Archive for the ‘State Politics’ Category

Why EPA Swarmed States’ Meeting

April 8, 2014

By Mark Anderson, Esq., Senior Vice President and Sarah Hunt, Esq., Manager State Issues and Ethics Officer

United States Environmental Protection Agency (EPA) Administrator Gina McCarthy pledged to ECOS last fall that she will “listen to the states” during her tenure at the agency’s helm. If actions speak louder than words, McCarthy underscored this message by sending 30 EPA regional and headquarters staffers to the Spring 2014 Environmental Council of the States (ECOS) meeting held March 31-April 2 at the Cavallo Point Lodge in Sausalito, California. McCarthy’s EPA, in an unprecedented move, also co-sponsored the meeting.

The current commitment of McCarthy’s EPA to ECOS surpasses anything we have witnessed since we began attending ECOS meetings in 1996. As recently as 2012, EPA was all but absent at ECOS meetings, leaving state environmental regulators feeling marginalized by the federal agency and its previous administrators. Despite McCarthy’s promise last fall, EPA’s suddenly stepped-up engagement with ECOS left some states speculating that EPA was only present to promote the federal position on two new and controversial rulemakings, both Obama Administration priorities.

The federal agency recently sent its Clean Air Act 111d rule on carbon pollution standards for existing power plants to the Office of Management and Budget (OMB) for pre-publication review. EPA and the Army Corps of Engineers also just jointly promulgated a draft rule on the definition of the Waters of the United States, a Clean Water Act rulemaking necessitated by a string of US Supreme Court cases that started with Rappanos v. United States (2006).

These two rulemakings are poised to reshape not only American environmental policy, but perhaps energy and land development policy as well. Given their significance, it is unsurprising that a broad spectrum of stakeholders, including many states, have loudly criticized both of these rules. The EPA did not reveal much about the new Clean Air Act 111d rulemaking at ECOS, but a large number of states fear the rule may result in the shuttering of numerous existing coal-fired utilities, resulting in job losses and energy cost spikes. The Waters of the United States rule, as drafted, has the potential to assert EPA jurisdiction over waters previously thought to be outside of federal regulatory authority. This rulemaking has serious implications for state water programs and land development.

At the Spring ECOS meeting, EPA staff held closed-door meetings with state regulators to discuss both of these rulemakings. The only clear outcome from these meetings is that EPA is determined to move forward with controversial aspects of both rulemakings, despite questions and concerns from several states. During the closed-door Clean Air Act 111d meeting, the EPA told states they will not use a state implementation plan (SIP) process to implement the forthcoming existing source rule, leaving states to wonder what mechanism EPA will use to enforce the rules. Interestingly, while EPA staff did discuss some details of the new 111d rule at this meeting, they did not mention to the states that the rule was complete and about to be sent to OMB that afternoon.

The limited public discussion on these important rulemakings at the conference was as unusual as EPA’s ramped-up involvement. Frank discussion of federal rulemakings in public sessions is an ECOS tradition. This time, however, the Air committee skipped over a scheduled 111d item on its public meeting agenda. There was also only one significant mention of the important water rulemaking during public sessions. EPA Deputy Administrator Bob Persciape told a public session that the new Waters of the United States rule “won’t be a big change” in actual EPA policy.

EPA staff made clear their interest in reaching out to state officials at ECOS last week. The question is why.  Many states quietly expressed doubt that this new dialogue will actually shape EPA policy. States welcomed this EPA engagement, but it remains to be seen whether EPA is working toward true collaborative dialogue or merely using this opportunity to inform itself about the coming opposition from some states. States will therefore be watching closely to see if EPA continues its ECOS engagement when these significant Air and Water rulemakings conclude. States will also notice if EPA listened to their concerns when the agency rolls out 111d new source final rule and the 111d existing source proposed rule later this year. If EPA has listened, it will be obvious, and a new era of state and federal collaboration will start on solid ground.

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Mark Anderson, Esq. is Senior Vice President working at Stateside Associates managing the Regulatory Services Division. He advises clients on engagement strategy and directs educational and “grasstops” campaigns directed at governors and regulatory officials. Mr. Anderson also has created issue advocacy coalitions and facilitates work group meetings of state and federal stakeholders addressing environmental issues.

Sarah E. Hunt, Esq. is Manager, State Issues and Ethics Officer at Stateside Associates. She works with clients on a wide range of state and local government affairs issues. Sarah also helps Stateside and its clients navigate lobbying ethics, comply with campaign finance laws, and develop political giving strategies. She practiced campaign finance, election law, and non-profit management with a boutique political law firm for several years before her work at Stateside Associates.

No Check? No Problem

March 20, 2014

By Constance Campanella, President and CEO

There are two kind of political candidates.

1. Those who have lots of money or who raise it from their family and friends and,

2. Those who lose.

I “borrowed” that line from a former state legislator (who lost his re-elect, btw) and have used it unabashedly for decades.

Another state legislator recently told Stateside Principal Mike Behm that he tells his local audiences the following: “I have to think about reelection every morning when I wake up and every evening before I go to bed, because I cannot help you with anything unless I get re-elected.”

They are both right, of course. Money is necessary for campaigns. And, as government relations professionals, we are expected to either provide some of it ourselves or to help candidates find it from clients, members and other professional acquaintances.

This year, thousands of state and local offices will be on the primary and general election ballots. If we wanted to, we could spend the remaining 7+ months hosting fundraisers for our favorite candidates across the 50 states. Naturally, we cannot do that much, but we appreciate how events give us the opportunity to get to know candidates better. And, that translates into service down the road for our clients. Yes, there is a connection between politics and policy.

Unfortunately, culture, infrastructure and other reasons leave some organizations out in the cold when it comes to direct political giving.

For example, many associations do not have PACs or political giving budgets.

Some of our corporate clients simply eschew political giving as part of their cultural mores.

Still others cannot engage comfortably in political giving due to “pay to play” or other restrictions.

This blog is for those who want to take advantage of the political season to get to know candidates and develop relationships, but who cannot make political contributions.

At Stateside, we make direct political contributions, but we also like to help candidates and our clients by bringing them together in non-fundraising events or “Meet and Greets.” Ultimately, the candidate hopes to make acquaintances that will become donors, but—unlike fundraisers—the Meet and Greet itself has no ticket price and no “host committee.”

So far this year, we have hosted two state Attorney General candidates, one gubernatorial candidate and two House Speakers interested in maintaining their respective legislative majorities. We will host another dozen or so events before the end of the election season.

To be clear, candidates would much prefer real fundraisers to “Meet and Greets.” We get that. But, sometimes it is the best or only option. For example, some states do not allow actual fundraising during legislative sessions, but “Meet and Greets” are OK. Primaries are often avoided by corporate and association givers, but a “Meet and Greet” can help increase a candidate’s visibility in a competitive field. And, in some states, the partisan demographic is so skewed that the primary IS the election.

If you cannot make direct contributions, consider the “Meet and Greet” as a way to maximize the value of the 2014 election season for your company or association.

Here are some tips:

  1. Always check with your legal counsel first to make sure that no planning or promotion for the event is considered fundraising or reportable as an in-kind contribution that could trigger “Pay to Play” rules.
  2. If you are a corporation, consider a “Meet and Greet” for senior corporate executives.
  3. If you are an association, bring your members together with candidates to help build awareness of your industry and key issues.
  4. Be sensitive to the candidate’s time and need to raise money. Consider scheduling “Meet and Greet” events adjacent to fundraisers so the candidate can do multiple events without additional travel.
  5. Host “Meet and Greet” events at Groups meetings. The candidates and the guests are already there. You bring them together.
  6. Keep “Meet and Greet” events smaller than fundraisers to maximize opportunity for guests and the candidates to talk.
  7. Be bipartisan. Even if you usually prefer candidates of one party, take this opportunity to get to know other contenders–especially in competitive races.
  8. If a “Meet and Greet” is not an option, consider other alternative such as inviting electeds and/or candidates to your corporate facility for a tour or to address employees.

In nearly all cases, “Meet and Greets” produce connections that ultimately result in the candidate receiving financial support. Even though you did not write a check, you earn status as someone who was helpful.

Win – Win

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Constance Campanella is the Founder, President and CEO of Stateside Associates. A veteran of 30 years of state and federal issue management experience, Ms. Campanella managed Stateside’s growth from a one-person firm to what one trade publication has called, “a behemoth in state lobbying.”

The State AG Formula for Success

March 6, 2014

By Steve Arthur, Vice President

As my colleagues noted last week in their blog, the National Governors Association met in DC and it was more partisan than usual, especially at a press briefing at the White House after a meeting with the President. But as the Governors were wrapping up their meeting, the states’ Attorneys General were arriving for their own Winter meeting. Although, several of the arriving Attorneys General were hoping their official travel schedules will move them up a few days next year.

Five Attorneys General are running for Governor this year, and at least three others are running when their Governor’s Office comes up in 2015 or 2016. This reinforces the old joke that NAAG actually stands for National Association of Aspiring Governors. With six sitting Governors previously having served as their state’s Attorney General, there is good reason to look to the Attorneys General for possible future candidates.

This year’s sitting Attorneys General that are also candidates in Governors races include Doug Gansler (D-Maryland), Martha Coakley (D-Massachusetts), Jon Bruning (R-Nebraska), Gary King (D-New Mexico) and Greg Abbott (R-Texas). While being AG may provide an opportunity to run for Governor, it doesn’t clear the field. General Abbott faced only token opposition, but the rest of his AG colleagues are facing competitive primaries. And it may be for that reason that Jack Conway (D-Kentucky) has all but announced his run in 2015, and Roy Cooper (D-North Carolina) and Chris Koster (D-Missouri) have made it pretty clear they will be running for their state’s highest office in 2016.

Even with eight Attorneys General running for Governor, and most of their colleagues gearing up for re-election, the role of the Attorney General forces them to work together much more often than Governors. Issues such as monitoring the tobacco settlement, prosecuting Medicaid fraud and combating human trafficking keep the AGs and their offices in close touch. Even as they can disagree on some very big issues such as the constitutionality of the Affordable Care Act, they continue to work together on plenty of other issues.

The closeness of these relationships leads to moments that we see too infrequently with most other elected officials. The night before the NAAG meeting officially began both the Republican and Democratic Attorneys General Association held separate dinners. But later that night back at the hotel, Attorneys General and their staffs could be seen sitting at the same tables as their colleagues from the other party having the same sorts of casual conversations we all have with our friends at the end of the evening. Even the group of 2014 gubernatorial candidates was represented.

With hyper-partisanship continuing to rule Washington, D.C., the Attorneys General can serve as an example for other elected officials. Whether the office interactions make the social interactions easier or the social interaction makes working together professionally more tolerable, it is possible to disagree strongly on policy issues without it being personal.

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Steve Arthur is Vice President and brings more than 20 years of public policy experience in both the public and private sector to his work at Stateside Associates. Mr. Arthur provides clients with hands on state government relations support from strategic planning and issue management to lobbyist management and direct lobbying. He is one of the leaders of Stateside’s Attorneys General practice, guiding clients through the process of working with, and lobbying, state Attorneys General.


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