Koch Groups Celebrate SCOTUS Blockage Of Coal Regulation, Gloss Over Significant Koch Role

February 11, 2016

It’s no surprise that the Koch brothers — prolific polluters and opponents of clean energy — are celebrating Tuesday’s Supreme Court decision to temporarily block an EPA regulation that “requires states to make major cuts to greenhouse gas pollution created by electric power plants.”  Here’s how Koch front groups reacted to the news:

  • Americans for Prosperity‘s CEO applauded the decision in a statement: “We’re thrilled that the Court has acted in the best interest of the American people and state regulators.”
  • Freedom Partners senior policy advisor wrote that the decision would “protect Americans from the EPA’s crushing energy regulations,” and that it “confirms that governors across the country were right to resist putting forth a plan that would pave the way for higher energy costs.
  • Koch-backed American Commitment President Phil Kerpen breathlessly tweeted: “This is HUGE. Means Obama CANNOT force states to cap emissions and make electricity prices necessarily skyrocket until court rules.” In a second tweet, Kerpen described the halt as a “huge vindication” for his Koch-funded “friends” at Americans for Prosperity, Americans for Tax Reform, and The American Energy Alliance.

But here’s what Kerpen and the others don’t get into: Many of the Republican attorneys general behind the 29-state lawsuit are beneficiaries of Koch campaign dollars, and more than willing to push the billionaire brothers’ selfish agenda. Ken Paxton, Attorney General of Texas — which gets a specific shout-out from Kerpen in another tweet — personally benefited from $10,000 in campaign contributions from KochPAC (Koch Industries’ super PAC). Another GOP attorney general involved in the case, Wisconsin AG Brad Schimel, has similarly benefited from $10,000 in KochPac support. But that’s just the tip of the iceberg, because the Kochs and their network have spent millions in support of Republican attorneys general over the years:

It isn’t just the attorneys general backing the lawsuit that have Koch ties. A number of groups supporting the challenge are similarly linked to the billionaire brothers. Several of the organizations involved, including American Chemistry Council, American Forest & Paper Association, and the American Wood Council, are connected to Georgia-Pacific, a Koch Industries subsidiary. And two other groups, the National Federation of Independent Businesses and National Association of Manufacturers, have each received upwards of $1 million from the Kochs.

Shockingly, all of that still fails to cover the full extent of the Koch influence over and involvement in the legal challenge: judges involved have Koch ties, too. The challenge is currently under review by the U.S. Court of Appeals for the District Of Columbia Circuit. A DC Circuit judge, Marc Goldman, has previously attended a judicial conference sponsored by Koch Industries and the Charles Koch Charitable Foundation. And eventually, when the case makes its way to the U.S. Supreme Court, there will similarly be Koch symathizers. Justices Antonin Scalia and Clarence Thomas have in the past attended a Koch political donor conference, and the Kochs have even used the two justices’ previous attendance to promote later retreats.

This legal challenge of the Obama administration’s effort to combat global warming presents a striking glimpse at the breathtaking influence and reach of Charles and David Koch and their network. From top to bottom, it is a case study on the two billionaire brothers’ willingness to do whatever it takes to protect their profit margins and advance their selfish agenda.

Background
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Koch Network All Over The EPA Decision

The Koch Network Lauded The Decision Against The EPA

AFP: The Supreme Court’s Decision To Block “President Obama’s Far-Reaching” Clean Power Plan Regulations Was “Clear Confirmation That The Many States Who Refused To Implement Obama’s Draconian Energy Regulations Were On The Right Path.” According to a post on the Americans for Prosperity website, “Today Americans for Prosperity – the nation’s largest advocate for economic freedom – issued a statement in response to the Supreme Court’s decision to block President Obama’s far-reaching energy regulations. Americans for Prosperity CEO Luke Hilgemann had this to say: ‘President Obama famously declared he would use his pen and phone to go around Congress and enact his own radical environmental agenda.  Tonight, that executive overreach was halted by the Supreme Court. We’re thrilled that the Court has acted in the best interest of the American people and state regulators. This decision is clear confirmation that the many states who refused to implement Obama’s draconian energy regulations were on the right path. We expect those states that already moved forward with enacting these regulations will be rethinking that decision.’” [Americans for Prosperity, 2/10/16]

Freedom Partners Senior Policy Advisor Andy Koenig: “The Supreme Court Has Rightly Acted To Protect Americans From The EPA’s Crushing Energy Regulations That Are Facing Serious Legal Challenges From 29 Different States.” According to a press release from Freedom Partners, “‘The Supreme Court has rightly acted to protect Americans from the EPA’s crushing energy regulations that are facing serious legal challenges from 29 different states. This ruling confirms that governors across the country were right to resist putting forth a plan that would pave the way for higher energy costs. Now is the time for more states to follow their lead and reject this energy scheme that amounts to a massive tax increase on those who can least afford it.’” [Freedom Partners, 2/10/16]

American Commitment President Phil Kerpen Called A Supreme Court Decision To Stay The Clean Power Plan “Huge,” Since It Meant “Obama Cannot Force States To Cap Emissions And Make Electricity Prices Necessarily Skyrocket.” According to a tweet by American Commitment president Phil Kerpen, “SCOTUS stays EPA greenhouse gas ESPS!!!” According to a tweet by American Commitment president Phil Kerpen, “This is HUGE. Means Obama CANNOT force states to cap emissions and make electricity prices necessarily skyrocket until court rules.” [Phil Kerpen – Twitter, 2/9/162/9/16]

  • Kerpen Phil Kerpen Called A Supreme Court Decision To Stay The Clean Power Plan “Huge Vindication” For Staffers At The American Energy Alliance, Americans For Prosperity, And Americans For Tax Reform. According to a tweet by American Commitment president Phil Kerpen, “SCOTUS stays EPA greenhouse gas ESPS!!!” According to a tweet by American Commitment president Phil Kerpen, “Huge vindication for states that fought back and sued! And for my friends at @AEA @AFPhq and @taxreformer who led resistance efforts!” [Phil Kerpen – Twitter, 2/9/162/9/16]

Advancing Colorado: “Colorado Is Home To Some Of The Toughest Regulations On Our Energy Sector, And We Have Proven That Energy Production Can Be Done Safely And Responsibly Without The Obama’s Toxic-Waste Spilling EPA Telling Us How It Is Done.” According to an Advancing Colorado press release, “Advancing Colorado Executive Director Jonathan Lockwood released the following statement:  ‘The Clean Power Plan has virtually no support from Coloradans because we know it will hurt our communities, jobs and the economy, but we also know it will actually have a negative impact on our health. Studies have piled up showing the negative impacts this lawless power-grab will have on our state and nation. Colorado is home to some of the toughest regulations on our energy sector, and we have proven that energy production can be done safely and responsibly without the Obama’s toxic-waste spilling EPA telling us how it is done.’” [Advancing Colorado, 2/9/16]

 

The Koch Network Has Spent Millions On Attorney General Races

Republican State Leadership COmmittee

The Republican State Leadership Committee Was The Largest Caucus Of Republican State Leaders In The Country And The Only National Organization Committed To State-Level Republican Officeholders, Including Attorney General And Judicial Races.According to the Republican State Leadership Committee, “The Republican State Leadership Committee (RSLC) is the largest caucus of Republican state leaders in the country and the only national organization whose mission is to elect down-ballot, state-level Republican officeholders. Since 2002, the RSLC has been working to elect candidates to the offices of lieutenant governor, attorney general, secretary of state, state legislator, the judiciary and other down ticket races. The RSLC has more than 150,000 donors in all 50 states.” [Republican State Leadership Committee, accessed 1/29/16]

The RSLC Launched The Judicial Fairness Initiative To “Provide The Public With A Balanced Flow Of Relevant Information To Make Educated Decisions And Support Common Sense Conservative Judges At The State Level.” According to the Republican State Leadership Committee, “The Judicial Fairness Initiative (JFI) is the RSLC’s newest program to elect down ballot, state-level conservatives.  Through JFI, the RSLC becomes the only national political organization focused on the electoral process of judicial branches at the state level.  Too often voters are starved of information about judicial candidates up for election and forced to vote completely in the dark.  To address this critically important need, JFI will provide the public with a balanced flow of relevant information to make educated decisions and support common sense conservative judges at the state level.” [Republican State Leadership Committee, accessed 1/29/16]

Koch Industries Was One Of The Biggest Donors To The Republican State Leadership Committee

Koch Industries Was One Of The Biggest Donors To The Republican State Leadership Committee. According to a report by the Center for American Progress, “Although all of the funders for these groups are not disclosed, it is known that the Koch brothers founded and substantially fund AFP, and the brothers’ corporation—Koch Industries—is one of the biggest donors to the RSLC.” [Center for American Progress – Koch Brothers and DC Conservative Spending Big On Nonpartisan State Supreme Court Races, 8/14]

The Judicial Crisis Network Contributed A Minimum Of About $2 Million To The Republican State Leadership Committee

JCN Relied On Funding, Totaling Nearly $4 Million, From The Koch Founded Wellspring Committee. According to Open Secrets, “To fill its own coffers, JCN has increasingly relied on funding — to the tune of nearly $4 million, according to IRS documents — from another non-disclosing group, the Wellspring Committee, that’s run by Corkery and was founded seven years ago with the help of conservative donors in the network led by billionaire brothers Charles and David Koch. Corkery’s entree to that rarefied network came via JCN supporter Arkley, an early attendee of their famed retreats. And Ann Corkery and her husband, Neil — who is JCN’s treasurer — are central figures in a cluster of other nonprofits, IRS filings show.” [OpenSecrets.org, 3/23/15]

Over Two Years, JCN Contributed A Minimum Of About $2 Million To Groups Involved In 2014 State Judicial Elections Including The Republican State Leadership Committee.According to Open Secrets, “And over the last two years, the organization contributed a minimum of about $2 million to groups that were involved in 2014 state judicial elections and efforts to influence how judges are chosen. Recipients of JCN checks included the many-tentacled Republican State Leadership Committee, which for the first time invested in court races around the country, spending more on them than any other outside group.” [OpenSecrets.org, 3/23/15]

Republican Attorneys General Association

The Republican Attorneys General Association Was The Only National Organization Whose Mission Was Electing Republicans To Attorney General. According to the Republican Attorneys General Association, “The Republican Attorneys General Association (RAGA) is the only national organization whose mission is electing Republicans to the Office of State Attorney General. RAGA supports our 27 current Republican attorneys general and recruits outstanding candidates, providing them with research and financial support as well as assisting in message development. Through robust candidate recruitment RAGA brings effective public servants to the office of AG and deepens our Party’s talent pool from which many future Governors and U.S. Senators will be drawn.” [Republicanags.com/about, accessed 2/10/16]

American Future Fund Contributed $650,000 To The Republican Attorneys General Association

Huffington Post: “American Future Fund Was Almost Entirely Funded By The Koch Political Network.” According to the Huffington Post, “American Future Fund was almost entirely funded by the Koch political network. The group raised $68 million in 2012, with more than $60 million from Freedom Partners Chamber of Commerce and the Center to Protect Patient Rights. This total included $7 million passed from Americans for Job Security through the Center to Protect Patient Rights. Of that amount, $4 million landed in a California ballot campaign committee.” [Huffington Post, 9/12/14]

2014: American Future Fund Contributed $650,000 To The Republican Attorney General Association. According to Citizens for Responsibility and Ethics in Washington, “The newly independent Republican Attorneys General Association (RAGA)—a political organization whose mission is electing Republicans as state attorneys general — this month filed its first disclosure reports, revealing an impressive haul of more than $4.2 million. Strikingly, however, more than a quarter of its take came from four dark money groups: the American Future Fund (AFF), which contributed $650,000; the Judicial Crisis Network (JCN), which contributed $250,000; the U.S. Chamber of Commerce, which contributed $175,700; and The Progress Project (TPP), which contributed $100,000.” [CREW, 5/6/14]

The Judicial Crisis Network Contributed $1 Million To The Republican Attorneys General Association

JCN Policy Director And Chief Counsel Carrie Severino: Attorney Generals Are “Emerging As Key Leaders In The Battle For Limited Constitutional Government.”According to Open Secrets, “State attorneys general had been moving higher on JCN’s political radar. Policy director and chief counsel Carrie Severino, who succeeded Wendy Long as JCN’s counsel in 2010 and, like her, once clerked for Justice Thomas, wrote in National Review right before the 2012 elections that conservative AGs are ‘emerging as key leaders in the battle for limited constitutional government.’ Many of them, she noted, had joined the challenge to Obamacare, and a number were also fighting the Dodd-Frank financial services overhaul and EPA regulations.” [OpenSecrets.org, 3/23/15]

2014: JCN Contributed $1 Million In Secret Money To The Republican Attorneys General Association And Became Its Third-Biggest Contributor. According to Open Secrets, “JCN heightened its focus on AG races last year when it pumped $1 million in secret money into the Republican Attorneys General Association, making it the third-biggest contributor to RAGA and helping the GOP pick up three new slots so that it now controls the majority of state AG posts.” [OpenSecrets.org, 3/23/15]

KochPAC Contributed $130,315 To The Republican Attorneys General Association

2014: KochPAC Contributed $130,315 To The Republican Attorney General Association.According to the Center for Responsive Politics, in 2014 KochPAC donated $130,315 to the Republican Attorney General Association. [OpenSecrets.org, accessed 11/18/15]

Koch Industires Also Has Direct Ties To Attorney Generals Prosecuting The Case

Texas Attorney General Ken Paxton Received $10,000 In Campaign Contributions From KochPAC In 2014

August 2014: KochPAC Contributed $10,000 To Ken Paxton For Attorney General.According to FEC filings, KochPAC contributed $10,000 in support of Ken Paxton’s successful campaign for Texas Attorney General on August 25, 2014. [KochPAC September Monthly FEC report, 9/19/14]

Wisconsin Attorney General Brad Schimel Received $10,000 In Campaign Contributions From KochPAC In 2014

October 2014: KochPAC Contributed $5,000 To Schimel For Attorney General. According to FEC filings, KochPAC contributed $5,000 in support of Brad Schimel’s successful campaign for Wisconsin Attorney General on October 7, 2014. [KochPAC Pre-General report, 10/23/14]

July 2014: KochPAC Contributed $5,000 To Schimel For Attorney General. According to FEC filings, KochPAC contributed $5,000 in support of Brad Schimel’s successful campaign for Wisconsin Attorney General on July 29, 2014. [KochPAC July Monthly FEC report, 7/18/14]

 

Many Of The Groups Backing The Lawsuit Have Koch Ties

flint hills resources and the American Fuel & Petrochemical Manufacturers

American Fuel & Petrochemical Manufactures Was Listed “Of Counsel” In The Case State Of West Virginia, State Of Texas v. United States Environmental Protection Agency. [States of West Virginia, Texas, et al. v. EPA, 1/27/16]

Flint Hills Resources Executive Vice President Of Marketing Jeff Ramsey Is A Member Of The Executive Committee And Serves On The Board Of Directors Of American Fuel & Petrochemical Manufacturers. [American Fuel & Petrochemical Manufacturers’ website, Accessed 10/1/15]

American Chemistry Council

American Chemistry Council Was Listed In The “Corporate Disclosure Statement” In The Case State Of West Virginia, State Of Texas v. United States Environmental Protection Agency. [States of West Virginia, Texas, et al. v. EPA, 2/9/16]

2010: Georgia-Pacific Was Named A Founding Member of American Chemistry Council’s New Formaldehyde Panel, A “New Self-Funded Product Group, Which Will Support The Needs Of The Formaldehyde Industry.”  According to the American Chemistry Council: “The American Chemistry Council (ACC) is pleased to announce the organization of a new self-funded product group, which will support the needs of the formaldehyde industry. ACC provides issue management services to support specific chemical product and sector groups under its Chemical Products and Technology (CPT) divisions.  The new group was approved by ACC’s board of directors in June, and will represent the producers, users, and suppliers of formaldehyde and formaldehyde products.  Trade associations representing key formaldehyde applications will also be an important membership component of the new group.  Formaldehyde is a basic-building block chemical, essential to an estimated $145 billion of the U.S. gross national product.  Formaldehyde is used to produce a wide range of materials that include everything from life-saving medicines to adhesives and resins used in construction, aerospace and transportation, electronics, wind energy and many other industries. The Formaldehyde Panel’s primary activities will include advocacy, research, and marketplace outreach.  Initial members of the expanding panel include two of the nation’s major formaldehyde producers: Georgia-Pacific Chemicals LLC, and Hexion Specialty Chemicals, Inc.”  [American Chemistry Council, Press Release, 8/24/10]

American Forest & Paper Association

American Forest & Paper Association Was Listed In The “Corporate Disclosure Statement” In The Case State Of West Virginia, State Of Texas v. United States Environmental Protection Agency. [States of West Virginia, Texas, et al. v. EPA, 2/9/16]

Georgia-Pacific Was A Company Member Of The American Forest & Paper Association.According to the American Forest & Paper Association membership directory, Georgia-Pacific LLC was a company member. [AF&PA Membership Directory, accessed 5/5/15]

Georgia-Pacific’s Building Products’ “Affiliations And Links” Page Listed “Selected Associations And Non-Profit Organizations” Including The American Home Furnishings Alliance, Composite Panel Association, American Forest & Paper Association, And APA – The Engineered Wood Association. [buildgp.com, accessed 5/4/15]

American Wood Council

American Wood Council Was Listed In The “Corporate Disclosure Statement” In The Case State Of West Virginia, State Of Texas v. United States Environmental Protection Agency. [States of West Virginia, Texas, et al. v. EPA, 2/9/16]

Georgia Pacific Was A Member Of The American Wood Council. [American Wood Council, Accessed 2/10/16]

Fritz Mason Of Georgia-Pacific Served As Second Vice Chairman Of The American Wood Council. According to a press release from the American Wood Council, “The American Wood Council (AWC) elected new officers during its (first) Annual Meeting in Chicago, Illinois on November 17-18, 2010. Serving for a one-year term are Chairman Joe Patton of The Westervelt Company; First Vice Chairman Brian Luoma of LP; Second Vice Chairman Fritz Mason of Georgia-Pacific LLC; and, Marc Brinkmeyer of the Idaho Forest Group as the Immediate Past Chairman.” [American Wood Council, 11/29/10]

National Federation of Independent Businesses

National Federation Of Independent Businesses Was Listed “Of Counsel” In The Case State Of West Virginia, State Of Texas v. United States Environmental Protection Agency. [States of West Virginia, Texas, et al. v. EPA, 1/27/16]

CNN: NFIB “Got More Money… From A Group Backed By… Charles And David Koch Than Any Other Single Source.” According to CNN, “The National Federation of Independent Business is one of the most influential small-business advocacy groups in the country. They battle against government regulation, higher taxes and, perhaps most famously, Obamacare. And they do it all as the self-described ‘voice of small business.’ But it turns out that the champions of Main Street America got more money last year from a group backed by billionaire industrialists Charles and David Koch than any other single source. NFIB and its affiliated groups received $2.5 million from Freedom Partners Chamber of Commerce, a conservative advocacy group with deep ties to the Koch empire. Of the five men that sit on the group’s board, four are current or former employees of Koch companies and one is a friend of Charles Koch’s.” [CNN, 11/21/13]

National Association of Manufacturers

National Association Of Manufacturers Was Listed “Of Counsel” In The Case State Of West Virginia, State Of Texas v. United States Environmental Protection Agency. [States of West Virginia, Texas, et al. v. EPA, 1/27/16]

Freedom Partners Contributed $1,170,000 To NAM In 2012. According to Freedom Partners Chamber of Commerce tax documents via Conservative Transparency, Freedom Partners contributed $1,170,000 to the National Association of Manufacturers in 2012. [Freedom Partners Chamber of Commerce Form 990 via Conservative Transparency, 2012]

 

Judges Ruling On The Case Have Koch Connections

The Cases Challenging The Plan Are Under Review By The U.S. Court Of Appeals For The District Of Columbia Circuit, With A Decision At That Level Expected In Fall 2016.According to SCOTUSblog, “The plan, designed to make sharp reductions in carbon pollution from the smokestacks of generating plants fueled by fossil sources, is now under review by the U.S. Court of Appeals for the District of Columbia Circuit.   It has put the case on an expedited schedule, with a hearing set for June 2.  However, it may not finish its ruling until this fall, and then either side may try to move the case on to the Supreme Court.” [SCOTUSBlog, 2/9/16]

SCOTUSblog: “The D.C. Circuit Will Review The Plan Before A Three-Judge Panel But… The Case Could Be Reheard By The Full Court Of Appeals Before Moving On To The Supreme Court.” According to SCOTUSBlog, “The D.C. Circuit will review the plan before a three-judge panel but, once the panel has ruled, the case could be reheard by the full court of appeals before moving on to the Supreme Court.” [SCOTUSBlog, 2/9/16]

The Case will Be Heard By Judges With Koch Ties

Judicial Conferences Have Been Billed As Educational Retreats But Have Drawn Scrutiny For How They Are Funded And Organized To Influence Judges. According to the Center for Public Integrity, “Judicial conferences are billed as educational retreats intended to improve judges’ understanding of the law and economics. Judges and seminar hosts say the conferences, which feature lectures and panel discussions, provide helpful information that refines their legal expertise. But they’ve long drawn scrutiny for how they are funded and organized. Since the 1990s, critics have complained that many of the privately funded conferences serve state and federal judges a steady dose of free-market, anti-regulation lectures that could influence judges’ rulings from the bench.” [Public Integrity, 5/27/14]

The Koch Brothers’ Events Were Political And Described As “Plans To Activate Citizens” And “Change The Balance Of Power In Congress This November.” According to the Tennessee Tribune, “What sets the Koch brothers’ meeting apart from, say, a speech to the Federalist Society, is that the event was transparently political. The Kochs’ own materials have described these gatherings as featuring ‘plans to activate citizens’ and to ‘change the balance of power in Congress this November,’ and bragged that past ‘participants committed to an unprecedented level of support.’ No reasonable person can doubt that this was a meeting with a fundamentally electoral purpose.” [Tennessee Tribune, 7/6/11]

Justices Clarence Thomas And Antonin Scalia Attended Koch Funded Conferences

Justices Clarence Thomas And Antonin Scalia Attended Political Strategy And Fund-Raising Conferences Hosted By The Koch Brothers. According to the Tennessee Tribune, “It’s clear, though, that voluntary compliance simply isn’t working anymore. Now, we have Justices Thomas and Antonin Scalia attending political strategy and fund-raising conferences hosted by the ultraconservative billionaire Koch brothers, and allowing their names to be used to draw attendees.” [Tennessee Tribune, 7/6/11]

United States Court Of Appeals For The DC Circuit Judge Marc Goldman Attended A Koch Sponosred Judicial Conference

2009: United States Court Of Appeals For The DC Circuit Judge Marc Goldman Attended A Koch Judicial Conference Sponsored By Koch Industries And The Charles Koch Charitable Foundation. According to the Center for Public Integrity, United States Court of Appeals for the DC Circuit Judge Marc Goldman attended the Economics Institute for Judges seminar in 2009. The seminar was funded by Koch Industries and the Charles Koch Charitable Foundation. [Public Integrity, 5/27/14]

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