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Business Leaders Call For Halt To Taxpayer Subsidies to Rich Environmental Groups Who Sue Against Job-Creating Projects
Western Business Roundtable

Group Says Subsidy Halt Could Be "Critical To Getting Clean Energy Projects and Transmission Lines Built More Quickly"

Denver (Nov. 20, 2009) -- A business coalition is calling on Congress to halt taxpayer subsidies to wealthy, self-styled environmental organizations who sue the federal government to block job-creating projects -- including clean energy and renewable projects -- until a full accounting is done of how much these subsidies are costing taxpayers and a study is completed showing how these tax dollars are impacting job-creating projects in all 50 states.

The Western Business Roundtable echoed concerns expressed this week by more than 20 U.S. Senators and Congressmen about recent reports that very well funded environmental groups are receiving millions of taxpayer dollars as reimbursement for suing the federal government with no public accounting of how much taxpayer dollars are being spent and who is receiving them.

"Members of Congress are rightfully expressing concern over the fact that millions of taxpayer dollars are potentially going out the door without any public accounting," said Jim Sims, President and CEO of the Western Business Roundtable. "The very wealthy environmental organizations that receive these tax dollars admit to getting them, so there is no question that public monies are in fact involved and that there is no public disclosure of these tax monies."

"There also is no question that these self-styled environmental groups are unleashing an avalanche of lawsuits against virtually every proposed job-creating project in the West," Sims said. "If tax dollars are being used to subsidize these attacks against job creation, then these groups ought to be hauled in front of Congress and made to justify their use of tax dollars in this manner."

"At a minimum, Congress should direct federal agencies to put an immediate halt to these payments until the public can be made aware of the extent of these subsidies and their impact on the Obama Administration's efforts to re-start the economy and create jobs," Sims said.  "It also makes sense to have the government conduct a study as to the impact these taxpayer subsidized lawsuits had had on taxpayer subsidized job creation activities."

In Congressional testimony two weeks ago to a joint oversight hearing of two House subcommittees, the Roundtable told Congress that one of the biggest impediments to building new transmission lines in the Western U.S. -- desperately needed by new renewable facilities -- is "litigious environmental groups."

"Congress should consider reforms to laws which currently allow these groups to be reimbursed with taxpayer dollars for suing the federal government against projects such as transmission lines and prevailing," Sims testified to the U.S. House Resources Subcommittee on Water and Power and the Subcommittee on Energy and Minerals. "Actually, these groups only need to show that a government body changed some policy or program as a result of the suit in order to receive reimbursement. Many of the funds to pay the attorney fees are pulled from the budgets of cash-strapped regional offices of natural resource agencies. Congress should consider immiedate changes to the law to remove or restrict this perverse and inequitable incentive."






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