June 18, 2014

Steve Scalise’s Network of Fossil Fuel Lobbyists Stand To Gain

Steve Scalise's Network of Fossil Fuel Lobbyists Stand To Gain

Eric Cantor’s surprise defeat in the Republican primary, and subsequent decision to step down as Majority Leader, has set off a scramble within his party. Current Whip Rep. Kevin McCarthy (R-CA) is widely perceived as the next majority leader, while Reps. Peter Roskam (R-IL), Marlin Stutzman (R-IN) and Steve Scalise (R-LA) are rounding up votes to take McCarthy’s place as whip.

Though there are negligible policy differences between the candidates, particularly on energy issues, one candidate is particularly close to the fossil fuel lobby: Steve Scalise, the chairman of the Republican Study Committee, a caucus of likeminded conservative members, who represents an area of the Gulf Coast with a large concentration of offshore oil jobs.

A number of former Scalise staffers are now employed as lobbyists for the fossil fuel industry. Megan Bel, Scalise’s former legislative director, now works for the National Ocean Industries Association, a trade group for offshore oil drilling companies. Stephen Bell, Scalise’s longtime spokesperson, joined the National Rural Electric Cooperatives Association — a group that represents largely coal-fire power plants and has lobbied aggressively against the EPA’s new carbon rules — in April.

Scalise has cultivated political support from Koch Industries, the American Petroleum Institute, and Halliburton as part of the Republican Study Committee’s business outreach effort, according to a report in Politico. Notably, a Republican Study Committee outreach meeting with lobbyists occurred in the office of Shockey Scofield Solutions, Koch’s lobbying firm registered to defeat new carbon tax proposals.

Politico Influence also reports that Scalise counts several lobbyists among his inner circle. Jim McCrery, who held the same Louisiana district seat in Congress before retiring, is close to Scalise and now represents Koch Industries and Hess Corporation, among other clients. Rhod Shaw, another lobbyist reportedly close to Scalise, works at a firm that represents nearly a dozen fossil fuel interests, including BP, the coal-dependent utility company Duke Energy, and Murphy Oil.

Will the fossil fuel lobby leverage its considerable pull within the House GOP to ensure Scalise has enough votes to become House Majority Whip? The Wall Street Journal reports that McCarthy dropped previous support for wind energy tax credits as he moved to run for Majority Leader — a move perceived as a bid to build support among oil and coal interest groups.

Leadership elections, which are conducted by a secret ballot, are scheduled for June 19th.