As federal lawmakers head home to face voters over the August
congressional recess, energy companies are funding faux grassroots
citizen groups to help sway the fate of a landmark climate bill.
Advocates and opponents alike are funneling cash into groups
designed to rally at town halls and to "educate" voters.
For example, next Tuesday, "Americans for Prosperity" will give
balloon rides at the White River State Park in Indianapolis, Ind.,
as part of its "grassroots" "Hot Air Tour" across nearly a dozen
mid-western states.
"Cap-and-Trade means: lost jobs, higher taxes, less freedom,"
the balloon reads.
"We're targeting [U.S.] senators that we think can be
influenced, particularly in heartland energy and manufacturing
states," said Phil Kerpen, Americans for Prosperity's policy
director. Often through complex networks of lobbying firms,
industry associations and non-profit groups, dozens of companies
such as PG&E Corp. (PCG), Google Inc. (GOOG), Consol Energy Inc
(CNX), Exxon Mobil Corp. (XOM) and General Electric Co. (GE) are
funding so-called astroturf organizations. Companies stand to gain
or lose revenue and market share on the bill. For some, their
entire existence is hanging on the vote.
Astroturf groups, while meant to look, act and smell like
community groups, are primarily funded by corporations, trade
associations, political interests or public-relations firms.
"It's a third-party tactic," said Diane Farsetta, a senior
researcher at the Center for Media and Democracy. "These groups
directly mirror the concepts of the industry or lobbying arm," she
said. "They aren't as credible a messenger as citizens like Jane
Smith."
On Americans for Prosperity's Web site, the "Hot Air Tour" is
halfway through its donation goal of $500,000, and interested
voters can "stay informed...on what they can do to stop the high
cost of regulations."
The not-for-profit Americans For Prosperity receives much of its
funding from "ideological donors, foundations and corporations,"
said Kerpen. The chairman of its affiliate organization, Americans
For Prosperity Foundation (which unlike AFP can lobby politicians)
is David Koch, co-owner of one of the largest private companies in
the U.S., Koch Industries Inc. Among the conglomerate's revenue
earners are its refining, oil pipelines and chemical units -
including Koch Carbon, which trades and transports greenhouse-gas
intense products such as cement, coal, paper and petroleum
coke.
Joining together with the National Association of Manufacturers
and 10 other industry groups opposed to the climate bill, the
American Petroleum Institute this month founded "Energy Citizens"
to rally in 20 states across the U.S.
In an internal note to API members leaked to Dow Jones Newswires
by the environmental organization Greenpeace, API President Jack
Gerard warns members to "move aggressively in preparation for the
post-Labor Day debate on energy, climate and taxes."
It added: "The objective...is to put a human face on the impacts
of unsound energy policy and to aim a loud message at those states'
U.S. Senators."
Farsetta of the Center for Media and Democracy said that, while
there are certainly questions about the astroturfing groups'
transparency and potentially deceptive practices, they aren't
illegal.
"All we can do is to inform people," said Kerpen. "We don't
issue marching orders or pay them; they have to believe what
they're supporting."
And while the political momentum is with proponents of the
climate bill, they also have their own "community" groups designed
to fuel grassroots movements.
One of the largest is Repower America, which is funded by the
Alliance for Climate Protection and its lobbying arm, Climate
Protection Action Fund, chaired by former Vice President Al Gore.
Much of the funding comes from the renewable and clean-energy
holdings Gore has as a partner in venture-capital firm Kleiner
Perkins Caufield & Byers, or KPCB.
Another powerful campaign is the Apollo Alliance, "a coalition
of labor, business, environmental, and community leaders working to
catalyze a clean energy revolution," its Web site reads.
One of its biggest donors - contributing $100,000 and over - is
the Energy Foundation, which has received $50,000 from Google.
PG&E, a San Francisco-based utility, has donated between
$50,000 and $100,000 in 2008-2009. Other energy donors include
Gamesa Technology Corp. (GAM.MC), a Spanish wind-turbine
manufacturer, and BrightSource Energy, a private solar-power
firm.
Board members include Ellen Pao, a KPCB partner specializing in
clean energy tech, and Dan Reicher, a Google climate change and
energy executive.
Apollo Alliance spokesman Sam Haswell said his group, in the
last three to four months, has hired state coordinators for
Michigan, Ohio, Indiana and Missouri, where many legislators are
concerned the climate bill would harm their manufacturing
industries.
-By Ian Talley, Dow Jones Newswires; 202-862 9285;
ian.talley@dowjones.com;