Koch Network Took Credit for Dakota Access, Keystone XL and REINS Act, Leaked Memo Shows
By Steve Horn
A leaked memorandum published by The Intercept and Documented Investigations shows that a Koch Industries' donors network, known as the Seminar Network, has taken credit for Donald Trump approving the permits for both the Dakota Access and Keystone XL pipelines during the first months of his presidency.
The memo also applauded efforts by the Koch network's Americans for Prosperity (AFP) chapter in Wisconsin to pass a deregulatory measure there known as the REINS Act. The Seminar Network, which meets secretly twice a year, is made up of donors who give at least $100,000 toward Koch-led political and philanthropic efforts.
Koch Industries has a business interest in both pipelines, though their approval has not been something its funded network has widely discussed. Quietly, though, Koch has advocated for the pair of pipelines in regulatory hearings in both Iowa for Dakota Access—as previously reported by DeSmog—as well as in Canada, as reported in 2012 by InsideClimate News.
The REINS (Regulations from the Executive in Need of Scrutiny) Act, which GOP officials have been pushing in Congress since Obama's first term, passed as state law in Wisconsin in 2017. The law, long considered crown jewel legislation by the Koch front group AFP, gives legislative bodies full veto authority over regulations proposed by executive agencies. Conservative groups in Wisconsin already are using the law to sue the top state public education officer.
"State legislatures, particularly in states with a strong Network presence, have also made significant progress toward removing harmful and unnecessary regulations. For example, Wisconsin this year went so far as to enact the nation's first REINS Act, which will require legislative approval of any issued regulation that has an impact above a certain cost threshold," reads the Koch Seminar Network document.
The American Legislative Exchange Council, a corporate-funded group of mostly Republican Party state legislators, has a REINS Act model resolution on the books, which supports the federal version of this legislation. In 2017, six states introduced pro-REINS Act resolutions: Kansas, Montana, Missouri, Georgia, Ohio and South Carolina. ALEC—which brings corporate lobbyists and state legislators together at annual meetings for networking, seminars and voting on what it dubs "model policies" —maintains close connections with the Koch network.
Koch, KXL, DAPL Business Ties
Koch Industries also owns assets in a tar sands reservoir located in Alberta, Canada, both in the form of lease holdings for land and as a company with a drilling interest. For the latter, Koch owns Koch Oil Sands Operating, which has a drilling interest in both the Gemini and Muskwa tar sands fields in Alberta.
It also owns 1-2 million acres' worth of land (the exact number is contested) in the tar sands for prospective future leasing, according to a 2013 report published by the International Forum on Globalization. Keystone XL, the pipeline owned by TransCanada and approved by Trump and his U.S. Department of State in March 2017, would bring around 500,000 currently-booked barrels per day of tar sands oil from Alberta to Cushing, Oklahoma, where the pipeline connects with TransCanada's Gulf Coast Pipeline.
Gulf Coast, which was approved by President Barack Obama in a 2012 election season executive order, sends the tar sands bitumen down to Port Arthur, Texas, where the substance is refined into products and then sent to market.
International Forum on Globalization
Koch Industries even nearly testified at a 2012 hearing in support of its development of tar sands, before backing out after signing confidentiality agreements with impacted landowners. Much of the tar sands extracted in Alberta is refined at Koch's refinery in Pine Bend, Minnesota, which is owned by its subsidiary Flint Hills Resources and is the top refiner of tar sands in the U.S. at 223,000 barrels per day, as of 2013.
For Dakota Access, Koch also quietly came out in support of the pipeline via its front group, the 60 Plus Association, which purports to be a conservative alternative to the American Association of Retired Persons for seniors. Through intermediary groups, 60 Plus had received tens of millions of dollars from the Koch network.
Koch Industries has a direct tie to Dakota Access, through a storage terminal part-owned by its subsidiary Flint Resources and located in North Dakota's Bakken Shale basin. As DeSmog previously reported, this terminal, called the COLT Hub, feeds oil into the Dakota Access pipeline.
Back in 2015 when the pipeline was hotly contested in Iowa, a representative for 60 Plus testified on behalf of Dakota Access in front of the Iowa Utilities Board.
"The Dakota Access Pipeline Project is important to seniors for several reasons. High energy prices are disproportionately impacting America's low and fixed-income senior citizens today—citizens that often have limited financial resources with which to meet their needs," the 60 Plus representative testified in September 2015. "By helping the United States to better capitalize upon its growing domestic energy resources—and affordably transport these resources to market—the Dakota Access Pipeline will help to foster stability within energy markets nationwide, and improve the availability of affordable American produced crude oil."
60 Plus also began lobbying and campaigning on behalf of the Dakota Access as the protest movement grew against the pipeline at the Standing Rock Sioux Reservation in North Dakota. Around the same time those protests began in September 2016, 60 Plus deployed its chairman, Jim Martin, to begin lobbying Congress about Dakota Access. Martin also wrote an opinion piece that month supporting the pipeline for the publication Morning Consult.
"Whether it's heating or cooling your home or putting gas in your car, the cheaper the energy, the more economically stable your checkbook will be," wrote Martin. "The 60 Plus Association's 5.5 million members know this all too well. This is why as an organization that champions free enterprise and who have championed energy issues for seniors before, we strongly support the Dakota Access pipeline."
'Whole New Level'
In the 2018 election cycle, the Koch network plans to spend up to $400 million to keep the Republican majority in Congress and GOP control over statehouses nationwide.
"We've made more progress in the last five years than I had in the last 50," Charles Koch, one of the infamous petrochemical billionaire Koch brothers, said in January at a private Seminar Network meeting held in Indian Wells, California. "The capabilities we have now can take us to a whole new level."
Reposted with permission from our media associate DeSmogBlog.
By Michael Svoboda, Ph.D.
Despite a journey to this moment even more treacherous than expected, Americans now have a fresh opportunity to act, decisively, on climate change.
The authors of the many new books released in just the past few months (or scheduled to be published soon) seem to have anticipated this pivotal moment.
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By Katy Neusteter
The Biden-Harris transition team identified COVID-19, economic recovery, racial equity and climate change as its top priorities. Rivers are the through-line linking all of them. The fact is, healthy rivers can no longer be separated into the "nice-to-have" column of environmental progress. Rivers and streams provide more than 60 percent of our drinking water — and a clear path toward public health, a strong economy, a more just society and greater resilience to the impacts of the climate crisis.
Public Health<img lazy-loadable="true" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTUyNDY3MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2MDkxMTkwNn0.pyP14Bg1WvcUvF_xUGgYVu8PS7Lu49Huzc3PXGvATi4/img.jpg?width=980" id="8e577" class="rm-shortcode" data-rm-shortcode-id="1efb3445f5c445e47d5937a72343c012" data-rm-shortcode-name="rebelmouse-image" data-width="3000" data-height="2302" />
Wild and Scenic Merced River, California. Bob Wick / BLM<p>Let's begin with COVID-19. More than <a href="https://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html?name=styln-coronavirus&region=TOP_BANNER&block=storyline_menu_recirc&action=click&pgtype=LegacyCollection&impression_id=2f508610-2a87-11eb-8622-4f6c038cbd1d&variant=1_Show" target="_blank">16 million Americans</a> have contracted the coronavirus and, tragically,<a href="https://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html?name=styln-coronavirus&region=TOP_BANNER&block=storyline_menu_recirc&action=click&pgtype=LegacyCollection&impression_id=2f508610-2a87-11eb-8622-4f6c038cbd1d&variant=1_Show" target="_blank"> more than</a> <a href="https://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html?name=styln-coronavirus&region=TOP_BANNER&block=storyline_menu_recirc&action=click&pgtype=LegacyCollection&impression_id=2f508610-2a87-11eb-8622-4f6c038cbd1d&variant=1_Show" target="_blank">300,000 have died</a> due to the pandemic. While health officials encourage hand-washing to contain the pandemic, at least <a href="https://closethewatergap.org/" target="_blank">2 million Americans</a> are currently living without running water, indoor plumbing or wastewater treatment. Meanwhile, <a href="https://www.theguardian.com/us-news/2020/jun/23/millions-of-americans-cant-afford-water-bills-rise" target="_blank">aging water infrastructure is growing increasingly costly for utilities to maintain</a>. That cost is passed along to consumers. The upshot? <a href="https://research.msu.edu/affordable-water-in-us-reaching-a-crisis/" target="_blank">More than 13 million</a> U.S. households regularly face unaffordable water bills — and, thus, the threat of water shutoffs. Without basic access to clean water, families and entire communities are at a higher risk of <a href="https://www.americanprogress.org/issues/green/news/2020/08/05/488705/bridging-water-access-gap-covid-19-relief/" target="_blank">contracting</a> and spreading COVID-19.</p><p>We have a moral duty to ensure that everyone has access to clean water to help prevent the spread of the coronavirus. Last spring, <a href="https://nymag.com/intelligencer/2020/03/coronavirus-stimulus-bill-explained-bailouts-unemployment-benefits.html" target="_blank">Congress appropriated more than $4 trillion</a> to jumpstart the economy and bring millions of unemployed Americans back to work. Additional federal assistance — desperately needed — will present a historic opportunity to improve our crumbling infrastructure, which has been <a href="https://www.theguardian.com/us-news/2020/jun/23/millions-of-americans-cant-afford-water-bills-rise" target="_blank" rel="noopener noreferrer">grossly underfunded for decades</a>.</p><p>A report by my organization, American Rivers, suggests that <a href="https://s3.amazonaws.com/american-rivers-website/wp-content/uploads/2020/07/09223525/ECONOMIC-ENGINES-Report-2020.pdf" target="_blank" rel="noopener noreferrer">Congress must invest at least $50 billion</a> "to address the urgent water infrastructure needs associated with COVID-19," including the rising cost of water. This initial boost would allow for the replacement and maintenance of sewers, stormwater infrastructure and water supply facilities.</p>
Economic Recovery<p>Investing in water infrastructure and healthy rivers also creates jobs. Consider, for example, that <a href="https://tinyurl.com/y9p6sgnk" target="_blank">every $1 million spent on water infrastructure in the United States generates more than 15 jobs</a> throughout the economy, according to a report by the Value of Water Campaign. Similarly, <a href="https://tinyurl.com/yyvd2ksp" target="_blank">every "$1 million invested in forest and watershed restoration contracting will generate between 15.7 and 23.8 jobs,</a> depending on the work type," states a working paper released by the Ecosystem Workforce Program, University of Oregon. Healthy rivers also spur tourism and recreation, which many communities rely on for their livelihoods. According to the findings by the Outdoor Industry Association, which have been shared in our report, "Americans participating in watersports and fishing spend over <a href="https://s3.amazonaws.com/american-rivers-website/wp-content/uploads/2020/06/30222425/Exec-summary-ECONOMIC-ENGINES-Report-June-30-2020.pdf" target="_blank">$174 billion</a> on gear and trip related expenses. And, the outdoor watersports and fishing economy supports over <a href="https://s3.amazonaws.com/american-rivers-website/wp-content/uploads/2020/06/30222425/Exec-summary-ECONOMIC-ENGINES-Report-June-30-2020.pdf" target="_blank">1.5 million jobs nationwide</a>."</p><p>After the 2008 financial crisis, Congress invested in infrastructure to put Americans back to work. The American Recovery and Reinvestment Act <a href="https://thehill.com/blogs/congress-blog/economy-a-budget/25941-clean-water-green-infrastructure-get-major-boost" target="_blank">of 2009 (ARRA) allocated $6 billion</a> for clean water and drinking water infrastructure to decrease unemployment and boost the economy. More specifically, <a href="https://www.conservationnw.org/news-updates/us-reps-push-for-millions-of-restoration-and-resilience-jobs/" target="_blank" rel="noopener noreferrer">an analysis of ARRA</a> "showed conservation investments generated 15 to 33 jobs per million dollars," and more than doubled the rate of return, according to a letter written in May 2020 by 79 members of Congress, seeking greater funding for restoration and resilience jobs.</p><p>Today, when considering how to create work for the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" target="_blank" rel="noopener noreferrer">10.7 million</a> people who are currently unemployed, Congress should review previous stimulus investments and build on their successes by embracing major investments in water infrastructure and watershed restoration.</p>
Racial Justice<p>American Rivers also recommends that Congress dedicate <a href="https://s3.amazonaws.com/american-rivers-website/wp-content/uploads/2020/07/09223525/ECONOMIC-ENGINES-Report-2020.pdf" target="_blank" rel="noopener noreferrer">$500 billion for rivers and clean water over the next 10 years</a> — not just for the benefit of our environment and economy, but also to begin to address the United States' history of deeply entrenched racial injustice.</p><p>The <a href="https://www.epa.gov/npdes/sanitary-sewer-overflows-ssos" target="_blank" rel="noopener noreferrer">23,000-75,000 sewer overflows</a> that occur each year release up to <a href="https://www.americanrivers.org/2020/05/fighting-for-rivers-means-fighting-for-justice/#:~:text=There%20are%20also%2023%2C000%20to%2075%2C000%20sanitary%20sewer,to%20do%20with%20the%20mission%20of%20American%20Rivers." target="_blank" rel="noopener noreferrer">10 billion gallons of toxic sewage</a> <em>every day</em> into rivers and streams. This disproportionately impacts communities of color, because, for generations, Black, Indigenous, Latinx and other people of color have been <a href="https://www.scientificamerican.com/article/flooding-disproportionately-harms-black-neighborhoods/" target="_blank" rel="noopener noreferrer">relegated</a> to live in flood-prone areas and in neighborhoods that have been intentionally burdened with a lack of development that degrades people's health and quality of life. In some communities of color, incessant flooding due to stormwater surges or <a href="https://www.ajc.com/opinion/opinion-partnering-to-better-manage-our-water/7WQ6SEAQP5E4LGQCEYY5DO334Y/" target="_blank" rel="noopener noreferrer">combined sewer overflows</a> has gone unmitigated for decades.</p><p>We have historically treated people as separate from rivers and water. We can't do that anymore. Every voice — particularly those of people most directly impacted — must have a loudspeaker and be included in decision-making at the highest levels.</p><p>Accordingly, the new administration must diligently invest in projects at the community level that will improve lives in our country's most marginalized communities. We also must go further to ensure that local leaders have a seat at the decision-making table. To this end, the Biden-Harris administration should restore <a href="https://www.epa.gov/cwa-401#:~:text=Section%20401%20Certification%20The%20Clean%20Water%20Act%20%28CWA%29,the%20United%20States.%20Learn%20more%20about%20401%20certification." target="_blank">Section 401 of the Clean Water Act</a>, which was undermined by the <a href="https://earthjustice.org/news/press/2020/tribes-and-environmental-groups-sue-trump-administration-to-preserve-clean-water-protections#:~:text=Under%20Section%20401%20of%20the%20Clean%20Water%20Act%2C,seeks%20to%20undermine%20that%20authority%20in%20several%20ways%3A" target="_blank">Trump administration's 2020 regulatory changes</a>. This provision gives states and tribes the authority to decide whether major development projects, such as hydropower and oil and gas projects, move forward.</p>
Climate Resilience<p>Of course, the menacing shadow looming over it all? Climate change. <a href="https://media.ifrc.org/ifrc/wp-content/uploads/2020/11/IFRC_wdr2020/IFRC_WDR_ExecutiveSummary_EN_Web.pdf" target="_blank">More than 100 climate-related catastrophes</a> have pummeled the Earth since the pandemic was declared last spring, including the blitzkrieg of megafires, superstorms and heat waves witnessed during the summer of 2020, directly impacting the lives of more than <a href="https://media.ifrc.org/ifrc/wp-content/uploads/2020/11/IFRC_wdr2020/IFRC_WDR_ExecutiveSummary_EN_Web.pdf" target="_blank">50 million people globally</a>.</p><p>Water and climate scientist Brad Udall often says, "<a href="https://www.youtube.com/watch?v=xQhpj5G0dME" target="_blank">Climate change is water change</a>." In other words, the most obvious and dire impacts of climate change are evidenced in profound changes to our rivers and water resources. You've likely seen it where you live: Floods are more damaging and frequent. Droughts are deeper and longer. Uncertainty is destabilizing industry and lives.</p><p>By galvanizing action for healthy rivers and managing our water resources more effectively, we can insure future generations against the consequences of climate change. First, we must safeguard rivers that are still healthy and free-flowing. Second, we must protect land and property against the ravages of flooding. And finally, we must promote policies and practical solutions that take the science of climate disruption into account when planning for increased flooding, water shortage and habitat disruption.</p><p>Imagine all that rivers do for us. Most of our towns and cities have a river running through them or flowing nearby. Rivers provide clean drinking water, irrigate crops that provide our food, power our homes and businesses, provide wildlife habitat, and are the lifeblood of the places where we enjoy and explore nature, and where we play and nourish our spirits. Healthy watersheds help <a href="https://news.un.org/en/story/2020/03/1059952" target="_blank" rel="noopener noreferrer">mitigate</a> climate change, absorbing and reducing the amount of carbon in the atmosphere. Healthy rivers and floodplains help communities adapt and build resilience in the face of climate change by improving flood protection and providing water supply and quality benefits. Rivers are the cornerstones of healthy, strong communities.</p><p>The more than <a href="https://archive.epa.gov/water/archive/web/html/index-17.html" target="_blank" rel="noopener noreferrer">3 million miles</a> of rivers and streams running across our country are a source of great strength and opportunity. When we invest in healthy rivers and clean water, we can improve our lives. When we invest in rivers, we create jobs and strengthen our economy. When we invest in rivers, we invest in our shared future.</p>
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