american legislative exchange council

Groups File IRS Complaint Alleging ALEC is a Lobbying Vehicle, Not a Charity

The Center for Media and Democracy (CMD) and Common Cause have filed an 18-page supplemental complaint to the U.S. Internal Revenue Service (IRS) which calls for a termination of the American Legislative Exchange Council (ALEC)'s status as a 501(c)(3) non-profit organization and requests civil and criminal charges be brought against ALEC.

American Legislative Exchange Council Threatens Lawsuit Against Critics Who Point Out ALEC's Climate Denial

The American Legislative Exchange Council (ALEC) has threatened public interest group Common Cause with a lawsuit for pointing out what the public record has made clear: ALEC denies the scientific consensus on climate change.

As first reported by The Washington Post, ALEC's lawyers Alan Dye and Heidi Abegg wrote a cease-and-desist letter to Common Cause president Miles Rapoport. Dye and Abegg demanded that Common Cause stop calling ALEC a cog in the climate denial machine. 

“We demand that you cease making inaccurate statements regarding ALEC, and immediately remove all false or misleading material from the Common Cause, and related, websites within five business days,” they wrote. “Should you not do so, and/or continue to publish any defamatory statements, we will consider any and all necessary legal action to protect ALEC.”

ALEC critics call the organization a “corporate bill mill.” 

Dye and Abegg also demanded an immediate and public retraction of statements the Common Cause has made about ALEC with regards to climate denial.

ALEC Climate Denial Lawsuit

Image Credit: Common Cause

Further, Dye and Abegg argued that ALEC — contrary to the vast amount of evidence collected by those who research the organization — does not deny climate change.

Canadian Government: This Reporter's Question About ALEC 'Undeserving of Response'

ALEC light brigading

This article is re-published with permission from mikedesouza.com

As some of you may know, I’ll be starting a new role in January 2015 as an investigative resources correspondent for Reuters.

Getting access to records about government decisions and policies has long played a key role in the work of many journalists around the world. It will also be a key element for me in the weeks, months and years to come.

So to end off 2014, here are a few examples of some of my recent experiences with government efforts to either release or hide information.

Canada’s information watchdog has noted that the Supreme Court of Canada recognizes access to information as a quasi-constitutional right of all Canadians.

Obtaining access to information is an extension of freedom of expression since it allows the population to be informed and speak about government policies and decisions on how these governments spend public money.

Shell’s Top Climate Advisor Says Company “Values” Relationship with Climate-Denying ALEC at COP20

David Hone, Shell’s top climate advisor told an audience at the COP20 climate negotiations underway in Lima, Peru today that the company enjoys its relationship with the American Legislative Exchange Council (ALEC), a contentious corporate ‘bill mill’ known for its climate change denial and aggressive efforts to counteract emissions reductions and regulations.

More than 90 companies have parted ways with ALEC since 2012, according to the Center for Media and Democracy, after ALEC’s contentious position on climate science drew the ire of shareholders, citizen groups and unions.

Perhaps most famously, Google executive chairman Eric Schmidt accused ALEC of “literally lying” about climate science and publicly announced the company’s decision to forego renewing its ALEC membership. The decision prompted a ‘tech exodus’ from ALEC which saw companies like Microsoft, Facebook, Yelp, Yahoo!, and AOL cut ties with the free market group.

Despite Tech Exodus from ALEC, eBay Sends Mixed Messages About Membership

Over the course of a single short week in late September, one Silicon Valley tech giant after the next cut ties with the American Legislative Exchange Council (ALEC), a libertarian, free market think tank that actively fights against clean energy and climate-focused policies on the state and local level.

Google Chairman Eric Schmidt fired the starting gun on the tech exodus, when he claimed on NPR’s Diane Rehm Show that ALEC was “just literally lying” about climate change, and explained that Google’s membership was “sort of a mistake.”

Google, said Schmidt, “should not be aligned with such people,” and announced that the company would not renew its membership in ALEC. Within a week, Facebook, Yahoo, Uber, and Lyft all followed suit. On Monday, AOL joined the march away from ALEC. (Yelp had allowed its membership to expire months prior, and proudly announced that week that it had severed all ties with ALEC.)

And then there’s eBay.

The online auction house is still a dues-paying member of ALEC, and is sending mixed messages to climate campaigners and the site's users and shareholders about its future with ALEC.

A rep from eBay sent DeSmogBlog an uncredited statement, which emphasizes that “we do not agree with ALEC on other issues, including climate change.” The statement in full:

Disrupt Denial: After Leaving ALEC, Google Still Funding Evil

Last week, one tech giant after the next cut ties with the American Legislative Exchange Council (ALEC), creating a mass exodus from the anti-government front group that routinely drafts legislation to bolster the fossil fuel industry and inhibit climate action and clean energy development.

While the withdrawal of Google, Yahoo, Facebook and others from ALEC’s vast pool of corporate funders was widely celebrated by climate campaigners, a recent report released by Forecast the Facts and SumOfUS shows how Google – and many others who claim to do good by climate – are still funding climate denial in politics. 

The report, called Disrupt Denial: How big business is funding climate change denial in the 113th Congress, reveals how companies like Google, Ford, Microsoft, UPS, and eBay continue to support Senators and Representatives in the House who deny the very science of climate change.

Take Google. Though the company’s Chairman Eric Schmidt made great waves with his claim on the Diane Rehm show that ALEC are “literally lying” about climate change, and that Google “should not be aligned with such people,” the Disrupt Denial report shows that Google has contributed $699,195 to climate deniers in Congress from 2008 to 2014.

High-Techs Abandon ALEC, Fossil and Tobacco Wolf In Business Suit

As Google, Yahoo, Facebook, Yelp and other high-tech Silicon Valley companies abandon the American Legislative Exchange Council (ALEC), a few facts need more emphasis to understand this wolf in business clothes, bringing “sample bills” to legislatures.

ALEC is a tax-exempt 501(c)(3) “public charity,” as per its IRS Form 990s.  Donations to it get tax breaks. Common Cause filed complaints against ALEC in 2012 and 2013, but these take years, as do similar complaints related to Fakery 2: More Funny Finances, Free of Tax.

High-tech companies finally noticed problems with climate change policies at ALEC, unsurprising given the strong influence of fossil energy companies. But companies also were effectively side-by-side with Big Tobacco, whose continued existence requires nicotine addiction of adolescents, which only works by “rewiring” the brain during rapid development that ends by age 25 or usually earlier.

ALEC includes the usual think tanks that attack science and support both industries. Does ALEC have a monopoly on access to power? Can reasonable business people find no representation except through a group that is often anti-science, anti-environment and anti-health?

Documents: Cheniere Fuels ALEC’s New Push for Fracked Gas Exports

Today, legislative and lobbyist members of the American Legislative Exchange Council (ALEC) voted on model legislation promoting both exports of gas obtained via hydraulic fracturing (“fracking”) and vehicles powered by compressed natural gas (CNG)

Dubbed a “corporate bill mill” by its critics, ALEC is heavily engaged in a state-level effort to attack renewable energy and grease the skids for exports of U.S. oil and gas. Today's bills up for a vote — as conveyed in an ALEC mailer sent out on June 25 by ALEC's Energy, Environment and Agriculture Task Force — are titled “Resolution In Support of Expanded Liquefied Natural Gas Exports“ and “Weights and Measures and Standards for Dispensing CNG and LNG Motor Fuels.” 

An exclusive investigation conducted by DeSmogBlog reveals that Cheniere — the first U.S. company to receive a final liquefied natural gas (LNG) export permit by the U.S. Federal Energy Regulatory Commission (FERC) — has acted as the lead corporate backer of the LNG exports model resolution. 

Further, Clean Energy Fuels Corporation, owned by energy baron T. Boone Pickens, of Pickens Plan fame, and trade associations it is a member of, served as the main pusher of the CNG model resolution.

ALEC has served as a key vehicle through which the fracking industry has curried favor and pushed for policies favorable to their bottom lines in statehouses nationwide. Now ALEC and its corporate backers have upped the ante, pushing policies that will lock in downstream demand for fracked gas for years to come. 

With Cheniere becoming an ALEC dues-paying member in May 2013 and with America’s Natural Gas Alliance (ANGA) — the fracking industry's tour de force — crowned an ALEC member in August 2013, it looks like many more fracking-friendly model bills could arise out of ALEC in the months and years ahead.

Heather Zichal, Former Obama Energy Aide, Named to Board of Fracked Gas Exports Giant Cheniere

Heather Zichal, former Obama White House Deputy Assistant to the President for Energy and Climate Change, may soon walk out of the government-industry revolving door to become a member of the board of directors for fracked gas exports giant Cheniere, who nominated her to serve on the board. 

The announcement, made through Cheniere's U.S. Securities and Exchange Commission Form 8-K and its Schedule 14A, comes just as a major class-action lawsuit was filed against the board of the company by stockholders.

In reaction to the lawsuit, Cheniere has delayed its annual meeting. At that meeting, the company's stockholders will vote on the Zichal nomination.

The class-action lawsuit was filed by plaintiff and stockholder James B. Jones, who alleges the board gave stock awards to CEO Charif Souki in defiance of both a stockholders' vote and the company's by-laws. 

Souki — a central character in Gregory Zuckerman's book “The Frackers“ — became the highest paid CEO in the U.S. as a result of the maneuver, raking in $142 million in 2013, $133 million of which came from stock awards.

Cheniere CEO Charif Souki; Photo Credit: Getty Images

Zichal was nominated to join Cheniere's audit committee of the board, and will be paid $180,000 per year for the gig if elected.

Among the audit committee duties: “Prepare and review the audit committee report for inclusion in the proxy statement for the company's annual meeting of stockholders,” which is now set for September 11 after the push-back following the filing of the stockholder class-action lawsuit.

“The audit committee’s responsibility is oversight, and it recognizes that the company’s management is responsible for preparing the company’s financial statements and complying with applicable laws and regulations,” Cheniere's audit committee charter further explains.

ALEC's Fracking Chemical Disclosure Bill Moving Through Florida Legislature

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 an April 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 studySecond kicker: ALEC's model bill, like HB 157, has a trade secrets exemption for chemicals deemed proprietary. 

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