Koch Industries Secretly Funding The Climate Denial Machine

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page 2
Table of Contents:
Executive Summary pg. 6–8

Case Studies:
How does Koch Industries Influence the Climate Debate? pg. 9–13
1. The Koch-funded “ClimateGate” Echo Chamber
2. Polar Bear Junk Science
3. The “Spanish Study” on Green Jobs
4. The “Danish Study” on Wind Power
5. Koch Organizations Instrumental in Dissemination
of ACCF/NAM Claims
What is Koch Industries? pg. 14–16

Company History and Background
Record of Environmental Crimes and Violations
The Koch Brothers pg. 17–18

Koch Climate Opposition Funding pg. 19–20
The Koch Web
Sources of Data for Koch Foundation Grants
The Foundations
Claude R. Lambe Foundation
Charles G. Koch Foundation
David H. Koch Foundation
Koch Foundations and Climate Denial pg. 21–28

Lobbying and Political Spending pg. 29–32
Federal Direct Lobbying
Koch PAC
Family and Individual Political Contributions
Key Individuals in the Koch Web pg. 33

© illustration by Andrew Fournier/Greenpeace
Sources pg. 34–43

Endnotes
page 3
Mercatus Center Fraser Institute
Americans for Prosperity Institute for Energy Research

Frontiers of Freedom
Institute for Humane Studies
National Center for Policy Analysis
Heritage Foundation
American Council on Science and Health
Cato Institute Atlas Economic Research Foundation
Manhattan Institute for Policy Research Capital Research Center
Washington Legal Foundation American Enterprise Institute
Federalist Society for Law and Public Independence Institute
Policy Studies
Foundation for Research on Economics American Legislative Exchange Council
and the Environment
Goldwater Institute
Pacific Research Institute for Public
Policy Property and Environment Research Center
Tax Foundation Mackinac Center for Public Policy
Independent Women’s Forum Center for the Study of Carbon Dioxide and
Global Change
Texas Pubic Policy Foundation Americans for Tax Reform
State Policy Network
American Council for Capital Formation Media Research Center
George C. Marshall Institute John Locke Foundation
National Taxpayers Union Foundation
Reason Foundation
Executive Summary
Most Americans have never heard of Koch Industries, one of
the largest private corporations in the country, because it has
no Koch-branded consumer products, sells no shares on the
stock market and has few of the disclosure requirements of
a public company. Although Koch intentionally stays out of
the public eye, it is now playing a quiet but dominant role in a
high-profile national policy debate on global warming. Koch
Industries has become a financial kingpin of climate science
denial and clean energy opposition. This private, out-of-sight
corporation is now a partner to ExxonMobil, the American
Petroleum Institute and other donors that support organiza-
tions and front-groups opposing progressive clean energy
and climate policy. In fact, Koch has out-spent ExxonMobil
in funding these groups in recent years. From 2005 to 2008,
ExxonMobil spent $8.9 million while the Koch Industries-
controlled foundations contributed $24.9 million in funding to
organizations of the ‘climate denial machine’.
The company’s tight knit network of lobbyists, former

executives and organizations has created a forceful stream
of misinformation that Koch-funded entities produce and
disseminate. This campaign propaganda is then replicated,
repackaged and echoed many times throughout the
Koch-funded web of political front groups and think tanks.
On repeated occasions documented below, organizations
funded by Koch foundations have led the assault on climate
science and scientists, “green jobs,” renewable energy and
climate policy progress.
This report focuses on activities by Koch Industries and its • ClimateGate Echo Chamber—At least twenty Koch-funded
affiliates, as well as the family—and company—controlled organizations have repeatedly rebroadcast, referenced and
foundations which fund organizations that spread inaccurate appeared as media spokespeople in the story, dubbed “Cli-
and misleading information about climate science and clean mateGate,” of supposed malfeasance by climate scientists
energy policies. Included is research on the company and gleaned from a cache of stolen emails from the University of
the Koch brothers, two of the top ten richest people in the East Anglia in November 2009. These organizations claim
United States. The Koch brothers own the corporation the emails prove a “conspiracy” of scientists and casts doubt
and control its political spending. Also included are newly on the scientific consensus regarding climate change.
compiled funding connections from Koch foundations to a
• Polar Bear Junk Science—In a 2007 published ‘junk
vast array of conservative and libertarian organizations and
science’ article on polar bears and Arctic climate impacts,
front groups. The report documents the Koch-funded funded
the author acknowledged receiving research funding from
groups’ actions and the Koch legacy of climate denial and
ExxonMobil, American Petroleum Institute and the Charles G.
obstruction of environmental policy. Case studies contained
Koch foundation. The paper, which appeared in the journal
in this report include:
Ecological Complexity, was published as a “Viewpoint”
piece, rather than new scientific research. It was not peer-
page 6
Executive Summary
In spite of publishing this statement and reducing funding to

a number of prominent climate denial organizations over the
past few years, ExxonMobil continues to support dozens of
organizations who are part of the climate denial movement
2
with millions of dollars in annual funding. ExxonMobil has
responded to public scrutiny by slightly reducing their
support of climate denial, and Koch Industries is outpacing
ExxonMobil’s funding activities while drawing very little public
attention. As ExxonMobil’s silent partner in funding the
climate-denial machine, Koch Industries often uses similar
and sometimes more aggressive tactics.
Kansas-based Koch Industries is a conglomerate dominated

by petroleum and chemical interests with approximately $100
© Nick Cobbing/Greenpeace
billion in annual sales, operations in nearly 60 countries and

70,000 employees. Most of Koch’s operations are invisible
to the public, with the exception of a handful of retail brands
such as Brawny® paper towels and Dixie® cups, produced
by its subsidiary Georgia-Pacific Corporation. Koch
Industries has been ranked as the first- or second-largest
privately-held company in the United States in recent years,
currently ranked second behind Cargill corporation.
reviewed and was criticized by leading polar bear and Arctic Two brothers, Charles and David Koch, each own 42 percent
ice scientists for containing “no new research” and drawing of the company. Part of Koch Industries’ influence is chan-
unfounded conclusions. Regardless, multiple Koch and neled through three foundations, also controlled by the two
Exxon-funded groups rebroadcast the article’s conclusions brothers. This report documents roughly 40 climate denial
that polar bears were not endangered by climate change, and opposition organizations receiving Koch foundation
through their websites and other media outlets. Additional grants in recent years, including:
Koch-funded groups and industry groups threatened to sue
the Federal government for listing the polar bear. • More than $5 million to Americans for Prosperity Founda-
3
tion (AFP) for its nationwide “Hot Air Tour” campaign to
For years, both openly and behind the scenes, ExxonMobil spreading misinformation about climate science and oppos-
dominated the voice of climate science denial in the ing clean energy and climate legislation.
national global warming dialogue. However, after a decade of
reputation-damaging public disclosures, as well as pressure • More than $1 million to the Heritage Foundation, a mainstay
from scientific organizations, shareholders and senators, of misinformation on climate and environmental policy issues.
ExxonMobil implemented a new public relations strategy
• Over $1 million to the Cato Institute, which disputes the
under a new CEO, and has begun to moderate its public
scientific evidence behind global warming, questions the
statements on climate change. ExxonMobil’s website de-
1 rationale for taking climate action, and has been heavily
clares: “We have discontinued contributions to several public
involved in spinning the recent ClimateGate story.
policy research groups whose position on climate change
diverted attention from the important discussion on how the • $800,000 to the Manhattan Institute, which has hosted
world will secure the energy required for economic growth in Bjorn Lomborg twice in the last two years. Lomborg is a
an environmentally responsible manner.” prominent media spokesperson who challenges and attacks
policy measures to address climate change.
page 7
Executive Summary
• $365,000 to Foundation for Research on Economics and the Environment

(FREE) which advocates against taking action on climate change because SINCE THE BEGINNING
warming is “inevitable” and expensive to address. OF THE 2006 ELECTION
• $360,000 to Pacific Research Institute for Public Policy (PRIPP) which
4
CYCLE, KOCH’S PAC
supported and funded An Inconvenient Truth…or Convenient Fiction, a film
attacking the science of global warming and intended as a rebuttal to former
SPENT MORE ON
Vice-President Al Gore’s documentary. PRIPP also threatened to sue the US CONTRIBUTIONS TO
Government for listing the polar bear as an endangered species.
FEDERAL CANDIDATES
• $325,000 to the Tax Foundation, which issued a misleading study on the THAN ANY OTHER OIL-
costs of proposed climate legislation.
AND-GAS SECTOR PAC.
This is only part of the picture, because the full scope of direct contributions to
organizations is not disclosed by individual Koch family members, executives,
or from the company itself.
Contributions through Koch’s political action committee (PAC) are a matter

of public record. Since the beginning of the 2006 election cycle, Koch’s PAC
5
spent more on contributions to federal candidates than any other oil-and-gas
sector PAC. For that period, Koch Industries and
its executives spent $2.51 million compared to next
three biggest contributors: Exxon ($1.71 million),
Valero ($1.68 million), and Chevron ($1.22 million).
Koch executives and their families wield political

influence in other ways too, including direct federal
lobbying and campaign contributions. Over the last
few years, Koch Industries, Koch employees, and
Koch family members:
• Spent $37.9 million from 2006 to 2009 for direct

lobbying on oil and energy issues, outspent only by
ExxonMobil ($87.8 million) and Chevron Corporation
($50 million).
• Spent $5.74 million in PAC money for candidates,

committees, and campaign expenditures since the
2006 election cycle.
• Contributed at least $270,800 to federal political

party committees since the 2006 election cycle.
©Alexey Drovzhinin/Greenpeace
The combination of foundation-funded front-groups,

big lobbying budgets, PAC donations, and direct
campaign contributions makes Koch Industries
and the Koch brothers among the most formidable
obstacles to advancing clean energy and climate
policy in the US.
page 8
Case Studies:
How does Koch Industries Influence the Climate Policy Debate?
Case Study 1: The Koch-funded “ClimateGate” Echo Chamber
In November 2009, anonymous hackers illegally obtained and disseminated thousands of personal
emails from climate scientists housed on the server of the University of East Anglia. The emails
spanned 13 years of correspondence and a handful of selected emails were taken out of context
by a number of climate-denier organizations. These organizations, many funded by Koch, claim the
emails prove a “conspiracy” of scientists and cast doubt on the scientific consensus on human-
caused climate change.
This incident, dubbed “ClimateGate” by climate-denier groups, has been distorted and repeated
many times by conservative media and blogs since late November 2009. Twenty organizations,
roughly half of the Koch-funded groups profiled in this report, have contributed to the “ClimateGate”
echo chamber. Among the most vocal groups are organizations that received over $1,000,000 from
Koch foundations since 2005, including Americans for Prosperity, the Heritage Foundation, and the
Cato Institute.
1) Americans For Prosperity (received over $5 million from Koch since 2005) hosted a live we-
6
bcast from Copenhagen on Dec 9th as part of their “Hot Air Tour,” using the “ClimateGate”
emails as a reason to prevent passage of any progressive global warming policy. During
the webcast, Steve Lonegan, AFP’s New Jersey Director, said “ClimateGate” could have
uncovered “the biggest hoax our world has ever seen” and vowed not to allow any climate
bill to pass the US Senate. Several members of the Copenhagen youth delegation crashed
the AFP event and were angrily called “Hitler Youth” by AFP guest speaker and well known
climate denier Lord Christopher Monckton. In addition to the Copenhagen webcast, AFP
7 8
mentions “ClimateGate” in many blog posts, including in their protest of the Environmental
9
Protection Agency CO2 regulations, known as the endangerment finding.
2) The Heritage Foundation (received over $1 million from Koch since 2005) has posted
several articles on its website regarding “ClimateGate.” The blogs run the gamut of possible
10
climate-denier angles on the incident, ranging from conspiracy accusations , to a history of
11 12
imagined climate scandals , to effects on world politics , to supposed negative economic
13
consequences from climate legislation.
3) The Cato Institute (received over $1 million in grants from Koch since 2005) is the front-
14
group for climate-denier Patrick Michaels , who has been a vocal spokesperson regarding
“ClimateGate”. Within two weeks following the email breach at East Anglia University,
15
Patrick Michaels had appeared in over twenty media interviews on shows including CNN’s
Anderson Cooper 360, NBC’s Nightly News, FOX’s Fox & Friends, C-SPAN’s Washington
Journal, and BBC’s Have Your Say. Michaels, taking one line of an illegally-obtained email out
16
of context, has claimed the scientists have committed a “capital crime” and their actions are
17
“akin to filtering what goes in the bible.”
page 9
Case Studies:
In addition to AFP, the Heritage Foundation, and the Cato Institute, about half of the
Koch-funded climate denial groups detailed in this report contributed to the “ClimateGate”
misinformation echo chamber, including:
18 24 29
American Enterprise Institute Independent Women’s Forum Reason Foundation
19 25 30
Americans for Tax Reform John Locke Foundation State Policy Network
20 26 31
Capital Research Center Mackinac Center Texas Public Policy Foundation
21 27 32
Fraser Institute Media Research Center Competitive Enterprise Institute
22 33
George C Marshall Institute Pacific Research Institute for FreedomWorks
23 28 34
Goldwater Institute Public Policy Heartland Institute
Case Study 2: Polar Bear Junk Science
In 2007, several prominent climate denial scientists published “[The article’s authors] suggest that factors other than climate
35
a non-peer reviewed article, (Dyck, Soon et al, 2007 “Polar warming are responsible for a decline in the polar bear
bears of western Hudson Bay and climate change: Are population of Western Hudson Bay… In our examination
warming spring air temperatures the ‘‘ultimate’’ survival of their alternative explanations, and the data available to
39
control factor?”) concluding that polar bears are not being evaluate each, we found little support for any.”
threatened by anthropogenic global warming. One of the
paper’s authors, Dr. Willie Soon, disclosed in the acknowl- Oil interests and their allies likely realize that polar bear
edgements section that he had received direct corporate protections might hinder oil exploration in the Arctic. In
funding for the work, stating “W. Soon’s effort for the addition, because polar bear decline is an iconic symbol of
completion of this paper was partially supported by grants the climate crisis, undermining the scientific proof of polar
from the Charles G. Koch Charitable Foundation, American bears in peril would potentially delay overall climate policy
Petroleum Institute, and Exxon-Mobil Corporation.” (Exxon measures that will reduce oil consumption.
grants to Soon’s organization are detailed below. The exact
The co-authors of the paper include long time climate
amount received from the Koch foundation was not found 40 41 42
deniers: Sallie Baliunas, David Legates and Tim Ball .
on its 990 forms. The American Petroleum Institute does
Willie Soon and Sallie Baliunas have a documented history
not disclose the multiple grants it has made to such climate
of receiving money from oil interests. ExxonMobil Foundation
denial organizations over the years.)
tax records and company documents confirm a series
The paper, which did not include any new scientific research, of grants to the Center for Astrophysics, which employs
but drew from other published work, appeared in the journal both Soon 43
and Baliunas. In 2008, ExxonMobil contributed
Ecological Complexity as a “Viewpoint” piece. This article $76, 106 to Soon and Baliunas’ institute, the Smithsonian
declared Arctic sea ice decline was less severe than recent Astrophysics Observatory, with funding totalling over
36
well founded conclusions in peer-reviewed literature. The $340,000 in four grants since 2005.
authors question the climate science of Arctic warming and
Soon and Baliunas were the authors of another controversial
the scientific modeling that indicates climate change as a
climate “junk science” report in 2003, funded by the
threat to polar bear populations. Leading polar bear and
American Petroleum Institute. The paper, “Lessons & Limits
Arctic ice scientists criticized the article for containing “no
of Climate History: Was the 20th Century Climate Unusual?”,
new research” and drawing erroneous conclusions from
37 published by another industry-funded think tank, the George
existing research. Two polar bear experts, Dr. Ian Stirling 44
38 Marshall Institute, attacked the research of climate scientist
and Dr. Andrew Derocher , published a response to the
Michael Mann, who has also been a prominent target in the
paper, stating that the 2007 article did not adequately
“Climategate” controversy detailed above. Soon, Baliunas and
support the claim that non-climate factors were causing the
Legates teamed up on a version of the same paper, pub-
polar bear population decline. Stirling and Deroucher wrote,
lished in a small journal Climate Research, which generated
page 10
Case Studies:
such an uproar that the Editor in Chief and several others

45 46
resigned in protest. Both Soon and Baliunas have been
associated as spokespeople, advisors and board members
of multiple Koch-funded climate denial groups over the past
decade.
The 2007 polar bear junk science paper prompted a letter to

47
ExxonMobil from North Carolina Representative Brad Miller,
Chair of the US House Subcommittee on Investigations
and Oversight, which raised a key question about Exxon’s
funding, which could well have been asked of Koch and API:
“To people outside the scientific community, one PhD may

seem like another. Certainly Exxon knows better, however.
Yet according to Dr Soon, an astrophysicist by profession,
ExxonMobil funded the development of his “opinions” on
global warming and its potential impact on polar bear
populations…The Congress and the Public have a right to
know why ExxonMobil is funding a scientist whose writing
is outside his area of expertise to create the impression that
expert scientists have conducted vigorous, peer reviewed
work that says the problems with polar bears [and climate
© Nick Cobbing/Greenpeace
48
change] are unproven or unserious.”
49
Exxon responded, denying responsibility for Soon’s re-
search and claiming that the paper had undergone a “lengthy
peer review process.”
The Koch-funded climate denial groups kicked into gear

before the paper was published. Regardless of the non-peer
reviewed status of the Ecological Complexity paper, it gave
the appearance of a peer reviewed paper. Multiple Koch and
Exxon-funded groups rebroadcast the story through their
websites and other media outlets, emphasizing the paper
and its ‘findings’ that polar bears are not endangered by
climate change. When the Bush Administration was forced
to consider listing the polar bear under the Endangered
Species Act (by a lawsuit brought by Greenpeace and other
environmental groups), Sarah Palin and her officers in the
Alaskan government referenced the 2007 Dyck, Soon et al.
polar bear paper in its formal protest of government action
to protect the polar bear, even before the paper was even
©Robert Visser/Greenpeace
50
published.
Additional Koch-funded groups and industry groups threat-

ened to sue the Federal government for listing the polar bear
under the Endangered Species Act, including the American
51 52
Enterprise Institute , the Heritage Foundation , and National
53
Association of Manufacturers.
page 11
Case Studies:
64
Case Study 3: The “Spanish Study” on Green Jobs • July 2009: Americans for Prosperity’s Colorado chapter
promoted the study through its blog.
Since the creation of new clean energy jobs is a critical
benefit of climate and energy policy, opponents have • July 2009: Americans for Prosperity’s policy director Phil
65
focused on discrediting ‘green’ jobs. A report appeared on Kerpen repeated the study’s findings in July 2009 testimony
this subject in spring of 2009 called the “Study of the effects to the Western Caucuses Bicameral Hearing on Cap & Trade.
54
on employment of public aid to renewable energy sources”
by Gabriel Calzada Alvarez, an economics professor at King • August 2009: American Energy Alliance (AEA), IER’s
Juan Carlos University in Madrid. According to Dr. Alvarez’s advocacy arm, incorporated the report’s findings into fact
66
study, Spain’s policy commitments to renewable energy sheets that it disseminated during its “American Energy
development had actually cost Spain jobs—2.2 jobs lost for Express” bus tour in August 2009.
each clean energy job created. 67
• September 2009: Americans for Prosperity’s Texas chapter
The study became a favorite talking point for opponents of posted comments repeating the study’s faulty conclusions.
clean energy, who seized on the study when it was released • September 2009: Americans for Prosperity’s policy director
in March—coinciding with the House Energy and Commerce 68
Phil Kerpen repeated the study’s findings in online comments.
Committee discussions on the American Clean Energy
and Security Act. The study was trumpeted by opposition Case Study 4: The “Danish Study” on Wind Power
groups, covered by reporters, and repeated in congressional
testimony by US Representatives opposed to clean energy A similar play was conducted a few months later with another
69
policy and climate mitigation measures. study linked to the Koch web. The “Danish study,” prepared
by Danish think-tank CEPOS, provides clean energy op-
Despite the fact that the conclusions and methodology ponents a means of raising questions about the viability
of the study by Alvarez have been repeatedly proven of renewable energy and a means of directly criticizing
55
unsupportable (most recently by the US’s own National President Obama for his statement that Denmark produces
56
Renewable Energy Laboratory , in addition to ministers with almost 20% of its electricity through wind power.
57 58
the Spanish government and independent experts ), the 71
‘study’ continues to be trumpeted. The study recently made However, the study contains factual errors, its conclusions
72
its way into fact sheets circulated by clean energy opposition have been misrepresented and to boot, its findings are
73
59
group Americans for Prosperity, which is founded and not particularly relevant to the US. The study includes
chaired by David Koch. errors such as a miscalculation of the electricity production
from wind in Denmark (they claim 5% of total production in
Where did the “Spanish study” come from, and who Denmark though the real percentage is 20%). In addition, the
promoted it? Several organizations and individuals—each study does not take into account the differences between
supported through the Koch web—have played key roles in the European and North American electric grids.
supporting, disseminating and promoting the research.
• March 2009: The Institute for Energy Research (IER)

60 61
supported and disseminated the “Spanish study,” released
in March of 2009.
• April 2009: Patrick Michaels was an early commenter on

62
the study , saying in April 2009 that he wasn’t surprised by
the findings and that the U.S. should expect similar results
from stimulus funding on renewable energy.
© Greenpeace/ E M
• May 2009: The Heritage Foundation promoted the report

63
in a variety of ways , including a May 2009 Washington, DC
briefing.
page 12
Case Studies:
Nevertheless, like the study from Spain, the CEPOS study is Case Study 5: Koch Organizations Instrumental in
being promoted and disseminated through many of the same Dissemination of ACCF/NAM Claims
organizations in Koch’s web. The “Danish Study” appears to
follow a similar pattern. The Koch web is also playing a role in promoting other
studies that exaggerate the costs of climate policy. In 2008,
74
• CEPOS was recently awarded a $100,000 grant from the Koch-web-funded American Council on Capital Forma-
the Atlas Economic Research Foundation, which has given tion’s (ACCF) teamed up with the National Association of
75
CEPOS “several awards.” The Charles G. Koch Foundation Manufacturers (NAM) to sponsor and disseminate a study
and the Claude R. Lambe Foundation both support the Atlas of the economic impact of the Lieberman-Warner Climate
Economic Research Foundation. Security Act. Every step of the way, Koch-funded anti-clean
energy groups played a key role in moving the NAM/ACCF
• The Institute for Energy Research is promoting the study study in the media and at the grassroots level.
76
among its members and Hill staff, as well as online. IER
organized a three-day tour in September 2009 to bring the • ACCF funded and co-released the study with NAM.
report’s co-author Hugh Sharman and CEPOS chief execu-
tive Martin Agerup to Washington D.C. to explain the study to • ACCF disseminated the results
79
in presentations at over a
a “wider American audience.” The organization also created dozen “Climate Dialogues” organized by the U.S. Cham-
80
77
fact sheets that promote the study’s findings and claim ber’s Alliance for Energy and Economic Growth (AEEG).
President Obama is misusing the Danish example. • The (AEEG) “climate dialogues” involved other organizations
78
• Heritage Foundation promoted the study on their website. funded through the Koch web, including:
» The Heritage Foundation which provided speakers

81
for some events
82
» Frontiers of Freedom staff and scholars participated
in some of the dialogues.
page 13
What is Koch Industries?
“My joke is that we’re the biggest company you’ve never heard of.” —David Koch. 83
84 85
Koch Industries is the second-largest privately-held company in the United
Koch Industries is present in nearly States, a conglomerate of more than twenty companies with $100 billion in annual
86 87
60 countries. Some company sales, operations in nearly 60 countries and 70,000 employees. Koch’s industry
locations include: areas span petroleum refining, fuel pipelines, coal supply and trading, oil and gas
exploration, chemicals and polymers, fertilizer production, ranching and forestry
Argentina products.
Australia Koch operates crude oil gathering systems and pipelines across North America.
Belgium Its Flint Hills Resources subsidiary owns refineries in Alaska, Minnesota, and Texas
Brazil that process more than 800,000 barrels of crude oil daily. The company owns
Canada a 3% stake in the Trans Alaska Pipeline System, 4,000 miles of oil and products
Cayman Islands BWI 88
pipelines in the US, and an 80,000 barrels-per day refinery in Rotterdam. In
Chile addition, Koch Industries has held multiple leases on the polluting tar sands of
China Alberta, Canada since the 1990s and the Koch Pipeline Company operates the
Colombia pipelines that carry tar sands crude from Canada into Minnesota and Wisconsin
89
Czech Republic where Koch’s Flint Hill Resources owns oil refineries.
Egypt The vast majority of Koch Industries assets are controlled by Charles G. and David
Finland H. Koch, two of four sons of the company’s founder, who each own 42% of the
France company stock. According to 2009 Forbes rankings, the Koch brothers are tied
Germany 90 91
for the 19th richest person in the world, and for ninth richest American, each
Greece worth between $14 and $16 billion.
India
Italy The corporation’s history dates back to the 1920s when Fred Koch, father to
Charles and David Koch, developed a process to refine more gasoline from
Japan
crude oil. When he tried to market his invention, the major oil companies sued
Korea
him for patent infringement. Koch eventually won a 15 year legal battle, but the
Luxembourg 92
controversy made it tough to attract many US customers. Fred Koch went to
Mexico
New Zealand
Russia
Singapore
South Africa
Spain
Switzerland
Taiwan
Thailand
Netherlands
Turkey
United Kingdom
Uruguay
Unites States of America
Venezuela
page 14
the Soviet Union in 1929, where he persuaded Josef Stalin’s

authoritarian government to pay him $5 million to build oil
93
refineries. Koch eventually grew disenchanted with Stalinism
and returned to the United States and helped found the
libertarian John Birch Society. Over time, Koch developed US
and global pipeline and drilling equipment businesses that
profited handsomely by servicing the major oil companies.
Fred Koch launched Wood River Oil & Refining in Illinois
(1940) and bought the Rock Island refinery in Oklahoma
(1947). He folded the remaining purchasing and gathering
94
network into his company, Rock Island Oil & Refining.
Charles Koch renamed the company Koch Industries after

his father’s death in 1967. As the new CEO and chairman,
Charles began a series of acquisitions, adding petrochemical
and oil trading service operations. Koch Industries purchased
95
a Corpus Christi, Texas, refinery in 1981. It expanded its
pipeline system, buying Bigheart Pipe Line in Oklahoma
(1986) and two systems from Santa Fe Southern Pacific
(1988). In 1991 Koch purchased the Corpus Christi marine
terminal, pipelines, and gathering systems of Scurlock
Permian (a unit of Ashland Oil). In 1992 the company bought
United Gas Pipe Line (renamed Koch Gateway Pipeline) and
its pipeline system extending from Texas to Florida. Koch
Industries also acquired USX-Delhi Group, a natural gas
processor and transporter.
Koch Industries also diversified its industry areas under the

leadership of Charles Koch. Currently, the company owns
cattle ranches with a total of 15,000 head of cattle in Kansas,
Montana, and Texas. In 1998 Koch bought Purina Mills, the
largest US producer of animal feed. Lethargic energy and
livestock prices in 1998 and 1999, however, led Koch to lay
off several hundred employees, sell its feedlots, and divest
portions of its natural gas gathering and pipeline systems.
Purina Mills filed for bankruptcy protection in 1999 and was
acquired by US dairy co-op Land O’Lakes in 2001.
96
Koch acquired INVISTA, creators of Lycra® fiber and
Stainmaster® carpet, in 2004 for $4.2 billion from DuPont
Corporation.
In 2005, Koch paid over $13 billion for the Georgia-Pacific

Corporation, one of the world’s largest manufacturers and
distributors of tissue, pulp and paper, packaging, dimensional
lumber and plywood. The acquisition gave Koch Industries
its only recognizable retail products including Quilted North-
ern®, Angel Soft®, Brawny®, Vanity Fair® and Dixie® cups.
page 15
Record of Environmental Crimes and Violations:

The Koch companies have a notorious environmental record. Some of the more IN 2000, THE EPA FINED
egregious examples include: KOCH INDUSTRIES $30
• In 2009, the US Justice Department and EPA announced that Koch Industries’ MILLION FOR ITS ROLE
116
Invista subsidiary would pay a $1.7 million penalty and spend $500 million to fix
environmental violations at facilities in seven states, in an agreement with the US
IN 300 OIL SPILLS THAT
EPA and Department of Justice.
117
RESULTED IN MORE
• Leaks on Koch-operated oil pipelines have resulted in major spills in Minnesota THAN THREE MILLION
in recent years. In December 2009, a Koch pipeline spilled 210,000 gallons of
118
GALLONS OF CRUDE OIL
crude oil in Philbrook, MN and another in 2005 spilled over 100,000 gallons in
Little Falls, Minnesota.
119 LEAKING INTO PONDS,
120 LAKES, STREAMS AND
• In May 2001, Koch Industries paid $25 million to settle with the US Government
over a long-standing suit brought by Bill Koch—one of the brothers bought out COASTAL WATERS.
in 1983—for the company’s long-standing practice of illegally accounting for the
amount of oil removed from federal and Native American lands.
• In late 2000, the company was charged with covering up the

illegal releases of 91 tons of the known carcinogen benzene
from its refinery in Corpus Christi. Initially facing a 97-count
indictment and potential fines of $350 million, Koch cut a deal
with then-Attorney General John Ashcroft to drop all major
charges in exchange for a guilty plea for falsifying documents,
121
and a $20 million settlement.
• In 2000, the EPA fined Koch Industries $30 million for its role
122
in 300 oil spills that resulted in more than three million gallons
of crude oil leaking into ponds, lakes, streams and coastal
waters.
123
• In 1999 a Koch subsidiary pleaded guilty to charges that
it had negligently allowed aviation fuel to leak into waters near
the Mississippi River from its refinery in Rosemount, Minnesota,
and that it had illegally dumped a million gallons of high-
ammonia wastewater onto the ground and into the Mississippi.
• Koch’s negligence toward environmental safety has led to

©Alfredo Jagendorfer/Greenpeace
124
tragic losses of life. In 1996, a rusty and corroded Koch pipeline
leaked flammable butane near a Texas residential neighbor-
hood. Warned by the smell of gas, two teenagers drove their
truck toward the nearest payphone to call for help, but they
never made it. Sparks from their truck ignited the gas cloud and
the two burned alive. The National Transportation Safety Board
125
determined that “the probable cause of this accident was the
failure of Koch to adequately protect its pipeline from corrosion”
and the ineffectiveness of Koch’s program to educate local
residents about how to respond during a pipeline leak.
page 16
The Koch Brothers

Charles G. Koch. Chief Executive Officer, Koch Indus- David H. Koch. Executive Vice-President, Koch Indus-
tries. Ranked as 9th richest American, worth $16 billion. tries. Ranked as 9th richest American, worth $16 billion.
Born in 1935. Lives in Wichita, Kansas. Co-founder of Born in 1940. Lives in New York City. Co-founder and
the Cato Institute. chairman of Americans for Prosperity.
Charles G. Koch , born in 1935, is the CEO and Chairman of Koch Industries. His father, Fred
98
99
Koch, was a staunch libertarian and a founder of the John Birch Society. Like his father, Charles is also an
100
ardent supporter of libertarian and conservative organizations. He is a co-founder of the Cato Institute , the
101 102
Chairman of the Institute for Humane Studies , and has sponsored multiple conferences for entrepreneurs to
encourage them to fund free-market groups. Charles has even applied his libertarian ideology to the structure of
103
Koch Industries, using his own trademarked “Market Based Management” to run the entire company. “Just as
central planning is a failure in running government, so it is at the level of the firm,” says Charles.
104
The U.S. Senate investigated Charles Koch for his alleged role in funding so-called “issue ads” that violated
campaign law by helping conservative Republican congressional candidates in 1996. Koch Industries has been
105
the largest oil and gas industry contributor to electoral campaigns since the 2006 election cycle. During the 2008
106
elections, Koch Industries contributed over $1.8 million , 88% to Republican candidates.
page 17
The Koch Brothers
107
Charles and his brother David were involved in a decades-long family dispute with their brothers,
Bill and Fred, regarding a buy-out of company shares. Bill and Fred claimed that Charles and David
shortchanged them by $340 million. The vicious lawsuits began in the early 1980s and continued for
nearly two decades.
David H. Koch , born in 1940, is Executive Vice-President of Koch Industries, and

108
the CEO of the subsidiary Koch Chemical Technology Group. According to the 2009 Forbes ranking,
109
he is the second-richest person living in New York City, following Michael Bloomberg. In addition to
110
his Park Avenue residence, he has homes in Aspen, CO; Southampton, NY; and Palm Beach, FL.
Although he’s donated millions to conservative, libertarian organizations, David Koch has only garnered
public attention for his non-political philanthropy. Regarding a $100 million naming gift to the New York
111
City Opera and Ballet, he explains “I could afford it.…And, of course, there are beautiful girls.” A few
of his namesakes include the new David H. Koch Theater at New York’s Lincoln Center, the David H.
112
Koch Dinosaur Wing in New York’s American Natural History Museum, and the new David H. Koch
113
Hall of Human Origins at Smithsonian’s Natural History Museum in Washington D.C.
114
David Koch was the 1980 Vice Presidential candidate for the anti-regulatory Libertarian Party. Cur-
rently, David Koch is on the Board of Directors for the Cato Institute as well as the Reason Foundation,
115
two right-wing, climate-denier think-tanks. He is also a founding member and Chairman of the Ameri-
cans for Prosperity Foundation, an astroturf group that opposes climate solutions and clean energy.
The Koch Brothers are the 9th Richest Americans

http://www.forbes.com/lists/2009/54/rich-list-09_The-400-Richest-Americans_Rank.html
William Gates III $50.0 bil Medina, WA Microsoft

Warren Buffett $40.0 bil Omaha, NE Berkshire Hathaway
Lawrence Ellison $27.0 bil Redwood City, CA Oracle
Christy Walton & family $21.5 bil Jackson, WY Wal-Mart inheritance
Jim Walton $19.6 bil Bentonville, AR Wal-Mart
Alice Walton $19.3 bil Fort Worth, TX Wal-Mart
S Robson Walton $19.0 bil Bentonville, AR Wal-Mart
Michael Bloomberg $17.5 bil New York, NY Bloomberg
Charles Koch $16.0 bil Wichita, KS Koch Industries
David Koch $16.0 bil New York, NY Koch Industries
Sergey Brin $15.3 bil Palo Alto, CA Google
Larry Page $15.3 bil San Francisco, CA Google
Michael Dell $14.5 bil Austin, TX Dell
Steven Ballmer $13.3 bil Seattle, WA Microsoft
George Soros $13.0 bil Westchester, IL Hedge funds
page 18
Koch Climate Opposition Funding:
The Koch Web
“Koch’s chief political influence tool is a web of interconnected, right-wing think tanks
and advocacy groups funded by foundations controlled and supported by the two Koch
brothers.”–Center for Public Integrity 126
The Koch brothers, their family members and Koch Industries of dollars of contributions to these groups, such as U.S.
employees direct a web of financing that supports conserva- Chamber of Commerce, state Chambers of Commerce, the
tive and libertarian special interest groups and think-tanks, National Association of Manufacturers and its state affiliates,
with a strong focus on fighting environmental regulation and the American Petroleum Institute and others. Comprehensive
examination and research of the entire Koch web is ongoing.
127
easing limits on industrial pollution.
This web is currently fueling a campaign to oppose clean Sources of data for Koch Foundation grants
energy and climate legislation, by funding organizations that Foundations disclose major recipients of grants on their IRS
generate, disseminate and repeat inaccurate and misleading 990 forms (tax returns). The data cited in this report comes
information about climate science, clean energy and climate from the foundations’ IRS 990 tax forms, accessed through
policies. This information is then provided to astroturf groups the GuideStar database and from data available on the
(fake grassroots organizations that are created or sponsored Media Matters Action Conservative Transparency Project:
by industries)—some of which are also funded by Koch [http://www2.guidestar.org/Home.aspx]
interests—which use the misinformation to increase opposi- [http://mediamattersaction.org/transparency]
tion to clean energy policies and climate solutions.
Koch foundations contributed over $48 million to climate

opposition groups from 1997 to 2008. The climate debate
heated up in 1997 around the Kyoto Protocol international
negotiations, galvanizing corporate opposition to climate
policy. The volume of funding has increased significantly
in recent years as climate policy has gained momentum in
the United States. One half of the Koch grants since 1997
were dispersed in recent years, between 2005 to 2008. As
a rough indicator of the scale and significance of this invest-
ment, the Koch foundations surpass ExxonMobil and the
ExxonMobil Foundation as a funding source to organizations
that generate and disseminate misinformation on the science
of and solutions to global warming. From 2005 to 2008, the
Koch Foundations provided $24.9 million in funding to such
groups; during the same time ExxonMobil provided about
$8.9 million to groups with similar activities.
The Koch web spans beyond clean energy and climate

concerns, and beyond connections plainly visible through
publicly available funding trails and records. Many of the
©Igor Gavrilov/Greenpeace
organizations funded by Koch are also working against health

care reform. Koch’s interests are also advocated through
dozens of trade associations (501-C-6’s). Koch Industries nor
its owners or officers are required to report potentially millions
page 19
Koch Climate Opposition Funding:
The Foundations David H. Koch Foundation

The David H. Koch Foundation historically had a wide array
Climate denial organizations receive millions of dollars
in grants made by three Koch-controlled foundations: of conservative, anti-environmental grant recipients. From
the Claude R. Lambe foundation; the Charles G. Koch 1997 to 2008 the foundation contributed over $9 million to
foundation; and the David H. Koch foundation. climate opposition groups. Since 2005, the Foundation has
contributed $1 million to the Americans for Prosperity Foun-
Claude R. Lambe Foundation dation (AFP). AFP is the only climate denial organization to
The Claude R. Lambe Foundation is the financier of recently receive money from the David H. Koch Foundation.
organizations taking a more visible, active role in day-to- David Koch is a co-founder and chairman of AFP.
day efforts to oppose clean energy and climate policy. 130
The Foundation contributed $12.2 million to climate The small staff of the David H. Koch Foundation includes:
opposition groups since 2005. • David H. Koch — President/Director
The Board of Directors is comprised entirely of Koch • Ruth E. Williams — Secretary
family members, senior Koch executives and staff who • Vonda Holliman — Treasurer
128
serve Koch foundations:
• Richard Fink — President

• Logan Moore — Secretary
• Vonda Holliman — Treasurer
• Charles G. Koch — Director
• Elizabeth B. Koch — Director
• Elizabeth R. Koch — Director
• Charles C. Koch — Director
Charles G. Koch Foundation

The Charles G. Koch Foundation tends to fund institutes
that broadly support efforts to oppose clean energy and
climate legislation. The Foundation contributed $11.7
million since 2005 to such climate denial organizations
and front groups.
129
The Board of Directors of the Charles G. Koch Founda-
tion is nearly identical to that of the Claude R. Lambe
Foundation:
• Richard Fink — President

• Kevin Gentry — Vice President
©Les Gibbon/Greenpeace
• Logan Moore — Secretary

• Vonda Holliman — Treasurer
• Charles G. Koch — Director
• Elizabeth B. Koch — Director
• Elizabeth R. Koch — Director
• Charles C. Koch — Director
page 20
Koch Foundations and Climate Denial
For this analysis, Koch foundation grants were tabulated from 1997 to 2008 (the most recent year of available contribution
information). To simplify the presentation, all grants from the three Koch Foundations have been totaled for each organiza-
tion. Specific donations from each foundation to each organization are detailed at www.greenpeace.org/kochmoney. The
list below includes contributions to those organizations that have been documented to be propagating misinformation
about clean energy policies and climate science.
Since 1997, the Koch foundations have contributed over $48 million in grants to climate opposition groups.
More than half that total, almost $25 million, was given since 2005.
Total Koch foundation funding

$24,888,282—Recently contributed to climate opposition groups, between 2005–2008
$48,510,856—Total contributed to climate opposition groups, between 1997–2008
Combined grants from Koch foundations (Claude R. Lambe, Charles G. Koch, and David H. Koch Foundations) to climate
opposition groups (sorted in descending order by total funding):
Mercatus Center
$9,247,500 received from Koch foundations 2005–2008
[Total Koch foundation grants 1997–2008: $9,874,500]
131
The Mercatus Center is a conservative think-tank at George Mason University, in which Charles Koch sits on the Board
132
of Directors. The Mercatus Center suggested in 2001 that global warming would be, “beneficial, occurring at night, in the
133
winter, and at the poles.” In 2009, they conceded that global warming is man-made and problematic but recommend
doing nothing to cut emissions, instead promoting “work to facilitate movement of people from areas likely to be harmed
134
by climate change.”
Americans for Prosperity Foundation (AFP)

[No Koch foundation grants received prior to 2005]
135 136
Beginning in 2008, Americans For Prosperity organized astroturf “Hot Air Tour” with a hot air balloon local events
across the country to build opposition to clean energy and climate legislation. This astroturf campaign has been repeatedly
137
exposed by the media, including the Wall Street Journal’s blog , Environmental Capital. AFP also runs the “No Climate
138 139
Tax” campaign and helped organize the “Tea Parties” tax protests. Koch executives Richard Fink and Wayne Gable
have strong interconnections with AFP.
Institute for Humane Studies (IHS)

The Institute for Humane Studies at George Mason University offers scholarships and career training to libertarian
140
students. Charles Koch is the chairman of the IHS board of directors. In a recent article, Mother Jones called the Institute
141
for Human Studies a “haven for climate change deniers.” Several climate deniers have prominent positions at IHS,
142
including: Robert Bradley , member of the Academic Review Committee and author of Climate Alarmism Reconsidered
143 144
(2003) ; and Fred Singer , Research Professor at IHS. A number of climate deniers are guest lecturers for IHS, such as
145 146 147 148
Bruce Yandle , Senior Associate with Political Economy Research Center, and Kenneth Green , Resident Scholar with
American Enterprise Institute.
page 21
The Heritage Foundation

149
The Heritage Foundation is a conservative think tank that misinterprets science and
150
policy regarding the climate and uses their conclusions to argue against action on global warming. Recently the Heritage
151
Foundation has: misinterpreted the impacts of global warming on the US economy; twisted news reports to justify claims
152 153
about ‘climate taxes’ ; issued deceptive economic analyses and presentations ; and released allegations about economic
154
ruin and job losses from green stimulus investments by Congress. Heritage Foundation also teamed up with Institute for
155 156
Energy Research (IER ) to promote the widely debunked “Spanish” study.
Cato Institute
The Cato Institute is focused on disputing the science behind global warming and questioning
157 158
the rationale for taking action. The organization’s 2009 “Handbook for Policymakers” on global
warming begins with the suggestions that Congress should “pass no legislation restricting emissions of carbon dioxide” and
“inform the public about how little climate change would be prevented by proposed legislation.” Robert Bradley, an adjunct
scholar at the Cato Institute, is also a founder and the CEO of the Institute for Energy Research. In 2007 the Cato Foundation
159
gave $120,000 to New Hope Environmental Services, an “advocacy science consulting firm” founded and run by long-time
160
climate science denier Patrick Michaels , who uses New Hope to publish his World Climate Report, a sort of ongoing
161
journal of denial of climate science. Michaels is also a senior fellow at the Cato Institute, which paid him $98,000 to write a
book “The Satanic Gases” with fellow climate denier Robert Balling. Over the years, Michaels’ work has been financed by a
162
number of coal and polluter interests , including the Western Fuels Association, the Intermountain Rural Electric Association,
and others.
The Manhattan Institute

$800,000 received from Koch foundations 2005–2008
163 164
The Institute publishes climate science denials and has hosted Bjorn Lomborg , a prominent spokesperson against
165
addressing climate change, at Manhattan Institute events several times over the last two years.
Washington Legal Foundation (WLF)

WLF publishes articles on the business threats posed by regulation of global warming pollution, such as vulnerability
166
to tort claims.
Federalist Society for Law and Public Policy Studies

The Federalist Society advocates for inaction on global warming: “Global warming is nothing more than an educated guess
by many of the same scientists who are still arguing about what happened to the dinosaurs. Perhaps we should think care-
fully before putting blind faith in people who cannot explain the simple disappearance of tens of millions of creatures, many of
167
which were the size of locomotives.”
In a Federalist Society Newsletter from 2000, they claim: “The science is not settled (as claimed by Vice President Gore),
that it is not “compelling” (as claimed by President Clinton), and that there is certainly no scientific consensus favoring global
168
warming. If anything, the largest number of scientists, some 17,000, signed a petition against the Kyoto Protocol in 1998.”
page 22
Foundation for Research on Economics and the Environment

169 170 171
Peter Geddes , Executive Vice President of FREE , has advocated against taking action
on climate change because warming is “inevitable” and expensive to address. In addition, FREE sponsors seminars for
172 173
federal judges that have been criticized for creating judicial conflicts of interest. FREE states it only takes money for judicial
seminars from foundations whose founder is deceased (termed “dead-man foundations” by FREE), and that corporate
funding does not fund judicial seminars. However, the Claude R. Lambe foundation has been listed as a funder of at least
six seminars since 1997. A 1999 Koch Foundations report questions this rationale, stating “Charles Koch’s control of Koch
174
industries…calls into question the relevance of this term, as defined by FREE, if not the accuracy of the disclosure.”
Pacific Research Institute for Public Policy (PRIPP)

175
PRIPP supported and funded An Inconvenient Truth…or Convenient Fiction , a film attacking the science of global warming
and intended as a rebuttal to former Vice-President Al Gore’s documentary. The film was produced by PRIPP Senior Fellow
176
Steven Hayward and promoted by the Heritage Foundation. Hayward is also an IER board member and a fellow at the
177
American Enterprise Institute. Hayward and another AEI colleague were exposed two years ago for offering to pay IPCC
scientists $10,000 for critiques of the IPCC findings.
Tax Foundation
[Total Koch foundation grants 1997–2008: $525,000]
178 179
The Tax Foundation opposed American Clean Energy and Security Act and issued a study on the costs of climate change
legislation. Wayne Gable, a former Managing Director of Federal Affairs at Koch Industries, served as President of the Tax
Foundation from 1989–1991.
Independent Women’s Forum (IWF)

180
IWF has spread misinformation on climate science and touts the work of climate deniers. IWF was run by Nancy Pfo-
181 182
tenhauer (formerly Nancy Mitchell), who was Koch Industries’ chief in-house lobbyist from 1996 to 2001. In 2003, IWF
183
affiliated itself with Americans for Prosperity (AFP), a group that split from Citizens for a Sound Economy. Pfotenhauer
184
served as president and CEO of AFP until 2005 . Pfotenhauer left IWF to work on the McCain presidential campaign. More
185
recently, IWF soft-launched a project called Mothers for Educating with Sound Science (MESS) including radio appear-
ances questioning the science of global warming and warning of dire impacts of global warming pollution regulation.
Texas Public Policy Foundation (TPPF)

186
TPPF fellows recently wrote on why reducing global warming pollution won’t work and the devastating impact the American
187
Clean Energy and Security Act would have on all aspects of American life.
page 23
American Council for Capital Formation (ACCF)

ACCF has partnered twice with the National Association of Manufacturers to produce and disseminate distorted economic
188
analyses that overstate the costs of climate legislation and have been prominently featured at US Chamber of Commerce-
189 190 191
organized “forums” on climate over the past year. The ACCF/NAM studies have been credibly debunked more than once.
George C. Marshall Institute

192
The George C. Marshall Institute has a long history of global warming denial, including
193
publication of junk science reports funded by the American Petroleum Institute and authored by Sallie Baliunas , a scientist
194
affiliated with several organizations receiving money from oil corporations. The Marshall Institute also produced a “Cocktail
195
Conversation Guide” with suggestions for denying the dangers of global warming in any social setting.
The Reason Foundation

196
The Foundation promotes the tenets of “Free Market Environmentalism (FME)” to argue that those who suffer from the
effects of global warming have little legal or moral claim for compensation from GHG emitters.
Institute for Energy Research (IER)

197 198
IER supported and promoted the “Spanish” and “Danish” studies critical of clean energy jobs, both of which have been
debunked by credible sources. IER also argues that efforts to curb global warming would accomplish little at too great a
199 200
cost , promotes ACCF/NAM and Heritage Foundation studies that exaggerate the costs of climate policy, and discourages
201
U.S. leadership on the international stage. Robert Bradley, a former Enron executive, is the CEO of IER and one of its
founders. Thomas Pyle, a former Koch and oil-industry lobbyist, is the President of IER and the American Energy Alliance
(AEA), the 501c4 counterpart to IER. AEA was founded by the National Association of Manufacturers and the American
202 203
Petroleum Institute to fight the BTU tax proposal in 1993, and in recent years funded by ExxonMobil and Koch Industries.
AEA has been active in the climate debate, from running ads repeating false claims about the costs of climate legislation to
204
trashing clean energy at town halls around the US.
Fraser Institute
205
The Fraser Institute publishes in-depth critiques of climate science, including a 110-page report attacking the Intergovern-
206 207
mental Panel on Climate Change’s Fourth Assessment report. They also offer lesson plans and educational materials
designed to encourage children to be skeptical of mainstream climate science.
Frontiers of Freedom
208
Frontiers of Freedom has actively opposed global warming action for over a decade. As Director of Policy with Frontiers of
209
Freedom, Myron Ebell assisted in the development of the American Petroleum Institute’s Global Climate Science Communi-
page 24
210 211
cations Plan , leaked to the public in 1998. Currently, FF hosts dozens of studies on its website focusing on climate science
denial and high estimates of the cost of climate policy. FF reinforced the Tax Foundations’ characterization of climate regula-
212 213 214
tions as a tax on the poor and middle class. FF also smears climate science and spreads typical climate disinformation.
National Center for Policy Analysis (NCPA)

215 216
NCPA disseminates climate science denials and exaggerates the economic costs of emissions mitigation.
American Council on Science and Health (ACSH)

217
In 1997, ACSH released a position paper titled, “Global Climate Change and Human Health,” which claims that cutting
green house gas emissions, because it would hurt the economy, would be more detrimental to public health than global
warming. “...policymakers can safely take several decades to plan a response, and scientists will have enough time to
develop cost-effective and anti-climate-change strategies.” Among the reviewers of the report were famous climate deniers
218 219
Sallie Baliunas and Fred Singer.
Atlas Economic Research Foundation

220
Atlas has cosponsored Heartland Institute events dedicated to the proposition that climate change is not a crisis and has
221
supported organizations such as the John Locke Foundation which has attacked efforts by state elected officials working
on climate solutions with the Center for Climate Strategies.
Capital Research Center

222
CRC’s GreenWatch.org website collects information on non-profit environmental advocates, and is heavily biased against
climate science.
American Enterprise Institute (AEI)

223
AEI has a long track record of distorting the science and solutions of climate change. Its argu-
224
ments tend to de-emphasize the environmental and economic risks of climate change, exaggerate the costs of addressing
225
the problem and question the value of putting a policy in place at all, as illustrated by a recent Wall Street Journal oped by
AEI fellow Steven Hayward.
Independence Institute
226
The Colorado-based Independence Institute has hosted events dismissing the “Cult of Climate Change” and featuring Cato
227
Institute fellows.
page 25
American Legislative Exchange Council (ALEC)

228
ALEC is one-stop shopping for elected officials interested in perusing the wares of an
array of Koch-funded opposition organizations including IER, ACCF, Mercatus and other sources. ALEC publishes its own
229
materials as well, including a “Climate Change Overview for State Legislators” which downplays the science and risks of
global warming and exaggerates the costs of addressing it. The Overview was written by Daniel Simmons, who moved from
ALEC to become AEA’s Director of State Affairs. Simmons was at the Mercatus Institute before ALEC and is a graduate of
the George Mason University School of Law.
Goldwater Institute
230
The institute is fighting against passage of a renewable energy standard in Arizona.
Property and Environment Research Center (PERC)

231
PERC touts the potential economic benefits to American farmers as a reason not to act against climate change. Richard
232 233 234
Stroup is a Senior Fellow at PERC and an adjunct scholar at the Cato Institute.
Mackinac Center for Public Policy

235 236
The Michigan-based Mackinac Center spreads climate change denials and smears prominent climate policy consultants.
Center for the Study of Carbon Dioxide and Global Change

237 238 239
The Center is run by Sherwood Idso and his sons Craig and Keith , long-time climate science deniers. The Center runs
240
the climate science denial site http://co2science.org.
Americans for Tax Reform (ATR)

241
ATR denies the science of global warming and opposes federal policies to address it. ATR focused on costs and denial in
242
their 2008 “Cost of Government” report.
State Policy Network (SPN)

243 244
SPN spreads the climate science denials and misinformation of the Heartland Institute.
page 26
Media Research Center (MRC)

245
The Media Research Center is a conservative news organization that analyzes and spins mainstream news content in order
246
to counter an alleged “strident liberal bias”. MRC has several projects that analyze various types and angles of media.
These projects, such as the “Business and Media Institute” and “Free Market Project,” have released several reports that
247 248
claim the national media favors the environmental view on global warming and excludes climate deniers in their coverage.
249
The Media Research Center has also contributed to the “ClimateGate” echo chamber , criticizing national media outlets for
a lack of “ClimateGate” coverage.
John Locke Foundation (JLF)

250
The John Locke Foundation is a conservative think-tank based in North Carolina, focused on local and state issues. JLF
251
advocates for inaction on global warming, stating in a 2005 policy brief that “a green house gas reduction policy would have
252
only costs and no benefits.” In 2007, JLF released a policy report that publishes several climate denier myths, intended to
instruct average North Carolina citizens on refuting global warming. On JLF’s “Right Angles” blog, the “ClimateGate” cover-
253
age calls for a “reconsideration of ‘green’ efforts” and notes that some have tried to rescind the Oscar Vice President Al
Gore received for An Inconvenient Truth.
National Taxpayers Union Foundation (NTUF)

254 255
In an open letter to Representative Mary Bono-Mack and to Representative Walt Minnick , the National Taxpayers Union
advocates against the carbon regulatory measures in the American Clean Energy and Security Act of 2009 as a “tax hike”
without acknowledging the environmental or economic benefits. “If Congress deems carbon dioxide emissions to be a prob-
lem worthy of attention, then it should confront them without raising taxes on struggling American families in the process.”
Citizens for a Sound Economy (now FreedomWorks)

No grants received from Koch foundations 2005–2008
256 257
Citizens for a Sound Economy (CSE) was founded by David Koch in 1984, which split in 2003 into Americans For
258
Prosperity and FreedomWorks. FreedomWorks is an astroturf group led by former U.S. Representative Dick Armey, with
259
a mission of promoting a conservative agenda. The astroturf group tries to cast doubt on the need for climate legislation ,
declaring: “organizations pushing action on global warming – such as the United Nations, the environmental movement, and
former Vice President Al Gore – have substantial institutional, ideological, and financial stakes in creating a restrictive new
260
layer of global warming regulation.” FreedomWorks also participates in the echochamber around the “ClimateGate” story.
Competitive Enterprise Institute (CEI)

CEI, among many other statements denying the seriousness of global warming,
has argued that climate change would create a “milder, greener, more prosperous world” and that “Kyoto was a power grab
262
based on deception and fear.” CEI maintains a website as part of their aggressive campaign to convince the public that
global warming is uncertain, and has spent considerable time and effort adding to the echo chamber around “ClimateGate.”
page 27
Center for the Study of Market Processes

263
Pre-cursor organization to Mercatus Center.
Heartland Institute (HI)

264
The Heartland Institute , a Chicago-based, industry-funded conservative think-tank,
has had a long history of climate denial that continues today. Since 2007, HI has
265
hosted their annual International Conference on Climate Change , where dozens of
266
climate deniers converge to discuss issues and strategies to oppose climate action.
267
On their global warming website, HI has dozens of articles , dating back to 1996,
documenting their perspective that the Kyoto Protocol is unnecessary because “greenhouse gas (GHG) levels will unlikely
268
ever pose a problem.” The Heartland Institute has also been a major part of the “Climategate” echo chamber. The Institute
has posted dozens of blogs to exaggerate the significance of the incident, claiming “the global movement to ‘do something’
269 270
about global warming…stands discredited” and “the IPCC should be disbanded as a threat to mankind.” In addition to
271
blogs, spokespeople from the Heartland Institute have commented on “ClimateGate” several times in the media as well.
© Greenpeace/Colin O’Connor
©Jiri Rezac/Greenpeace
page 28
Lobbying and Political Spending
Note on Sources: Lobbying expenditures as well as federal PAC and individual
contributions to federal candidates are disclosed on Opensecrets.org. Additional
272
lobbying data can be found at the Senate’s Lobbying Disclosure site.
1. Federal Direct Lobbying 273
Lobbying Summary: Koch Industries spent a total of $37.9 million on oil and gas
lobbying from January 2006 to December 2009. During this period in the oil and
gas sector, Koch Industries was outspent only by ExxonMobil ($87.8 million) and
Chevron Corporation ($50 million).
274
• 2009: $12.5 million total, $9 million spent on in-house lawyers.
275
• 2008: $17.93 million total, $15.3 million spent on in-house lawyers
276
• 2007: $4.17 million total, with $40,000 to Pyle and Associates and $100,000 to
the Rhoads Group (Thomas Pyle worked at Rhoads Group before starting Pyle
277
and Associates and is now President of IER and AEA).
278
• 2006: $3.36 million total, with $140,000 to Rhoads Group.
Koch Industries has Spent $37.9 Million on

Oil and Gas Lobbying Since 2006
$0
Exxon Mobil
Chevron Corp
$3,360,000
Koch $4,170,000
Industries $17,930,000
$12,500,000
BP
ConocoPhillips
2006
Marathon Oil 2007
American 2008
Petroleum
Institute 2009
Occidental
Petroleum
Royal Dutch
Shell
Williams
Companies
page 29
It is worth noting that Koch also hires outside lawyers to lobby on its behalf, in some cases the
same firms that lobby for other groups of which Koch is a member. For example:
• Siff and Lake, $190,000 (2009), $220,000 (2008), $200,000 (2007), which also lobbies for
Western Fuels Association.
• Mehlman/Vogel, $200,000 (2009), $120,000 (2008), $20,000 (2007) which also lobbies for
API (2009, 2008), Business Roundtable (2009, 2008), EEI (2009, 2008) and Energy Future
Holdings (2009).
• Pyle and Associates, $40,000 (2007), which also lobbied for the National Petrochemical and
279
Refiners Association , of which Koch is a member.
• The Rhoads Group, $100,000 (2007) which also lobbies for the National Petrochemical and
280
Refiners Association of which Koch is a member.
• Hunton and Williams, $60,000 (2009), $150,000 (2008), $80,000 (2007), which also lobbied
for National Association of Manufacturers (2009, 2008) and Americans for Affordable Climate
Policy (2009), Edison Electric Institute (2009, 2008, 2007), Gas Processing Association (2009,
2008) and the Foundation for Environment and Economic Progress (2009, 2008, 2007))
• Capitol Tax Partners, $30,000 (2009), $240,000 (2008), $220,000 (2007), which who also
lobbies for Edison Electric Institute (2009, 2008, 2007) and National Electrical Manufacturers
Association (2008, 2007)
In addition, Koch executives serve on the boards of other organizations wielding influence
against clean energy and climate policy. The Executive Vice President for Operations Excellence
& Compliance at Koch Industries, James Mahoney, is also a vice-president of the National
Petrochemical & Refiners Association (NPRA). NPRA significantly increased its lobbying budget
181
in 2009, reporting $1.68 million in direct federal lobbying expenses. This more than doubled the
lobby spending of the organization from 2008, when its total lobbying budget was $810,000.
©Greenpeace/Bas Beentjes
©Greenpeace/Will Rose
page 30
2. Koch PAC 282
Koch’s political action committee bundles contributions from Koch employees and their spouses. Koch’s
PAC spent a total of $5.74 million since 2006: $2.04 million in the 2006 cycle, $2.6 million in the 2008 cycle
and $1.1 million during the first year of the 2010 cycle.
From the beginning of the 2006 election cycle, Koch’s PAC spent more on contributions to federal can-
283
didates and committees than any other oil-and-gas sector based PAC. For that period, Koch Industries
and its executives spent $3.55 million compared to next three biggest contributors: Exxon ($2.6 million),
Chevron ($2.08 million), and Valero ($2.03 million).
Koch PAC outspent the PACs of ExxonMobil,

Chevron, ConocoPhillips and BP since 2004
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000
Valero PAC
$1,000,943
$2,040,735
Koch PAC
$2,583,549
$1,113,890
Exxon Mobil PAC
Marathon Oil PAC
BP PAC
Chevron PAC 2004
2006
ConocoPhillips PAC
2008
Occidental Petroleum 2010

PAC (mid-cycle
data)
Williams Companies
PAC
Halliburton PAC
Shell Oil PAC
page 31
Koch’s PAC heavily favors Republicans: 88% of its contributions went to Republicans during the 2008
284 285
election cycle; 86% went to Republicans in the 2006 cycle. Koch’s PAC also heavily favors Republican
Party committees and leadership. In 2009, Koch’s PAC gave
• $15,000 to the National Republican Congressional Committee (NRCC), and $15,000 to the National
Republican Senatorial Committee (NRSC).
• $5,000 to Restore America PAC ( founded by U.S. Senator Sam Brownback R-TX); $5,000 to Freedom
Project (founded by U.S Rep John Boehner R-OH); and $10,000 to Cantor For Congress (founded by
U.S. Rep. Eric Cantor R-VA)
U.S. House Members receiving more U.S. Senate Members receiving more than
than $20,000 from Koch Industries PAC $10,000 from Koch Industries PAC since 2004
since 2006 election cycle election cycle
KochPAC Recipient (House) Total KochPAC Recipient (Senate) Total

Cuellar, Henry (D-TX) $30,500 DeMint, James W (R-SC) $20,000
Cantor, Eric (R-VA) $28,000 Murkowski, Lisa (R-AK) $20,000
Barton, Joe (R-TX) $26,500 Lincoln, Blanche (D-AR) $18,000
Blackburn, Marsha (R-TN) $25,000 Burr, Richard (R-NC) $15,500
Boehner, John (R-OH) $25,000 Chambliss, Saxby (R-GA) $15,000
Kline, John (R-MN) $25,000 Coburn, Tom (R-OK) $15,000
Davis, Geoff (R-KY) $24,000 Roberts, Pat (R-KS) $15,000
Boyd, Allen (D-FL) $21,500 Thune, John (R-SD) $15,000
Boren, Dan (D-OK) $20,500 Inhofe, James M (R-OK) $13,500
Vitter, David (R-LA) $12,500
Cornyn, John (R-TX) $12,500
Shelby, Richard C (R-AL) $11,500
In addition, Koch owns Georgia Pacific and Flint Hill Resources, employees of which now give money to
Koch PAC; e.g., Georgia Pacific CEO Patrick Boushka gave $25,000 to Koch PAC in 2008 cycle.
3. Family and Individual Political Contributions

Charles and David Koch, along with their wives, have contributed substantial amounts to federal GOP party
committees. Since the 2006 election cycle, Koch family members contributed at least $270,800 to the
Republican National Committee (RNC), NRSC, and NRCC.
• 2006 election cycle: $101,400

• 2008 election cycle: $139,000
• 2010 election cycle (through end of 2009): $30,400
No donations to the Democratic National Committee, National Democratic Senatorial Committee, or the
National Democratic Congressional Committee were found from these individuals.
page 32
Key Individuals in the Koch Web
295
Fred C. Koch. Founder of Koch Industries (d. 1967) Logan Moore. Secretary of the Claude R. Lambe Founda-
286
tion. Also serves as Director of Operations for the Charles G.
Charles G. Koch. Chief Executive Officer, Koch Industries. Koch Foundation.
287
Ranked as 9th richest American (tied with his brother
David.) Born in 1935. Lives in Wichita, Kansas. Wayne Gable. Former Board of Directors at Americans for
297
Prosperity.
• Co-founder of the Cato Institute
• Chairman, Board of Directors, The Institute for Gable was Managing Director of Federal Affairs at Koch
Humane Studies Industries and lobbied on Koch’s behalf as recently as
298
• Member, Board of Directors, The Mercatus Center 2004. He worked at Citizens for a Sound Economy from
1986 to 1991, serving as president from 1989 to 1991. He
has also served terms as the president of the Tax Founda-
288
David H. Koch. Executive Vice-President, Koch Industries.
tion, the Charles Koch Foundation, and the Center for Market
289
Ranked as 9th richest American (tied with his brother
Charles.) Born in 1940. Lives in New York City. Processes.
• Member, Board of Directors, The Cato Institute, 299
Robert Bradley. CEO of Institute for Energy Research (IER).
Washington, D.C.
• Member, Board of Directors, The Reason Foundation, Bradley also holds positions at the Cato Institute, Competitive
Santa Monica, Calif. Enterprise Institute, and the Institute for Humane Studies at
• Chairman, Board of Trustees, Americans for Prosperity George Mason University.
Foundation, Washington, D.C. 300
Daniel Simmons. Former Director of the Natural
290
Richard Fink. Executive Vice-President and member of Resources Task Force at American Legislative Exchange
the board of directors of Koch Industries. Council (ALEC).
• Board member of Koch subsidiaries Georgia-Pacific Simmons is now AEA’s Director of State Affairs. Simmons
Equity Holdings, LLC and Flint Hills Resources, LLC. was at the Mercatus Institute before ALEC and is a graduate
• First President291 of Citizens for a Sound Economy, of the George Mason University School of Law. ALEC, which
the forerunner of Americans for Prosperity also receives funding from the American Petroleum Institute,
301
• Co-founder and board member of Americans for was critical of President Bush’s climate proposals.
Prosperity (AFP) Foundation 302 304
• Former board member of Americans for Prosperity Kevin Gentry. Vice-President, Strategic Development
501(c)4 organization for Charles G. Koch Foundation; Director, Strategic Develop-
• Director of the Claude R. Lambe Foundation ment for Koch Industries.
• Co-Founder and Director at the Mercatus Center Between 1997 and 2003, he served as vice president of the
• Director of the Institute for Humane Studies Institute for Humane Studies and the Mercatus Center, both
• Fink was formerly a professor at George Mason located at George Mason University.
University, which the Koch web also funds generously. 305
Steven Hayward. Board Member at IER; Scholar and
292
William Koch. Bought out by brothers Charles and David. fellow at the American Enterprise Institute.
• Co-chair of the Alliance to Protect Nantucket Sound,Hayward produced An Inconvenient Truth… or Convenient
formed to fight the Cape Wind offshore wind farm
306
Fiction for PRIPP, a film attacking the science of global
293
project. warming and intended as a rebuttal to former Vice-President
294
Al Gore’s documentary. Hayward is also an IER board
Frederick Koch. Bought out by brothers Charles and David. member and a fellow at the American Enterprise Institute.
page 33
SOURCES:
Financial information for this report was drawn from primary sources including:
GuideStar—http://www2.guidestar.org/Home.aspx
a website containing details on hundreds of foundations, their IRS 990 form submissions.
Media Matters Action Conservative Transparency project http://mediamattersaction.org/transparency/
Conservative and corporate foundation grants are cross-referenced with recipients in a searchable format.
OpenSecrets—http://www.opensecrets.org/
A “nonpartisan guide to money’s influence on U.S. elections and public policy” contains campaign contribution,
PAC and lobbying data compiled per donor, per sector and per candidate.
Additional Koch foundation financial documents obtained from the foundations
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page 43
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Koch Industries Secretly Funding The Climate Denial Machine

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greenpeace.

Published March 2010 by

702 H Street NW Suite 300

Printed on 100% PCW recycled paper

book design by andrew fournier

Executive Summary pg. 6–8

What is Koch Industries? pg. 14–16

Record of Environmental Crimes and Violations

The Koch Brothers pg. 17–18

Sources of Data for Koch Foundation Grants

Claude R. Lambe Foundation

Charles G. Koch Foundation

David H. Koch Foundation

Koch Foundations and Climate Denial pg. 21–28

Family and Individual Political Contributions

Key Individuals in the Koch Web pg. 33

Sources pg. 34–43

Americans for Prosperity Institute for Energy Research

The company’s tight knit network of lobbyists, former

In spite of publishing this statement and reducing funding to

Kansas-based Koch Industries is a conglomerate dominated

billion in annual sales, operations in nearly 60 countries and

• $365,000 to Foundation for Research on Economics and the Environment

Contributions through Koch’s political action committee (PAC) are a matter

Koch executives and their families wield political

• Spent $37.9 million from 2006 to 2009 for direct

• Spent $5.74 million in PAC money for candidates,

• Contributed at least $270,800 to federal political

The combination of foundation-funded front-groups,

Case Study 1: The Koch-funded “ClimateGate” Echo Chamber

Case Study 2: Polar Bear Junk Science

such an uproar that the Editor in Chief and several others

The 2007 polar bear junk science paper prompted a letter to

“To people outside the scientific community, one PhD may

The Koch-funded climate denial groups kicked into gear

Additional Koch-funded groups and industry groups threat-

• March 2009: The Institute for Energy Research (IER)

• April 2009: Patrick Michaels was an early commenter on

• May 2009: The Heritage Foundation promoted the report

» The Heritage Foundation which provided speakers

© illustration by Andrew Fournier/Greenpeace

the Soviet Union in 1929, where he persuaded Josef Stalin’s

Charles Koch renamed the company Koch Industries after

Koch Industries also diversified its industry areas under the

In 2005, Koch paid over $13 billion for the Georgia-Pacific

Record of Environmental Crimes and Violations:

• In late 2000, the company was charged with covering up the

• Koch’s negligence toward environmental safety has led to

© illustration by Andrew Fournier/Greenpeace

© illustration by Andrew Fournier/Greenpeace

David H. Koch , born in 1940, is Executive Vice-President of Koch Industries, and

The Koch Brothers are the 9th Richest Americans

William Gates III $50.0 bil Medina, WA Microsoft

Koch foundations contributed over $48 million to climate

The Koch web spans beyond clean energy and climate

organizations funded by Koch are also working against health

The Foundations David H. Koch Foundation

• Richard Fink — President

Charles G. Koch Foundation