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Keystone Academy: Where Legislators Learn the Etiquette of Serving Special Interests

12:55 pm in Uncategorized by Nick Surgey

Monopoly's Mr. Moneybags

A politician on the run to serve special interests?

In October 2012, nine U.S. state legislators went on an industry paid trip to explore the Alberta tar sands. Publicly described as an “ALEC Academy,” documents obtained by CMD show the legislators were accompanied on a chartered flight by a gaggle of oil-industry lobbyists, were served lunch by Shell Oil, dinner by the Canadian Association of Petroleum Producers, and that the expenses of the trip were paid for by TransCanada and other corporations and groups with a direct financial interest in the Alberta tar sands and the proposed Keystone XL (KXL) pipeline.

Among the nine legislators on the tour was the new ALEC national chairman, Representative John Piscopo from Connecticut, and Senator Jim Smith from Nebraska who has sponsored legislation in his state to speed up the building of the Nebraska segment of KXL. Email records obtained by CMD show that after the trip, legislators were asked by ALEC to send “thank you notes” to the lobbyists for their generosity in Alberta.

Far better than a mere “thank you,” Rep. John Adams from Ohio returned from the trip and sponsored a bill given to him by a TransCanada lobbyist calling for the approval of KXL. As previously reported by CMD, similar legislation, reflecting both an ALEC “model” bill and language taken from a TransCanada set of talking points, has been introduced in seven states in 2013.

The tar sands of Alberta are estimated to be the third largest reserve of crude oil on the planet. But the process of turning the tar-like bitumen into a refined product that can be used as fuel is extremely energy intensive and highly polluting. The former NASA scientist James Hansen, warned that the extraction and use of Canadian tar sands would mean “game over” for the climate. TransCanada is the operator of the proposed KXL pipeline, which would carry the tar sands to Texas for processing and likely for exports to markets abroad.

In Private Jets and “Petroleum Club” Dinners, U.S Politicians Get the Dirt on Canadian Tar Sands

Officially, ALEC organized the Alberta tour as an “ALEC Academy.” In ALEC’s description of corporate sponsorship opportunities, this type of event is described as being “an intensive, two–day program for legislators that focus on a specific area of policy.” It comes with an $80,000 fee to sponsor. Unofficially however, and made clear to legislators on the trip in emails from ALEC obtained by CMD, the expenses were paid for by lobbyists from the oil-industry and by the government of Alberta. In an email sent to Ohio representative John Adams ahead of the trip, ALEC staffer Karla Jones reassured participants that all transportation, accommodation costs and meals would be paid for.

According to a copy of the trip itinerary obtained via a public records request, legislators flew into Alberta on Tuesday October 16, 2012, and were met by TransCanada lobbyists who took them on a tour of their facilities in Calgary.

TransCanada, which is a member of ALEC, sponsored ALEC’s Spring Task Force Summit in Oklahoma City in May 2013, alongside other corporations with tar sands interests including BP, Devon Energy and Koch Industries. TransCanada’s Vice President Corey Goulet presented to legislators at the conference during a session called “Embracing American Energy Opportunities.

Dinner on the first night was at the up-market Ruth’s Chris Steakhouse in downtown Calgary, paid for by American Fuel and Petrochemical Manufacturers (AFPM). The dinner included a presentation to the captive audience of lawmakers from AFPM about Low-Carbon Fuel Standards (LCFS), a mechanism designed to reduce the carbon intensity of transportation fuels. As CMD has reported recently, LCFS is considered a real threat to the tar sands industry, because it might restrict the U.S. market for fuels derived from the tar sands. AFPM, which has funded one of the other groups on the tour — the Consumer Energy Alliance (CEA) — to work to oppose LCFS legislation, would successfully sponsor an ALEC “model” bill on this issue just weeks after the trip, called “Restrictions on Participation in Low-Carbon Fuel Standards Programs.”

On Wednesday morning, after breakfast at the hotel, legislators were taken to the airport where a private charted plane was waiting to fly them around a number of different tar sands operations. Accompanying the legislators and ALEC staffer Karla Jones, were lobbyists from AFPM, TransCanada, Devon Energy, CEA, Shell Oil, and the Government of Alberta. The flight was chartered by the Alberta Government, at a cost of $22,000, with the costs split evenly between them and another unknown entity.

During the day, legislators toured facilities owned by Shell — which also provided lunch — and Devon Energy, where they viewed the massive “Jackfish” tar sands projects. At these facilities, Devon utilizes Steam Assisted Gravity Drainage (SAGD), an energy intensive process that injects steam into the dirty bitumen to access otherwise inaccessible deposits too deep for mining. This process is expected to open up further areas of Alberta for tar sands extraction, including by Koch Industries subsidiary Koch Exploration Canada which has a pending permit request in Alberta to utilize SAGD.

Dinner on Wednesday night was served at the Petroleum Club, sponsored by the Canadian Association of Petroleum Producers. On the Thursday morning, just before their return flight, legislators did have a brief meeting with a representative from the Pembina Institute, an Alberta environmental group that calls for responsible exploitation of the tar sands. According to the ALEC trip itinerary, this was to “provide the opposing point of view.”

Although Pembina does represent a different view from those that want completely unrestrained extraction of the tar sands, the group is not representative of those that oppose tar sands extraction. There are plenty of organizations that could have provided alternative viewpoints, particularly First Nation tribal leaders who are campaigning vigorously on this issue, but perhaps unsurprisingly they were not included. Even Pembina’s — somewhat limited — opposing voice was not wanted during the tour of the oil sands facilities, and they were not invited to the lobbyist-sponsored dinners.

ALEC as Emily Post

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Seven State Keystone XL Resolutions, Where Are the Environmentalists?

6:15 am in Uncategorized by Nick Surgey

This article was first posted at PRWatch.org

Protest sign: No Pipelines! No Tar Sands! We will blockade!

While activists fight the tar sands -- seen here inside a Canadian Consulate -- oil advocates garner pipeline support in state legislatures.

The cleanup is still underway from a massive pipeline spill in Mayflower, Arkansas, but you don’t hear anything about it at public hearings across the nation dealing with the Keystone XL (KXL) pipeline. Resolutions supporting the controversial KXL pipeline have now been introduced in seven states, but while TransCanada, the American Petroleum Institute (API) and the Chamber of Commerce have been lobbying in force for the bills to pass, there have been few opposing voices by either Democrats or environmentalists at public hearings dealing on the measures. The massive pipeline project will transport tar sands crude oil from Alberta to Gulf Coast refineries for processing and export and once underway, the project will be a major contributor to global warming.

In February, CMD reported on state resolutions calling for the approval of the KXL pipeline project in Mississippi, Michigan, Minnesota, and Missouri. The language in three of these resolutions closely matched a “backgrounder“ from TransCanada. The fourth resolution, introduced in Missouri, mirrored a resolution from the American Legislative Exchange Council.

In the last few months, Ohio, Kansas, and Indiana have introduced very similar resolutions, which also feature paragraphs from TransCanada’s own materials. Although these resolutions are non-binding, they will be showcased by industry lobbyists as evidence about how state legislators (and by extension the public) feel about the pipeline project in an attempt to influence the pending State Department decision on KXL. While opponents of KXL have been active on many fronts, their absence from state legislatures nationwide has been notable.

Industry Turns Out in Force, But Faces Little Opposition

In written testimony for a committee hearing on the Kansas resolution, a lobbyist from the Kansas Petroleum Council described it as being “part of a nationwide effort to show Washington that states support the pipeline.” Pro-pipeline groups certainly seem to be organized in a coordinated national effort, with lobbyists from TransCanada, the American Petroleum Institute (or their local affiliates like Kansas Petroleum Council), and the Chamber of Commerce all attending committee hearings. But the attendance from environmental groups has been patchy at best and the support for their efforts from Democratic lawmakers has been weak.

On February 12, 2013, the Michigan resolution – SCR6 – received a hearing in the Senate Energy and Technology Committee, at which industry groups turned out in force. Lobbyists from the API, TransCanada, the Detroit Regional Chamber, and DTE energy were all there to make the case for KXL, but as shown in the minutes there was not a single member of the public recorded as opposing KXL. The vote passed 5-1, with two committee members leaving the room just five minutes before the vote. And when two weeks later a vote was held on the House version of the bill in the House Energy and Technology Committee, again lobbyists from API, TransCanada, the Detroit Regional Chamber, and DTE Energy – as well as from Michigan Laborers Union – turned up to support the resolution. There was not a single voice of opposition and the Committee passed the resolution 16-0. The bill passed a floor vote in the House 88-20 on March 5, 2013.

Of the 20 legislators who co-sponsored the Mississippi Senate resolution – SR3half were Democrats. The bi-partisan bill passed the Mississippi Senate on March 15 with a 32-14 vote. The Ohio House bill – HCR9 – passed a floor vote 87-7 in a body that is split 61-38 in favor of Republicans. The Ohio Senate is yet to hold a hearing on its version of the bill, SCR7.

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