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Overseeing Koch Profits: The Roots of David Vitter’s Green Billionaires Club Report

7:12 pm in Uncategorized by Steve Horn

Caricatures of the Koch Bros.

A deeper look at the Koch Bros ties to a recent congressional report.

A DeSmogBlog investigation reveals that Kristina Moore, the Senate staffer listed as the author of U.S. Sen. David Vitter’s (R-La.) “green billionaire’s club” report published by the Senate Environment and Public Works Committee (EPW) on July 30, has career roots tracing back to the Koch Brothers’ right-wing machine.

Metadata from Vitter’s green billionaire’s club report shows Moore’s name as the author, though it remains unclear whether or not she authored it alone. Moore did not respond to a question about her authorship sent via email.

During a July 30 presentation of the report given to conservative transparency advocacy group Cause of Action, Vitter thanked Moore and several other staffers for their help putting together the 92-page document.

Moore — EPW’s senior counsel for oversight and investigations — went to law school at George Mason University School of Law, graduating in 2007. David and Charles Koch both serve as major donors to George Mason University and also endow George Mason’s Mercatus Center, where Charles sits on the Board of Directors.

While attending law school, Moore concurrently worked as chief of staff for formerU.S. Rep. Tom Davis (R-Va.), according to financial disclosure documents obtained by DeSmogBlog.

As a Davis staffer, Kristina Moore (then Kristina Husar), attended two Mercatus Center-sponsored retreats in 2006 and 2007, held in Richmond, Va. and Willamsburg, Va., respectively.

Husar served as the first Mercatus Fellow for Regulatory Studies. In February 2006, she wrote an article in the Small Business Advocate about attending the Mercatus retreat.

Originating as the Austrian Economics Program in the late-1970s and then hubbed at Rutgers University, Mercatus — latin for “markets” — has held annual congressional staff retreats from its inception, according to SourceWatch. The Center for Public Integrity pointed to the retreats as example of potentially illegal unregistered lobbying in a 2006 investigative piece.

The retreats fit under the broader umbrella of Mercatus’ “Capitol Hill Campus” program, which it devoted over $1.6 million to both in 2006 and 2007, according to Internal Revenue Service (IRS) 990 forms reviewed by DeSmogBlog.

Beyond Moore, a close look into the origins of and people behind the Vitter green billionaire’s club report show Koch brothers ties through and through.

Mercatus-Taught Oversight Techniques

Prior to working for Vitter’s EPW Committee, Moore worked for U.S. Rep. Darrell Issa (R-Ca.), serving as senior counsel for the minority staff of the House Oversight and Government Reform Committee, headed by Issa.

The Watchdog Institute revealed in a February 2011 investigation that many of the so-called “oversight” investigations conducted by the Committee benefited corporate campaign contributors.

And many of Issa’s Oversight Committee staffers, including Moore, attended Mercatus Center staff retreats. Mercatus schooled them in oversight tactics and techniques.

“In February 2009…Issa…approved a trip to a Mercatus-funded retreat for his committee staff director, Larry Brady,” wrote The Watchdog Institute. “On his disclosure form, Brady, who did not respond to an interview request, cited the purpose of the trip: ‘Provide in-depth briefings on issues of relevance to oversight investigations.’”

Daniel Epstein’s Koch Connection

Daniel Z. Epstein, executive director of Cause of Action — which did the presser premiering the Vitter green billionaire’s club report to the U.S. public — formerly served as counsel for Issa’s Oversight Committee before launching Cause of Action.

Epstein, who worked alongside Moore for the Oversight Committee’s investigations team, introduced Vitter at the event.

On the day of the release and the day after the release of the report, Cause of Action published four different items on its website promoting it, including issuing a public statement.

According to a 2009 article appearing in The Hill, Epstein served as “an associate in legal reform at the Koch Foundation, working together with Koch Industries Inc.’s assistant general counsel.”

“The job was an interesting mixture of corporate culture with an emphasis on social change — I miss that synergy,” he told The Hill at the time.

On his personal website, Epstein lists that 2008-2009 gig as “Counsel, Legal Reform at CGKF.” CGKF is shorthand for the Charles G. Koch Foundation and an in the Marin Independent Journal confirms Epstein worked there from June 2008 through January 2009.

Beyond Koch ties, Epstein also has personal financial ties that may make him averse to environmental regulations.

financial disclosure form submitted by Epstein when he worked for Issa’s Oversight Committee shows that he had (or still has) personal investments in both Dominion Resources and Duke Energy.

Both of those companies stand to lose from President Barack Obama’s U.S.Environmental Protection Agency (EPA) coal-fired power plant regulations, as both Dominion and Duke own coal-fired power plant assets.

“God bless the Koch brothers”

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Three States Pushing ALEC Bill To Require Teaching Climate Change Denial In Schools

7:23 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The American Legislative Exchange Council (ALEC) - known by its critics as a “corporate bill mill” – has hit the ground running in 2013, pushing “models bills” mandating the teaching of climate change denial in public school systems.

January hasn’t even ended, yet ALEC has already planted its ”Environmental Literacy Improvement Act“ - which mandates a “balanced” teaching of climate science in K-12 classrooms - in the state legislatures of Oklahoma, Colorado, and Arizona so far this year.

In the past five years since 2008, among the hottest years in U.S. history, ALEC has introduced its “Environmental Literacy Improvement Act“ in 11 states, or over one-fifth of the statehouses nationwide. The bill has passed in four states, an undeniable form of “big government” this “free market” organization decries in its own literature.

ALEC’s ”model bills” are written by and for corporate lobbyists alongside conservative legislators at its annual meetings. ALEC raises much of its corporate funding from the fossil fuel industry, which in turn utilizes ALEC as a key - though far from the only - vehicle to ram through its legislative agenda through in the states.

A Frankenstein Co-Created with Heartland Institute

DeSmogBlog investigation last year found that the Environmental Literacy Improvement Act’s origins date back to 2000.

The Act’s creation is directly connected to the ongoing efforts of another corporate-funded group, the Heartland Institute – of “Heartland Institute Exposed” fame – a group well plugged into the climate change denial machine.

ALEC’s Natural Resources Task Force, now known as its Energy, Environment and Agriculture Task Force, adopted this model at a time when the Task Force was headed by Sandy Liddy Bourne. Bourne, who served in this capacity from 1999-2004, would eventually ascend to the role of Director of Legislation and Policy for ALEC in 2004.

Upon leaving ALEC in 2006, Bourne become Heartland’s Vice President for Policy Strategy. Today she serves as Executive Director of the American Energy Freedom Center, an outfit she co-heads with Arthur G. Randol. Randol is a longtime lobbyist and PR flack for ExxonMobil, a corporation which endowed the climate change denial machine for years.

Heartland’s website still lists Bourne as one of its “experts,” stating that ”Under her leadership, 20 percent of ALEC model bills were enacted by one state or more, up from 11 percent.”

Importantly, Heartland is still a member of ALEC’s Energy, Environment and Agriculture Task Force that originally passed the Environmental Literacy Improvement Act.

According to internal documents leaked to and published by DeSmogBlog in Feb. 2012, Heartland obtained funding for a “Global Warming Curriculum for K-12 Classrooms” project beginning in 2012. This curriculum aims to teach that there “is a major controversy over whether or not humans are changing the weather.”

If this sounds similar to ALEC’s model bill, it should, given the fact that the two outfits share funding from the same honey pot. In fact, Heartland actively promotes the ALEC model on its website.

Model Bill Introduced in OK, CO, and AZ
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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

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.

Revealed: NERA Economic Consulting is Third Party Contractor for DOE LNG Export Study

7:33 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Retuers has revealed the identity of the mysterious third party contractor tasked to publish the economic impact study on LNG (liquefied natural gas) exports on behalf of the Department of Energy (DOE). Its name: NERA Economic Consulting.

“NERA” is shorthand for National Economic Research Associates, an economic consulting firm SourceWatch identifies as the entity that published a June 2011 report on behalf of coal industry front group American Coalition for Clean Coal Electricity (ACCCE). ACCCE’s report concluded, “clean-air rules proposed by the Obama administration would cost utilities $17.8 billion annually and raise electricity rates 11.5 percent on average in 2016.”

That report went so far to say that Environmental Protection Agency (EPA) regulations of the coal-generated electrcity sector would amount to some 1.5 million lost jobs over the next four years.

NERA was founded by Irwin Stelzer, senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. In Oct. 2004, The Guardian described Stelzer as the “right-hand man of Rupert Murdoch,” the CEO of News Corp., which owns Fox News.

According to NERA’s website, the late Alfred E. Kahn, the “father of deregulation,” advised NERA’s 1961 foundation.

In 2010, NERA published a letter to the New York Department of Environmental Protection (DEP) to protest the prospective closure of theIndian Point Nuclear Power Plants.

A NERA report from earlier this year provided the basis for the popular King Coal refrain that the EPA’s Mercury and Air Toxics Standards (MATS) Rule would cost the U.S. tens of billions of dollars and “kill” 180,000-215,000 jobs.

These figures were picked up and cited by climate change denier U.S. Sen. James Inhofe (R-OK) in June when he spoke out against President Barack Obama’s mythological “war on coal,” as well as by the Republican Policy Committee in a May policy paper titled, “Obama’s War on Coal.”

With a track record like this, it’s best to view whatever report the Obama Administration’s DOE (aka NERA) produces on the economic impact of LNG exports, set to come out by the end of the year, with extreme skepticism if not downright hostility.