and fossil fuel-funded opposition to clean energy solutions to climate change.

Clean energy opponents argue that clean energy technology is “too expensive” while ignoring the much larger subsidies and externality costs of fossil fuels (for more on these advocacy groups see our report, “Fossil Fuel Front Groups on the Front Page”).

While the argument about clean energy may have been true a decade ago, rapidly falling prices of wind, solar and other clean technologies are rendering that argument obsolete. In January, the International Renewable Energy Agency released a report (PDF) showing that “the rapid growth in the deployment of solar and wind is driving a convergence in electricity generation costs for renewable power generation technologies at low levels.” The report goes on to say that the rapid cost reductions of installed renewable energy technology mean that data one or two years old can significantly overestimate the cost of electricity from renewable energy technology. In other words, cost reductions are making clean energy competitive with fossil fuels around the world.

Moreover, the costs for fossil fuels (including fuels coming from the 14 projects above) do not account for the potential damage their emissions will cause as we drift towards climate disaster. These fossil fuel pollution externalities should be factored into the cost of business. After factoring in the cost of pollution, maybe digging up coal and shipping it across the globe won’t look like such a great investment.

For future generations, let’s hope the real cost of fossil fuels is factored into our calculations soon.

ALEC Attacks Clean Energy Standards: Ohio & Virginia

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Over the past couple weeks, fossil fuel interests and their allies have ramped up attacks on clean energy on the state level. As the Washington Post reported in November, the American Legislative Exchange Council (ALEC), a fossil fuel-funded advocacy group, has made it a priority to eliminate clean energy standards across the country.

From the East Coast to the Southwest, ALEC members, alumni and operatives are moving full steam ahead to eliminate clean energy projects and the policies that support them.  However, not all of these attacks are coming from ALEC members sitting in state legislatures.  In Ohio and Virginia, former ALEC legislators, now in other positions, are driving anti-clean energy attacks. Below is part one of our series on former ALEC legislators spearheading fossil fuel-funded attacks on the clean energy industry.

 VIRGINIA

Two weeks ago, Virginia Attorney General Ken Cuccinelli, a former ALEC legislator, struck an agreement with Dominion, one of the largest electric utilities in the U.S., to support legislation effectively eliminating the state’s voluntary clean energy standard. According to the Associated Press, under the agreement, the power companies would no longer have the same financial incentives for using sources of renewable energy in Virginia. Without a legally-binding clean energy standard, killing the financial incentives of the law would stop big utilities from investing in new sources of energy, especially when they can keep profiting off of old coal-fired power plants.

So why is the Attorney General Cuccinelli working to stop clean energy in Virginia? There’s one thing that might show his hand. Attorney General Cuccinelli is running for Governor of Virginia in the 2013 election, and has received over $100,000 from fossil fuel energy interests for his campaign (and over $400,000 from dirty energy interests since 2001) including:

  • $50,000 from David H. Koch, co-owner of Koch Industries, a major fossil fuel conglomerate.
  • $25,000 from Consol Energy, a coal and natural gas producer.
  • $10,000 from Alpha Natural Resources, a coal mining and processing company.
  • $10,000 from Appalachian Power, a subsidiary of American Electric Power, one of the largest electric utility companies.
  • $10,000 from Dominion, one of the largest electric utility companies.
  • $10,000 from Koch Industries, a major fossil fuel conglomerate.

The Attorney General’s office claims that he sought to eliminate the standard because it allowed utilities to buy renewable energy certificates from existing facilities rather than build new clean energy in the state of Virginia. Dominion charged ratepayers $77 million as part of the clean energy law, without building a single clean energy project in the state.

Ken Cuccinelli - Soiree

Virginia Attorney General Ken Cuccinelli at an event sponsored by the Koch Brothers’ Americans for Prosperity.

But, Mike Tidwell, of the Chesapeake Climate Action Network (CCAN), which has worked with lawmakers to propose several bills to improve the incentive program, said that, “The standard is flawed; but there’s a clear way to fix that.” CCAN is working with Delegate Alfonso Lopez to propose a solution that would require Dominion to invest in wind and solar projects in Virginia in order to qualify for financial incentives.

But instead of trying to fix the renewable energy standard, Mr. Cuccinelli is advocating for the elimination of clean energy incentives while also raking in over $100,000 dollars from fossil fuel interests for his gubernatorial campaign. This clear conflict of interest is compounded by the fact that Mr. Cuccinelli was a member of ALEC, which has publicly stated eliminating clean energy laws as one of its goals for 2013. And, it is Mr. Cuccinelli’s fossil fuel donors, most of which are corporate members of ALEC, that stand to profit from killing clean energy laws and slowing the growth of the clean energy economy.

Instead of fighting for Virginia families and small businesses, it appears that Mr. Cuccinnelli is more concerned with the interests of his big, fossil fuel donors. It’s probably a good indication of how he’ll run the state from the governor’s mansion.

OHIO

In Ohio, no legislation has been proposed to rollback the state’s “Alternative Energy Resource Standard,” yet. But three weeks ago, former ALEC legislator Todd Snitchler, now Chairman of the Public Utilities Commission of Ohio (PUCO), and two other commissioners, decided to squash a solar power plant proposed by American Electric Power (AEP) – a move that seems to correlate with ALEC’s agenda to stop the growth of the clean energy market.

AEP planned to build the Turning Point solar power plant, a 50 MW solar power plant comprised of panels from a factory in Ohio. The company planned this project to comply with the requirements of the renewable energy standard according to the PUCO opinion and order. Ohio’s clean energy law calls for 12.5% of the state’s electricity to come from renewable energy resources by 2025.

Todd Snitchler, Chairman of the Public Utilities Commission of Ohio, with Governor John Kasich. Both politicians are ALEC alumni.

Todd Snitchler, Chairman of the Public Utilities Commission of Ohio, with Governor John Kasich. Both politicians are ALEC alumni.

One of the primary opponents arguing against the solar plant in front of the PUCO was FirstEnergy Solutions, an electric utility (that generates 72% of its electricity from fossil fuels) and a major donor to Governor John Kasich, another ALEC alumnus.  Gov. Kasich received over $600,000 from oil, gas and mining interests for his 2010 election campaign and in early 2011, Gov. Kasich appointed Mr. Snitchler to chair the PUCO.

Mr. Snitchler and the two other Republican commissioners voting to stop the Turning Point solar plant disregarded Public Utilities Commission of Ohio staff experts who stated that the project was necessary to comply with the state’s renewable energy standard.

Mr. Snitchler’s Twitter traffic affirms his ideological disdain for clean energy. He consistently attacked clean energy technology and the legitimacy of climate science (ignoring the Pope, United States Military, and every national academy of science in the world) according to a Columbus Dispatch analysis of his twitter traffic over the past year.

With anti-clean energy ALEC alumni in powerful positions in Ohio, pro-clean energy advocates must work to stop attempted rollbacks of the state’s clean energy standard in the state legislature or face a grim future in the Buckeye state.

Coalition Sends Letter to Duke Energy CEO: Drop ALEC

Today, the Checks & Balances Project joined a coalition of democracy advocates calling on Jim Rogers, Chairman, President and CEO of Duke Energy Corporation, to drop his company’s affiliation with the American Legislative Exchange Council (ALEC). ALEC serves as a conduit to feed big business-sponsored legislation to members of state legislatures across the country.

ALEC’s Energy, Environment and Agriculture Committee is filled with major fossil fuel interests, including ExxonMobil, BP, Shell, Koch Industries, and Peabody Energy, to name a few (here is the full list). It’s not surprising that ALEC is pushing “sample legislation” that would eliminate renewable energy standards and insert loopholes into fracking disclosures, thereby allowing companies to hide the chemicals they are pumping underground.

ALEC’s Energy, Environment and Agriculture Committee is filled with major fossil fuel interests including ExxonMobil, BP, Shell, Koch Industries, and Peabody Energy (to name a few, here is the full list). It’s no wonder that ALEC is pushing “sample legislation” to state legislators that would eliminate renewable energy standards and insert loopholes into fracking “disclosure” laws to allow companies to hide the chemicals they are pumping underground.

The question remains — Why is Duke Energy involved with these unsavory companies and organizations that are part of ALEC? Duke Energy Corporation’s own website says:

Clean, reliable and affordable energy is the key to creating a growing economy. Duke Energy is already hard at work promoting policies, partnerships and technologies that will ensure our success in the new Clean Market Economy.

Thirty-eight companies have already left ALEC because of “stand your ground” laws that many believe contributed to the death of Trayvon Martin, voter ID laws that are restricting access to the ballot box, and anti-clean energy laws being introduced in legislatures across the country.
For Duke’s own reputation, the Checks & Balances Project implores Duke Energy to drop all ties with ALEC.

The entire letter is below or can be downloaded here (PDF).

Dear Duke Energy CEO Jim Rogers,

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.

We collectively call upon Duke Energy to drop all financial and staff support to ALEC due not only to their role in blocking clean energy implementation and solutions to global warming, but due to their direct attacks on democracy and our civil rights.

We look forward to a quick response and would be happy to provide any clarification or additional resources informing our questions, if needed.

Sincerely,

Energy Action Coalition
Greenpeace
Common Cause
CREDO Action
Progressive Change Campaign Committee
Public Citizen
Friends of the Earth
Oil Change International
Center for Media & Democracy
Southern Energy Network
Checks & Balances Project

Andrew Morriss: Bought and Biased Pundit on MSNBC

On Monday, Andrew Morriss of the Mercatus Institute was a guest on the Dylan Ratigan Show. In a recent profile of the Industrial Wind Action Group, the Checks and Balances Project highlighted Mr. Morriss one of the many “experts” using disinformation to attack renewable energy.

The Mercatus Institute has received millions of dollars from the fossil fuel industry, and like most front groups, uses folks like Mr. Morriss, a Mercatus senior fellow, to promote fossil fuel talking points while posing as unbiased experts.

In addition, Mr. Morriss’ most recent book, The False Promise of Green Energy, was published by the Cato Institute, which received over $15 million of fossil fuel funds. In the book, he bashes the clean energy industry, claiming he wants a “free market.” True to form, he is quiet on the fact that the fossil fuel industry not only receives billions of dollars more in direct subsidies every year, but total fossil fuel subsidies could be as high as $52 billion per year (.pdf).

Fortunately, Mr. Ratigan and his panel were able to hit back on the true cost of fossil fuel subsidies. Watch the excerpt below as Professor Morriss tries to dodge the question as Dylan Ratigan and his guests ask about subsidies for the dirty energy industry. Click here to watch the full video.

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