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ALEC’s Fracking Chemical Disclosure Bill Moving Through Florida Legislature

2:16 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

A sticker of the Monopoly game's mascot, Uncle Moneybags, labelled ALEC

ALEC is polluting environmental law in Florida.

The American Legislative Exchange Council’s (ALEC) model bill for disclosure of chemicals injected into the ground during the controversial hydraulic fracturing (“fracking”) process is back for a sequel in the Sunshine State legislature.

ALEC’s model bill was proposed by ExxonMobil at its December 2011 meeting and is modeled after a bill that passed in Texas’ legislature in spring 2011, as revealed in anApril 2012 New York Times investigative piece. ALEC critics refer to the pro-business organization as a “corporate bill mill” lending corporate lobbyists a “voice and a vote” on model legislation often becoming state law.

The bill currently up for debate at the subcommittee level in the Florida House of Representatives was originally proposed a year ago (as HB 743) in February 2013 and passed in a 92-19 vote, but never received a Senate vote. This time around the block (like last time except for the bill number), Florida’s proposed legislation is titled the Fracturing Chemical Usage Disclosure Act (HB 71), introduced by Republican Rep. Ray Rodrigues. It is attached to a key companion bill: Public Records/Fracturing Chemical Usage Disclosure Act (HB 157).

HB 71 passed on a party-line 8-4 vote in the Florida House’s Agriculture and Environment Subcommittee on January 14, as did HB 157. The next hurdle the bills have to clear: HB 71 awaits a hearing in the Agriculture and Environment Appropriations Subcommittee and HB 157 awaits one in the Government Operations Subcommittee.

Taken together, the two bills are clones of ALEC’s ExxonMobil-endorsed Disclosure of Hydraulic Fracturing Fluid Composition Act. That model — like HB 71 — creates a centralized database for fracking chemical fluid disclosure. There’s a kicker, though. Actually, two.

First kicker: the industry-created and industry-owned disclosure database itself —FracFocus — has been deemed a failure by multiple legislators and by an April 2013 Harvard University Law School study. Second kicker: ALEC’s model bill, like HB 157, has a trade secrets exemption for chemicals deemed proprietary.

First “Halliburton Loophole,” then “ExxonMobil Loophole”

Back when the ALEC model bill was debated in the Texas legislature in spring 2011 (and before it was endorsed by ExxonMobil and eventually adopted as a model by ALEC), the bill was touted as an antidote to the lack of transparency provided at the federal level on fracking chemicals by both industry and environmental groups, such as the Environmental Defense Fund and the Texas League of Conservation Voters (LCV).

“[T]his is proof positive that the public, environmental groups, and the state’s energy industry can work together to ensure the health and safety of Texans,” the Texas LCV said in May 2011.

Rep. Rodrigues said he was impressed by these dynamics when researching the bill online in comments provided by email to DeSmogBlog.

“I was pleased to see the Environmental community and the Energy community jointly draft this legislation,” he said.

The lack of federal level transparency is mandated by law via the Energy Policy Act of 2005, as outlined in a sub-section of the bill best known as the “Halliburton Loophole.”

The “Halliburton Loophole” — named such because Halliburton is an oil services company that provides fracking services and because when it was written, the company’s former CEO, Dick Cheney, was vice president of the United States and oversaw the industry-friendly Energy Task Force — gives the oil and gas industry a free pass on fracking chemical disclosure, deeming the chemicals injected into the ground during the process a trade secret.

Yet, far from an antidote to the “Halliburton Loophole,” a new loophole has been created in its stead at the state level — the “ExxonMobil Loophole” — which now has the backing of ALEC. The results haven’t been pretty.

An August 2012 Bloomberg News investigation revealed FracFocus merely offers the façade of disclosure, or a “fig leaf” of it, as U.S. Rep. Diane DiGette (D-CO) put it in the piece.

“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.”

As we reported on DeSmogBlog in December 2012, FracFocus is a public relations front for the oil and gas industry:

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Bogus State Department Keystone XL Climate Study the Basis of David Petraeus’ CUNY Seminar

1:24 pm in Uncategorized by Steve Horn

Portrait of David Petraeus

The ongoing adventures of David Petraeus, frackademic.

Former CIA-head David Petraeus’ City University of New York (CUNY) Macaulay Honors College seminar readings include several prominent Big Oil-funded “frackademia” studies, a recent DeSmogBlog investigation revealed.

Further digging into records obtained via New York’s Freedom of Information Law (FOIL) also reveals “a survey of the global economy to set the stage for the course” – as stated in an email from Petraeus to an unknown source due to redaction – utilizes the U.S. State Department’s Keystone XL environmental review written by Environmental Resources Management (ERM Group) to argue that Transcanada’s tar sands export pipeline deserves approval.

“[Redacted], atttached is a document that my Harvard researchers and I put together for the seminar I’ll lead at Macaulay Honors College of CUNY,” wrote Petraeus in the email. “It is intended to be a survey of the global economy to set the stage for the course…[It] will have considerable value, I think, for the undergrads in the course.”

The “Global Economy” survey was penned on behalf of Petraeus by Vivek Chilukuri, one of Petraeus’ researchers at Harvard University’s Kennedy School of Public Policy, where Petraeus sits as a Non-Resident Fellow. Chilukuri serves as Editor-in-Chief for the Harvard Journal of Middle Eastern Politics & Policy, and worked for Obama For America before the 2008 election.

It was at the Harvard Kennedy School where all of Petraeus’ troubles began. His biographer, Paula Broadwell, whom he had an affair with, met Petraeus while a Harvard graduate student, a scandal that ultimately drove him out of the CIA.

His CIA departure landed Petraeus his current gigs on Wall Street at Kohlberg Kravis Roberts (KKR) and as an adjunct professor at CUNY Honors College and University of Southern California - and coming full circle – back at Harvard, where the spool began to unravel.

Petraeus’ seminar survey includes an implied endorsement of industry-written fracking chemical disclosure via President Obama’s industry-stacked Energy Department Fracking Subcommittee, and the mythical “clean coal” – otherwise known as carbon capture and sequestration, as well as a cap-and-trade scheme that would include carbon trading of emissions from dirty coal plants for even dirtier shale gas production.

Petraeus’ Keystone XL Endorsement: No Mention of Men Behind Curtain

A call for the approval of Keystone XL’s northern half – the southern half is almost fully built via a March 2012 Obama Administration Executive Order - appears in the “Proposed Policies, Programs, Practices, Laws & Regulations” portion of Petraeus’ seminar survey. One of the proposed policy prongs: “accelerate domestic energy production consistent with environmental concerns.”

Prong “A” of “energy production consistent with environmental concerns,” according to the syllabus? “Authorize Keystone XL project given State Department’s favorable report,” states the survey.

Key context about the “favorable report” completely lacking from the course survey: it was written by API dues-paying member Environmental Resources Management, Inc. (ERM Group). Since the June 2008 proposal of Keystone XL, API has spent over $22 million lobbying for it.

ERM Group was chosen by TransCanada to do the report with the blessing of the State Department, and may have committed a federal crime by lying on its conflict-of-interest form when it said it did not have an ongoing business relationship with Transcanada. In fact, ERM has ongoing business ties with Transcanada in Alaska, contrary to what it said on its conflict-of-interest form, and is helping the company’s attempt to recieve approval of its South Central LNG pipeline project.

Beyond its claims that Keystone XL will have negligible environmental impacts, ERM has also given the “environmentally sound” rubberstamp to a Delaware tar sands refinery project, a Caspian Sea-area pipeline project and a Peruvian pipeline project. All of these projects ended up having negative impacts on the environment.

None of this information of “considerable value” will likely be included in Petraeus’ seminar, but ERM’s Keystone XL environmental review for the State Department will be one of the readings on his syllabus.

FracFocus Façade, “Embedded Environmentalists”

Prongs “B” and “C” of the energy portion of Petraeus’ overview of the global economy pertain to the controversial and ecologically toxic hydraulic fracturing (“fracking”) process for oil and gas embedded deep within shale rock basins.

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Obama Admin. Approves ALEC Model Bill for Fracking Chemical Fluid Disclosure on Public Lands

11:27 am in Uncategorized by Steve Horn

Natural gas drilling

On May 16, the Obama Interior Department announced its long-awaited rules governing hydraulic fracturing (“fracking”) on federal lands.

As part of its 171-page document of rules, the U.S. Bureau of Land Management (BLM), part of the U.S. Dept. of Interior (DOI), revealed it will adopt the American Legislative Exchange Council (ALEC) model bill written by ExxonMobil for fracking chemical fluid disclosure on U.S. public lands.

ALEC is a 98-percent corporate-funded bill mill and “dating service” that brings predominantly Republican state legislators and corporate lobbyists together at meetings to craft and vote on “model bills” behind closed doors. Many of these bills end up snaking their way into statehouses and become law in what Bill Moyers referred to as “The United States of ALEC.”

BLM will utilize an iteration of ALEC’s “Disclosure of Hydraulic Fracturing Fluid Composition Act” – a bill The New York Times revealed was written by ExxonMobil - for chemical fluid disclosure of fracking on public lands and will do so by utilizing FracFocus.org‘s voluntary online chemical disclosure database.

In a way, it’s all come full circle. As we covered here on DeSmogBlog, the original chemical disclosure standards and the decision to utilize FracFocus’ database came from the Obama Dept. of Energy’s (DOE) industry-stacked Fracking Subcommittee formed in May 2011. DOE gave a $1.5 million grant to FracFocus.

The Texas state legislature soon thereafter adopted the first bill making FracFocus the fracking chemical disclosure database at the state level in June 2011. Since then, it’s been off to the races, with the Council of State Governments adopting the TX bill as model bill in Aug. 2011, ALEC adopting it as a model bill in Oct. 2011, and the bill becoming state law in Colorado, Pennsylvania and other states.

Both the Illinois and Florida state legislatures have also tried to push through this model, but it died dead in its tracks.

FracFocus has been an anemic and failed effort by the Obama Admin. to alter the George W. Bush Admin. “Halliburton Loophole” standards for fracking chemical disclosure, which allowed the recipe of fracking chemicals to remain a “trade secret.” It’s amounted to nothing more than the same game by a different name, with a Harvard study recently giving FracFocus a “failing grade.”

The FracFocus Façade: “Truck-Sized” Disclosure Loopholes

Almost two years after FracFocus‘ debut, it is important to scrutinize its disastrous performance.

“Drilling companies in Texas, the biggest oil-and-natural gas producing state, claimed similar exemptions about 19,000 times this year through August,” explainedBloomberg in a Dec. 2012 investigation. “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.”

One representative from Texas – the original FracFocus state – said it allows “truck-sized” loopholes in chemical disclosure. An earlier investigative effort by Bloomberg explained just how big these 18-wheelers are.

“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. Rep. Diane DeGette, author of the FRAC Act – which would mandate actual fracking chemical disclosure, although it’s never garnered more than a handful of co-sponsors - to say FracFocus offers nothing more than the mirage of transparency.

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 a generous way of putting it. After all, FracFocus is merely a PR front for the oil and gas industry.

FracFocus‘ domain is registered by Brothers & Company, a public relations firm whose clients include industry lobbying tour de force America’s Natural Gas Alliance (ANGA), Chesapeake Energy, and American Clean Skies Foundation – a front group for Chesapeake Energy.

ALEC Model Bill Gone U.S. Public Lands in BLM Rules

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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

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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 →