New Koch Front Group Joins Their Hypocritical Crusade Against Electric Cars

August 16, 2016

The Koch brothers’ crusade against renewable energy and the electric vehicle continued this weekend with the announcement of the “Fueling U.S. Forward” group. At the Red State Gathering, Charles Drevna, the group’s president and CEO, spoke about the Kochs’ latest initiative:

“We need a sustainable energy to ensure the future of the country,” Mr. Drevna told the audience.

The source of that energy? That which Mr. Drevna labeled “reliable, abundant, efficient and sustainable fuels.”

“Folks, that’s of course the fossil fuels,” he immediately added.

Apparently there was a distinct absence of dictionaries when Drevna wrote his speech as he was unable to correctly use “sustainable” in a sentence.

Drevna previously worked for the Koch-funded Institute For Energy Research as a distinguished senior fellow. The president of the newest Koch front group also told the Red State crowd that he wasworking directly with Koch Industries Board Member James Mahoney and that Koch Industries gave “Fueling U.S. Forward” money.

The Kochs’ work to kill the electric car as well as sustainable energy sources like wind and sun with regulations that hurt the industries and help big oil, is a perfect example of the hypocrisy at the billionaires’ cores. They love to say they believe in “good profit,” but in reality, they only believe in their profit.

Background:

February 2016: Koch Industries Sought To Create An Advocacy Group For Fossil Fuels & Attack Subsidies For Electric Vehicles

Jim Mahoney, A Koch Industries Board Member, And A Washington Lobbyist Sought To Launch A $10 Million Advocacy Group To “Boost Petroleum-Based Transportation Fuels And Attack Government Subsidies For Electric Vehicles.” According to the Huffington Post, “A new group that’s being cobbled together with fossil fuel backing hopes to spend about $10 million dollars per year to boost petroleum-based transportation fuels and attack government subsidies for electric vehicles, according to refining industry sources familiar with the plan. A Koch Industries board member and a veteran Washington energy lobbyist are working quietly to fund and launch the new advocacy outfit. […] James Mahoney, a confidante of the brothers and member of their company’s board, has teamed up with lobbyist Charlie Drevna, who until last year helmed the American Fuel and Petrochemical Manufacturers, for preliminary talks with several energy giants about funding the new pro-petroleum fuels group.” [Huffington Post, 2/18/16]

  • Mahoney: Bill Gates And Anyone Else Who Says “That Fossil Fuels Shouldn’t Play A Major Role In Our Energy Future Is Wrong. For Most People In The World…Fossil Fuels Are The Very Best Option For Creating A Better Life.” According to an op-ed by Jim Mahoney for Fortune, “Bill Gates is right when he says, ‘Without access to energy, the poor are stuck in the dark, denied all of the economic, social, and health benefits that come with power. So if we really want to help the world’s poorest families, we need to find a way to get them access to energy they can afford.’ But anyone who says (Gates included) that fossil fuels shouldn’t play a major role in our energy future is wrong. For most people in the world, particularly the least advantaged, fossil fuels are the very best option for creating a better life.” [Jim Mahoney – Fortune, 3/7/16]

Industry Sources Predicted That The Group Would Be Operational In The Spring Or Summer Of 2016

Industry Sources Predicted That The Group Would Be Operational In The Spring Or Summer Of 2016. According to the Huffington Post, “It’s not clear when the still-unnamed group will be launched, but energy industry sources predict it’s likely to be up and running by this spring or summer, and that Koch Industries — or a Koch foundation or allied nonprofit — will be the lead financier.” [Huffington Post, 2/18/16]

The Group’s Possible Leadership Gave The Impression It Was Being Driven By Koch Industries Business Side, Rather Than Its Political Operations

Refining Industry Source: “‘The Fact That Jim Mahoney Is Leading The Effort Appears To Indicate That This Is Being Driven By The Business Side Of Koch,’ Rather Than The Political Operation That Helps Oversee The Brothers’ Conservative Advocacy Empire.” According to the Huffington Post, “‘The fact that Jim Mahoney is leading the effort appears to indicate that this is being driven by the business side of Koch,’ rather than the political operation that helps oversee the brothers’ conservative advocacy empire, said one refining industry source familiar with the early plans for the new group.” [Huffington Post, 2/18/16]

After Their Plans Were Reported On, Koch Industries Tried To Walk Back Some Of Their Opposition To Electric Vehicles

Koch Industries Representatives: We Do Not Oppose Electric Vehicles Or Specific Forms Of Energy…

Koch Industries Spokesperson Philip Ellender: “Koch Industries Does Not Oppose Electric Vehicles…What We Oppose Is Government Subsidizing And Mandating A Particular Form Of Energy Over Another.” According to The Washington Post, “‘Koch Industries does not oppose electric vehicles,’ said Philip Ellender, a spokesman for the company. ‘What we oppose is government subsidizing and mandating a particular form of energy over another. We oppose all subsidies – even for those industries in which we participate.’” [The Washington Post, 2/19/16]

Koch Industries Board Member Jim Mahoney: “Koch Industries Does Not Oppose Electric Vehicles, Nor Is It Trying To Prevent New Energy Businesses Or Technologies From Succeeding.”According to an op-ed by Jim Mahoney for Fortune, “Green-energy proponents often claim that petroleum businesses are hostile to new and innovative energy sources and technologies. As a large company with business and financial interests in petroleum, Koch Industries is no stranger to such criticism. The truth is, however, that Koch Industries does not oppose electric vehicles, nor is it trying to prevent new energy businesses or technologies from succeeding.” [Jim Mahoney – Fortune, 3/7/16]

Mahoney: “There Is Value In All Forms Of Energy, Including Wind, Solar, Oil, Gas, And Everything In Between” Which Is Why Koch Industries Invests In Many Of These Technologies.According to an op-ed by Jim Mahoney for Fortune, “There is value in all forms of energy, including wind, solar, oil, gas, and everything in between. (That’s why Koch invests in quite a number of them already, including renewable fuels like ethanol and biodiesel.) Any product or service that helps people improve their lives through voluntary and cooperative transactions is a win-win and benefits everyone involved.” [Jim Mahoney – Fortune, 3/7/16]

…But We Oppose Energy Subsidies Even Though We Benefit From Them

Mahoney: Koch Industries Opposes Government Subsidies For Any Type Of Energy Because It Is Corporate Welfare That Artificially Props Up Businesses. According to an op-ed by Jim Mahoney for Fortune, “What Koch Industries opposes is the government subsidizing or mandating one form of energy over another. This includes oil and other fossil fuels—as well as ethanol—because they distort markets and harm Americans by increasing energy costs. (Koch opposes all market-distorting policies, including subsidies and mandates—even if they may benefit the company.) These subsidies and mandates often prop up companies and industries that would otherwise fail, and this is precisely the type of corporate welfare that has become all too common in today’s political system.” [Jim Mahoney – Fortune, 3/7/16]

Mahoney: “To Be Fair, The Fossil Fuel Industry…Has Benefitted From Market-Distorting Policies.” According to an op-ed by Jim Mahoney for Fortune, “To be fair, the fossil fuel industry (like many others) has benefitted from market-distorting policies. The problem is that continuing these politically driven provisions only rigs the system further. Consumers should be free to choose for themselves the best source of energy to meet their needs, but at its market price and without the influence of subsidies or mandates.” [Jim Mahoney – Fortune, 3/7/16]

Mahoney: Federal Tax Credits For Electric And Hybrid Vehicles Were Examples Of “Welfare For The Wealthy.” According to an op-ed by Jim Mahoney for Fortune, “Another sobering example is the $7,500 federal tax credit for all-electric and plug-in hybrid vehicles. (Similar credits exist in a few states, such as California.) This is a clear example of welfare for the wealthy. According to a 2015 study by researchers at the University of California, Berkeley, about 90% of credit beneficiaries are people in the top income bracket. Why are taxpayers being forced to subsidize the lifestyle choices of the wealthiest 20%?”[Jim Mahoney – Fortune, 3/7/16]

Koch Industries Opposed The Growth Of Electric Vehicles Because It Might Hurt Their Profits

Former EPA Director Of The Office Of Transportation Air Quality Margo T. Oge: “Foremost Among Those Opposing The Growth” Of Electric Vehicles “Are Charles And David Koch.”According to an op-ed by former EPA Director of the Office of Transportation Air Quality Margo T. Oge for the Huffington Post, “Foremost among those opposing the growth of EVs [Electric Vehicles] are Charles and David Koch. The petroleum industry billionaires have well-known anti-environmental credentials. They’ve thrown small fortunes to fund scientists attempting to discredit climate change. They have supported numerous efforts to gut legislative efforts aimed at reducing greenhouse gas emissions. Now, top associates of the Kochs are quietly rallying other petroleum interests to attack government subsidies to EVs. How serious are they? Extremely. This group may spend up to $10 million a year on this anti-EV effort, according to a refining industry insider.” [Margo T. Oge – Huffington Post, 5/26/16]

Oge: The Kochs Are Motivated To Add Electric Vehicles To Their Anti-Environment Portfolio Because They Believe The Technology Will Hurt Their Petroleum Profits. According to an op-ed by former EPA Director of the Office of Transportation Air Quality Margo T. Oge for the Huffington Post, “An effort to shut down electric vehicle technology fits right in with the Kochs’ anti-environmental portfolio. But it also seems out of proportion to the technology’s tiny sales footprint. What makes are EVs such an urgent threat? Why expend substantial amounts of effort and money to stomp out the technology? There can only be one answer. The Kochs must think that electric vehicles sales will take a bite out of petroleum profits in the near term.” [Margo T. Oge – Huffington Post, 5/26/16]

August 2016: The Koch-Backed “Fueling U.S. Forward” Group Debuted

In August 2016, The Koch Industries Backed Campaign To Rebrand Fossil Fuels Called Fueling U.S. Forward Debuted At The Red State Gathering. According to DeSmog, “A long-awaited campaign to rebrand fossil fuels called Fueling U.S. Forward made its public debut at the Red State Gathering 2016 on Saturday, where the organization’s President and CEO Charles Drevna gave attendees the inside scoop on the effort, and confirmed that the campaign is backed financially by Koch Industries.” [DeSmog, 8/14/16]

The Group Pushes A Pro-Fossil Fuels PR Campaign

Charles Drevna: “We Need A Sustainable Energy To Ensure The Future Of The Country,’ Mr. Drevna Told The Audience. The Source Of That Energy? Folks, That’s Of Course The Fossil Fuels.” According to DeSmog, “‘We need a sustainable energy to ensure the future of the country,’ Mr. Drevna told the audience. The source of that energy? What Mr. Drevna labeled ‘reliable, abundant, efficient and sustainable fuels.’ ‘Folks, that’s of course the fossil fuels,’ he immediately added.” [DeSmog, 8/14/16]

  • Charles Drevna Was The President And CEO Of Fueling U.S. Forward. According to DeSmog, “A long-awaited campaign to rebrand fossil fuels called Fueling U.S. Forward made its public debut at the Red State Gathering 2016 on Saturday, where the organization’s President and CEO Charles Drevna gave attendees the inside scoop on the effort, and confirmed that the campaign is backed financially by Koch Industries.” [DeSmog, 8/14/16]

Drevna: “We’ve Got To Take This To The Emotional And Personal Level. Oil And Natural Gas, They’re Not The Fuels Of The Past And Maybe The Present Or A Necessary Evil, They Are The Future.” According to DeSmog, “For its part, Fueling US Forward wants to talk not about statistics, facts and figures, but to reach people’s emotions. ‘We’ve got to take this to the emotional and personal level,’ Mr. Drevna, a former D.C. lobbyist and Sunoco executive, told the crowd. ‘Oil and natural gas, they’re not the fuels of the past and maybe the present or a necessary evil, they are the future.’” [DeSmog, 8/14/16]

The Group Confirmed That It Was Working With A Koch Industries Board Member And Had Received Money From The Company

Drevna Confirmed That He Was Working With Koch Industries Board Member James Mahoney And That Fueling U.S. Forward Had Received Funding From Koch Industries. According to DeSmog, “Mr. Drevna’s new organization appears largely focused on the first half of that equation. Asked after his talk if Fueling U.S. Forward planned to campaign against electric vehicles, Mr. Drevna said that his organization was focused on the positives of fossil fuels. He confirmed that he was working with Mr. [Koch Industries board member, James] Mahoney and that Fueling U.S. Forward had indeed received funding from Koch Industries.” [DeSmog, 8/14/16]

The Group’s President & CEO Previously Worked For The Koch Funded Institute For Energy Research

In May Of 2015, Charles Drevna Became A Distinguished Senior Fellow At The Institute For Energy Research. According to the Institute for Energy Research, “Today, the Institute for Energy Research announced that Charles T. Drevna is joining the organization as a Distinguished Senior Fellow. Drevna will advise IER on a variety of energy topics, particularly fuel and refining issues.” [Institute for Energy Research, 5/26/15]

  • Drevna Was Previously The President Of The American Fuel & Petrochemical Manufacturers Trade Association. According to the Institute for Energy Research, “Drevna comes to IER with more than 40 years of experience in legislative, regulatory, and public policy issues involving energy and the environment. Most recently, he served as President of the American Fuel & Petrochemical Manufacturers, the national trade association representing 98 percent of U.S. refining capacity, a position he had held since 2007.” [Institute for Energy Research, 5/26/15]

Between 1991 And 2014, Koch Connected Groups Gave At Least $1,074,628 To The Institute For Energy Research. According to Conservative Transparency, between 1991 and 2014, Koch connected groups gave at least $1,074,628 to the Institute for Energy Research. This information is further detailed in the following table:

Year DonorsTrust Recipient Contribution
2014 Charles G. Koch Charitable Foundation Institute for Energy Research $23,628
2012 DonorsTrust Institute for Energy Research $64,000
2012 DonorsTrust Institute for Energy Research $30,000
2012 Charles G. Koch Charitable Foundation Institute for Energy Research $5,000
2010 DonorsTrust Institute for Energy Research $350,000
2008 DonorsTrust Institute for Energy Research $300,000
2007 Claude R. Lambe Charitable Foundation Institute for Energy Research $125,000
2007 DonorsTrust Institute for Energy Research $65,000
2006 Claude R. Lambe Charitable Foundation Institute for Energy Research $25,000
2005 Claude R. Lambe Charitable Foundation Institute for Energy Research $25,000
2004 Claude R. Lambe Charitable Foundation Institute for Energy Research $15,000
2003 Claude R. Lambe Charitable Foundation Institute for Energy Research $10,000
2002 Claude R. Lambe Charitable Foundation Institute for Energy Research $25,000
2001 Claude R. Lambe Charitable Foundation Institute for Energy Research $2,500
1999 Claude R. Lambe Charitable Foundation Institute for Energy Research $2,500
1998 Claude R. Lambe Charitable Foundation Institute for Energy Research $2,500
1997 Claude R. Lambe Charitable Foundation Institute for Energy Research $2,500
1991 Charles G. Koch Charitable Foundation Institute for Energy Research $2,000
Total $1,074,628

Paid for by American Bridge 21st Century Foundation