!! History Commons Alert, Exciting News

Follow Us!

We are planning some big changes! Please follow us to stay updated and be part of our community.

Twitter Facebook

US Environmental Record

Corporate welfare

Project: US Environmental Issues
Open-Content project managed by Derek, mtuck

add event | references

The number of “cooperative research and development agreements” between the EPA and individual corporations or industry associations increases dramatically under the Bush administration. Under such agreements, companies help fund EPA research programs. But critics says these partnerships result in funds being diverted from public health and environmental research toward applied research that is shaped by the interests of corporate funders. In internal agency surveys, EPA scientists say that corporate involvement is influencing the agency’s research agenda. According to one EPA scientist, “Many of us in the labs feel like we work for contracts.” [PEER, 10/5/2005]

Entity Tags: Environmental Protection Agency

Category Tags: Corporate welfare

Peabody Energy logo.Peabody Energy logo. [Source: BNet (.com)]Ira F. Engelhardt and Fred Palmer, the CEO and vice president of Peabody Energy, meet with Andrew Lundquist, the director of Vice President Cheney’s energy task force (the National Energy Policy Development Group—see May 16, 2001). Also at the meeting are Energy Secretary Spencer Abraham and Bush economic adviser Lawrence Lindsey. Peabody, the world’s largest coal company, is preparing a stock offering. The task force’s coal policy recommendations will directly impact the stock market’s response to Peabody’s IPO. The task force releases its recommendations (see May 16, 2001) less than a week before Peabody releases its stock offering on May 21. In part because the energy policy strongly emphasizes the use of coal, Peabody raises $420 million by going public—$60 million more than stock analysts predicted. Authors Lou Dubose and Jake Bernstein will write, “The task force was, in effect, flogging a stock offering.” [Dubose and Bernstein, 2006, pp. 17-18]

Entity Tags: Jake Bernstein, Fred Palmer, Andrew Lundquist, Ira F. Engelhardt, Lawrence Lindsey, Lou Dubose, Spencer Abraham, National Energy Policy Development Group, Peabody Energy, Richard (“Dick”) Cheney

Category Tags: Corruption, Corporate welfare, Energy industry, Coal Industry, Cheney Energy Task Force

President Bush signs Executive Order 13211. It is a verbatim copy of a “suggested” order sent in March by American Petroleum Institute official James Ford (see March 20, 2001). The executive order, enigmatically titled “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,” exempts certain industry actions from federal review. [White House, 5/22/2001; Dubose and Bernstein, 2006, pp. 17]

Entity Tags: American Petroleum Institute, James Ford, George W. Bush

Category Tags: Air pollution, Corruption, Corporate welfare, Energy industry, Oil and gas industry

National Energy Policy report.National Energy Policy report. [Source: Climate Change Technology Program]Vice President Cheney’s National Energy Policy Development Group releases its energy plan. The plan, titled Reliable, Affordable, and Environmentally Sound Energy for America’s Future, warns that the quantity of oil imported per day will need to rise more than fifty percent to 16.7 million barrels by 2020. “A significant disruption in world oil supplies could adversely affect our economy and our ability to promote key foreign and economic policy objectives, regardless of the level of US dependence on oil imports,” the report explains. To meet the US’s rising demand for oil, the plan calls for expanded oil and gas drilling on public land and the easing of regulatory barriers to building nuclear power plants. [US President, 5/16/2001, pp. 8.5 pdf file; Associated Press, 12/9/2002; Guardian, 1/23/2003]
Emphasis on Foreign Oil - The report places substantial emphasis on oil from the Persian Gulf region. Its chapter on “strengthening global alliances” states: “By any estimation, Middle East oil producers will remain central to world oil security. The Gulf will be a primary focus of US international energy policy.” [US President, 5/16/2001, pp. 8.5 pdf file] But it also suggests that the US cannot depend exclusively on traditional sources of supply to provide the growing amount of oil that it needs and will have to obtain substantial supplies from new sources, such as the Caspian states, Russia, Africa, and the Atlantic Basin. Additionally, it notes that the US cannot rely on market forces alone to gain access to these added supplies, but will also require a significant effort on the part of government officials to overcome foreign resistance to the outward reach of American energy companies. [Japan Today, 4/30/2002]
Revamping of Clean Air Act - The plan also calls for a clarification of the New Source Review section of the Clean Air Act, which requires energy companies to install state-of-the-art emission control technology whenever it makes major modifications to its plants. The administration’s energy plan gives the Environmental Protection Agency 90 days to review NSR and determine whether it is discouraging companies from constructing or expanding power plants and refineries. It also instructs the attorney general to review current NSR litigation efforts against utility companies to determine whether those efforts are contributing to the country’s energy problems. “The outcome could determine whether the government drops some cases, approaches others more leniently, or even renegotiates settlements already reached,” the New York Times reports. [US President, 5/16/2001, pp. 8.5 pdf file; New York Times, 5/18/2001]
Dodging the EPA - The representative of the Environmental Protection Agency (EPA) on the task force had blocked the recommendation of a technique called “hydraulic fracturing.” Sometimes called “fracking,” the technique, used to extract natural gas from the earth, often contaminates aquifers used for drinking water and irrigation. The recommendation was removed to placate the EPA official, then quietly reinserted into the final draft. Halliburton, Cheney’s former firm, is the US leader in the use of hydraulic fracturing. [Dubose and Bernstein, 2006, pp. 18]
Cheney Stayed Largely behind the Scenes - Much of the task force’s work was done by a six-member staff, led by executive director Andrew Lundquist, a former aide to senators Ted Stevens (R-AK) and Frank Murkowski (R-AK). Lundquist served as the Bush-Cheney campaign’s energy expert, earning the nickname “Light Bulb” from the president. Lundquist will leave the Bush administration and become a lobbyist for such firms as British Petroleum, Duke Energy, and the American Petroleum Institute. Much of the report is shaped by Lundquist and his colleagues, who in turn relied heavily on energy company executives and their lobbyists. For himself, Cheney did not meet openly with most of the participants, remaining largely behind the scenes. He did meet with Enron executive Kenneth Lay (see April 17, 2001 and After), with officials from Sandia National Laboratories to discuss their economic models of the energy industry, with energy industry consultants, and with selected Congressmen. Cheney also held meetings with oil executives such as British Petroleum’s John Browne that are not listed on the task force’s calendar. [Washington Post, 7/18/2007]
Controversial Meetings with Energy Executives - Both prior to and after the publication of this report, Cheney and other Task Force officials meet with executives from Enron and other energy companies, including one meeting a month and a half before Enron declares bankruptcy in December 2001 (see After January 20, 2001), Mid-February, 2001, March 21, 2001, March 22, 2001, April 12, 2001, and April 17, 2001). Two separate lawsuits are later filed to reveal details of how the government’s energy policy was formed and whether Enron or other players may have influenced it, but the courts will eventually allow the Bush administration to keep the documents secret (see May 10, 2005). [Associated Press, 12/9/2002]

Entity Tags: Kenneth Lay, Halliburton, Inc., Environmental Protection Agency, Enron Corporation, Andrew Lundquist, Bush administration (43), American Petroleum Institute, Richard (“Dick”) Cheney, British Petroleum, Duke Energy, John Browne

Timeline Tags: Complete 911 Timeline, Events Leading to Iraq Invasion, Peak Oil

Category Tags: Corporate welfare, Politicization and deception, Energy industry, Oil and gas industry, New Source Review, Cheney Energy Task Force

Senator Dianne Feinstein (D-CA) calls for the Senate Committee on Governmental Affairs to hold hearings on a possible improper relationship between Enron and the Federal Energy Regulatory Commission (FERC). Her call for an investigation is prompted by media reports of Enron CEO Kenneth Lay pressuring FERC chairman Curtis Hebert to deregulate the energy industry in ways favorable to Enron (see August 14, 2001). Feinstein writes to Senator Joseph Lieberman (D-CT), the ranking member of the committee, “Despite evidence of manipulation and price gouging in both the electricity and natural gas markets in California and the West, and a finding by FERC last November of ‘unjust and unreasonable’ rates, the commission has failed to take the actions necessary to bring reliability and stability to the marketplace… [I]t is clear that the citizens of the United States, especially the people of California, who are suffering from FERC’s failure to do its job, deserve an investigation and full public hearing into what happened. FERC is a $175 million a year agency charged with regulating the energy industry, and it would be unconscionable if any of the nation’s electricity traders or generators were in a position to be able to determine who chairs or becomes a member of the commission.” Lay is accused of forcing Hebert from his position in favor of another, more Enron-friendly chairman, Pat Wood. Feinstein adds, “Since FERC has refused to fulfill its legally mandated function under the Federal Power Act to restore ‘just and reasonable’ electricity rates, we need to ask whether undue influence by the companies that FERC regulates has resulted in its failure to act… In California, the total cost of electricity in 1999 was $7 billion. This climbed to $28 billion in 2000 and is predicted to reach $70 billion this year. At the same time, with FERC refusing to act, power generators and marketers have made record profits. The people of our nation deserve a full investigation.” [US Senate, 5/25/2001]

Entity Tags: Joseph Lieberman, Curtis Hebert, Dianne Feinstein, Federal Energy Regulatory Commission, Kenneth Lay, Pat Wood, Enron Corporation

Category Tags: Corruption, Corporate welfare, Politicization and deception, Energy industry, Oil and gas industry

Curtis Hebert of the FERC.Curtis Hebert of the FERC. [Source: PBS]Curtis Hebert is replaced by Pat Wood as the head of the Federal Energy Regulatory Commission (FERC). Hebert announced his resignation on August 6. [US Department of Energy, 12/2001] Hebert, a Clinton appointee who nevertheless is a conservative Republican, an ally of Senator Trent Lott (R-MS), and quite friendly towards the energy corporations, had been named to the FERC shortly before Clinton left office; Bush named him to chair the commission in January 2001. [Consortium News, 5/26/2006]
Replaced at Enron Request - Hebert is apparently replaced at the request of Enron CEO Kenneth Lay, who did not find Hebert responsive enough in doing Enron’s bidding. Hebert had just taken the position of FERC chairman in January when he received a phone call from Lay, in which Lay pressured him to back a faster pace in opening up access to the US electricity transmission grid to Enron and other corporations. (Lay later admits making the call, but will say that keeping or firing Hebert is the president’s decision, not his.) When Hebert did not move fast enough for Lay, he is replaced by Pat Wood, a close friend of both Lay and President Bush. [Guardian, 5/26/2001; Los Angeles Times, 12/11/2001] Lay apparently threatened Hebert with the loss of his job if he didn’t cooperate with Enron’s request for a more pro-Enron regulatory posture. [CNN, 1/14/2002]
Opposed Enron Consolidation Plan - Hebert was leery of Enron’s plan to force consolidation of the various state utilities into four huge regional transmission organizations (RTOs), a plan that would have given Enron and other energy traders far larger markets for their energy sales. Hebert, true to his conservative beliefs, is a states’ rights advocate who was uncomfortable with the plan to merge the state utilities into four federal entities. Lay told Hebert flatly that if he supported the transition to the RTOs, Lay would back him in retaining his position with FERC. Hebert told reporters that he was “offended” at the veiled threat, but knew that Lay could back up his pressure, having already demonstrated his influence over selecting Bush administration appointees by giving Bush officials a list of preferred candidates and personally interviewing at least one potential FERC nominee (see January 21, 2001). [PBS, 2/2/2002; Consortium News, 5/26/2006] According to Hebert, Lay told him that “he and Enron would like to support me as chairman, but we would have to agree on principles.” [Guardian, 5/26/2001] Hebert added to another reporter, “I think he would be a much bigger supporter of mine if I was willing to do what he wanted me to do.” Lay recently admitted to making such a list of preferred candidates: “I brought a list. We certainly presented a list, and I think that was by way of letter. As I recall I signed a letter which, in fact, had some recommendations as to people that we thought would be good commissioners.…I’m not sure I ever personally interviewed any of them but I think in fact there were conversations between at least some of them and some of my people from time to time.” [PBS, 2/2/2002]
Cheney Behind Ouster - Joe Garcia, a Florida energy regulator, says he was interviewed by Lay and other Enron officials. After Hebert made it clear to Lay that he wouldn’t go along with Lay’s plans to reorganize the nation’s utilities, Vice President Dick Cheney, who supervises the Bush administration’s energy policies (see May 16, 2001, began questioning Hebert’s fitness. [Guardian, 5/26/2001] Cheney said in May 2001, “Pat Wood has got to be the new chairman of FERC.” In private, Cheney said then that Hebert was out as chairman and Wood was in, though Hebert did not know at the time that his days were numbered. [PBS, 2/2/2002] “It just confirms what we believed and what we’ve been saying, that the Bush-Cheney energy plan is written by corporations and it’s in the interests of the corporations,” says the National Environmental Trust’s Kevin Curtis. [Guardian, 5/26/2001] Not only was Hebert not responsive enough to Lay’s pressure, but he had become a focus of criticism for his refusal to scrutinize Enron’s price gouging in the California energy deregulation debacle. Wood’s more moderate position helps ease the worries of other states themselves losing confidence in the Bush administration’s deregulation advocacy. [American Prospect, 1/2/2002]
Hebert Investigating Enron Schemes - And even more unsettling for Enron, Hebert was beginning to investigate Enron’s complicated derivative-financing procedures, an investigation that may have led to an untimely exposure of Enron’s financial exploitation of the US’s energy deregulation—exploitation that was going on under plans nicknamed, among other monikers, “Fat Boy,” “Death Star,” “Get Shorty,” all of which siphoned electricity away from areas that needed it most and being paid exorbitant fees for phantom transfers of energy supposedly to ease transmission-line congestion. [Consortium News, 5/26/2006] “One of our problems is that we do not have the expertise to truly unravel the complex arbitrage activities of a company like Enron,” Hebert recently told reporters. “We’re trying to do it now and we may have some results soon.” [Guardian, 5/26/2001] Instead, Hebert is forced out of FERC. Senator Dianne Feinstein (D-CA) called for an investigation into Enron’s improper influence of the FERC committee after the media revealed Lay’s phone call to Hebert in May 2001 (see May 25, 2001).

Entity Tags: National Environmental Trust, Trent Lott, Kevin Curtis, Pat Wood, Kenneth Lay, Federal Energy Regulatory Commission, George W. Bush, Curtis Hebert, Joe Garcia, Dianne Feinstein, William Jefferson (“Bill”) Clinton, Richard (“Dick”) Cheney, Enron Corporation

Category Tags: Corruption, Corporate welfare, Appointments and resignations, Politicization and deception, Energy industry, Oil and gas industry

The Bush administration blocks the Environmental Protection Agency (EPA) from making any announcement about vermiculite and related problems in towns where it was mined. Vermiculite is dangerous because one of the substances it contains, tremolite, itself contains lethal levels of asbestos fiber and has killed or seriously sickened thousands of inhabitants of Libby, Montana, one of the towns where it was mined. EPA chief Christine Todd Whitman visits Libby at this time, although the vermiculite mine there was shut down in 1990. However, the problem is not confined to Libby; according to EPA records, over 16 billion tons of vermiculite have been shipped to 750 fertilizer and insulation manufacturers throughout the US, and the EPA estimates that between 15 million and 35 million US homes have been insulated with this toxic material. The EPA is thus confronted with an enormously grave problem. After the St. Louis Post-Dispatch breaks the story in late 2002 based on a leak from an unnamed whistleblower, former EPA chief William Ruckelshaus calls the actions of the White House “wrong, unconscionable.” The story becomes even more important when the reason for the White House block becomes known. Vice President Dick Cheney, the former CEO of Halliburton, is pressuring Congress to pass legislation that would absolve companies of any legal liability for claims arising from asbestos exposure. Halliburton itself is facing a tremendous number of asbestos liability claims. [Dean, 2004, pp. 162-163]

Entity Tags: William Ruckelshaus, Bush administration (43), Richard (“Dick”) Cheney, Christine Todd Whitman, Halliburton, Inc., Environmental Protection Agency

Category Tags: Corruption, Corporate welfare, Environmental enforcement, Oil and gas industry

David Walker, comptroller of the General Accounting Office (GAO) and a Ronald Reagan appointee, files a lawsuit to compel Vice President Dick Cheney and his office to reveal the names of the private businessmen and organizational officials that his energy task force (see January 29, 2001) met with to craft the Bush administration’s energy policies (see May 8, 2001). This is the first time since its creation in 1920 that the GAO has been forced to file suit to compel another government agency to follow the law and cooperate with its requests. [Dean, 2004, pp. 78-79] In a statement, Walker writes: “This is the first time that GAO has filed suit against a federal official in connection with a records access issue. We take this step reluctantly. Nevertheless, given GAO’s responsibility to Congress and the American people, we have no other choice. Our repeated attempts to reach a reasonable accommodation on this matter have not been successful. Now that the matter has been submitted to the judicial branch, we are hopeful that the litigation will be resolved expeditiously. [General Accounting Office, 2/22/2002 pdf file]
'Fundamental Questions' about Governmental 'Checks and Balances' - Former Nixon White House counsel John Dean will write in 2004: “This was, to say the least, a high-stakes lawsuit. It raised fundamental questions about the very nature of our system of checks and balances. If the GAO could not get the information it requested, then there was a black hole in the federal firmament—a no-man’s land where a president and vice president could go free from Congressional oversight.” By random selection, the case lands in the court of Judge John Bates, a career Justice Department lawyer who once worked for the Whitewater investigative team led by Kenneth Starr, and had just recently been appointed to the bench by President Bush. The choice of Bates will prove critical to the verdict of the case. [Dean, 2004, pp. 78-79]
Schlafly: Secrecy a 'Mistake' - Conservative commentator and activist Phyllis Schlafly will write in 2002: “[T]he public wants to know how our energy policy was developed. When information is kept secret, the natural inference is that there must be something the administration is very eager to hide. While private businesses and households can be selective about what they tell the world, the American people are not willing to accord the same privacy to public officials paid by the taxpayers. Regardless of the legal veil woven over the energy policy meetings, Cheney’s secrecy is a political mistake.” [Eagle Forum, 3/6/2002]

Entity Tags: Kenneth Starr, Phyllis Schlafly, US Department of Justice, Richard (“Dick”) Cheney, John Dean, Government Accountability Office, Bush administration (43), David Walker, George W. Bush, Energy Task Force, John Bates

Timeline Tags: Civil Liberties

Category Tags: Corporate welfare, Energy industry, Oil and gas industry, Cheney Energy Task Force

The EPA announces that its budget of $277 million will allow it to begin clean-up work at only 10 of the 20 newly proposed Superfund sites. The agency selected the 10 sites based on their potential for economic redevelopment and their risk to human health. The reason for the funding shortfall is related to the lapsing of a polluter fee in 1995, which shifted the burden of clean-ups away from corporate polluters to taxpayers. The Bush administration has made no effort to push Congress to reinstate the “polluter pays” fee. [Environmental Protection Agency, 7/17/2003; Associated Press, 7/17/2003]

Entity Tags: Bush administration (43), Environmental Protection Agency, US Congress

Category Tags: Corporate welfare, Superfund sites and clean-up, Key Events

After 71 days of negotiations, Congressional Republicans announce that they have agreed on an energy bill that would provide some $20 billion in tax breaks for power companies. [New York Times, 11/15/2003; Christian Science Monitor, 11/19/2003] President Bush voices his support for the bill—drafted mostly by Republicans—which he says will make the US “safer and stronger” by helping to “keep the lights on, the furnaces lit, and the factories running.” He also states, “By making America less reliant on foreign sources of energy, we also will make our nation more secure.” [New York Times, 11/15/2003; US President, 11/24/2003] To facilitate the bill’s passage through Congress, “negotiators sprinkled in dozens of sweeteners sought by states and congressional districts,” including nearly $1 billion in shoreline restoration projects, tax credits for a company that manufactures fuel from compressed turkey carcasses, and a provision doubling the use of corn-based ethanol as a gasoline additive. The Republican lawmakers also dropped a section that would have opened the Arctic National Wildlife Refuge to oil exploration, as Democrats had made clear that they would vote against any bill containing such a provision. But the Republicans decided against including a Democrat-favored plan to require large utility companies to steadily increase their use of energy from clean, renewable sources such as wind and solar power. [New York Times, 11/15/2003; Washington Post, 11/16/2003; Associated Press, 11/16/2003; Christian Science Monitor, 11/19/2003] The bill includes:
bullet A provision introduced by House Majority Leader Tom DeLay that would provide energy companies and universities with $2 billion in subsidies over the next 10 years for research and development of ultra deep-water oil exploration techniques and “unconventional” natural gas extraction. [Washington Post, 11/16/2003; Associated Press, 11/16/2003; Christian Science Monitor, 11/19/2003]
bullet A controversial provision granting Gulf Coast refiners of the fuel additive MTBE $2 billion in subsidies to assist them in the phasing out of MTBE production. The phase-out, originally proposed to take 4 years, is extended to 10 by the bill. MTBE, or methyl tertiary-butyl ether, which helps decrease smog, is known to contaminate groundwater. The new energy bill would also prevent communities from bringing product liability lawsuits against the manufacturers of MTBE. Tom Delay was a strong supporter of this provision, as were other legislators from Louisiana and Texas, where MTBE is produced. [New York Times, 11/15/2003; Washington Post, 11/16/2003; Associated Press, 11/16/2003; Christian Science Monitor, 11/19/2003]
bullet A section dealing with the electric grid that would require large power companies to meet new mandatory reliability standards. [New York Times, 11/15/2003; New York Times, 11/16/2003]
bullet Royalty relief to the owners of marginal oil and gas wells. The program would apply to approximately 80 percent of all wells on federal lands. [Christian Science Monitor, 11/19/2003]
bullet A provision that would allow taxpayer money to fund the clean-up of leaking underground gasoline storage tanks (LUST). [Natural Resources Defense Council et al., 11/17/2003]
bullet A provision authorizing Alaska’s “Denali Commission” to use over $1 billion on hydroelectric and other energy projects on Alaska Federal Lands. [Natural Resources Defense Council et al., 11/17/2003]
bullet A provision permitting urban areas like Dallas-Ft. Worth, Washington, DC and southwestern Michigan to further delay efforts to reduce air pollution, “an action that will place a significant burden on states and municipalities down-wind of these urban centers.” [Natural Resources Defense Council et al., 11/17/2003]
bullet $100 million/year in production tax credits for the construction of up to four light-water nuclear reactors. [Washington Post, 11/16/2003; Christian Science Monitor, 11/19/2003]
bullet Loan guarantees for building a $20 billion trans-Alaska natural gas pipeline. But officials of ConocoPhillips, a major backer of the project, complain that the bill’s incentives are insufficient to get the project moving. [Associated Press, 11/16/2003; Washington Post, 11/16/2003]
bullet Tax incentives to encourage wind power generators, energy-efficient homes and hybrid passenger cars running on gasoline and batteries. Additionally, it sets aside funds for equipping government buildings with photovoltaic cells and developing energy-efficient traffic lights. The package also allocates $6.2 million to encourage bicycle use. But according to a preliminary estimate by the American Council for an Energy-Efficient Economy, these progressive reforms would eliminate only about three months worth of energy use between now and 2020. [Washington Post, 11/16/2003]
bullet A repeal of the 1935 Public Utility Holding Company Act, which limits utility industry mergers. This provision was a top priority for the electric power industry and the White House. [Washington Post, 11/16/2003] Senator Pete V. Domenici, Republican of New Mexico and chairman of the conference committee charged with resolving differences between the House and Senate bills, acknowledge to the New York Times that the bill will likely be criticized. [New York Times, 11/15/2003]

Entity Tags: Pietro V. (“Pete”) Domenici, US Congress, George W. Bush, Tom DeLay

Category Tags: Air pollution, Corporate welfare, Energy industry, Oil and gas industry, MTBE, Key Events

The US Supreme Court agrees to hear Vice President Cheney’s appeal of a lower court ruling that found he must reveal documents pertaining to his 2001 energy task force (the National Energy Policy Development Group—see January 29, 2001 and May 16, 2001). Cheney lost the case, filed by the conservative government watchdog group Judicial Watch and the environmentalist organization the Sierra Club, in two lower courts, and has ramrodded the case into the Supreme Court with unusual alacrity—filing the Supreme Court appeal even before the appeals court had finished the case. Cheney’s lawyers from the Justice Department will argue that because of the Constitutional provision of separation of powers, the executive branch can and should keep all such information secret if it so chooses. Judicial Watch and the Sierra Club insist that because energy executives and lobbyists were involved in the task force policy deliberations, federal law mandates that lists of participants and details of the meetings should be made public. Over a year ago, District Court Judge Emmet Sullivan ruled that the White House should either turn over the documents or provide a detailed list of the documents it was withholding, and explain why. The White House has done neither, and instead appealed the decision. The US Court of Appeals refused to overturn Sullivan’s decision and ruled that Cheney had no legal standing to refuse the judicial order. Cheney disagreed, and appealed to the Supreme Court. The Court will hear arguments in the spring of 2004 (see April 27, 2004). Thousands of documents concerning the task force from the Department of Energy, the Environmental Protection Agency, and other federal agencies have already been turned over (see July 17, 2003), but no White House documents have been released. The Sierra Club has accused the Bush administration of trying to delay release of the information until after the November 2004 presidential elections. [Reuters, 12/15/2003]

Entity Tags: US Supreme Court, US Department of Justice, Sierra Club, Environmental Protection Agency, Emmet Sullivan, Bush administration (43), US Department of Energy, Judicial Watch, Richard (“Dick”) Cheney, National Energy Policy Development Group

Timeline Tags: Civil Liberties

Category Tags: Corruption, Corporate welfare, Politicization and deception, Superfund sites and clean-up, Cheney Energy Task Force

Secretary of the Interior Gale Norton announces that the Interior’s Minerals Management Service (MMS) will provide an estimated $1 billion in subsidies to promote deep drilling for natural gas in the shallow waters of the Gulf of Mexico. Companies that drill wells deeper than 15,000 feet will be exempt from having to pay royalties on the first 15 billion cubic feet of gas produced. For wells deeper than 18,000 feet, royalties will be waived on the first 25 billion cubic feet. The royalty waiver will be discontinued if natural gas prices exceed $9.34 per thousand cubic feet. Without the subsidy, it would be too costly for companies to drill such wells. Norton claims that the program will save consumers money and create an estimated 26,000 new jobs. [Associated Press, 1/23/2003; Petroleum News, 2/1/2004]

Entity Tags: Bush administration (43), Gale A. Norton, US Department of Interior

Category Tags: Corporate welfare, Oil and gas industry, Key Events

The Supreme Court hears oral arguments for and against the release of records pertaining to Vice President Cheney’s energy task force (the National Energy Policy Development Group—see May 16, 2001). The case is Cheney v. US District Court for the District of Columbia (03-0475) (see December 15, 2003). Two public interest groups, the environmentalist Sierra Club and the conservative government watchdog organization Judicial Watch, have joined to argue for the release of the records, saying that because the task force deliberations included energy industry executives and lobbyists, the task force is subject to the Federal Advisory Committee Act (FACA), which requires disclosure of the work of advisory groups that include non-federal employees. Bush administration lawyers, spearheaded by Solicitor General Theodore Olson, argue that releasing those records would violate the concept of “separation of powers.” The administration also argues that releasing the records, most pertinently the meetings between Cheney, his aides, and officials from energy corporations and lobbying firms, would damage the White House’s ability to receive candid advice. “This case is about the separation of powers and the president’s discretion to receive the opinions of subordinates,” Olson tells the court; Olson has resisted submitting task force documents even to the Court, saying that even that so-called “discovery” process would violate the Constitutional separation of powers. Lawyers for the Sierra Club and Judicial Watch argue that Cheney’s contacts with industry executives and lobbyists were improper while he was developing government policy that benefited their businesses. They are demanding to know whether energy lobbyists helped shape the government’s long-term energy policies. Lower courts agreed with Judicial Watch and the Sierra Club, and Cheney, with the Justice Department, has successfully ramrodded the case into the Supreme Court with unprecedented speed.
Justices Question Breadth of Requests - Justice Antonin Scalia, who refused to recuse himself from deliberations after accompanying Cheney on a duck-hunting trip in January, is one of the justices most favoring the government’s case. But even more moderate justices such as Stephen Breyer and Ruth Bader Ginsburg question whether the information request is too broad and inclusive. As for the White House, it argues that neither the courts nor Congress have any right to make any inquiries into the decisions of federal agencies and officials. Sierra Club lawyer David Bookbinder says the White House appears to have violated laws supporting open government: “What the panel said to energy executives was: Help us decide what the energy policy should be. A line has been crossed because the process should have been transparent. The panel was inordinately influenced by the energy industry.” Cheney has said that the executive branch must defend itself against the “continual encroachment by Congress.” The White House has already turned over some 40,000 documents from the task force after a lower court ruling compelled it to do so (see July 17, 2003), but the lawsuit before the Supreme Court says that another 100,000 potentially relevant documents and files remain secret. [MSNBC, 4/26/2004; New York Times, 4/28/2004; CNN, 6/24/2004]
Cheney 'Beyond the Reach of the Law?' - In a legal analysis of the case, former Nixon White House counsel John Dean calls the case “extraordinary,” and notes that Cheney “contends that he is, in essence, beyond the reach of the law. It began as a set of rather pedestrian discovery matters in two consolidated civil lawsuits. Now, however, because of Cheney’s stance, it could be a landmark Constitutional decision.” Dean sees the case as an opportunity for Cheney, with the assistance of Olson and Scalia, “to expand executive powers.” [FindLaw, 3/26/2004]
Case Sent Back to Lower Court - The Court will vote to send the case back to the District of Columbia Appeals Court for further adjudication (see June 24, 2004). That court will rule in Cheney’s favor (see May 10, 2005).

Entity Tags: Stephen Breyer, Sierra Club, US Department of Justice, Ruth Bader Ginsburg, Theodore (“Ted”) Olson, US Supreme Court, Richard (“Dick”) Cheney, Judicial Watch, Antonin Scalia, David Bookbinder, Bush administration (43), John Dean, Federal Advisory Committee Act, National Energy Policy Development Group

Timeline Tags: Civil Liberties

Category Tags: Corruption, Corporate welfare, Politicization and deception, Energy industry, Oil and gas industry, Cheney Energy Task Force

The Supreme Court rules in the case of Cheney v. US District Court for the District of Columbia (03-0475), in which two organizations, Judicial Watch and the Sierra Club, are attempting to force the White House to reveal information about the secret deliberations of Vice President Cheney’s energy task force (see April 27, 2004). Neither side gets what it asks for in the 7-2 ruling, as the Court sends the case back to the US Court of Appeals for further adjudication, with an order for that court to take a second look at its ruling that Cheney must allow a judge to review the task force documents (see August 2, 2002). Five justices—Stephen Breyer, Anthony Kennedy, Sandra Day O’Connor, Chief Justice William Rehnquist, and John Paul Stevens—vote to send the case back to the appeals court. Two justices, Ruth Bader Ginsburg and David Souter, vote to send the case all the way back to the original trial court, concurring with the majority. The Court’s two most conservative justices, Antonin Scalia and Clarence Thomas, vote to resolve the matter entirely in Cheney’s favor. Judge Anthony Kennedy, writing for the majority, instructs the appeals court—and all other courts who might subsequently hear such a case—to use a legal standard far more aligned with the executive branch’s claim of immunity from disclosure. Courts must afford “presidential confidentiality the greatest protection consistent with the fair administration of justice,” Kennedy writes, to protect the executive branch from being sued. Former Nixon White House counsel John Dean will later write that the Court may have avoided making a firm ruling because it did not want to wrangle with the issue of separation of powers, and the privilege of executive branch secrecy, in an election year. While most media and court observers call the decision a “punt” of little import, at least one, former Justice Department official Shannen Coffin, sees it differently. In a column for the National Review, Coffin celebrates the ruling, writing that due to “the vice president’s resolute assertion that he and the president should have the right to receive in confidence the advice necessary to the performance of their duties,” the White House has won a “major victory” in expanding its power to keep its procedures secret, regardless of the appeals court’s eventual ruling (see May 10, 2005). [National Review, 6/25/2004; FindLaw, 7/2/2004; Savage, 2007, pp. 167-168] The appeals court will agree with Thomas and Scalia, and rule in Cheney’s favor (see May 10, 2005).

Entity Tags: Sandra Day O’Connor, Sierra Club, William Rehnquist, US Supreme Court, Stephen Breyer, Ruth Bader Ginsburg, John Paul Stevens, National Energy Policy Development Group, Richard (“Dick”) Cheney, Anthony Kennedy, Clarence Thomas, Bush administration (43), John Dean, Judicial Watch, Antonin Scalia, David Souter

Timeline Tags: Civil Liberties

Category Tags: Corruption, Corporate welfare, Politicization and deception, Energy industry, Oil and gas industry, Cheney Energy Task Force

Congress passes the Energy Policy Act (EPA) of 2005. The EPA is the product of the secret Cheney energy task force (see January 29, 2001 and May 16, 2001). The act provides $14.5 billion in tax breaks for corporate energy providers, primarily oil, coal, and nuclear power companies. It contains an array of odd and obscure provisions helping industrialists, many generated by the lobbyists and corporate executives who helped craft the bill (see May 10, 2005). It does nothing to discourage consumption by raising fuel efficiency standards, and does little to address the sharply rising price of oil. What it does, primarily, is give huge financial and regulatory breaks to the energy industry. [Savage, 2007, pp. 360]

Entity Tags: Richard (“Dick”) Cheney, National Energy Policy Development Group

Category Tags: Corporate welfare, Energy industry, Oil and gas industry, Coal Industry, Cheney Energy Task Force

A White House document shows that oil company executives lied in recent Senate hearings when they denied meeting with Vice President Cheney’s energy task force (the National Energy Policy Development Group—see May 16, 2001) in 2001. The document, obtained by the Washington Post, shows that officials from ExxonMobil, Conoco (before it merged with Phillips), Shell Oil, and British Petroleum met with the task force (see March 22, 2001). Last week, the CEOs of ExxonMobil, Chevron, and ConocoPhillips denied participating in the task force’s deliberations. Shell Oil’s CEO said his company did not participate “to my knowledge,” and the chief of BP America said he did not know. Though Chevron is not named in the White House document, that firm and others “gave detailed energy policy recommendations” to the task force, according to the Government Accountability Office. Cheney also met separately with John Browne, BP’s chief executive, in a meeting not included in the document. Environmentalists have long stated that they were almost entirely shut out of the deliberations, while corporate interests were heavily represented (see April 4, 2001). The Supreme Court ruled in 2004 that the government could keep the records of the task force secret (see June 24, 2004). Senator Frank Lautenberg (D-NJ) says, “The White House went to great lengths to keep these meetings secret, and now oil executives may be lying to Congress about their role in the Cheney task force.” Since the oil executives were not under oath—a decision by Senate Commerce Committee chairman Ted Stevens (R-AK) protested by committee Democrats—they cannot be charged with perjury. However, they can be fined or imprisoned for up to five years for making “any materially false, fictitious or fraudulent statement or representation” to Congress. After the Washington Post releases the document, former Conoco manager Alan Huffman confirms, “We met [with the task force] in the Executive Office Building, if I remember correctly.” A ConocoPhillips spokesman says that CEO James Mulva had been unaware of the meetings when he testified at the hearing. ExxonMobil says it stands by CEO Lee Raymond’s denials; James Rouse, an Exxon official named in the document (see Mid-February, 2001), denies meeting with the task force, calling the document “inaccurate.” [Washington Post, 11/16/2005]

Entity Tags: Frank R. Lautenberg, Ted Stevens, Chevron, British Petroleum, Alan Huffman, ExxonMobil, Royal Dutch/Shell, US Supreme Court, National Energy Policy Development Group, Government Accountability Office, James Mulva, ConocoPhillips, John Browne, Lee Raymond, Richard (“Dick”) Cheney, James Rouse

Category Tags: Corruption, Corporate welfare, Politicization and deception, Energy industry, Oil and gas industry, Cheney Energy Task Force

Some of the tens of thousands of salmon killed due to the artificial water lowering by the Department of the Interior.Some of the tens of thousands of salmon killed due to the artificial water lowering by the Department of the Interior. [Source: Environmental News Service]The House Natural Resources Committee, led by Nick Rahall (D-WV) and Mike Thompson (D-CA), decides to investigate the role of Vice President Dick Cheney in a 2002 salmon kill (see April 2002) on Northern California’s Klamath River, the largest fish kill in modern Western history (see September 2002). “We know where the smoking gun lays,” says Chris Lawson, a fisherman and president of the Bodega Bay Fisherman’s Marketing Association. No one in Northern California or Oregon (another state affected by the fish kill) knew of Cheney’s role until a recent story in the Washington Post uncovered Cheney’s successful attempt to subvert both scientific evidence and the Endangered Species Act to allow a water release that drastically lowered the water level in the Klamath. The day the article appears, Thompson and 35 other Democrats call for a hearing by the House Natural Resources Committee, saying in a letter that “[t]he ramifications of that salmon kill are still being felt today as returns to the Klamath River are so low that commercial, sport and tribal fishing seasons have been curtailed for the past three years.” A day later, Rahall agrees. The hearing will be held a month later (see August 1, 2007). In October 2002, Thompson piled 500 pounds of dead coho salmon in front of the Interior Department, accusing that agency of “gross mismanagement” in the wildlife disaster. Now Thompson asks, “We know that science was manipulated and the law was violated. Did in fact the vice president of the United States put pressure on mid-level bureaucrats to alter the science and circumvent the law in order to gain political votes for his re-election or the election of other people in Oregon?” Cheney’s office responds to the hearings by saying it is “disappointing the Democrats would rather investigate than legislate,” and that the Post story is nothing more than “a repackaging of old accusations.” Cheney’s office refuses to say whether Cheney will agree to testify before the committee. The reduced river flow in 2002, says Thompson, “wasn’t about salmon or water, it was about electoral votes in Oregon.” Since the fish kill, the courts have prohibited the diversion of Klamath water for agricultural use once the water levels drop below a critical point. But in the years after the fish kill, the salmon catch has been gravely reduced. Commercial fishing in California and Oregon has suffered a more than 90% drop as recently as 2006; Congressional Democrats say the result has been over $60 million in damage to coastal economies. Only in 2007 have the number of young salmon in the Klamath shown indications that salmon numbers may once again be increasing. [Associated Press, 6/28/2007; Santa Rosa Press-Democrat, 7/9/2007] However, the Klamath salmon are still gravely threatened by rampant fish diseases infesting tens of thousands of juvenile salmon, as well as abnormally high water temperatures and low water levels. [CounterPunch, 7/16/2007]

Entity Tags: Mike Thompson, Bodega Bay Fisherman’s Marketing Association, Chris Lawson, House Natural Resources Committee, Nick Rahall, US Department of the Interior, Washington Post, Endangered Species Act, Richard (“Dick”) Cheney

Category Tags: Corruption, Corporate welfare, Endangered species, Environmental enforcement, Klamath Basin Fish Kill

The White House finally releases a list of officials and organizations who met with Vice President Cheney’s energy task force (the National Energy Policy Development Group—see May 16, 2001) in 2001. Cheney and the White House have successfully battled for six years to keep virtually all details of the task force secret (see May 10, 2005), and many other documents and files pertaining to the task force remain secret. The list of participants confirms what many have always suspected—that oil, gas, and energy executives and lobbyists were virtually the only ones to have any input in the task force’s policy deliberations. Many of the participants were also heavy donors to the Bush-Cheney campaign, and to the Republican Party in general.
Secrecy - Some participants say they were never sure why the White House fought so hard to keep the information about the task force secret. “I never knew why they fought so hard to keep it secret,” says Charles A. Samuels, a lawyer for the Association of Home Appliance Manufacturers. “I am sure the vast majority of the meetings were very policy-oriented meetings—exactly what should take place.” Others say that their meetings with the task force were routine.
API Input - American Petroleum Institute president Red Cavaney says that when he met with the task force, he and his fellow API officials discussed position papers the organization had given to the Bush-Cheney campaign and to newly elected members of Congress. “We’re in the business of routinely providing advocacy materials,” Cavaney says. “Speaking for myself, I had zero hand in authoring or sitting with anyone from that task force and changing anything.” But Cavaney is seriously downplaying API’s influence (see March 20, 2001).
"Ridiculous" - Representative Henry Waxman (D-CA), chairman of the House Oversight and Government Reform Committee, who has been a driving force behind the effort to reveal the inner workings of the task force to the public, says it is it is “ridiculous” that it has taken six years to see who attended the meetings. He describes the energy task force as an early indicator of “how secretively Vice President Cheney wanted to act.” As to the makeup of the participants, Waxman is not surprised to see the dominance of energy industry groups in the meetings. “Six years later, we see we lost an opportunity to become less dependent on importing oil, on using fossil fuels, which have been a threat to our national security and the well-being of the planet,” he says. Climate expert David Hawkins of the Natural Resources Defense Council says: “Cheney had his finger on a critical issue. He just pushed it in the wrong direction.” [Washington Post, 7/18/2007]

Entity Tags: National Energy Policy Development Group, Bush administration (43), Association of Home Appliance Manufacturers, American Petroleum Institute, Charles A. Samuels, Henry A. Waxman, Natural Resources Defense Council, Richard (“Dick”) Cheney, David Hawkins, Red Cavaney

Timeline Tags: Civil Liberties

Category Tags: Corruption, Corporate welfare, Politicization and deception, Energy industry, Oil and gas industry, Cheney Energy Task Force

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike