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$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: 

ALEC's Lisa Nelson Doesn't Know ALEC's Climate Change Position

  • Posted on: 3 October 2014
  • By: Connor Gibson

Lisa Nelson, the new CEO of the American Legislative Exchange Council, or ALEC, doesn't know her organization's position on climate change.

In a segment on WAMU's Diane Rehm Show, ALEC's Lisa Nelson claimed to not understand the science of climate change, and said, "We as an organization, specifically do not comment on climate change."

Funny enough, just a week before, ALEC posted its "Position Statement on Renewables and Climate Change," in response to heightened attention to its role in denying climate change.

The surge of attention is due to recent and very public departures by Google, Facebook, Yelp, Yahoo and even Occidental Petroleum, specifically citing ALEC's backwards work on climate change.

Google CEO Eric Schmidt said people working for ALEC are "literally lying" about global warming, announcing that Google's staff didn't wish to continue supporting such work (after Google's failed attempts to get ALEC to support clean energy).

ALEC's history of climate change denial runs deep. In addition to blocking policy solutions to global warming, ALEC helps to smother competition of clean energy industries for its fossil fuel company members, specifically working to repeal state clean energy standards and impose fees on "freerider" homeowners who feed excess energy back into the electrical grid from their solar panels. Most recently, ALEC has called for "guerrilla warfare" against the Environmental Protection Agency's first rule to limit carbon pollution from U.S. power plants.

ALEC is a dating service for lobbyists and state legislators. It helps corporations write model bills that its legislator members then introduce in states around the U.S., tax free for its corporations. Its operations are kept secret from the public.

ALEC staff are sensitive to the fact of how its lobbying for corporate clients violates its false claims of promoting "free markets." In fact, ALEC doesn't care about free markets.

As Greenpeace has documented, ALEC has no bills to remove handouts or subsidies for fossil fuel companies, and plenty of bills promoting oil, gas and coal projects. Meanwhile, ALEC has no bills promoting renewable energy projects and plenty of bills attacking incentives for clean energy.

Confronted on this contradiction, ALEC stays mum, consistent with its pattern of avoiding public accountability.

No Prodigal Sun? ALEC Doesn’t Want Its Clean Energy Members Back

  • Posted on: 21 January 2014
  • By: Connor Gibson

Crossposted from Greenpeace's blog, the EnvironmentaLIST.

Leaked American Legislative Exchange Council documents published by The Guardian recently offered a glimpse into ALEC's financial troubles, spurred by its role in peddling corporate laws through statehouses around the country. ALEC's controversial work has caused its member companies to abandon it, such as pushing the National Rifle Association's Stand Your Ground laws, efforts to undermine clean energy incentives and delay climate change regulations, and breaking workers unions.

The ALEC documents revealed its "Prodical Son" project [sic], a list of 41 corporate members the legislator-lobbyist matchmaker would like to entice back into its roster. ALEC has lost about 60 corporate members since 2011, the year ALEC Exposed was launched by the Center for Media and Democracy.

But there are some private sector members that ALEC doesn't want back. 60 companies left ALEC and it's asking 41 to rejoin...so who is missing from the Prodigal Son list?

Conspicuously, both the American Wind Energy Association (AWEA) and Solar Energy Industries Association (SEIA) are not on ALEC's secret Prodigal Son list. Not surprising, since an ALEC staffer accused residential solar rooftop owners of being "freeriders," despite how they feed extra electricity back into the grid and spare utilities the capital costs of installing those solar panels themselves.

The solar trade group SEIA left ALEC in the fall of 2012. Shortly before that, ALEC's Energy, Environment & Agriculture task force considered, but didn't ever approve, the Solar Streamline Permitting Act (see p. 18). It's pretty much what it sounds like--making it faster and easier for state governments to approve solar projects, a concept that you might assume ALEC's conservative member legislators would embrace.

But ALEC didn't pass the solar permitting model bill. At the same time, ALEC was incubating its assault on state clean energy incentives through The Heartland Institute's proposed Electricity Freedom Act, the repeal of state renewable portfolio standards, later introduced in some form in 15 states, according to ALEC.

ALEC's documents list SEIA among "Lapsed" members, with a note explaining "left because their bill did not pass the task force." SEIA was ALEC's only interest dedicated entirely to solar energy at the time, and with both SEIA and AWEA absent from ALEC's ranks, ALEC has no members predominantly focused on clean energy development.

Check out Rachel Maddow's recent interview with Guardian reporter Ed Pilkington for more on ALEC's work against clean energy and other revelations from ALEC's leaked documents:

ALEC's Energy, Environment and Agriculture task force: Hostile Territory for Clean Energy

Members of ALEC's EEA task force include Koch Industries, the engine of climate denial finance, not to mention many groups its billionaire owners fund and even helped create, like Americans for Prosperity, the Cato Institute and The Heartland Institute.

There's ExxonMobil and the American Petroleum Institute, the architects of the leaked 1998 master plan to publicly attack climate science and scientists, which included ALEC itself and other ALEC members like DCI Group.

There's Peabody Energy, which commands its PR spokespeople to deny global warming. There's Duke Energy and Arizona Public Service, two major utilities fighting to make residential rooftop solar energy more expensive for residents and small businesses owners in their respective regions. ALEC's utilities are joined by their top trade association, Edison Electric Institute.

And don't forget the American Coalition for Clean Coal Electricity, the heavily advertised "coalition that hates each other." ACCCE was caught subcontracting groups that forged letters to Congress against 2009's failed national climate policy.

Mining, petrochemical, utility, & agribusiness interests supporting ALEC:

Many dirty energy interests have recently sponsored ALEC's conferences, pay to participate in ALEC's Energy, Environment and Agriculture task force meetings, or both. ALEC's Energy, Environment and Agriculture task force is currently co-chaired by American Electric Power's Paul Loeffelman and Wyoming state Representative Thomas Lockhart.

*Companies with membership on ALEC's national corporate board are indicated with asterisks.*

Koch:

*Koch Industries*--with business in oil and gas exploration, pipelines, refining and trading, coal and other carbon product logistics, timber and consumer paper products, commodities trading and investing, chemicals, fertilizer, ethanol, cattle and game ranching, glass, fiber optics, electronics and plenty of awkward public relations. The Charles Koch Foundation and Koch-controlled Claude R. Lambe Foundation both fund ALEC outside of Koch Industries' membership dues, together giving ALEC hundreds of thousands of dollars. ALEC has long depended on the Koch brothers.

Oil & Gas:

  • Atmos Energy
  • BP
  • Cheniere Energy
  • Chesapeake Energy
  • Chevron
  • Continental Resources
  • Devon Energy
  • EnCana Corporation
  • Energy Transfer
  • *ExxonMobil*
  • Marathon Oil
  • McMoRan Exploration Company
  • OXY USA (Occidental Petroleum)
  • QEP Resources
  • Shell
  • Spectra Energy
  • TransCanada Pipelines
  • Williams Companies

Oil & Gas Lobby:

  • American Petroleum Institute (API)
  • American Gas Association (AGA)
  • America's Natural Gas Alliance (ANGA)
  • Center for Liquified Natural Gas

Coal Mining:

  • *Peabody Energy*
  • Cloud Peak Energy

Utilities (primarily Coal, Gas and Nuclear generation):

  • American Electric Power (AEP)
  • Ameren
  • Arizona Public Service (APS)
  • Dominion Resources
  • Duke Energy
  • *Energy Future Holdings*
  • MDU Resources
  • MidAmerican Energy (all owned by Warren Buffet's Berkshire Hathaway)
    • PacifiCorp
    • NV Energy
  • NiSource
  • PG&E Corporation
  • Salt River Project (SRP)

Coal, Chemical & Fossil Fuel Product Shipping Railroad Co's:

  • Burlington Northern Santa Fe (owned by Warren Buffet's Berkshire Hathaway)
  • CN
  • CSX Corporation
  • Genessee & Wyoming Inc.
  • Norfolk Southern
  • Union Pacific

Coal & Utility Lobby:

  • American Coalition for Clean Coal Electricity (ACCCE)
  • Edison Electric Institute (EEI)
  • Indiana Energy Association
  • National Rural Electric Cooperative Association (NRECA)
    • Association of Missouri Electric Cooperatives (NRECA member)
  • Nuclear Energy Institute (NEI)

Chemical, Agribusiness and Paper Industry Interests:

  • Dow
  • LyondellBasell Industries
  • American Chemistry Council
  • American Plastics Council
  • Bayer
  • J.R. Simplot Company
  • CropLife America (lobbying group for Monsanto & other agribusiness corporations)
  • International Paper

Uranium Mining & Nuclear Technology:

  • Virginia Uranium
  • EnergySolutions

State Policy Network, SPN members & SPN associate members:

  • State Policy Network (umbrella for 64 state-based orgs and over 250 formally-affiliated allies--see full SPN member list)
  • Americans for Prosperity
  • Atlas Foundation
  • Competitive Enterprise Institute (co-authors ALEC reports against U.S. Environmental Protection Agency pollution rules)
  • The Heartland Institute (IL)
  • Goldwater Institute (AZ)

ALEC notes show that SPN members the Commonwealth Foundation (PA) and John Locke Foundation (NC) have recently lapsed but would like to rejoin ALEC's ranks. Each of these SPN groups are part of the the Koch-funded climate denial machine.

Public Relations firms with known Fossil Fuel Clients:

If any companies have disassociated with the American Legislative Exchange Council, we will gladly update this post upon request.

Industry: 

"Polluting Democracy" Released

  • Posted on: 18 July 2011
  • By: Connor Gibson

Written by Kyle Ash, Crossposted from Greenpeace USA.

 

Today Greenpeace released a report, “Polluting Democracy,” featuring 15 members of the Dirty Money Team - Members of Congress who often work for polluters with money instead of their voters.

 

We live in a representative democracy. Every citizen should not need knowledge and influence with every important decision made by the government. Our representatives are supposed to learn how best to represent our interests, and it's their job to try to make the case for a vote we don't currently support. The fifteen members of Congress in "Polluting Democracy" consistently vote against cleaning up coal pollution so we can breathe clean air.

 

Representative Upton (R-MI) voted to restrict pollution from coal in 2009. Even if the majority of his voters were against the idea (they are not) representing their well-being means it's his job to make the case again. Unfortunately, some members of Congress are like Upton today, and appear to represent polluters that pay for campaign ads or have money to retain mercenary lawyers to lobby Capitol Hill.

 

Sometimes paying polluters are not even from the recipient Representative's district. As shown in "Polluting Democracy," Mike Rogers (R-MI) has no large coal plants in his district, but takes coal company cash and votes against pollution controls on coal plants in neighboring districts that kill about 454 people every year, very likely including people in his district. Other Representatives guilty of this type of fatality-friendly politics include Fred Upton (R-MI), Patrick Tiberi (R-OH), and Doc Hastings (R-WA).

 

Politicians like to talk about creating jobs and slashing wasteful spending, but many of them forget their party's talking points when they are introducing bills and voting. The wind and solar industries have created far more growth than the coal industry in the last several years, and this is expected to continue. The growth potential by 2020 of renewable energy jobs is twice that of fossil fuels.

 

In the states for 14 of the 15 districts covered in “Polluting Democracy” there are more jobs in wind and solar than in coal-fired power. Representatives Jason Altmire (D-PA) and Mark Critz (D-PA) might consider joining the House Sustainable Energy and Environment Caucus (SEEC) since in Pennsylvania there are twice as many people employed in wind and solar than in coal-fired electricity.

 

Like Altmire and Critz, Jerry Costello (D-IL) is a member of the Congressional Coal Caucus. Meanwhile, Illinois employs triple the number of people in wind and solar power compared with coal-fired power plants. In Missouri, there are about as many jobs in coal-fired power as in wind and solar. Rep. Russ Carnahan (D-MO) has just as many coal-fired power plants in his district as Rep. Jo Ann Emerson (R-MO). Carnahan is a member of SEEC, while Emerson is in the coal caucus.

 

Wind and solar energy don't release toxic mercury like burning coal does, while mercury is among the many pollutants causing a variety of costs on the order of hundreds of billions of dollars per year. Coal costs just from mercury pollution, due to cardiovascular disease, mental retardation and lost productivity, are as high as $29,312,500,000 per year.

 

The coal industry in the United States has unjustified pull on the levers of democracy. It is nothing new that polluters choose to invest in stopping public health policy instead of investing in pollution controls. But every year a new group of at least 34,000 people die and hundreds of thousands of other people get sick from pollution caused by burning coal in America.

 

Industry: