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Smoke and Mirrors: Obama DOE Fracked Gas Export Study Contractor’s Tobacco Industry Roots

4:19 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

At first, it was kept secret for months, cryptically referred to only as an “unidentified third-party contractor.”

Finally, in November 2012, Reuters revealed the name of the corporate consulting firm the U.S. Department of Energy (DOE) hired to produce a study on the prospective economic impacts of liquefied natural gas (LNG) exports.

LNG is the super-chilled final product of gas obtained – predominatly in today’s context – via the controversial hydraulic fracturing (“fracking”) process taking place within shale deposits located throughout the U.S. This “prize” is shipped from the multitude of domestic shale basins in pipelines to various coastal LNG terminals, and then sent on LNG tankers to the global market.

The firm: National Economic Research Associates (NERA) Economic Consulting, has a long history of pushing for deregulation. Its claim to fame: the deregulation “studies” it publishes on behalf of the nuclear, coal, and oil/gas industry – and as it turns out, Big Tobacco, too.

Alfred E. Kahn, the late “Father of Deregulation,” founded NERA in 1961 along with Irwin Stelzer, now a senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. 

The NERA/Obama DOE LNG export economic impact study, released in early-December 2012, concluded that exporting the U.S. shale gas bounty is in the best economic interest of the country. 

This conclusion drew metaphorical hisses from many analysts, including prominent shale gas market economist and former Wall Street investor Deborah Rogers, who now maintains the blog Energy Policy Forum. Her critique cut straight to the very foundation of the study itself, stating that “economic model[s] are only as good as their inputs.”

She proceeded to explain,

In fact, it is neither difficult nor unusual for models to be designed to favor one outcome over another. In other words, models can be essentially reverse engineered. This is especially true when the models have been commissioned by industries that stand to gain significantly in monetary terms. Or government agencies which are perhaps pushing a political agenda.

Beyond its history working as a hired gun for the fossil fuel industry, NERA also has deeper historical roots producing “smoke and mirrors” studies on behalf of the tobacco industry. The long view of the firm’s past is something NERA would likely rather see “go up in smoke,” forever buried in the historical annals. But that would be a disservice to U.S. taxpayers since NERA continues to receive government contracts to produce tobacco-era disinformation to this day. 

NERA and the “Tobacco Playbook”

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North Carolina Renewable Energy Initiatives Under Attack by ALEC

12:49 pm in Uncategorized by Steve Horn

Duke Energy

Duke Energy's Cliffside Coal Plant

Cross-Posted from DeSmogBlog

Renewable energy is under attack in the Tar Heel State. That’s the word from Greenpeace USA‘s Connor Gibson today in a report that implicates King Coal powerhouse, Duke Energy and the fossil fuel industry at-large.

The vehicle Duke Energy is utilizing for this attack is one whose profile has grown in infamy in recent years: the American Legislative Exchange Council (ALEC).

ALEC is described as a “corporate bill mill” by its critics. It’s earned such a description because it passes “model bills” written by corporate lobbyists and to boot, the lobbyists typically do so behind closed doors at ALEC’s annual meetings.

The ALEC-Duke Alernative Energy Attack

Gibson puts it bluntly in his exposé, explaning that North Carolina Republican Rep. Mike Hager “says he is confident that he has the votes needed to weaken or undo his state’s [renewable] energy requirements during his second term.” 

Hager is a former Duke employee, where he worked as an engineer. Duke maintains its corporate headquarters in Charlotte, NC. 

The model bill Hager appears likely to push is called the Electricity Freedom Act,” a piece of legislation calling for the nullification of any given state’s Renewable Energy Portfolio Standards (REPS). Passed in October 2012 by ALEC, the bill was actually co-written with the fossil fuel-funded think tank, the Heartland Institute (of “Heartland Exposed” fame). 

“We wrote the model legislation and I presented it. I didn’t have to give that much of a case for it,” James Taylor of Heartland told The Washington Post in a November 2012 investigative report.

Taylor’s claims are backed by economic analyses of a sort.

That is, the sort one would expect from a group heavily funded by the fossil fuel industry (Heartland) teaming up with a group receiving 98 percent of its funding from corporate interests (ALEC). As The Post explained back in November:

As part of its effort to roll back renewable standards, ALEC is citing economic analyses of state policies co-published by Suffolk University’s Beacon Hill Institute and the State Policy Network. Both groups have received donations from foundations funded by the Koch brothers.

Gabe Elsner of the Checks and Balances Project described ALEC’s game plan as a deceptive “one-two punch” against renewable energy to The Post.

“You push the legislation to state legislators and then you fund reports to support the argument and convince state lawmakers and all without any transparency or disclosure about the sources of this funding,” he said back in November.

North Carolina’s GOP (which according to the Center for Media and Democracy‘s (CMD)  SourceWatch has 45 ALEC members) appears set to go on the offensive against the state’s existing renewable energy standards. 

More to Come?

There’s far more of this to come in the weeks and months ahead in statehouses nationwide.

As Gibson explains, “According to its own documents, ALEC spent the last couple years monitoring states attempting to introduce state-level renewable energy portfolio standards in West Virginia, Vermont and Virginia as well as legislative attacks on REPS laws in New Hampshire and in Ohio.”

Renewable energy is under attack. That is, of course, unless its advocates fight back.

Photo by Rainforest Action under Creative Commons license