Will Koch Pull the Plug on Electric Cars?
By Elliott Negin
When multibillionaire industrialist Charles Koch perceives a potential threat to his fossil fuel empire, he doesn't mess around.
To undercut the burgeoning wind industry, Koch's network of advocacy groups, think tanks and Capitol Hill friends fought to terminate the federal production tax credit, and Congress ultimately agreed in 2015 to phase it out over the following four years.
To slow the exponential growth of solar power, his network has been lobbying state legislatures to curtail the practice of net metering, which gives solar panel owners credit for the excess energy they generate and send back to the grid.
Now Koch wants to kill a federal income tax credit of up to $7,500 for electric vehicle (EV) buyers for the first 200,000 EVs each automaker sells. Although EVs make up less than 2 percent of total vehicle sales nationally, 123,000 of them were snapped up in the first six months of this year, more than twice the amount sold in all of 2015, and more carmakers are expected to introduce new EV models over the next few months. Alarm bells are going off at Koch Industries headquarters.
Last year, the initial draft of the House Republican tax reform bill included a provision terminating the EV tax credit, but it survived in the final, end-of-the-year tax package President Trump signed in December. This year's tax-break-extenders bill finds the Koch network back at work to block the EV tax credit, and it got a boost this week from White House chief economic adviser Larry Kudlow, who said the Trump administration wants to end EV subsidies.
A Fight Looms
The rationale behind the tax credit, which Congress passed in 2009, is to create a stable market for EVs much in the same way government policies helped the gasoline-hybrid market grow. Congress has a long history of providing tax breaks to help emerging and established industries alike, and EVs are a natural candidate because auto industry entry barriers are steep, and electrifying the U.S. transportation sector is one of the most important steps the country can take to address global warming.
The battle over the EV tax credit's future is expected to play out before Congress adjourns for the holidays. Leading the fight in favor of the tax credit is Sen. Jeff Merkley (D-Ore.), who introduced a bill in mid-September that would remove the 200,000-unit cap—which Tesla has already hit—and extend the credit until 2028. Rep. Peter Welch (D-Vt.) introduced the same bill in the House.
Meanwhile, Sen. Dean Heller (R-Nev.) and Rep. Diane Black (R-Tenn.) introduced a pair of bills in mid-October that would eliminate the 200,000 sales cap but begin to phase out the credit in 2022. That would still help out Tesla, which built an electric car battery factory in Nevada, and Nissan, which manufactures its Leaf EV in Tennessee.
On the other side: Sen. John Barrasso (R-Wyo.), House Ways and Means Chairman Kevin Brady (R-Texas), other strategically placed Republicans, and at least 20 advocacy groups—all making the same specious arguments, and all beneficiaries of Koch largesse.
In early October, Barrasso introduced a bill in the Senate that would not only eliminate the EV tax credit, but also slap EV owners with a user fee that would go to the Highway Trust Fund, which is financed by the federal gasoline tax. Koch Industries has been one of the senator's top 10 supporters since 2013, donating $45,400 to his campaign and leadership political action committees.
Before the EV tax credit gets to a floor vote as a part of a tax-extender package, it has to go through the Senate Finance Committee and the House Ways and Means Committee, and Charles Koch has cultivated a critical mass of friends on both. Since 2013, Koch Industries has given $253,600 to 11 of the 14 Republicans on the Senate committee and $374,000 to 21 of the 24 Republicans on the House committee, including Chairman Brady. (The company gave nothing to the 13 Democrats on the Senate committee and only $1,030 combined to two of the 16 Democrats on the House committee.)
Koch-Funded Groups—and Koch Industries—Enter the Fray
Three weeks before Barrasso introduced his bill, 30 seemingly independent, self-described free-market organizations signed a letter to Brady urging Congress to either retain the cap on the first 200,000 EVs sold—which would penalize U.S. automakers Tesla and General Motors for selling more EVs than their Asian and European counterparts—or just "eliminate the tax credit entirely, as the House proposed in last year's tax bill."
But it turns out that they are not true free-market groups at all. Yes, they argue that the government shouldn't subsidize any energy technologies, but they confine their objections to tax breaks for clean energy alternatives, claiming all the while that the oil and gas industry receives no subsidies. In fact, since 1918, permanent oil and gas tax breaks and other subsidies have averaged $4.86 billion per year in 2010 dollars, according to a 2011 study by investment firm DBL Partners. Taking inflation into account, that amounts to an average of $5.62 billion today.
Why would free-marketeers make such an exception?
Perhaps because they get significant funding from fossil fuel interests, most notably Charles Koch, whose privately held Koch industries owns three oil refineries, thousands of miles of oil and gas pipelines, and bulk coal delivery services. These think tanks and advocacy groups essentially function as public relations arms of their benefactors, representing their interests under the guise of being neutral, albeit conservative, policy shops.
Consider the group that organized the anti-EV tax credit letter: the American Energy Alliance. AEA is the political lobbying arm of the Institute for Energy Research, and the president of both groups is Thomas J. Pyle, a former lobbyist for Koch Industries and the National Petrochemical and Refiners Association. Between 2012 and 2016, Koch foundations gave $8.9 million to the groups—which together employ only a dozen people—and in previous years, ExxonMobil and the American Petroleum Institute were among their patrons.
Like AEA, 15 of the other 29 organizations that signed Pyle's letter, including Americans for Prosperity, Americans for Tax Reform, Competitive Enterprise Institute and Heritage Action—the Heritage Foundation's political lobbying arm—are Koch grantees, collectively receiving $142.6 million over the same five-year time period. And two other groups on the letter—the National Black Chamber of Commerce and Taxpayers Protection Alliance—got AEA grants in 2015. Including those two, at least 18 of the 30 signatories are known cogs in the Koch network.
Koch Industries itself weighed in on Oct. 24, when company lobbyist Philip Ellender sent a letter to members of Congress opposing the Heller and Black bills that would extend EV tax credits for four more years and eliminate the 200,000-unit cap. "Congress should not be in the business of picking winners and losers by subsidizing one form of energy over others," Ellender wrote, "regardless of its source." Left unsaid, of course, is the bogus Koch World claim that oil and gas industry tax breaks are not subsidies.
Koch-Funded Think Tanks Provide Deceptive Arguments
If direct funding of politicians and advocacy groups weren't enough, Koch foundations also underwrite the libertarian think tanks that produced the studies cited by Barrasso, Pyle and Ellender to make their case: the Pacific Research Institute, which received $200,000 from Koch funds between 2012 and 2016, and the Manhattan Institute, which received $954,500 in Koch grants and another $535,000 from ExxonMobil over that same five-year period. The two studies' spurious arguments are that the EV tax credit largely benefits wealthier Americans and reduces U.S. tax revenue, and that the internal combustion engine-powered cars are as clean as EVs.
The Pacific Research Institute study found that nearly 80 percent of EV tax credits in 2014 went to households with an adjusted gross income of at least $100,000 and more than half went to households with adjusted income levels of at least $200,000. What the study failed to mention, however, is the fact that upper-income Americans are generally the only ones who can afford to buy any kind of new vehicle, whether electric, hybrid or gasoline-powered. As a 2018 study by the National Center for Sustainable Transportation pointed out, the average income of households buying new cars in 2012 was $119,400; accounting for inflation, that would equal an average annual income of $131,000 today.
The Pacific Research Institute study also ignores the fact that some EVs are a relative bargain, and the federal tax credit makes them even more so. The average price of a new vehicle across the country in January of this year was $36,270. The tax credit reduces the cost of a 2018 Nissan Leaf to $22,490 and a 2018 Chevy Bolt to less than $30,000, making these two EVs more affordable options for middle-income households.
The Manhattan Institute study, meanwhile, argues that the EV tax credit is cheating the U.S. Treasury out of tax revenue. Last year, the EV tax credit amounted to $670 million. Compare that to the lost tax revenue in 2014 from the oil and gas industry's permanent tax breaks, which totaled $4.7 billion.
Unlike many of the other Koch-funded groups, the Manhattan Institute grudgingly concedes that the oil and gas industry indeed gets tax breaks, but insists that those subsidies provide consumers a "tangible benefit" by reducing the retail cost of oil and gas. In other words, it's fine for the government to pick winners and losers as long as it picks your preferred subsidy recipient.
EVs Significantly Cleaner Than Gas Engines
The Manhattan Institute study also makes the ludicrous claim that new internal combustion engines emit next to no pollutants while EVs, which are powered by the electricity grid, likely produce more pollution and will not significantly reduce carbon emissions.
Experts at the Rocky Mountain Institute, a truly independent energy think tank, posted a thorough take-down of the Manhattan Institute report last July. In a nutshell, they found that it used "flawed methodology and flawed assumptions" when comparing monetary damages associated with sulfur dioxide, nitrogen oxides and particulate matter from EVs and internal combustion vehicles and completely ignored the damages associated with carbon dioxide emissions. "A methodology that accurately accounts for all emissions," they concluded, "results in a dramatically different result."
"Nonpartisan institutions, including the Union of Concerned Scientists (UCS) and the Electric Power Research Institute, have published accurate and reliable studies of these questions that found the opposite of what [the Manhattan Institute report] concludes," they added, "as have others cited by the Energy and Policy Institute."
In fact, according to UCS Senior Engineer Dave Reichmuth, 75 percent of Americans live in areas where an EV is cleaner than a gasoline-powered car that gets 50 miles per gallon, and the carbon emissions from an average EV sold in the United States this year are equivalent to that of gas-powered car that gets 80 MPG. "And the good news," he says, "is EVs will only get cleaner as the U.S. electricity grid adds more renewable energy."
Will the EV Tax Credit Survive?
The Koch network is working overtime to pull the plug on the emerging electric car market, but the momentum is not in its favor.
Demand for EVs is growing. An AAA survey published this spring found that 50 million Americans will likely buy an EV for their next car, 5 percent more than in 2017.
The supply of EVs is growing as well. The number of available EV models jumped from only two in 2010 to more than 40 today.
Sticker price, as with any vehicle purchase, remains a sticking point. Falling manufacturing costs, aided by the EV tax credit, are already starting to help. The cost of an EV battery, for example, plummeted 80 percent between 2010 and 2017 and will become even cheaper as more automakers ramp up electric vehicle production. And EVs have built-in cost advantages over internal combustion cars: They are much cheaper to maintain—and they save owners a ton on gas. Keeping the EV tax credit in place for another decade and removing the 200,000-unit cap would certainly help ensure that EVs can become cost-competitive with gas vehicles.
Finally, Tesla, Nissan and General Motors—which manufacture EVs in California and Nevada, Tennessee, and Michigan, respectively—as well as Ford and Fiat-Chrysler will be pressed to compete with automakers in Asia and Europe that are getting significant support from their governments to go electric. Encouraging EV sales here at home may threaten Charles Koch's fossil fuel empire, but retaining the EV tax credit will not only help combat climate change, it will fortify the U.S. auto industry, which—even with the recent layoffs at General Motors—still employs more than 2 million people.
Danya Abdel Hameid provided research assistance for this article. Koch grant data came from the following Koch-controlled foundations' 990 tax forms (which can be found at ProPublica's Nonprofit Explorer and the Foundation Center's 990 Finder): American Encore, Charles Koch Foundation, Claude R. Lambe Charitable Foundation, and Freedom Partners Chamber of Commerce. Campaign contribution data came from the Center for Responsive Politics website, opensecrets.org.
EcoWatch Daily Newsletter
By Zahida Sherman
Cooking has always intimidated me. As a child, I would anxiously peer into the kitchen as my mother prepared Christmas dinner for our family.
Falling in Love With Food All Over Again<p>Slowly, through my most intimate relationships with friends and partners, I began to see the beauty — and rewards — of cooking.</p><p>I got tired of giving in to defeat and always bringing chips or paper products to social gatherings. I started asking my mom to send me her Christmas and Thanksgiving recipes. I even volunteered to host Thanksgiving dinner at my place.</p><p>Each time I heard my loved ones sing the praises of the foods I prepared for them, I felt a tinge more confident that I could carry out our traditions my way.</p><p>In reaching out to other relatives for their favorite recipes, I learned that they had a little help of their own. They didn't rely solely on their ancestral cooking instincts. They turned to Black chefs for guidance.</p><p>These 7 cookbooks by Black chefs have inspired my family and fed us in nutrients, joy, and spiritual sustenance. They're also helping me overcome my personal fears of cooking.</p>
Get CookingWhether you're in recovery from cooking fears like me, or are just looking to expand your culinary confidence with dishes honoring Black heritage, these Black chefs are here to support you on your journey.Turn on some music, give yourself permission to make mistakes, and throw down for yourself or your loved ones. Glorious flavors await you.
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By Tara Lohan
The conclusion to decades of work to remove a dam on the Middle Fork Nooksack River east of Bellingham, Washington began with a bang yesterday as crews breached the dam with a carefully planned detonation. This explosive denouement is also a beginning.
The History<p>The Middle Fork Nooksack drains glacier-fed headwater streams that run off the icy summit of 10,778-foot Mt. Baker. The Middle Fork joins the North Fork and then the mainstem of the Nooksack River, which travels to Bellingham Bay and Puget Sound. The entire Nooksack watershed stretches 830 square miles across Washington and into British Columbia.</p>
A Plan Comes Together<p>The Middle Fork dam is not a pool dam built for water storage. Much of the time, water flows over the top until dam operators drop a floodgate to divert water to new locations. That water travels about 14 miles through tunnel and pipeline to Mirror Lake, then Anderson Creek, and to Lake Whatcom before finally being delivered to residents' taps.</p><p>Before removing the dam, engineers had to move the water intake 700 feet upstream and situate it at an elevation that still enabled city water withdrawals throughout the year, regardless of flow conditions.</p><p>They also needed to make sure that the rushing water didn't sweep up fish and accidentally send them through the water-supply system.</p><p>"The solution required a fairly complex design in the intake structure, including a fish exit pipe out of that structure to put fish back into the river in a way that meets current environmental permit standards," explains LaCroix.</p>
Project layout for the removal of the Middle Fork Nooksack diversion dam and rebuilding of water intake. City of Bellingham<p>Despite the cost and the work, she says, being able to continue to meet their municipal water obligations while opening up habitat for threatened species has been a win-win.</p><p>"I think there's a lot of benefits to having a dam removal versus fish passage — the main one being that you get a free-flowing river that can be a dynamic ecosystem and change over time," she says. "A static fish ladder just can't provide that same level of ecosystem benefit."</p>
Restoration Success<p>Despite local authorities' championing dam removal on the Middle Fork, the project has largely flown under the radar, overshadowed in the Pacific Northwest by heated discussions about a much larger potential project — removing <a href="https://www.seattletimes.com/seattle-news/feds-reject-removal-of-4-snake-river-dams-in-key-report/" target="_blank">four federal hydroelectric dams on the lower Snake River</a>, a major tributary of the Columbia River.</p><p>Proponents of dam removal there see it as the best chance for recovering threatened salmon populations, including Chinook, which could help starving Southern Resident killer whales. Those dams also provide irrigation water, barge navigation and hydropower, so there's been more pushback against removal efforts.</p><p>Previous dam removals around the country, however, have proved successful at aiding fish recovery and river restoration.</p><p>Most notably the 1999 demolition of <a href="https://therevelator.org/edwards-dam-removal/" target="_blank">Edwards Dam on Maine's Kennebec River</a> restored the annual run of alewives, a type of herring essential to the food web. The fish run has gone from zero to 5 million in the two decades since dam removal. Blueback herring, striped bass, sturgeon and shad have also extended their reach. And the resurgence has brought back osprey, bald eagles and other wildlife, too.</p><p>The overwhelming success of river restoration on the Kennebec helped to spur a nationwide dam removal movement that's now seen 1,200 dams come down since 1999. Last year a record <a href="https://www.americanrivers.org/conservation-resource/a-record-26-states-removed-dams-in-2019/" target="_blank">90 dams</a> were removed in 26 states, including <a href="https://therevelator.org/cleveland-forest-dam-removal/" target="_blank">20 dams in California's Cleveland National Forest</a>.</p>
Spider excavators remove on dam on San Juan Creek in California's Cleveland National Forest. Julie Donnell, USFS<p>The results have been seen in the Pacific Northwest, as well, which boasts the largest dam removal thus far in the country. In 2011 and 2014, the demolition of <a href="https://therevelator.org/elwha-dam-removal/" target="_blank">two dams</a> on Elwha River, which runs through Washington's Olympic National Park, opened up 70 miles of habitat that had been blocked for a century. Scientists have started seeing all five species of salmon native to the river coming back, particularly Chinook and coho. Bull trout, they've observed, have increased in size since the dams were removal.</p>
Benefits on the Middle Fork Nooksack<p>McEwan hopes to see a similar outcome on the Middle Fork.</p><p>Like the Elwha the Middle Fork Nooksack is a relatively pristine river with little development, and dam removal is expected to provide a big boost to fish. The additional miles of spawning habitat are important, but so is the temperature of that water.</p><p>The dam removal will open access to cold upstream waters, which are ideal for salmon and getting harder to come by as climate change warms waters and reduces mountain runoff.</p><p>"This is really great for the climate change resiliency for these species," says McEwan.</p><p>Steelhead will get back 45% of their historic habitat in the river, and scientists expect Chinook populations to increase in abundance by 31%.</p><p>That <em>could</em> help Southern Resident killer whales.</p><p>"When you get to the ocean, it's a little bit of a black box in terms of what you can model and say definitively is going to help, but more fish is better for orcas," McEwan says.</p><p>Upstream habitat will see benefits, too.</p><p>Oceangoing fish like salmon enrich their bodies with carbon and nitrogen while at sea. When they return to their natal rivers to spawn and die, the marine-derived nutrients they carry back upriver become important food and fertilizer for both riverine and terrestrial ecosystems — aiding everything from trees to birds to bears.</p><p>"Once the fish start making their way back, it will start changing the whole ecological system," says Delgado.</p><p><span></span>But any ecological benefit from salmon restoration, either in the ocean or the upper watershed, won't be immediate.<br></p><p>"The population of salmon on the Middle Fork is so low that we expect it's going to take quite a while to rebound," she says. "But the big picture is that what's good for salmon is good for the region — our history and our destiny are intricately intertwined."</p><p>After decades of work, that process of restoration has finally begun.</p>
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By Katie Howell
A new tool called The Food Systems Dashboard aims to save decision makers time and energy by painting a complete picture of a country's food system. Created by the Johns Hopkins' Alliance for a Healthier World, the Global Alliance for Improved Nutrition (GAIN), and the U.N. Food and Agriculture Organization (FAO), the Dashboard compiles food systems data from over 35 sources and offers it as a public good.
By Manuela Callari
It can grow to a maximum of six inches (16 centimeters), change color depending on mood and habitat, and, like all seahorses, the White's seahorse male gestates its young. But this tiny snouted fish is under threat.
Building an Ocean Seahorse Destination<p>Seahorses are found in tropical and temperate coastal water worldwide, but are most abundant around Australia, China and the Philippines. </p><p>Trade in the tiny creatures is strictly regulated because of their use in traditional medicine, aquariums and their sale as dried curios. But because they are poor swimmers and cannot easily move elsewhere, habitat loss is a particular threat for these curious animals. </p><p>Seahorses wrap their tails around seagrass and corals to avoid being carried away on currents. They use the habitat to spawn and hide from predators such as crabs, while also feeding on riches of plankton and small crustaceans living in the reef.</p><p><span></span>Where corals aren't available, <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/aqc.1217" target="_blank">scientists</a> found seahorses taking up residence in fishing nets and old crab traps abandoned at the bottom of the ocean. </p>
Mixing With the Locals<p>Baby seahorse mortality is high in the wild because they are easily caught, so those bred in the protected environment of the aquarium weren't ready to be released into the wild until early May.</p><p>The team released 90 new arrivals into Sydney Harbor, placing some directly into the purpose-built hotels, and others onto a net that wild seahorses had already settled on.</p><p>Before setting them free, the researchers marked each young seahorse with a fluorescent tag with unique IDs inserted just beneath the skin to track how they get on in the different environments. </p><p>"The most exciting part was being able to put these animals into the wild and then go back a month later and still see them surviving and growing," said McCracken. </p><p>The seahorses will be old enough to mate and reproduce around October or November 2020. And researchers hope that by then, they will be able to breed with the wild population. </p>
Building a Global Seahorse Hotel Chain<p>With seahorses everywhere facing the loss of their coral reef homes, similar projects have sprung up in places like Greece and South Africa, home to the world's most endangered seahorse, the Knysna seahorse. </p><p>"The endangered South African seahorse is benefiting from something quite similar, even though it wasn't intentional," said Peter Teske, professor at the Department of Zoology, University of Johannesburg.</p><p>In the South African <a href="https://www.researchgate.net/publication/322649251_An_endangered_seahorse_selectively_chooses_an_artificial_structure" target="_blank">case</a>, seahorses have bedded down in "Reno mattresses" — wire cages filled with rocks — that were used to build a new marina. Researchers from NGO Knysna Basin Project found the structures acted as a refuge for the animals.<span></span></p><p><span></span>While Teske describes the seahorse hotels as "a positive news story" and a great way to create public awareness of conservation, he added that establishing artificial habitats in some areas will only prevent the extinction of local populations.</p><p>"For a complete recovery, it is necessary to give the natural habitat a chance to regenerate," said the seahorse expert. </p>
Underwater Mascot<p>In Australia, the researchers hope the project could provide an opportunity to raise awareness not only of the plight of the Sydney seahorses but the other animals with which it shares its ocean habitat.</p><p>The waters around Sydney and the east coast are rich in biodiversity and include several threatened species like the weedy seadragon — a relative of the seahorse — and the grey nurse shark. Like the seahorse, they're also under pressure from pollution, ocean traffic and habitat loss through storms and coastal construction. </p><p>"It's a good thing to get people's support and interest. The seahorses are a useful vehicle to get people concerned if the harbor is in trouble," said David Booth, professor of marine ecology at the University of Technology Sydney who is also working on the project. </p><p>The hotels have become an attraction for divers hoping to catch a glimpse of these small but near mythical creatures. </p><p>"Everyone loves seahorses," added Booth, "they are so popular." </p>
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