You are browsing the archive for Council of State Governments.

Florida Pushing ALEC, CSG Sham Fracking Chemical Disclosure Model Bill

7:09 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Florida may soon become the fourth state with a law on the books enforcing hydraulic fracturing (“fracking”) chemical disclosure. The Florida House of Representatives’ Agriculture and Natural Resources Subcommittee voted unanimously (11-0) on March 7 to require chemical disclosure from the fracking industry. For many, that is cause for celebration and applause.

FL Rep. Ray Rodrigues didn’t mention the law still contains the “trade secrets” loophole.

Fracking for oil and gas embedded in shale rock basins across the country and world involves the injection of a 99.5-percent cocktail of water and fine-grained sillica sand into a well that drops under the groundwater table 6,000-10,000 feet and then another 6,000-10,000 feet horizontally. The other .5 percent consists of a mixture of chemicals injected into the well, proprietary information and a “trade secret” under the Energy Policy Act of 2005, which current President Barack Obama voted “yes” on as a Senator.

That loophole is referred to by many as the “Halliburton Loophole” because Dick Cheney had left his position as CEO of Halliburton - one of the largest oil and gas services corporations in the world – to become Vice President and convene the Energy Task Force. That Task Force consisted of the Secretaries of State, Treasury, Interior, Agriculture, Commerce, Transportation and Energy. One of its key actions was opening the floodgates for unfettered fracking nationwide.

Between 2001 and the bill’s passage in 2005, the Task Force held over 300 meetings with oil and gas industry lobbyists and upper-level executives. The result was a slew of give-aways to the industry in this omnibus piece of legislation. On top of the “Halliburton Loophole,” the bill also contains an exemption for fracking from Environmental Protection Agency (EPA) enforcement of the Clean Water Act and the Safe Drinking Water Act.

The federal-level response to closing the ”Halliburton Loophole” is the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act, a bill that never garnered more than a handful of co-sponsors.

The state-level response, the story goes, is versions of the bill that recently passed onan 11-0 bipartisan basis in a Florida state house subcommittee.

Introduced as the “Fracturing Chemical Usage Disclosure Act” on Feb. 13, bill sponsor Rep. Ray Rodrigues (R-76) told The Palm Beach Post the day the bill passed in Subcommittee that there is ”every indication … at some point in the future” that fracking will proceed in the Sunniland Shale basin and that being “proactive” is the way to go. A senate companion bill was also introduced as SB 1028 by Sen. Jeff Clemons (D-27) and if the bill passes in both chambers, it will be labeled SB 1776.

What Rodrigues didn’t mention: the law was written by what investigative journalist Steve Coll referred to as a “private empire,” ExxonMobil.

Like its federal-level predecessor, it still contains the “trade secrets” loophole. It’s also a model bill distributed both by the American Legislative Exchange Council (ALEC), asfirst revealed by The New York Times in April 2012, and the Council of State Governments (CSG), as first revealed here on DeSmogBlog.

FracFocus Façade: Sunshine State’s Copy-Paste and Disaster-in-the-Make

Read the rest of this entry →

ALEC Sham Chemical Disclosure Model Tucked Into Illinois Fracking Bill

12:29 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Illinois Capitol Dome

Illinois is the next target for ALEC's environmental tampering.

Illinois is the next state on the American Legislative Exchange Council (ALEC)‘s target list for putting the oil industry’s interests ahead of the public interest.

98 percent funded by multinational corporations, ALEC is described by its critics as a “corporate bill mill” and a lobbyist-legislator dating service. It brings together corporate lobbyists and right wing politicians to vote up or down on “model bills” written by lobbyists in service to their corporate clientele behind closed doors at its annual meetings.

These “models” snake their way into statehouses nationwide as proposed legislation and quite often become the law of the land.

Illinois, nicknamed the “Land of Lincoln,” has transformed into the “Land of ALEC” when it comes to a hydraulic fracturing (“fracking”) regulation bill - HB 2615, the Hydraulic Fracturing Regulation Act - currently under consideration by its House of Representatives. “Fracking” is the toxic horizontal drilling process via which unconventional gas and oil is obtained from shale rock basins across the country and the world.

HB 2615 - proposed on Feb. 21 with 26 co-sponsors - has an ALEC model bill roped within this lengthy piece of legislation: the loophole-ridden Disclosure of Hydraulic Fracturing Fluid Composition Act.

As covered here on DeSmogBlogthis model bill has been proposed and passed in numerous statehouses to date. If the bill passes, Illinois’ portion of the New Albany Shale basin will be opened up for unfettered fracking, costumed by its industry proponents as the “most comprehensive fracking legislation in the nation.”

“If At First You Don’t Succeed, Dust Yourself Off and Try Again”

This isn’t ALEC’s first fracking-related crack at getting a model bill passed in Illinois. In 2012, the Disclosure of Hydraulic Fracturing Fluid Composition Act – introduced as SB 3280 - passed unanimously by the Illinois Senate but never passed the House.

SB 3280 isn’t merely an ALEC model, but is a Council of State Government’s (CSG) model, too, as covered here on DeSmog.

The “disclosure” standards’ origins lay in the Obama Department of Energy’s (DOE) industry-stacked fracking subcomittee, formed in May 2011 ”to study the practice of hydraulic fracturing (fracking), and determine if there are ways, or even a necessity, to make it safer for the environment and public health.”

As exposed by The New York Times in April 2012, these ”disclosure” standards were originally written by ExxonMobil, first passed in Texas in June 2011, and now serve as both an ALEC and CSG model bill for the states. I say “disclosure” – as opposed to disclosure – because the bill includes loopholes for “trade secrets,” ala the “Halliburton Loophole” written into the industry-friendly federal Energy Policy Act of 2005.

Section 77 of HB 2615, titled “Chemical disclosure; trade secret protection,” also includes the same trade secrets exemption from the ALEC/CSG ExxonMobil-written model bill.

Ever persistent, ALEC has taken the late pop diva Aaliyah’s words to heart with regards to chemical fluids “disclosure,” at first not succeeding and dusting itself off and trying again.

The FracFocus Façade

Read the rest of this entry →

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 →