Tuesday, August 30, 2011

Campaign cash and army of lobbyists keep 'clean coal' boondoggle afloat for a decade


By Karl Bremer

The Duluth News-Tribune recently published an excellent two-part series by reporter Peter Passi on the Excelsior Energy “clean coal” pipedream that’s been vacuuming up millions in tax dollars from the federal government and State of Minnesota for the better part of the past decade with little to show for it except for a well-paid husband/wife ownership team.

What the newspaper neglected to examine was the role that over $325,000 in state and federal political campaign contributions and lobbying expenses have played in keeping this project on life support for so many years.

The Excelsior Energy boondoggle, according to the News-Tribune’s investigation, has hauled in more than $40 million in taxpayer dollars on the false promise of providing 2,000 MW of electricity. But it has yet to turn one spade of dirt on its proposed $2.1 billion power plant on the Iron Range or create one single job outside of the company’s battalion of lobbyists, consultants and lawyers.

Excelsior Energy is into the state Iron Range Resources and Rehabilitation Board for $9.5 million. It got $10 million from the Minnesota Public Utilities Commission Renewable  Development Fund. And the U.S. Department of Energy shoveled in another $22 million. Yet the owners of Excelsior Energy have put up a miniscule $60,000 for their project and at the same time have reaped combined annual salaries that now are estimated to be $600,000.

The News-Tribune series documented the scandalous political history of Excelsior’s proposed project and the unwavering support it’s received from most of the state’s Iron Range legislators—including the 2008 legislature’s action to shield many of the company’s financial records from public scrutiny. Its owners have quit predicting when the plant will ever be built. And the newspaper rightfully is asking what happened to all the money, and why haven’t our elected officials throwing tens of millions of dollars in public funds at this private enterprise demanded more accountability?

Part of the answer lies in the political influence Excelsior Energy’s co-owners Tom Micheletti and Julie Jorgensen appear to have bought over the past decade through at least $123,775 in political contributions and more than $200,000 in lobbying expenses. It’s a scenario we’ve seen before: A private company forms to promote a dubious enterprise, hires politically connected lobbyists, sucks up millions in government grants, hands out boatloads of campaign cash to politicians who keep the government money flowing to enrich a handful of lobbyists and consultants—and then the cycle repeats itself over and over.

The Excelsior Energy money has gone to Republicans and Democrats alike: George W. Bush, Barack Obama, Norm Coleman, Amy Klobuchar, Lori Swanson, the Democratic Congressional campaign Committee, the National Republican Senatorial Committee, the Minnesota House DFL Caucus, the Minnesota House Republican Campaign Committee.

Often, the money was handed out to both sides in the same year. For example, On January 22, 2002, Micheletti gave $2,500 to the House DFL Caucus. Three days later, he cut another $2,500 check to the Senate DFL Caucus. Then on January 28, 2002, he turned around and gave $2,250 to the House Republican Campaign Committee.

Last year, Micheletti gave $500 to DFLer Mark Dayton’s gubernatorial campaign on July 12 and $500 to Tom Emmer, Dayton’s GOP opponent, on July 16.

Similarly, the Excelsior Energy Inc. PAC in 2010 gave $250 each to Dayton and Emmer, $650 to the state DFL legislative caucuses and $550 to state GOP caucuses.

Norm Coleman was the big winner of the Excelsior Energy Campaign Cash Sweepstakes with a total haul of $14,600 from the Micheletti-Jorgensen household between 1998 and 2008. According to a November 2003 Public Citizen report, Coleman was key to Excelsior Energy securing federal loan guarantees:

“In September (2003), the two Republican congressmen in charge of the energy bill conference committee, New Mexico Senator Pete Domenici and Louisiana Representative W.J. “Billy” Tauzin, unilaterally inserted language into the energy bill at the behest of Minnesota’s GOP Senator Norm Coleman to provide $800 million in federal loan guarantees to one company, Excelsior Energy. The $800 million loan guarantee is apparently designed to help secure Senator Coleman’s vote in favor of the energy bill. The federal assistance to Excelsior Energy was included in neither the House nor Senate versions of the energy bill, adding to the growing list of provisions that a handful of Republican conferees have inserted to appease special interests.”

Despite Public Citizen's characterization of this as an exclusively Republican boondoggle, Democrats have had an equal hand in keeping the money flowing to Excelsior Energy.

Most individual state campaign contributions from Micheletti and Jorgensen were targeted toward DFL Iron Range legislators in districts where the proposed sites for the project are located. The exception is District 3A Rep. Tom Anzelc (DFL-Balsam Township), the only Iron Range lawmaker who has opposed the project. Anzelc has received no direct contributions from the couple.

Senator Tom Bakk (DFL-Cook), an Iron Range legislator who has long been the project’s biggest shill, made out the best among state lawmakers with a total of $3,750 in campaign contributions from Micheletti and Jorgensen from 2002-2008. The Excelsior Energy Inc. PAC kicked in another $500 to Bakk's 2009 gubernatorial campaign.

The Excelsior Energy co-CEO couple placed their biggest bets on legislative caucuses of both parties.

Between 2001-2010, Micheletti and Jorgensen together donated $9,850 to the House DFL Caucus, $7,700 to the House Republican Campaign Committee, $10,950 to the Senate DFL Caucus, and $8,500 to the GOP’s Senate Victory Fund.

Excelsior Energy’s efforts were aided by a cadre of lobbyists in the state, from four in 2005 to nine in 2010. The company currently has eight lobbyists registered with the state.

Besides Tom Micheletti, the longest-serving Excelsior Energy state lobbyist is former Iron Range State Senator Doug Johnson, who chaired the powerful Senate Tax Committee until he retired in 2003. Johnson ran for governor in 1998, and Micheletti donated $500 to his campaign. He has been lobbying for Excelsior Energy since 2005.

Excelsior Energy has had between three and five lobbyists registered with Congress between 2003 and 2009, including Norm Coleman’s former chief of staff Erich Mische in 2006-2007. The company currently has no federal lobbyists registered. In 2006 and 2007, Excelsior Energy’s federal lobbyists reported spending $120,000 and $80,000, respectively.

The News-Tribune investigation found that Excelsior Energy has already spent nearly $20 million in state funds and soon will deplete more than $22 million in federal tax dollars. It has only $1.9 million remaining in unobligated federal Department of Energy funds available, and may be on its last legs, the newspaper reported.

However, there should be no confusion about where at least some of the money has gone, or how Excelsior Energy’s well-compensated husband-and-wife CEO team curried so much political support for their phantom power plant. They did it the old fashioned way—with campaign cash, politically connected lobbyists and self-serving politicians.

It’s a formula that’s always worked.

86 comments:

  1. It's apparent why you won an award for best use of public records. Untangling this web of political payoffs and making it understandable was a daunting task masterfully done.

    Although CAMPers have been aware of much of this information for some time, we've been unable to get any media attention for it. Bless the bloggers!

    An interesting footnote - I understand that last Friday Tom Micheletti and Julie Jorgensen, along with Sen. Tom Bakk, attended Sen. Dave Tomassoni's annual fundraiser at his cabin on Side Lake, where Micheletti also has a cabin - all very cozy.

    Charlotte Neigh, Co-Chair
    Citizens Against the Mesaba Project
    http://www.camp-site.info/

    ReplyDelete
  2. Keep digging! Good to see that they're down to "only" eight lobbyists. And their "Our Team" on their site has slimmed down considerably: http://legalectric.org/weblog/6997/

    Carol A. Overland
    -- represented mncoalgasplant.com against the Mesaba Project

    ReplyDelete
  3. You didn't get it quite right. Jorgenson and Micheletti are not married. Tom Micheletti is married to Kathleen Micheletti. However, Kathi is also a lobbyist for Excelsior, among other clients.

    ReplyDelete
  4. Julie: According to the Duluth News-Tribune (and other sources), "Heading Excelsior are two seasoned energy professionals: Tom Micheletti, a Hibbing native and former Northern States Power executive, and his wife, Julie Jorgensen, former CEO of CogenAmerica and VP of NRG Energy Inc."

    ReplyDelete
  5. Tom and Julie are married. Kathi Micheletti is married to Tom's brother Pat Micheletti, who is the company's communications officer and another lobbyist.

    ReplyDelete
    Replies
    1. Aaron,
      I find it disturbing that Jeff Anderson is accepting money from Micheletti. I would like to see this brought to light before the endorsing convention.

      Concerned Coleraine Resident

      Delete
  6. Bipartison corruption and waste...just one more reason to get money totally out of politics, but nothing short of a Constitutional Amendment will do that...until then, we wil rely on the Karls of the world to exposed and shame these people

    ReplyDelete
  7. Wow..how stupid can we all be? Seriously, with the way the economy is going, and all the hurting people....they are all a bunch of thieves. I suppose we are all just going to sit around and do nothing about it.

    Thanks for the effort Karl, you are the only person on the post who has DONE anything about it. Come on people, the least you can do is pass this on...or we will continue to get what we evidently deserve.

    Xcel used 4.6 million of that same fund for a whole year to help subsidize solar installations in the state...a lousy 4.6 million and these people are allowed to burn through all that money year after year on something that will never become a competitor to Xcel...oh, wait a minute...the fog is clearing

    ReplyDelete
  8. What the newspaper neglected to examine was the role that over $325,000 in state and federal political campaign contributions and lobbying expenses have played in keeping this project on life support for so many years.sms lån

    ReplyDelete
  9. Excelsior Energy’s efforts were aided by a cadre of lobbyists in the state, from four in 2005 to nine in 2010. The company currently has eight lobbyists registered with the state. free-credit-report.net

    ReplyDelete
  10. Thanks for such a nice blog post....i was searching for something like that. buy perfect money e-voucher with paypal

    ReplyDelete
  11. I was just browsing through the internet looking for some information and came across your blog. I am impressed by the information that you have on this blog. It shows how well you understand this subject. fastusaloanonline.org

    ReplyDelete
  12. Wonderful!! this is really one of the most beneficial blogs I’ve ever browsed on this subject. I am very glad to read such a great blog and thank you for sharing this good info with us. No credit check payday loans

    ReplyDelete
  13. This is an excellent post I seen thanks to share it. It is really what I wanted to see hope in future you will continue for sharing such a excellent post instagram online viewer

    ReplyDelete
  14. Actually I read it yesterday but I had some thoughts about it and today I wanted to read it again because it is very well written youtube to mp3 converter

    ReplyDelete
  15. This article is really amazing, so far very good work well done. Thank you. instagram online

    ReplyDelete
  16. Mmm.. good to be here in your article or post, whatever, I think I should also work hard for my own website like I see some good and updated working in your site. youtube to mp3 converter

    ReplyDelete
  17. I fit in with your conclusions and will eagerly look forward to your next updates. Samuel

    ReplyDelete
  18. Great your site. When i view your article and view your site have good.
    I like your site.I have feel good in your content the best.
    Article have good on cyber world.

    Thank for sharing article.
    raja poker

    info menarik

    ReplyDelete
  19. I see some amazingly important and kept up to length of your strength searching for in your on the site
    www.loanmoney.com.sg

    ReplyDelete
  20. Your site is good Actually, i have seen your post and That was very informative and very entertaining for me. Thanks for posting Really Such Things. I should recommend your site to my friends.
    Gurgaon Escorts Services by Alka Talwar

    ReplyDelete
  21. Very nice job... Thanks for sharing this amazing and educative blog post!
    LoanMoney.com.sg

    ReplyDelete
  22. Great post I would like to thank you for the efforts you have made in writing this interesting and knowledgeable article.
    installment loans

    ReplyDelete
  23. I would like to say that this blog really convinced me,you give me best information! Thanks,very good post.
    buy Perfectmoney
    Keep Posting:)

    ReplyDelete
  24. The blog is all about positivity, beauty and brilliance.
    bad credit loans

    ReplyDelete
  25. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. Guaranteed Loans

    ReplyDelete

  26. I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well..
    www.financialdirectorysg.com

    ReplyDelete
  27. Perpetually logical and an outstanding contribution to the world of bloggers.
    Bitsane exchange

    ReplyDelete

  28. Thanks for sharing this quality information with us. I really enjoyed reading. Will surely going to share this URL with my friends.
    Financial Directory SG

    ReplyDelete
  29. very interesting post.this is my first time visit here.i found so mmany interesting stuff in your blog especially its discussion..thanks for the post! car title loan

    ReplyDelete
  30. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. http://www.slickcashloan.com

    ReplyDelete
  31. Great article Lot's of information to Read...Great Man Keep Posting and update to People..Thanks
    hard money

    ReplyDelete
  32. Fantastic blog you have here. You’ll discover me looking at your stuff often. Saved! http://slickcashloan.com/

    ReplyDelete
  33. A blog that mushroomed from visual enlightenment.
    fast business loans bad credit

    ReplyDelete
  34. I enjoyed over read your blog post. Your blog have nice information, I got good ideas from this amazing blog. I am always searching like this type blog post. I hope I will see again.MenmyshopTouch Hypersonic Double Din Player MirrorJ3L Touch Double Din PlayerHypersonic Double Din Player MirrorJ3L Double Din Player Mirror
    CBSE open schoolcbse privatebanzaraonjourneyMalhotra law house

    ReplyDelete
  35. To get Escort service in Mumbai with girls now, please do this on September 10 and enjoy our time with the more beautiful girls, through our time spent by the Mumbai Escort Service, we will be very good today because we have call girls Mumbai escort service will be available
    http://www.escortserviceinmumbai.org
    Mumbai Escorts
    Mumbai Escorts Service
    Escorts Service In Mumbai

    ReplyDelete
  36. I prefer merely excellent resources - you will see these people in:
    long term loan with bad credit

    ReplyDelete
  37. You know your projects stand out of the herd. There is something special about them. It seems to me all of them are really brilliant! slickcashloan.com

    ReplyDelete
  38. This blog has expressed its meaning in a very short but clear way, so succinct.
    see here now

    ReplyDelete
  39. This is a great post. I like this topic.This site has lots of advantage.I found many interesting things from this site. It helps me in many ways.Thanks for posting this again. loan against inheritance

    ReplyDelete
  40. That's so nice and interesting information. Thanks for sharing your post.
    hotmail login account

    ReplyDelete
  41. Thanks for sharing nice information with us. i like your post and all you share with us is uptodate and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job. credit card processing

    ReplyDelete
  42. This was really an interesting topic and I kinda agree with what you have mentioned here! solve your money problem at slick cash loan

    ReplyDelete
  43. A great content material as well as great layout. Your website deserves all of the positive feedback it’s been getting. I will be back soon for further quality contents. 상품권 매입신용카드 현금화

    ReplyDelete
  44. I really appreciate that you have given us this section to air out our message!Tree Trimming

    ReplyDelete
  45. Wood Fence is waving at this post! Haha! Thanks for this!

    ReplyDelete
  46. I want to stop someone from replying my posts, anybody know?

    Interior Painting

    ReplyDelete
  47. This is perfect for my paper!


    Fuel Assistance

    ReplyDelete
  48. This is perfect! Thanks for sharing!


    Dallas Moving

    ReplyDelete
  49. Oh, this was released 9 years ago.


    Concrete Contractor Near Me

    ReplyDelete
  50. I didn't notice the released date! I thought it's a current news!


    Flat Tire Services

    ReplyDelete
  51. This reminds me of Bee Gee's song Still water!


    New Orleans Roofing

    ReplyDelete
  52. This is great! I hope it was successful!


    Insulation

    ReplyDelete
  53. That is great! I hope it's okay now!


    Garbage Disposal Repair

    ReplyDelete
  54. This is good for the benefit for the people!


    Fuel Assistance

    ReplyDelete
  55. This is a very interesting article for homework!



    Drywall Repair

    ReplyDelete
  56. I was searching for this! Glad I found it.


    Multi Dwelling Mitigation

    ReplyDelete
  57. great blog! https://www.extreme-painting-llc.com/

    ReplyDelete
  58. Thank you for sharing this interesting article.

    ReplyDelete
  59. https://www.miltonpaving.ca/
    Intriguing post! it's extraordinary to see that a blog can truly wake up when the remarks update in realy time.

    ReplyDelete