koch industries

Oiling The Machinery Of Climate Change Denial And Transit Opposition

This is a guest post by David Suzuki.

Brothers Charles and David Koch run Koch Industries, the second-largest privately owned company in the U.S., behind Cargill. They’ve given close to US$70 million to climate change denial front groups, some of which they helped start, including Americans for Prosperity, founded by David Koch and a major force behind the Tea Party movement.

Through their companies, the Kochs are the largest U.S. leaseholder in the Alberta oilsands. They’ve provided funding to Canada’s pro-oil Fraser Institute and are known to fuel the Agenda 21 conspiracy theory, which claims a 1992 UN non-binding sustainable development proposal is a plot to remove property rights and other freedoms.

Researchers reveal they’re also behind many anti-transit initiatives in the U.S., in cities and states including Nashville, Indianapolis, Boston, Virginia, Florida and Los Angeles. They spend large amounts of money on campaigns to discredit climate science and the need to reduce greenhouse gases, and they fund sympathetic politicians.

Disclosure Fail: Industry Reps Testifying for Denton, Texas Fracking Bill Left Ties Undisclosed

March 24 hearing prior to the passage of a controversial bill out of committee that preempts cities in Texas from regulating hydraulic fracturing (“fracking”) for oil and gas obtained from shale basins, featured numerous witnesses who failed to disclose their industry ties, including some with ties to the Koch brothers

The next day on March 25, Texas Senate Bill 1165 — “Relating to the express preemption of regulation of oil and gas operations and the exclusive jurisdiction of those operations by the state” — passed in the Senate Natural Resources & Economic Development Committee unanimously. Its companion bill, HB 40, also only received a single dissenting vote, and it now advances to a full floor vote in both chambers.  

The legislation is seen by some as part of the multipronged effort to chip away and ultimately defeat the Denton, Texas fracking ban voted on by the city's citizens on Election Day 2014, with another prong being the lawsuits filed against the city.

The March 24 Senate Natural Resources & Economic Development hearing on SB 1165, lasting over four hours, featured a long list of witnesses testifying for and against the bill.

Though everyone testifying in support of it had industry ties, a DeSmogBlog investigation reveals that a few of them did not disclose this when signing up to testify and simply wrote they were testifying as “self.” 

Peabody Coal Lawyer Laurence Tribe, Obama's Law Professor, Testifies in Congress vs. EPA Carbon Rule

Laurence Tribe, constitutional law professor at Harvard Law School and of-counsel at the firm Massey & Gail LLP, recently testified in front of the U.S. House Committee on Energy and Commerce against the proposed U.S. Environmental Protection Agency (EPA) carbon rule

Currently working as legal counsel for coal industry giant Peabody Energy and helping the company write comments, Tribe submitted a 57-page legal memo to accompany his five-minute testimony (starting at 22:43). In December 2014, Tribe submitted 35 pages worth of comments to the EPA on its proposed rule.

Joining Tribe were both New York University School of Law professor Richard Revesz and Hunton & Williams attorney Allison Wood, who testified for and against the Clean Power Plan, respectively. But Tribe served as the star witness and fielded most of the questions from the Committee during the question-and-answer session.

Fittingly given his distinguished legal background, Tribe argued against the Clean Power Plan on constiutional law grounds. 

“Burning the Constiution should not become part of our national energy policy,” Tribe wrote in the early pages of the legal memo he submitted to the Committee. “At its core, the issue the Clean Power Plan presents is whether EPA is bound by the rule of law and must operate within the framework established by the United States Constitution.”

He also proposed a solution — favored by his client Peabody  in a section titled, “There is a Better Way.”

“The United States could…support carbon capture and storage technologies,” Tribe wrote, not mentioning Peabody's advocacy for so-called “clean coal.” 

“An 'all of the above' energy policy can support all forms of domestic energy production that will minimize carbon emissions, protect consumers and American jobs, and ensure that the U.S. remains independent from unreliable foreign sources of energy.”

After Oregon Rejects Coal Export Plan, Long Beach Votes to Export Coal and PetKoch

Just a day after the Oregon Department of State Lands shot down a proposal to export 8.8 million tons per year of coal to Asia from the Port of Morrow in Boardman, Oregon, the Long Beach City Council achieved the opposite.

In a 9-0 vote, the Council voted “yay” to export both coal and petroleum coke (petcoke, a tar sands by-product) to the global market — namely Asia — out of Pier G to the tune of 1.7 million tons per year. Some have decried petcoke as “dirtier than the dirtiest fuel.“ 

More specifically, the Council determined that doing an environmental impact statement before shipping the coal and petcoke abroad was not even necessary. 

decision originally made in June and then appealed by Earthjustice on behalf of the Sierra Club, Natural Resources Defense Council (NRDC) and Communities for a Better Environment, the Council shot down the appeal at an August 19 hearing

“We are very disappointed about the decision, but that does not diminish the amazing victory in Oregon,” Earthjustice attorney Adrian Martinez said in a statement provided to DeSmogBlog via email. “The decision in Long Beach just highlights the grasp that the fossil fuel industry has on the City's leaders.”

The Earthjustice legal challenge and the the subsequent August 19 hearing was not about banning coal or petcoke exports. Rather, Earthjustice and its clients requested that the City of Long Beach do an environmental impact statement for two companies given contracts to export the commodities for 15-20 years.

One of those companies, Oxbow Carbon, is owned by the “Other Koch Brother,” William “Bill” Koch. Like his brothers David and Charles Koch, he has made a fortune on the U.S. petcoke storage and export boom. Also like his brothers, he is a major donor to the Republican Party.

Court: Key Environmental Law Doesn't Apply to Part of Enbridge Keystone XL "Clone"

Keystone XL Clone Flanagan South

A U.S. District Court for the District of Columbia has ruled that Enbridge’s 600-mile-long Flanagan South Pipeline, a Keystone XL “clone,” is legally cleared to proceed opening for business in October

Approved by the U.S. Army Corps of Engineers via a controversial regulatory mechanism called Nationwide Permit 12 (NWP 12), Judge Kentanji Brown Jackson, an Obama-appointed judge, ruled NWP 12 was not a federal government “action.” Thus, Brown posited that Enbridge did not need to use the National Environmental Policy Act (NEPA) regulatory process and NWP 12 was up to snuff.

The case pitted the Sierra Club and the National Wildlife Federation (NWF) against the Army Corps of Engineers and Enbridge and has lasted for just over a year, with the initial complaint filed on August 13, 2013 (Case #: 1:13-cv-01239-KBJ). 

Sierra Club and NWF submitted the recent precedent-setting Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case as supplemental authority for Sierra Club v. U.S. Army Corps of Engineers on the day that decision was handed down. 

But Jackson brushed it aside, saying it doesn't apply to Flanagan South, despite the fact that the Delaware Riverkeeper v. FERC decision said that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive NEPA review.

Although Enbridge will operate this project as a single pipeline, Flanagan South was broken up into thousands of “single and complete” projects by the Army Corps of Engineers. This helped Enbridge skirt the requirement of a more comprehensive and public-facing NEPA review, which involves public hearings and a public comment period.

“Here, not only was there no NEPA analysis of this massive project, there was never any public notice or opportunity for involvement before it was constructed across four states,” Sierra Club attorney for the case, Doug Hayes, told DeSmogBlog. “The entire thing was permitted behind closed doors.”

For all intents and purposes, then, Flanagan South is a fait accompli and tar sands diluted bitumen (“dilbit”) will begin pumping through it as summer turns to fall. 

Green Billionaires Club? David Vitter Owns Stock in Coal Utilities Fighting EPA Carbon Rules

On July 30, the Republican minority of the U.S. Senate Committee on Environment and Public Works, headed by Sen. David Vitter, released a report titled “The Chain of Environmental Command: How a Club of Billionaires and Their Foundations Control the Environmental Movement and Obama’s EPA.”

Critics of the report say it is propaganda designed to skewer the Obama EPA and environmental philanthropists for “conspiring to help the environment.”

Vitter's chief source of campaign cash is the oil and gas industry and he recently called the billionaire Koch Brothers “two of the most patriotic Americans in the history of the Earth.” 

What the 92-page report leaves out is that Vitter — an esteemed member of the Senate “Millionaires Club” — owns tens of thousands of dollars in stocks of the electric utility Wisconsin Energy Corporation (We Energies), which owns major coal-fired power plants in both Oak Creek, Wisc. and Pleasant Prairie, Wisc.

We Energies says it stands to lose economically if the proposed Obama EPA carbon rules are implemented, citing the potential risks related to legislation and regulation in its most recent U.S. Securities and Exchange Commission (SEC) Form 10-Q.

“Any legislation or regulation that may ultimately be adopted, either at the federal or state level, designed to reduce GHG emissions could have a material adverse impact on our electric generation and natural gas distribution operations,” We Energies stated on the form.

“Such regulation could make some of our electric generating units uneconomic to maintain or operate, and could adversely affect our future results of operations.”

We Energies CEO Gale Klappa also voiced dissatisfaction with the proposed rule during his company's most recent earnings call, saying the company will submit comment to the EPA as part of the public comment period.

Keystone XL Review Extended, Delaying Final Decision Until After 2014 Elections

Reuters and Politico broke a major story today that TransCanada's northern leg of the Keystone XL tar sands pipeline will not be decided on until after the 2014 mid-term elections.

“The U.S. State Department will…extend the government comment period on the Keystone XL pipeline, likely postponing a final decision on the controversial project until after the November 4 midterm elections,” Reuters explained.

Secretary of State John Kerry and President Barack Obama have final say over whether the pipeline will be built because it crosses the U.S.-Canada border.

Reporters learned of the decision after a call between high-level congressional staff and State Department officials. 

“The justification is the need to wait on continued litigation over a Nebraska court decision earlier this year, which threw part of the project’s route in doubt, two sources said today after a call between the State Department and congressional staff,” reported Politico.

In the end, the decision came down to politics, according to Politico, though there are no shortage of climate change and ecological concerns for the prospective pipeline.

“A delay past November would spare Obama a politically difficult decision on whether to approve the pipeline, angering his green base and environmentally minded campaign donors — or reject it, endangering pro-pipeline Democrats,” they reported.

Citing DeSmogBlog Series, "FrackNation" Screening Cancelled by MN Film Festival

FrackNation,” the documentary film about hydraulic fracturing (“fracking”) with close conservative movement ties, recently had its showing cancelled at Winona, Minnesota's annual Frozen River Film Festival (FRFF).

Citing DeSmogBlog's two-part investigative series published in May 2013 on “FrackNation,” FRFF Director Mike Kennedy told the Winona Post his rationale for cancelling the film is that it was, “pretty apparent they were paid to make these movies to counter Gasland [Part II].”

“DeSmogBlog.com appears to be the main source of allegations that 'FrackNation' was industry-funded,” wrote the Post. “DeSmogBlog claims connections between [film Co-Director Phelim] McAleer and conservative groups, industry groups help[ing] promote the film after its was made, and the fact that McAleer directed an industry-funded documentary in the past, as proof that 'FrackNation' is cut from the same cloth.”

The cancellation has caused a major kerfuffle in conservative media circles, covered by outlets ranging from Fox News, Fox BusinessThe Blaze TVTown Hall, Watchdog.orgHot Air and others. McAleer was a featured guest on “Fox and Friends” on January 23. 

Koch Industries Hires Tobacco Operative Steve Lombardo to Lead Communications and Marketing

Q: What does Koch Industries do when it needs better PR?

A: Hire a veteran helper of the tobacco industry.

At O'Dwyer's, Kevin McCauley writes January 9 in Koch Bros Lure Burson PA, Crisis Chair”:

“Steve Lombardo, PA/crisis chair at Burson-Marsteller in Washington since April, is moving to Koch Industries next month for the chief communications/marketing officer slot.

The 53-year-old sees an opportunity to showcase how the $115B Wichita-based conglomerate works to improve the lives of people around the world, according to Politico.

Prior to B-M, Lombardo helmed Edelman’s StrategyOne research operation, ran his own shop for an eight-year span and served as vice chairman of Blue Worldwide, Edelman’s advertising unit.

Lombardo has been involved in Republican politics, recently serving as senior research and communications director for Mitt Romney presidential run.

KI is the firm of conservative activists Charles and David Koch. Their empire includes Georgia-Pacific, Koch Pipeline/Fertilizer, Molex (electronic components), Flint Hills Resources, INVISTA (chemicals), Matador Cattle and Odessa Power.

Lombardo and Edelman colleague Jackie Cooper wrote about the “Republican Brand Problem” in O'Dwyer's in December 2012.

PR firm Burson-Marsteller and Lombardo both have relevant histories with tobacco.

Ohio Clean Energy Still in Koch & ALEC Crosshairs

Crossposted from Greenpeace’s blog: The Witness.

Ohio is currently fighting this year's final battle in a nationally-coordinated attack on clean energy standard laws, implemented by the American Legislative Exchange Council (ALEC) and other groups belonging to the secretive corporate front group umbrella known as the State Policy Network (SPN).

Pages

Subscribe to koch industries