AEP

$830,000 Dirty Dollars Fuel the Ohio Energy Mandates Study Committee

  • Posted on: 22 February 2016
  • By: Connor Gibson

A wolf pack of in-state utilities and out-of-state petrochemical billionaires has attacked Ohio's clean energy law, threatening to kill clean jobs and wreak further damage on the environment.  

This attack is led by Ohio state Senator Bill Seitz (R), who five years earlier voted for the law, but after accepting dirty energy money compared the law to Stalinism.   The latest step to stall and dismantle clean energy incentives is the so-called "Energy Mandates Study Committee," or "EMSC." The EMSC was established after previous failed attempts by Sen. Seitz and other Ohio Senators to repeal or weaken the clean energy law.

The EMSC's recent decision to indefinitely stall laws promoting clean, efficient energy and the jobs they produce, is a power grab by coal utilities paying dropping campaign contributions in exchange to the gutting pollution-free clean energy jobs in Ohio. 

A review of Ohio campaign finance data reveals some of the money behind these politicians' attack on successful clean energy incentives:

Quid Pro Coal: Dirty Energy funding to Ohio politicians on the "Energy Mandates Study Committee"

Data courtesy The National Institute on Money in State Politics - FollowTheMoney.org

Ohio Politician

ALEC?

Utility Industry

Coal Mining

Oil & Gas

TOTAL 

Rep. Ron Anstutz X $83,100 $35,200 $90,686 $208,986
Sen. Bill Seitz X $79,125 $25,350 $20,425 $124,900
Sen. Cliff Hite X $50,085 $2,990 $64,855 $117,950
Rep. Kristina Roegner X $62,950 $2,150 $28,400 $93,500
Sen. Troy Balderson X $43,400 $2,450 $30,200 $76,050
Sen. Bob Peterson   $31,650 $3,600 $14,850 $50,100
Rep. Christina Hagan X $24,280 $2,050 $21,900 $48,230
Rep. Louis W. Blessing, III X $37,578 $1,200 $3,350 $42,128
Rep. Jack Cera   $11,000 $1,350 $9,200 $21,550
Rep. Mike Stinziano   $16,150 $0 $2,700 $18,850
Sen. Sandra Williams   $14,700 $500 $250 $15,450
Sen. Capri Cafaro   $12,200 $1,000 $0 $13,200

GRAND TOTAL

 

$466,218

$77,840

$286,816

$830,874

 

ALEC, Clean Energy, and Rigged Markets

The EMSC is stacked with politicians linked to the American Legislative Exchange Council (ALEC), the corporate bill-mill whose state legislator members help dirty energy lobbyists forge laws rolling back clean energy incentives. Some of ALEC's top "private sector members" include Koch Industries, ExxonMobil, Peabody, and Duke Energy.

At recent ALEC meetings, many of these companies sent their lobbyists to rub elbows with state politicians and create template laws in meetings closed to the public. ALEC facilitated the creation of several model bills intended to trip up the booming clean energy industry.

Legislators violate ALEC's core mission of promoting "free markets," giving their fossil fuel sponsors a pass and attacking incentives for their clean competitors at the expense of human health, clean air, clean water and a stable climate. ALEC's cookie-cutter attacks on clean energy have taken various shapes in Ohio, North Carolina, Kansas and a dozen other states.

Quid Pro Coal - What Lobbying Looks Like

Public emails recently published by Energy & Policy Institute show Sen. Seitz recruited help from utility lobbyists as he crafted SB 58.

The utilities gave the bulk of $466,218 to 12 politicians on Sen. Seitz's committee, documented above. This includes companies directly coordinating with Sen. Seitz, according to his emails.

Ohio utility companies -- FirstEnergy, American Electric Power, Duke Energy, NiSource, AES subsidiary Dayton Power & Light, and the Ohio Rural Electric Cooperatives (OREC) -- were directly solicited for input on Seitz's clean energy freeze bill, SB 58, a placeholder bill that preceded Sen. Seitz's study committee. See this timeline, courtesy of Energy & Policy Institute.

Ohio Rural Electric Cooperatives is part of a massive consortium of smaller-scale electric co-ops called the National Rural Electric Cooperative Association (NRECA). NRECA is the top contribution to national politicians among all dirty energy interests, even outspending Koch Industries PAC. NRECA's Ohio affiliate gave Sen. Seitz $4,250 in 2012. The next year, OREC lobbyists helped write Sen. Seitz's bill, SB 58, telling a Seitz staffer, "As we discussed,nbsp;attached is suggested language for inclusion in SB 58 with slight modifications."

No such opportunities were provided to clean energy advocates in communication with Sen. Seitz, including several small businesses, the Sierra Club and affiliates of unions like the Steelworkers and AFL-CIO. 

Seitz repeatedly dismissed an Ohio State University study, commissioned by Ohio Advanced Energy Economy (OAEE), a group of Ohio businesses advocating for clean energy in Ohio. OAEE President Ted Ford warned Senator Seitz in a letter:

"[W]e can report that the results [of SB 58] are worse for ratepayers than we initially thought. The Ohio State University Study (version 2.0) finds that the bill is a massive giveaway to Ohio utilities, and would cost consumers almost $4 billion between now and 2025. The study also finds the standards have already saved Ohioans 1.4% on their electric bills."

A handwritten note on the letter, apparently written by Senator Seitz, says "more complete fabrications from people with zero credibility." The letter and handwritten commentary were circulated by a Seitz staffer to lobbyists at Duke Energy, American Electric Power, First Energy and others.

Seitz shot back a letter to OAEE and the Ohio Sierra Club, loaded with questions attacking the credibility and relevance of their data, also sourced from the Ohio State University Study. 

It turns out, Sen. Seitz prefers his data from out-of-state universities, financed by none other than Kansas billionaire Charles Koch.

Koch University, Inc. - Utah State University

Ohio's coal-burning utilities aren't the only interests helping Seitz behind the scenes. The ALEC senator's study committee relied on data using dishonest measurements from professors at Utah State University (USU) in a department that has taken over $1.6 million from Charles Koch since 2005. USU is among the Charles Koch Foundation's top-funded universities.

It begs the question: Why would Ohio politicians look to Utah professors, financed by a Kansas billionaire, for the data on Ohio's clean energy and efficiency efforts?

The Koch-funded Institute for Political Economy at USU has produced a series of reports that give politicians the bad data needed to attack clean energy. The Koch professors are USU, like the Suffolk professors before them, appear to be intentionally misleading. Foundations affiliated with Koch Industries have backed these Utah professors in identical attacks on renewable energy standards, in Kansas and North Carolina.

Disproved data aside, USU professor Randy Simmons hid his financial conflicts of interest in a national op-ed for Newsweek. 

These aren't the only Koch-funded professors stepping up to the plate to bat against wind. Before Utah, it was the Koch-funded Beacon Hill Institute at Suffolk University. And recently, Kansas University Professor Art Hall was caught taking payments from Koch to study the Kansas renewable energy standard, not long before he told the Kansas legislature to erode the incentives. Hall's previous job: Koch Industries' chief economist.

Koch Industries' executives are pushing "fake it till you make it" into the unknown.

Why the Freeze Makes Zero Sense

It's not the affiliations that matter so much as the false data and backwards hype involved.

The American Wind Energy Association (AWEA), the U.S. wind energy trade association, has revealed basic flaws in all three of these Koch-funded professors' reports out of Utah State University. AWEA's Michael Goggin:

Instead of only going back to EIA’s 2013 renewable cost estimates like they did in their Kansas report, in their Ohio report they go back to 2008 cost data to develop their estimate of how the cost of wind energy compares against alternatives.

No explanation is provided for why they did not use EIA’s more recent 2015 and 2014 data, which show that wind energy imposes no net cost relative to conventional sources of energy even after removing the impact of federal incentives. Of course, the authors could have also used recent data from real-world market prices and found that wind energy provides significant net benefits for consumers, as we did above. Instead, using obsolete data allows them to miss how the cost of wind energy has fallen by more than half over the last five years, as documented by both government and private investor data.

Jobs, lower energy bills, less wasted energy...frozen by Senator Seitz

Samantha Williams at Natural Resources Defense Council surveys the data that Senator Seitz refuses to accept:

As of 2013, Ohio was home to over 400 advanced energy companies that employed over 25,000 Ohioans and was leading the country in the number of facilities manufacturing components for wind technology and second in the number of solar equipment providers. A report by the Pew Charitable trusts shows Ohio attracted $1.3 billion in private clean energy investment from 2009 to 2013. Similarly, Environmental Entrepreneurs (E2) reported that, just prior to the passage of the SB 310 clean energy freeze, Ohio's clean tech economy had grown to support 89,000 jobs.

Unfortunately, much of that hard-earned momentum was a casualty of the freeze as well as HB 483, which basically tripled setbacks for wind turbines and made future commercial-scale development unviable.The renewable sector is particularly lagging, in the E2 report showing a scant 1.5 percent job growth in Ohio far lower than the national wind and solar rate.

Pancake Politics: They Liked this Law in 2008

Sen. Seitz voted along with a large majority of Ohio lawmakers in 2008 to pass the clean energy law. Five years later, Seitz was comparing the clean energy law to "Joseph Stalin's five-year Plan." 

Ohio is in the midst of a fossil-fueled flip-flop.

Industry: 

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.

Industry: 

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.

----

*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

Industry: 

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.

Industry: 

Climate-denying Indiana Regulator helps ALEC Coal Companies Delay EPA Climate Rules

  • Posted on: 13 December 2012
  • By: Connor Gibson

Click here to see the contents of the ACCCE USB drive from ALEC's 2012 States & Nation Policy summit.

You're probably familiar with the old "fox in the hen house" story, but what about when a hen joins the fox den?

This is the case with the recent American Legislative Exchange Council (ALEC) meeting in Washington, DC. Leaked documents obtained by Greenpeace reveal that ALEC's anti-environmental jamboree was inundated with coal money and featured an Indiana regulator advising coal utilities on delaying US Environmental Protection Agency rules to control greenhouse gas emissions and hazardous air pollution.

At ALEC's coal-sponsored meeting, where state legislators and corporate representatives meet to create template state laws ranging from attacks on clean energy to privatization of public schools, Indiana's Commissioner of the Department of Environmental Management Tom Easterly laid out a plan to stall the US EPA global warming action in a power point clearly addressed to coal industry representatives at ALEC's meeting.

In a USB drive branded with the logo of the American Coalition for Clean Coal Electricity (ACCCE), a folder labeled "Easterly" contains a presentation titled "Easterly ALEC presentation 11 28 12" explaining current EPA air pollution rules and how Tom Easterly has worked to obstruct them. The power points is branded with the Indiana Department of Environmental Protection seal. In the latter presentation, Easterly ended his briefing to ALEC's dirty energy members with suggestions for delaying EPA regulation of greenhouse gas emissions at coal plants.

Easterly's presentation, which is posted on his Indiana Dept. of Environmental Mgmt commissioner webpage, even offered a template state resolution that would burden EPA with conducting a number of unnecessary cost benefit analyses (which the federal government has done through the Social Cost of Carbon analysis) in the process of controlling GHG emissions.

 

 

 

The template resolution Easterly presented to ALEC was created by the Environmental Council of States (ECOS), a group of state regulators that create template state resolutions similar to ALEC, often with overlapping agendas that benefit coal companies. ECOS has some questionable template state resolutions for an "Environmental" organization, including a resolution urging EPA not to classify coal ash as "hazardous." Although its less regulated than household trash, coal ash contains neurotoxins, carcinogens and radioactive elements and is stored in dangerous slurry "ponds" that can leak these dangerous toxins into our waterways.

Almost too predictably, ECOS' work is sponsored by the coal fronts like ACCCE and the Edison Electric Institute (EEI), both sponsors of the ALEC meeting where Easterly presented the ECOS model resolution. See clean air watchdog Frank O'Donnell's blog on ECOS for more.

Easterly's work, including his presentation to ALEC, is also promoted by the Midwest Ozone Group, a group whose members include ACCCE, American Electric Power and Duke Energy.

Commissioner Tom Easterly's suggestion of burdening EPA with tasks beyond its responsibility is concerning, as is his ongoing campaign to discredit the science of global warming--something he doesn't have the scientific qualifications to do. To this end, the Indiana regulator fits nicely into the coal industry's long history of denying problems they don't want to be held accountable for and delaying solutions to those problems. The same processes applied to acid rain, a problem the coal industry also denied for years--check out Greenpeace's collection of Coal Ads: Decades of Deception.

Climate Science Denial at Indiana's Department of Environmental Management

Even before Indiana's top enforcer of federal and state environmental regulations was advising coal companies on how to continuing polluting our air and water, it appears that denial of basic climate science is the state's official position on global warming--Indiana's 2011 "State of the Environment" report rehashes tired climate denier arguments such as global temperature records having "no appreciable change since about 1998." (see why this is a lie) and referencing the "medieval warm period" as false proof that current temperature anomalies are normal (they aren't, see Skeptical Science for a proper debunking). Similar arguments have apparently been presented by the Indiana government to ALEC since 2008--the ACCCE USB drive contains another Indiana power point created in 2008 full of junk climate "science." This level of scientific illiteracy is concerning, especially for the regulatory body responsible for overseeing pollution controls for the coal industry.

Remember, this isn't the Heartland Institute. It's the State of Indiana....working with the Heartland Institute, a member of ALEC's anti-environmental task force that has been central in coordinating campaigns to deny global warming. See Commissioner Easterly's full presentation to ALEC on climate "science."

ALEC States & Nation Policy Summit 2012: brought to you by King Coal

ALEC's brochure for last week's meeting shows a disproportionately large presence of coal sponsors. The brochure lists 14 sponsors, five of which are coal interests:

  • American Electric Power (AEP): the second largest coal utility in the U.S. now that Duke Energy and Progress Energy have merged.
    • Political spending since 2007: AEP has spent over $46.2 million on federal lobbying and $3.9 million on federal politicians and political committees.
  • Peabody Energy: the world's largest private-sector coal mining company, known for its legacy of pollution and aggressive finance of climate change denial.
    • Political spending since 2007: Peabody has spent over $37.9 million on federal lobbying and $690,769 on federal politicians and political committees.
  • American Coalition for Clean Coal Electricity (ACCCE): a coal public relations front whose members include AEP, Peabody and other ALEC-member coal interests. ACCCE's new president is Mike Duncan, former Republican National Committee chairman and founding chairman of Karl Rove's American Crossroads. ACCCE spent over $12 million on advertising during the 2012 election to promote the fantasy of "clean coal." ACCCE reportedly spent $40 million on TV and radio ads during the 2008 election and over $16 million around the 2010 election. ACCCE was caught up in a scandal when a subcontractor forged letters on behalf of senior and civil rights groups urging members of Congress to oppose national climate legislation. For more, see ACCCE on PolluterWatch.
  • Edison Electric Institute (EEI): the primary trade association for electric utility companies, whose members include AEP, Duke Energy and numerous other members of ALEC's energy/environment task force.
    • Political spending since 2007: EEI has spent over $63.7 million on federal lobbying and over $2.1 million on federal politicians and political committees.

$15.3 million: total federal politicians and committees spending from these groups since 2007

$194 million: total federal lobbying expenditures from these groups since 2007

The collective millions spent on federal lobbying and politicians went a long way for these five coal interest groups. Their lobbying goals included weakening 2009 climate legislation and working to interfere with US EPA rules to reduce coal pollution or greenhouse gases.

All five of these groups have recently lobbied to prevent US EPA from controlling greenhouse gas emissions under the Clean Air Act. These five interests only represent a slice of the coal interests spending money in politics, and just a few players among many in the coal, oil, gas and chemical industries that dump millions of dollars into public relations campaigns telling us that climate change is not a problem.

 
 
Known Associates: 
Industry: 

Kiss My Ash: How King Coal’s Lobbyists Are Undermining Coal Ash Regulation

  • Posted on: 27 October 2010
  • By: Connor Gibson

Is this toxic sludge 'hazardous'?  Coal lobbyists are doing everything they can to force the EPA not to regulate it.  Photo credit.

DeSmogBlog and PolluterWatch present: Coal Fired Utilities to American Public: Kiss My Ash [pdf].  This report reveals that between October, 2009 and April, 2010 industry representatives held at least 33 meetings with White House Office of Management and Budget staff--at least 4 months before the first public hearing on the proposed ruling on coal ash was held on August 30th.

If coal ash, a waste product from burning coal to generate power, contains concentrated levels of known carcinogens, neurotoxins and radioactive elements, is it hazardous?

According to King Coal’s lobbyists, the answer is ‘No.’  

On behalf of the rest of the American public, the Environmental Protection Agency has struggled to move towards officially classifying coal ash as “hazardous.”  This step would open regulatory doorways that could limit contamination of drinking water, related sicknesses, and dangerous toxic floods.

Corresponding with today’s final public EPA hearing on coal ash in Knoxville, Tennessee, DeSmogBlog and PolluterWatch released a report [pdf] calling attention to the relentless attempts by coal lobbyists to prevent the labeling of this hazardous material as, er, 'hazardous'.  This last hearing is expected to reflect the sentiment at previous public hearings—people don’t want to live at risk of contamination from heavy metals like arsenic, mercury and lead. Especially the folks in Tennessee who continue to deal with the consequences of a failed coal ash impoundment.  

Utilities in the United States generate almost 140 million tons of coal ash each year, so they're willing to throw around millions of dollars to prevent the regulation of such a prevalent waste product.  Those with the most at stake include American Electric Power, Duke Energy, and the Tennessee Valley Authority, which together account for over 25% of the coal ash sites that have been classified as particularly dangerous.

As the coal titans became weary of the EPA’s intent to finally treat coal ash like the powerful contaminant it is, they dispatched a legion of lobbyists to delay regulation.  The effort succeeded, buying time to ramp up a public relations campaign touting the “beneficial” uses of coal ash and pushing the familiar dire economic implications of federal oversight.

Last year, as EPA Administrator Lisa Jackson submitted a draft proposal for coal ash rules to the White House Office of Management and Budget, coal lobbyists began booking potentially illegal meetings with the White House, en masse, so as to clog OMB’s review of the EPA proposal.   From October 2009 to April 2010, coal’s influence peddlers held at least 33 meetings with White House OMB staff—three times more than meetings that included university scientists and environmentalists.

King Coal’s lobbying arm earned two substantial victories from these meetings.  First, Jackson’s goal of reaching a decision by the end of 2009 was effectively delayed.  The second victory was the addition of a new, weaker proposal to require liners in coal ash ponds as a way to reduce water contamination, while classifying the waste as 'non-hazardous.'  With this option, coal companies may have successfully bought their way out of meaningful oversight unless the EPA finally wakes up and does the job it is supposed to do, namely protect people and the environment from toxic materials.

Who exactly are these polluter lobbyists?

PolluterWatch has profiled a few of the key coal representatives who have fought tooth and nail to prevent the regulation of coal ash:

Also noteworthy is Lisa Jaeger of Bracewell & Giuliani. Though not present at the meetings posted on the White House website, she lobbies on behalf of the Council of Industrial Boiler Owners, Southern Co, Dynergy, and other clients who pay her to prevent various regulations.

Of these lobbyists, only Kavanagh has not been employed by the Environmental Protection Agency.

*For more information, be sure to read the full report [pdf] and our compilation of high hazard coal ash pond locations, with associated parent companies.*

Industry: 

David Ratcliffe, Jim Rogers and Michael Morris on Frontline

  • Posted on: 22 July 2010
  • By: admin

See Martin Smith question the CEOs of the three greatest CO2 emitters in the country.  Of particular highlight is Smith's grilling of Southern Company's David Ratcliffe for spending money lobbying against renewable energy, funding industry front groups that deny or belittle the seriousness of climate change, and fund politicians willing to roadblock progress on addressing global warming.

"Video CEO Corner"

Martin Smith, Frontline, Oct 21, 2008

Industry: