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Corporate Interests Influencing State Legislators via National Conference of State Legislatures

11:35 am in Uncategorized by Steve Horn

Fracking sign

Cross-Posted from Checks and Balances Project

The National Conference of State Legislatures (NCSL) describes itself as “a bipartisan organization that serves the legislators and staffs of the nation’s 50 states, its commonwealths and territories.  NCSL provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues.”

Affiliated with NCSL, is the NCSL Foundation which was created by NCSL as a  “nonprofit tax-exempt 501(c)(3) corporation that offers opportunities for businesses, national associations, nonprofit organizations and unions seeking to improve the state legislative process and enhance NCSL’s services to all legislatures.”

While the descriptions sound benign, the access to legislators NCSL and the NCSL Foundation provide to fossil fuel interests and other corporate “sponsors” sounds a lot like lobbying. Sourcewatch defines lobbyists as those who do “work on the behalf of their clients or the groups they’re representing to convince the government or others involved in public policy development to make a decision that is beneficial to them.”

Nowhere in the descriptions of NCSL or the NCSL Foundation is the unique access to state legislators granted to corporate funders characterized as lobbying.

In fact, William Pound, NCSL’s Executive Director, said in an interview with Checks & Balances Project at NCSL’s 2012 Fall Forum in Washington, D.C., that legislators are being educated, not lobbied.

However, this access has been called “stealth lobbying” by Steve Horn and Sarah Blaskey in a recent Truthout piece.

According to the NCSL Foundation website, there are many ways for fossil fuel interests to “educate” state legislators. They include:

  • Opportunity to participate in the annual standing committee new officer orientation session
  • Regular forums with NCSL officers and NCSL standing committee officers
  • Opportunity to suggest topics to standing committee officers
  • Opportunity to attend NCSL Executive Committee subcommittee meetings
  • Invitations to attend receptions and dinners with legislative leaders at yearly NCSL leadership meetings

In addition, with legislators from 40 out of the 50 states earning an average of $35,326 for their work and an average staff of 3.1 per member (or 1.2 staff in some states),[1] it raises questions of how much time and resources they have to research issues versus relying on positions posted by corporate sponsors or NCSL papers which corporate sponsors have had input on, according to Pound.

Given the role of Michael Behm as the Vice President of the NCSL Foundation and a Senior Vice President for Stateside Associates, a lobbying firm focused on lobbying state-centric groups like NCSL and the Council of State Governments (CSG), the partnerships being enabled by NCSL between legislators and fossil fuel interests should not be surprising.[2] This is especially true, given that many of Stateside Associates’ clients are also NCSL Foundations sponsors.

According to the current list of sponsors on the NCSL Foundation website (dated 1/31/12), fossil fuel interests such as ExxonMobil and America’s Natural Gas Alliance contributed $142,500, an increase from FY 2011 (July 2010-June 2011) when fossil fuel companies donated $100,000[3].

Perhaps the increase in contributions from fossil fuel interests, coupled with their ability to  “review” NCSL policy papers, explains the change in positions on hydraulic fracturing (or fracking) between 2010 and 2012. A 2010 policy paper provided a relatively balanced look at the costs, financial and environmental, associated with fracking. However, a June 2012 paper raises and dismisses the potentially devastating costs that fracking poses to states and the environment.

NCSL’s activities sound suspiciously like those of the American Legislative Exchange Council (ALEC), which is now facing a lawsuit under the Tax Whistleblower Act with the Internal Revenue Service. Common Cause filed the lawsuitafter accusing ALEC, legally a 501(c)(3) nonprofit organization, of “massive[ly] underreporting” the amount of lobbying it was undertaking.

While 501(c)(3)’s can engage in some lobbying, it cannot be the majority of its activity. According to Mother Jones, “The suit alleges that ALEC exists primarily to give corporate members the ability to ‘lobby state legislators and to deduct the costs of such efforts as charitable contributions.’ “

Checks and Balances will continue monitoring NCSL and other like-minded organizations that interact with legislators for purported “educational” purposes that could possibly be masking stealth lobbying activities.


[2] Horn and Blaskey write in their Truthout piece about how Behm and his other Stateside Associates colleagues take over organizations such as NCSL to influence state legislators on behalf of corporate interests.

[3] No figures were listed in the FY 2011 annual report. Therefore current sponsorship level amounts were applied to derive the $117,500 number.

Image by Bosc D’Anjou under Creative Commons License.

ALEC, CSG, ExxonMobil Fracking Fluid “Disclosure” Model Bill Failing By Design

11:02 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Official portrait of Representative DeGette

Representative Diana DeGette says fracking bills make a mockery of disclosure.

Last year, a hydraulic fracturing (“fracking”) chemical fluid disclosure “model bill” was passed by both the Council of State Governments (CSG) and the American Legislative Exchange Council (ALEC). It proceeded to pass in multiple states across the country soon thereafter, but as Bloomberg recently reported, the bill has been an abject failure with regards to “disclosure.”

That was by design, thanks to the bill’s chief author, ExxonMobil.

Originating as a Texas bill with disclosure standards drawn up under the auspices of the Obama Administration’s Department of Energy Fracking Subcommittee rife with oil and gas industry insiders, the model is now codified as law in Colorado, Pennsylvania, and Illinois.

Bloomberg reported that the public is being kept “clueless” as to what chemicals are injected into the ground during the fracking process by the oil and gas industry.

“Truck-Sized” Loopholes: Fracking Chemical Fluid Non-Disclosure by Design

“Drilling companies in Texas, the biggest oil-and-natural gas producing state, claimed similar exemptions about 19,000 times this year through August,” explained Bloomberg. “Trade-secret exemptions block information on more than five ingredients for every well in Texas, undermining the statute’s purpose of informing people about chemicals that are hauled through their communities and injected thousands of feet beneath their homes and farms.”

For close observers of this issue, it’s no surprise that the model bills contain “truck-sized” loopholes.

“A close reading of the bill…reveals loopholes that would allow energy companies to withhold the names of certain fluid contents, for reasons including that they have been deemed trade secrets,” The New York Times explained back in April.

Disclosure Goes Through FracFocus, PR Front For Oil and Gas Industry

The model bill that’s passed in four states so far mandates that fracking chemical fluid disclosure be conducted by FracFocus, which recently celebrated its one-year anniversary, claiming it has produced chemical data on over 15,000 fracked wells in a promotional video.

The reality is far more messy, as reported in an August investigation by Bloomberg.

“Energy companies failed to list more than two out of every five fracked wells in eight U.S. states from April 11, 2011, when FracFocus began operating, through the end of last year,” wrote Bloomberg. “The gaps reveal shortcomings in the voluntary approach to transparency on the site, which has received funding from oil and gas trade groups and $1.5 million from the U.S. Department of Energy.”

This moved U.S. Representative Diana DeGette (D-CO) to say that FracFocus and the model bills it would soon be a part of make a mockery of the term “disclosure.”

“FracFocus is just a fig leaf for the industry to be able to say they’re doing something in terms of disclosure,” she said.

“Fig leaf” is one way of putting it.

Another way of putting it is “public relations ploy.” As Dory Hippauf of ShaleShock Media recently revealed in an article titled “FracUNfocusED,” FracFocus is actually a PR front for the oil and gas industry.

Hippauf revealed that FracFocus‘ domain is registered by Brothers & Company, a public relations firm whose clients include America’s Natural Gas Alliance, Chesapeake Energy, and American Clean Skies Foundation – a front group for Chesapeake Energy.

Given the situation, it’s not surprising then that “companies claimed trade secrets or otherwise failed to identify the chemicals they used about 22 percent of the time,” according to Bloomberg‘s analysis of FracFocus data for 18 states.

Put another way, the ExxonMobil’s bill has done exactly what it set out to do: business as usual for the oil and gas industry. Read the rest of this entry →

New Gas Industry Astroturf: Landowner Advocates of NY Buses Activists to Albany Pro-Fracking Rally

6:54 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

A pro-fracking rally held on Oct. 15 in Albany, NY was described by about a dozen local media outlets as a gathering of roughly 1,000 grassroots activists from all walks of life.

All came out to add their voice to the conversation regarding the extraction of unconventional gas from the Marcellus Shale basin in New York state. But the marchers weren’t concerned landowners worried about losing their water supplies or property values. Their demand: to lift the current moratorium on fracking, which was prolonged by Democratic Gov. Andrew Cuomo on Sept. 30.

One rally attendee, Doug Lee, described the ongoing fracking moratorium as a “communist act” to the Albany Times-Union. Another described anti-fracking activists as “well-funded and organized activists masquerading as environmentalists, who often do not need to make a living in our communities.” Republican Sen. Tom Libous, observed that Hollywood stars Mark Ruffalo and Debra Winger weren’t on the scene, telling them to ”Stay in Hollywood. We don’t want you here.”

Unmentioned by any of the news outlets that covered the event was a crucial fact: these weren’t actual “grassroots” activists, but rather astroturf out-of-towners bused in from counties all across the state. Their journey was paid for by the legitimately “well-funded” oil and gas industry, which raked in profits of $1 trillion in the past decade.

According to the Associated Press, the pro-fracking rally and march were organized by a brand new front group called the Landowner Advocates of New York formed in the immediate aftermath of the recent Cuomo decision to stall on opening the fracking floodgates.

The well-known industry front group, Energy in Depth (EID), announced the launch of the Landowner Advocates of New York in an Oct. 3 blog post, mere days after the Cuomo announcement. Lee (the same man who accused Cuomo of partaking in a “communist act” by extending the fracking moratorium) wrote about the rationale behind the group’s genesis – which he is the head of and which he registered the website for – in the EID post announcing the Landowner Advocates’ launch:

Read the rest of this entry →