You are browsing the archive for The Guardian.

Stink Tanks: Historical Records Reveal State Policy Network Was Created by ALEC

9:24 am in Uncategorized by Steve Horn

Cross-Posted by DeSmogBlog 

The Madison Hotel, DC

A 1991 report tracked down by DeSmogBlog from the University of California-San Francisco’s Legacy Tobacco Documents reveals that the State Policy Network (SPN) was created by the American Legislative Exchange Council (ALEC), raising additional questions over both organizations’ Internal Revenue Service (IRS) non-profit tax status.

Titled “Special Report: Burgeoning Conservative Think Tanks” and published by the National Committee for Responsive Philanthropy, the report states that State Policy Network’s precursor — the Madison Group — was “launched by the American Legislative Exchange Council and housed in the Chicago-based Heartland Institute.”

Further, Constance “Connie” Campanella — former ALEC executive director and the first president of the Madison Group — left ALEC in 1988 to create a lobbying firm called Stateside Associates. Stateside uses ALEC meetings (and the meetings of other groups) as lobbying opportunities for its corporate clients.

“Stateside Associates is the largest state and local government affairs firm,” according to its website. “Since 1988, the Stateside team has worked across the 50 states and in many local governments on behalf of dozens of companies, trade associations and government and non-profit clients.”

Named Constance Heckman while heading ALEC, Campenella also formerly served on the Board of Directors of Washington Area State Relations Group, a state-level lobbyist networking group. 

“The Washington Area State Relations Group (WASRG) is one of the nation’s largest organizations dedicated exclusively to serving state government relations professionals,” explains its website. “Since the mid-1970s, WASRG has been providing its corporate, trade association and public sector members with a unique and valuable opportunity to interact with their peers, key state officials and public policy experts.”

Shadow Lobbying All Along

ALEC is currently under fire for potentially abusing its 501(c)(3) non-profit IRS charity tax status, acting as a shadow lobbying apparatus and “corporate bill mill” throughout its 40 years of existence.

In response to criticism, internal documents recently revealed by The Guardian show that ALEC created a 501(c)(4) group called the Jeffersonian Project, a move activists said was a tacit admission ALEC has illegally served as a lobbying apparatus from the beginning.

What Campanella understood and cashed in on by creating Stateside Associates was how the “shadow lobbying” process works. Her career move from serving as ALEC’s executive director to setting up Stateside is another indicator ALEC and related groups facilitate lobbying.

“Stink Tanks” Ideas Factory

While ALEC facilitates passage of “model bills” — what the Center for Media and Democracy (CMD) has coined a “corporate bill mill” — State Policy Network proliferates the ideas legitimizing the myriad models that become legislation in statehouses nationwide.

These ideas come in the form of what CMD and Progress Now call “Stink Tanks,” modeled to be “mini-Heritage Foundations” by one of its original funders, Thomas Roe. State Policy Network has 64 state affiliates.

Roe, who passed away in 2000, served as vice chairman and finance chairman of the Republican Party in South Carolina and as a member of the Republican National Finance Committee. The Heritage Foundation, where Roe served on the Board of Trustees, now houses the Thomas Roe Institute for Economic Policy Studies.

Though current State Policy Network president Tracie Sharp claimed SPN member groups don’t coordinate with one another in a November Politico article, Roe explicitly funded the organization to do just that.

“Starting in 1987, these organizations began meeting regularly as the Madison Group…to trade information and discuss strategies,” a history of SPN published in 2007 explains. “Roe believed that these get-togethers were so helpful that they should be formalized through a professional association that would host annual conferences, provide services, and improve communications among its members.”

To this day, State Policy Network hands out an annual Roe Award.

“The annual Roe Award pays tribute to those in the state public policy movement whose achievements have greatly advanced the free market philosophy. It recognizes leadership, innovation and accomplishment in public policy,” explains the SPN website. “The award is an eagle, a symbol of liberty and the courage and conviction necessary for its preservation.”

“Winning is the Operative Word”

In introducing the “Burgeoning Conservative Think Tanks” report in a July 1991 letter to Kurt Malmgren — then the Senior Vice President of State Activities for the Tobacco Institute — former ALEC Executive Director Sam Brunelli wrote “winning is what ALEC is all about.”

“Winning is the operative word. It is an experience you can appreciate because winning the public policy debate will continue to have a tremendous positive effect on the ‘bottom line’ of your company,” Brunelli wrote.

“At ALEC, we bring together, in an intellectually and challenging environment, state legislators and corporate and business executives, wherein we provide the mixture of determination, dedication, preparation, and teamwork — those elements so necessary to winning!”

Yet, it’s fair to say after a week of hard-hitting investigative journalism by The Guardian and many other outlets, both ALEC and the State Policy Network have doubled down on defense and are not “winning” for now. Read the rest of this entry →

Leaked Documents Reveal IRS Concerns, Funding Crisis At ALEC

1:35 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The Guardian has published a major investigative piece that once again exposes the scandalous ways of the right wing lobbying group, American Legislative Exchange Council(ALEC).

Among the biggest revelations: ALEC may soon face a budget crisis, and is feeling the heat of public pressure from activists and its own membership in the aftermath of the Trayvon Martin shooting by George Zimmerman in FloridaDozens of corporations have jumped ship from what critics have coined a “corporate bill mill” for statehouses nationwide.

Another explosive revelation: ALEC State Chairs were handed a draft pledge to put ALEC’s interests over its constituents’ interests, asked to “act with care and loyalty and put the interests of [ALEC] first.” ALEC confirmed to The Guardian that it was “not adopted by the membership committee or by any of the state chairs.”

The Guardian obtained ALEC’s Board of Directors’ meeting minutes which reveal that ALEC has created a 501(c)(4) non-profit organization called The Jeffersonian Project.

Creation of the Jeffersonian Project – paralleling ALEC’s self-serving branding as standing for “Jeffersonian principles” - could be seen as a tacit admission that ALEC had been illegally operating as a shadow lobbying organization on behalf of its corporate members for the past four decades.

ALEC’s budget hole from the exodus of corporate members has inspired a campaign to win corporate members back to the exclusive club, calling it thebiblically-inspired ”Prodigal Son Project.” Desperate for more member-based funding, ALEC is considering recruiting gambling companies into its member base.

Jeffersonian Project Legal Lifeline

Not going so far as to admit it has acted as an illegal shadow lobbying organization for the past four decades, ALEC’s attorney Alan Dye weighed in on the Jeffersonian Project in a letter, “though we do not believe that any activity carried on by Alec is lobbying, the IRS could disagree…Alec has been approached by donors who are willing to make sizable donations, but insist that the donations go to a section 501(c)(4) organization.”

Put another way, the Jeffersonian Project could be ALEC’s lifeline to keep itself in legal territory and therefore, afloat. ALEC says so itself, in fact.

“Any activity that could be done by Alec may be done by Jeffersonian Project if legal counsel advises it would provide greater legal protection or lessen ethics concerns,” notes from its Board Meeting state, adding 501(c)(4) status answers “questions of ethical violations made by our critics and state ethics boards and provides further legal protection.”

Lisa Graves, Executive Director for the Center for Media and Democracy (CMD) responded to ALEC’s lifeline creation, saying, “It should have disclosed its lobbying long ago.”

Pro-Fracking, Anti-Regulatory Agenda for Upcoming Meeting

These findings by The Guardian come just one day before ALEC’s forthcoming States and Nation Policy Summit in Washington, DC, in which pro-fracking and anti-regulatory model bills and presentations will be the centerpiece of the Energy, Environment and Agriculture Task Force’s convening. Shale gas industry lobbying powerhouse America’s Natural Gas Alliance will be named as a corporate member at the meeting.

As CMD’s PR Watch revealed in an August article, the “United States of ALEC” has already proposed 77 ALEC anti-environmental “model bills” in statehouses nationwide in the first three quarters of 2013.

DeSmogBlog will be covering the events of the upcoming DC meeting closely in the coming days.

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.