Industrialists 'helped to draft US energy plan'

A newspaper investigation has detailed close ties between the formulation of President George Bush's energy plan and top energy…

A newspaper investigation has detailed close ties between the formulation of President George Bush's energy plan and top energy company officials who helped to draft the plan and would profit from its recommendations.

Several companies and their executives were major donors to Mr Bush's presidential campaign. An energy task force, headed by the former oil company executive Vice President Dick Cheney, was formed nine days after Mr Bush was sworn in. Its final report, issued on May 16, provided a significant boost for the nation's oil and coal industries, and caused dismay among environmentalists.

The report was considered key in the US rejection of the Kyoto global warming treaty. The US would be obliged under the Protocol to agree to a cumulative reduction in its greenhouse gas emissions of 7 per cent below 1990 levels for three greenhouse gases, including carbon dioxide, and below 1995 levels for three man-made gases, averaged over the commitment period 2008 to 2012.

Los Angeles Times reporters said that throughout February and March a parade of executives from the oil, coal, electricity and nuclear industries met Mr Cheney, including top officials from Peabody Energy, the world's largest coal producer. Peabody and its affiliates gave $900,000 to Republican Party over the past two years, and its CEO, Mr Irl F. Engelhardt, personally gave $100,000 to Mr Bush's inaugural committee.

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On May 21st, five days after the task force report touting coal as an energy source was issued, Peabody launched a public stock offering. The company received $420 million, about $60 million more than analysts had expected.

The newspaper says the electricity industry also wielded undue influence. Electricity generators and marketers have given $19.7 million to Republicans since 1998. Mr Haley Barbour, former chairman of the Republican National Committee, is now a lobbyist for the electricity industry. It was his influence, the newspaper charges, that led to Mr Bush reneging on a campaign promise to restrict power plant emissions.

On March 1st, Mr Barbour sent a note to Mr Cheney arguing that complying with carbon dioxide limits would be so expensive that Mr Bush should reverse his position. Mr Bush cited the task force report when he announced later that month that he had changed his mind on carbon dioxide limits.

Environmentalists, including the Union of Concerned Scientists and the Sierra Club, were not allowed to meet Mr Cheney until June 5th, weeks after the report was released. They had a 50-minute meeting on April 6th between a representative of the task force and 15 environmental groups - hardly, said one attendee, a "meaningful discussion".