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Investigation: State Dept Contractor ERM Lied About TransCanada Ties

4:10 pm in Uncategorized by Steve Horn

The contractor the Obama U.S. State Department hired for the Supplemental Environmental Impact Statement (SEIS) of the northern half of TransCanada’s Keystone XL (KXL) tar sands export pipeline overtly lied on its conflict-of-interest disclosure form that it signed and handed to State in June 2012.

A major research dossier unfurled today by Friends of the Earth-U.S. (FOE-U.S.) and The Checks & Balances Project (CBP) shows that Environmental Resources Management, Inc. (ERM Group) played “Pinocchio” in explaining its ties – or as they say, lack thereof – to Big Oil, tar sands and TransCanada in particular on its conflict-of-interest form.

The two groups dug deep and revealed State’s contractor ERM and its subsidiary Oasis Environmental both have ongoing contractual relationships with the Alaska Gas Project- now known as the South Central LNG Project - co-owned by TransCanada, ExxonMobil, ConocoPhillips and BP. Further, ERM’s Socioeconomic Advisor Mark Jennings served as a “Consultant to ExxonMobil Development Company for the Alaska Pipeline Project, according to his now-scrubbed LinkedIn profile.

ERM’s own documents – FOE-U.S. and CBP further explain – also reveal the multinational firm has business ties with over a dozen companies active in the Alberta tar sands, including Exxon, Shell, Chevron, Conoco Phillips, Total and Syncrude.

On its conflict-of-interest form, ERM said it had no “direct or indirect relationship … with any business entity that could be affected in any way by the proposed work.” Clearly, that’s far from the case.

In March, ERM Group – a City of London-based dues-paying member of the American Petroleum Institute (API) with a history of rubber-stamping ecologically hazardous oil and gas infrastructure projects – said KXL’s northern half ”is unlikely to have a substantial impact on the rate of development” of the tar sands in its SEIS. Thus, it will also have little impact on climate change, according to ERM’s SEIS, contracted out by TransCanada on behalf of the State Department.

FOE-U.S. says these most recent developments further call the entire SEIS into question, and that doesn’t include the fact that State recently revealed it’s clueless as to the exact route of the Keystone XL.

“From the beginning, the State Department’s review of Keystone has been plagued by influence peddling and conflicts of interest,” said FOE-U.S.’s Ross Hammond in a press statement.

“This is more serious: If ERM lied about its relationship with TransCanada, how can Secretary Kerry, President Obama or the American people believe anything the company says about the pipeline’s environmental impact?”

As PLATFORM London explains, ERM Group – also a dues-paying member of fracking industry lobbying force Marcellus Shale Coalition up until Oct. 2011 - is part of the “Carbon Web.” That’s shorthand for “the network of relationships between oil and gas companies and the government departments, regulators, cultural institutions, banks and other institutions that surround them.”

Given the state of play, both FOE-U.S. and CBP have called for State’s Office of the Inspector General to conduct a thorough investigation, examining how and why ERM was chosen. They’ve also called for a complete halt in the KXL review process until that transpires.

“Secretary Kerry must halt this flawed review process and direct the State Department to conduct a full, unbiased review of the Keystone XL pipeline’s impact,” Gabe Elsner, director of CBP said in a press statement.

In addition, the State Department Inspector General should pursue a full investigation into how a contractor with clear conflicts of interest was allowed to write the U.S. government’s assessment of Keystone XL and why the State Department failed to bring those conflicts of interest to light. Finally, the State Department should determine appropriate disciplinary actions for ERM to discourage contractors from lying to the federal government in the future.

Cross-Posted from DeSmogBlog

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