Duke Energy: Looking for Payback

Two years after getting prosecuted under the Migratory Bird Treaty Act, the energy giant takes aim at the law itself.

In early June the U.S. House of Representatives passed the Fiscal Year 2016 Commerce, Justice, Science, and Related Agencies 鈥攚ith a sneak attack on birds attached. The bill included an amendment prohibiting the use of Department of Justice funds to prosecute or hold liable any person or corporation for a violation of the Migratory Bird Treaty Act. If it becomes law, anyone could kill birds with impunity, with no risk of jail time or even fines. It would decimate one of the most successful pieces of conservation legislation in history.

探花精选 has obtained documents linking Duke Energy, the largest electric utility in the country, to the amendment, which was sponsored by Representative Jeff Duncan (R-S.C.).听Duke鈥檚 renewable energy division had been the first green power company to be prosecuted under the MBTA, in 2013 to the deaths of more than 150 protected birds, including 14 Golden Eagles, at two wind farms in Wyoming, and forking over $1 million in fines.

In the wake of that guilty plea, Duke, which has contributed to Duncan鈥檚 political campaigns, apparently began deploying its considerable resources and political muscle to undo the very law it had violated, paying in 2014 to The Majority Group, LLC, a lobbying firm with offices on D Street in Washington, D.C. On the 鈥渓obbying report鈥 it was required to file, Majority Group recorded one purpose of its efforts as 鈥淎mending the Migratory Birds Treaty Act and Bald and Gold Eagle Protection Act to address accidental avian deaths.鈥 A staff member in Duncan鈥檚 office confirmed that the Congressman has discussed amending the MBTA with Duke Energy but did not confirm or deny that Majority Group lobbied Duncan on the energy company鈥檚 behalf.听

鈥淒uncan鈥檚 wholesale attack on birds came out of the blue,鈥 says David Yarnold, 探花精选 president and CEO. 鈥淏ased on our sources and the documents we鈥檝e seen, we see this as straight-up corporate payback. Duke has a history of stumbling into controversy, and it appears they鈥檝e done it again.鈥

To be clear: It is illegal to harm or kill migratory birds. That鈥檚 been the law of the land since 1918, when Congress enacted the Migratory Bird Treaty Act, which protects more than 1,000 species. For nearly a century the MBTA, which 探花精选 helped to pass, has weathered repeated attacks鈥攆rom claims that it is , to weakened restrictions on , to that the U.S. Fish and Wildlife Service has selectively employed the act to punish the oil and gas industry. This latest assault may be the most egregious yet.

Duke, for its part, disavows any effort to undermine legislation that protects聽birds.听鈥淲e have been working with others in industry and Congress on updating our聽nation鈥檚 wildlife laws to better balance the need to provide energy in a reliable, affordable, and clean manner while acknowledging our responsibility to protect and preserve wildlife and the environment,鈥溌爏ays Chad Eaton, the company's manager for federal government affairs.

For decades the MBTA has been used to prosecute corporations and individuals for capturing, , killing, or otherwise endangering migratory birds. Exxon, for instance, was forced to shell out after the 1989 Exxon Valdez spill in Alaska, which killed hundreds of thousands of birds, and BP was sentenced to pay more than in criminal fines and penalties for the 2010 Deepwater Horizon disaster in the Gulf of Mexico, which killed one million birds, including Brown Pelicans and Royal Terns. (Other crimes punishable under the MBTA include and hunters .)

But no wind energy company had ever been prosecuted under the MBTA until 2013. Duke was prosecuted because it 鈥渇ailed to make all reasonable efforts to build the projects in a way that would avoid the risk of avian deaths by collision with turbine blades, despite prior warnings,鈥 . Duke, whose net income that year was $2.7 billion, paid its $1 million in fines, and agreed to an array of mitigation strategies. Those included continuing to employ biologists to radio for temporary turbine shutdowns when eagles were spotted and to report bird deaths to the government, as well as installing radar technology similar to that used in Afghanistan to track incoming missiles.

Duke has a mixed track record when it comes to the environment. On the one hand, the company has been a leader in pushing for and , it鈥檚 spending millions to , and it supports several . Yet it also was responsible for the horrific 2014 spill of coal ash into North Carolina鈥檚 Dan River (a fine of ) and played a role in the machinations of Dick Cheney鈥檚 during the George W. Bush administration.

Scarcely had Duke agreed to mitigation steps at its Wyoming wind sites, however, than it contracted Majority Group to push legislators to get the MBTA 鈥渁mended.鈥 It is not stated on the lobbying reports exactly what 鈥渁mending鈥 the act meant for Duke, but to Duncan the word apparently means completely dismantling existing protections for birds. By January 2015聽he had introduced , which would remove protections for migratory species. The bill also takes aim at the Bald and Golden Eagle Protection Act: It would compel the Department of the Interior to automatically approve 30-year 鈥渋ncidental take permits鈥 that allow eagles to be disturbed, harmed, or killed鈥攊f聽Interior doesn鈥檛 act on a permit application within 12 months (far faster than such decisions typically require).

That bill hasn鈥檛 made it out of committee, but Duncan鈥檚 second effort鈥攖he rider on the appropriations bill鈥攈as gotten significantly more traction. The House passed the bill on June 3, and now it moves to the Senate. The rider could be dropped during the reconciliation process between the two houses of Congress, as often happens, but if it sails through and the President signs the bill, it will be open season on birds until the amendment expires on September 30, 2016. The White House has indicated that President Obama will the bill, and Duncan has a backup plan: On June 25 he introduced yet another rider, to , a bill to fund the U.S. Department of the Interior and the Environmental Protection Agency for 2016, which the House will take up after it returns from the July 4 recess. That amendment would block the use of Interior聽funds to enforce any prohibition under the MBTA or Bald and Golden Eagle Protection Act of incidental takes of protected birds鈥攗ntil a permitting process is put in place.

Duke Energy contributed to each of the Congressman鈥檚 campaigns, and the company ranks among his donors. Majority Group did not respond to requests for聽comment for this story, but 探花精选 found no record of any 鈥済reen energy producer鈥 other than Duke that had contributed to Duncan鈥檚 campaigns. (The , a trade association that represents some offshore renewable energy companies, has also contributed.)

Earlier this month, the same day the Commerce聽bill passed the House, Duncan : 鈥淪hould green-energy producers be liable 4 incidental deaths of birds of prey? My amendment will delay prosecution until that is worked out.鈥 As Mike Daulton, 探花精选鈥檚 vice president of government relations, points out, if Duncan鈥檚 Commerce bill rider had been law when the Deepwater Horizon rig blew, BP wouldn鈥檛 have been liable for the death of a single one of those million birds.

The irony of all of this scheming to kneecap the MBTA is that the USFWS 聽is already working to adapt the law to better deal with 21st century circumstances. The law was enacted at a time when hunting and fashion were the leading causes of plummeting bird numbers. As more and more domestic oil and gas wells have been drilled and wind and solar farms have proliferated and power lines have been strung, energy development and bird conservation have increasingly, unquestionably been at odds. So in May the USFWS that grant corporations immunity from prosecution if they cause accidental bird deaths, as long as they employ to mitigate hazards. The proposal is still in the early stages, and it is unclear whether it will extend to the wind energy sector, but 探花精选 is pushing for it to do so. (The ends July 27.)

The protection of migratory birds became the responsibility of the federal government in 1918鈥攂efore child labor laws, women鈥檚 right to vote, and the EPA. The proposal by the USFWS honors that responsibility and positions the MBTA to conserve birds in the modern world; Duncan鈥檚, meanwhile, would be an unconscionable slide back in time.