Katherine McFate Center for Effective Government www.foreffectivegov.org

1. National Institute for Money in State Politics 2013BRIGHT MINDS, DARK MONEY Issue Case Study: Will Oil and Gas Money Beat Citizen Engagement? Katherine McFate Center for Effective Government www.foreffectivegov.org

2. Effective government reflects the needs and priorities of the American people, protects public health and the environment, and encourages citizen engagement in decision-making. To engage, citizens must understand what government does and how it works. We work to ensure governance processes are open, accessible, and accountable to the American public.

3. Environmental Right to Know Ensuring citizens have the information they need to demand government action – chemical toxins in their communities, unsafe workplaces, unsafe products. 2011: disclosure of the chemicals in fracking fluids

4. Water contamination • Wastewater disposal • Water scarcity • Air quality • Habitat contamination • Seismic activity • Costs to local communities • Siting and set-back issues

5. U.S. Natural Gas Production, 1990-2035(trillion cubic feet) Source: U.S. Energy Information Administration, Annual Energy Outlook 2012 Early Release Overview.

6. Shale Plays and Gas Wells, 2012 Source: FracFocus via SkyTruth.org, Energy Information Administration

7. States with Disclosure Requirements, 2012 Existing disclosure requirements Introducing new disclosure requirements Introducing legislation to change existing requirements Source: NCSL research as of May 31, 2012

8. Inquiry • How does the oil and gas industry exert its influence to avoid effective regulation at the state level? • What role do campaign contributions play? • How can citizen activism and advocacy counteract the influence of money in politics? • Can citizens frustrated by the influence of special interests on the fracking industry be recruited to work for democracy reforms?

9. Methodology • Chose 10 states with significant fracking activity – over 20,000 wells in 2012 • Variation in campaign financing rules (minimal, loose rules, tight rules on individual and PAC contributions to candidates) • Used NIMSP data, 2002-2012 – industry and company contributions to Governors and state officials • Published reports of legislative battles and outcomes • Gathered information on state anti-fracking groups

10. States with Legislative Activity, 2012 Source: NCSL

11. Contribution Limits in 10 States

12. Regulatory Authority for Fracking in 10 States

13. Oil and Gas Contributions to Governors Races

14. Preliminary Observations • Campaign contributions to governors, elected commissioners (regulators), and oversight committee leadership; outside of governors, enough to matter, over time; also Republican party organization in some states • Lower levels of support where legal limits, but relatively small proportion of total costs in most places • Influence through historical influence, dark money, advertising, and shaping economic debate

15. Economic Value of Fracking in 10 States

16. Anti-Fracking Organizations by State At least 388 Organizations in 46 States and the District of Columbia Source: Center for Effective Government

17. Pennsylvania: Bipartisan cooptation • Ohio: Reluctant Republicans reform • Colorado: Incremental progress • New Mexico: Early success and backlash

18. Industry Influence vs. Citizen Action • Campaign contribution limits help even the playing field • Public hearings and comment periods help ensure accountability of public officials • Greater disclosure of lobbying and political spending is needed for real transparency

19. Next Frontier • Local democracy vs. state pre-emption • Severance taxes • Campaign finance and dark money??

20. New York Counties Source: FrackSwarm via Sourcewatch.org

21. States with Legislation Proposing Moratoria Pending Enacted States with Laws that Preempt Local Prohibition Source: NCSL research as of May 31, 2012

22. Severance Taxes [1] Pennsylvania does not impose any severance taxes