Mr. President, let me first say that this has been a very difficult subject, and I have the utmost respect for the Senator from Georgia. As he said, I am looking forward to waiting and seeing a final product. I look at what is there right…
Mr. President, let me first say that this has been a very difficult subject, and I have the utmost respect for the Senator from Georgia. As he said, I am looking forward to waiting and seeing a final product. I look at what is there right now, and I do have concerns. I have concerns as to who the asset managers will be, what institutions will be involved, and what types of assets. It would seem to me, as I read it, that as the $700 billion is paid down, other assets could be purchased, and I just wonder where it would end. I believe some new heads will come in and kind of look at these proposals and perhaps come up with something that will resolve a looming problem we all are concerned about.
Today, my concern is on a different subject and one that is very important to me as an American citizen and as the ranking member of the Environment and Public Works Committee. The situation I am about to discuss reminds me of an old saying: Beware of wolves dressed in sheep's clothing. Today's so-called environmental movement can be described in much the same way.
Campaigns to ``save a cuddly animal'' or ``protect the ancient forests'' are really disguised efforts to raise money for Democratic political campaigns. Take this ad, for example, displayed on the League of Conservation Voters'--or the LCV's--Web site. This is LCV's standard text used to raise money for a nonprofit organization. In turn, the LCV takes these donations, given to ``save the environment,'' and then uses them to fund ads for Democratic candidates, such as Ben Lujan from New Mexico. LCV, similar to other groups I will highlight later, disguises itself as an environmental group dedicated to saving the environment. Yet, as shown by this political ad, it is simply an extension of the Democratic political party.
In the fall of 2004, I came to the Senate floor to discuss this very topic. This report and my remarks today are an update of the 2004 report. Over the last several months, my staff has put considerable time and effort into examining this deception. This examination has uncovered the tangled web of charitable and environmental organizations, political campaigns, and large foundations. Environmental groups are tax-exempt, IRS-registered, 501(c)(3) charitable organizations, meaning that contributions to these groups are tax deductible. I think it is very important that people understand, because there is always confusion here, that a 501(c)(3) is not supposed to be a political organization. It is a charitable organization. And there are many legitimate ones out there that deserve the tax-exempt status they have.
These groups profess to be stewards of the environment and solicit contributions from a variety of sources using these claims, but they demonstrate more interest in hyping the extreme environmental scenarios to raise money for raw political purposes than working toward actual real-world environmental change for the benefit of all Americans. Not surprisingly, given these deceptions, these nonprofit groups are tightly affiliated with and fund the 501(c)(4) lobbying organizations and 527 organizations. And we all know that 501(c)(4) organizations and 527 organizations are lobbying organizations that get involved in political campaigns.
With these intertwined organizations, it is extremely difficult to differentiate the source of funds and track their use. This problem is highlighted in a report prepared by my staff which provides preliminary examples based on the five most politically active environmental groups. The report describes their activities, the foundations that provide their financial support, and the interconnected web among these organizations.
Mr. President, I ask unanimous consent to have printed in the Record at the conclusion of my remarks the staff report to which I just referred.
Mr. President, my staff is not the first to uncover this sham. A December 19, 2007, article in the Wall Street Journal highlighted the very same problem, stating:
Because the IRS doesn't require 501(c) organizations to
detail election spending or to list contributors, it is
difficult to track their political activity.
The Journal analyzed data on 30 separate 501(c) groups active in elections from 2000 to 2006, culled from a variety of sources. The data--this again is from the Wall Street Journal--showed that the 30 organizations spent at least $155 million on the 2006 elections, nearly twice what they spent in 2000.
Environmental groups have become experts at duplicitous activity, skirting laws up to the edge of illegality and burying their political activities under the guise of nonprofit environmental improvement. This chart demonstrates this interconnected ``enviro-family affair'' of nonprofits and their benefactors. As you can see, the six organizations at the bottom of this chart are all either 527 groups or political 501(c)(4)s.
Let's take a look at the League of Conservation Voters, which is a poster child for this deceit. The LCV is an IRS-registered 501(c)3. Contributions to the organization are tax deductible. However, contributors should understand that LCV is a political organization affiliated with a 501(c)(4) organization, a political action committee, and a 527 organization. All three of these are political.
LCV represents itself as ``turning environmental values into national priorities,'' and much of its funds, even from its 501(c)(3) organization, goes to fund voter mobilization and education drives.
In each election cycle, LCV endorses political candidates. Since 1996, LCV has published a ``Dirty Dozen'' list and bragged about its effectiveness in ousting candidates on the list. Not surprisingly, the list singles out all Republican candidates, but they almost always throw in one Democratic candidate--just one--to make it appear as if it is technically bipartisan. To date, 83 names have been placed on the LCV's ``Dirty Dozen,'' 74 of which are Republicans. By their bipartisan claims, it would be expected that the LCV's support would be split evenly. The publishers of the ``Dirty Dozen'' list have yet to name even a dozen Democrats to their list in the last 12 years.
In 2006, LCV had two 527 groups, the League of Conservation Voters SSF and the League of Conservation Voters, Inc., SSF-527 II. These 527 groups were fined by the Federal Election Commission for three violations of Federal election law. One of the violations was that LCV knowingly accepted individual donations in excess of $5,000. LCV collected over $6 million in donations during 2004 that violated the $5,000 individual maximum amount restriction, and the ultimate fine was a total of $180,000 by the FEC.
According to an FEC press release, LCV received this fine for acting as a clear political committee and violating Federal election law. The Wall Street Journal highlighted these violations in an article published in December 2007. Following this incident, the LCV restructured its organization into a 501(c)(4), which allows the organization to run with fewer disclosure restrictions.
LCV has a long history of direct involvement in political campaigns. In 1996, LCV spent nearly $1.5 million in ads focused on defeating its ``Dirty Dozen'' list targets of 11 Republicans and, oh yes, 1 Democrat. In 1988, the LCV spent $2.3 million targeting its ``Dirty Dozen'' list of 12 Republicans and, oh yes, 1 Democratic candidate. In 2000, the LCV spent nearly $4 million, again targeting 11 Republicans and 1 Democrat on its ``Dirty Dozen'' list. And I can't forget that in 2000, the LCV also endorsed Al Gore for President--clearly a political endorsement. In 2002, LCV once again targeted 11 Republican
congressional candidates and 1 Democrat. Clearly there is a partisan pattern here. LCV spends hundreds of thousands of dollars in congressional contests against Republican candidates.
That same year, the group undertook its strongest single effort to date, focused on my friend, Senator Allard, who will be speaking right after me. The LCV claims to have budgeted $700,000 for that race--I am talking about incumbent Senator Allard from Colorado--and hired a campaign staff of 12 to coordinate phone banks and precinct walks. In addition, LCV ran television and radio advertisements against Senator Allard. Of course, as we all know, Senator Allard won in spite of that.
Altogether, the LCV reportedly spent $1.4 million in independent expenditures during the 2002 election cycle. Of that total amount, LCV spent $1.3 million benefitting Democratic candidates while only spending $136,000 for Republican candidates. That again is the ratio we see consistently, 10 to 1, to make it look as though it is not an arm of the Democratic Party. Two years later, in 2004, the ``Dirty Dozen'' list contained twelve Republicans and one Democrat. LCV and its affiliates spent a new record total of $16 million during that year's elections targeting the 13 candidates. As in previous years, the 1 Democrat on the list retained his seat while 4 of the 12 Republicans were defeated. For the first time, in 2004, the LCV included a Presidential candidate on their list. The LCV endorsed Senator John Kerry for President--again all political.
In 2006, the LCV chose 15 candidates for their ``Dirty Dozen'' list. The list was comprised of 13 Republicans and 2 Democrats. While the two Democrats on the ``Dirty Dozen'' list retained their seats, nine Republicans lost their seats. The LCV and its affiliates used its extensive budget of $27 million on campaign activities.
The 2006 elections also highlighted the intertwined political activities of LCV and other groups. A coalition of environmental organizations, that included LCV and the Sierra Club, worked together in 2006 to defeat their top target Richard Pombo, then chairman of the House Resources Committee. This coalition invested more than $1.7 million in the race to defeat him. If that figure alone is not startling enough, then look at this chart that shows part of a Sierra Club press release that gloats about their activity in this House race. We see that the Sierra Club invested $545,000 in this race and had 643,000 contacts with voters, and sent 397,000 pieces of mail in this race alone--Richard Pombo, in California.
At the time of this report, the LCV had yet to release a completed version of the 2008 ``Dirty Dozen'' list. However, it has released the names of nine individuals who will fill up the ranks of the completed list. Of those nine, there is one Democrat joining the ``Dirty Dozen.'' I would be remiss not to mention that it looks like I will be on their list this year. It should come as no surprise that for the 2008 Presidential election, the LCV has endorsed Senator Barack Obama for President.
As one individual who will be running, I am sure there will be a lot of money that will be in my race. I think it is kind of interesting that in this day, when we are all concerned with what might be happening on Wall Street and some of the people who have made huge salaries and then turn around and have a defunct company, we see the Environmental Defense Fund's Fred Krupp receiving a salary of $357,000; Sierra Club, Carl Pope, $207,000. I am hoping these contributors know that not only are their contributions going to organizations that are not doing anything about the environment, but they are paying very large salaries to large staffs.
While there is no means of calculating or anticipating what LCV will spend this year, as their budget has grown every election cycle, they will most likely have at least the $27 million that they did in 2006.
LCV is certainly not the only organization doing this. The Sierra Club, which describes itself as ``America's oldest, largest, and most influential grassroots environmental organization,'' has a similar record of trickery. The Sierra Club Foundation is a 501(c)(3) tax- exempt organization with an affiliated 501(c)(4) group, Sierra Club. There is also a 527 organization called the Sierra Club Voter Education Fund, which claims to be a ``separate segregated fund of the Sierra Club.'' The Sierra Club Foundation does not claim affiliation with this 527 organization, however the Sierra Club Voters Education Fund does not have its own board of directors, officers or trustees.
In 2006, the Sierra Club 501(c) organizations brought in more than $110 million and spent nearly $104 million; the Sierra Club 527, the Sierra Club Voter Education Fund, only brought in $60,000, but managed to spend nearly $1 million. That is pretty tricky.
Similar to LCV, the Sierra Club has a history of endorsing candidates for political office. Most recently, the Sierra Club announced its support of Senator Obama's Presidential bid. While there is no reported activity yet from the organization, the Sierra Club has been known to run television and radio advertisements both supporting their candidate and criticizing the opposition. At the time of this report, Sierra Club had announced its support of 13 candidates for seats in the United States Senate. Of those 13 candidates, none are Republicans. The organization has also announced its endorsement of 156 candidates for the U.S. House of Representatives. Of the candidates, four are Republicans. Essentially, 98 percent of Sierra Club's endorsements favor Democrat candidates.
Another example is the Natural Resources Defense Council.
The Natural Resources Defense Council, Inc. is registered as a 501(c)(3) organization. It is also affiliated with a 501(c)(4) organization, the NRDC Action Fund, and a 527 organization, the Environmental Accountability Fund. By having at least one of each category of tax-exempt organizations, these groups can transfer wealth throughout their family of organizations and remain virtually undetected. In its 2006 tax filing, Natural Resources Defense Council, Inc. transferred $98,801 to NRDC Action Fund, and NRDC Action Fund transferred $124,500 to undisclosed ``other organizations'' that same year.
Founded in 1970, NRDC purports to be the ``nation's most effective environmental action group'' whose mission is to ``[t]o safeguard the Earth: its people, its plants and animals and the natural systems on which all life depends.'' The NRDC claims to use grassroots efforts and the power of legal and scientific expertise to achieve its goals, which they describe frequently as ``independent.''
From 2001 through 2005, the NRDC reported on the Bush administration by creating the Bush Record. The Record categorized President Bush's time in office as an administration that ``will cater to industries that put America's health and natural heritage at risk.'' The NRDC predicted that Bush would continue ``to undermine environmental enforcement and weaken key programs.'' The organization gave up the effort and stopped tracking the administration's moves after President Bush defeated Senator Kerry in the 2004 election. It is interesting, I remember the ``Clear Skies'' legislation that was the largest reduction of pollutants of any President in the history of America and it was defeated by the Democrats in the Environment and Public Works Committee.
My staff examined two other organizations, Greenpeace and Environmental Defense Fund, and found similar patterns of partisan fund-raising and spending.
Greenpeace, like other environmental activist organizations, has strong ties to other politically oriented groups. The chairman of the board of directors, Donald Ross, is involved in multiple organizations, including the LCV, where he is a board member. Ross is also the founder of M+R, a campaign strategy firm whose clients include, among others: Environmental Defense Fund; LCV; and the Democratic Congressional Campaign Committee. Greenpeace is also a client of Earthjustice, the legal entity that represents the Sierra Club, NRDC, and Environmental Defense Fund. Additionally, Greenpeace remains officially affiliated with the Partnership Project, whose members also include Sierra Club, Environmental Defense Fund, NRDC and LCV. While Greenpeace may not make a Dirty Dozen list, or endorse hundreds of Democratic candidates, it is affiliated with and supports the organizations that do. Furthermore, it
represents those affiliations to the rest of the world.
Environmental Defense Fund, EDF, describes itself as an organization that ``is dedicated to protecting the environmental rights of all people'' by using a scientific approach that is ``nonpartisan, cost- effective, and fair.'' Environmental Defense Fund is represented by its family of organizations, Environmental Defense, Inc., a 501(c)(3) organization, and Environmental Defense Action Fund, Inc., a 501(c)(4) organization.
EDF is also intimately connected with other environmental and political organizations. Trustee Frank Loy currently serves as one of Senator Obama's ``top environmental advisers'' for the 2008 Presidential campaign. This past year, trustee Douglas Shorenstein donated $272,100 to Democratic political objectives, including the Hillary Clinton and Al Franken campaigns. Trustee Joanne Woodward, wife of noted Hollywood star Paul Newman, donated significantly to both the Clinton and Obama campaigns. Until 2006, Teresa Heinz, wife of Senator John Kerry served on the board of trustees for EDF. Heinz is also the current chairman of Heinz Endowments, a part of the Heinz Family Foundation, one of the Nation's 25 largest charitable foundations. Current EDF trustee George Woodwell also serves on the board of the