Photo: Stephen Rose.“I’ve had the Turkish mafia after me, so bring it on, baby.” WILLIAM I. KOCH, who has fought a proposed wind farm for more than a decade, on environmental groups’ threats
by Katharine Q. Seelye, The New York Times, October 22, 2013
OSTERVILLE, Mass. — If the vast wind farm proposed for Nantucket Sound is ever built, William I. Koch will have a spectacular view of it.
Of course, that is the last thing he wants. Mr. Koch, a billionaire industrialist who made his fortune in fossil fuels and whose better-known brothers underwrite conservative political causes, has been fighting the wind farm, called Cape Wind,
for more than a decade, donating about $5 million and leading an
adversarial group against it. He believes that Cape Wind’s 130
industrial turbines would not only create what he calls “visual
pollution” but also increase the cost of electricity for everyone.
Now, as if placing a bet on the outcome of the battle, Mr. Koch, 73, who
has owned an exclusive summer compound here for years, has acquired an
even grander one — Rachel Mellon’s 26-acre waterfront estate in the
gated community of Oyster Harbors, for $19.5 million. He has also bought
the nearby 12-plus-acre Dupont estate. All of this adds up to a prime
perch over Nantucket Sound.
“I love the area,” Mr. Koch said in an e-mail. “The ability to acquire a
special property where I can create a family compound for my children
and extended family was and is very meaningful to me.” (His current
home, in the same gated community, is on the market for $15 million.)
At one time, Cape Wind — which would produce 75 percent of the power for
Cape Cod, Martha’s Vineyard and Nantucket — was expected to be the
first offshore wind farm in the country, and supporters hoped it would
serve as a catalyst for other offshore wind projects like those that
ring Europe. But after more than a dozen years, the $2.6 billion
proposal remains on the drawing board, thanks in large part to the Alliance to Protect Nantucket Sound, of which Mr. Koch is chairman.
Still, Jim Gordon, Cape Wind’s developer, who has spent $70 million of
his own money on the project since 2001, vows that it will go forward.
He said that he would qualify for certain federal tax credits by the end
of the year and that the necessary financing would be in place, but he
declined to disclose details, saying he did not want to give Mr. Koch a
“road map” of his plans.
“This is a very sophisticated adversary,” Mr. Gordon said. “Koch has
already spent a decade trying to push us off the path toward a better
energy future.”
The two men have circled each other for a decade
in an escalating test of wills. Mr. Gordon has tried unsuccessfully to
enlist Mr. Koch, who once financed green energy plants, in his cause;
Mr. Koch has successfully delayed Cape Wind for years by tying it up in
court. A few lawsuits, some of them backed by the Nantucket Sound
alliance, remain to be settled.
Audra Parker, chief executive of the alliance, is skeptical that Mr.
Gordon can move ahead. His plans, she said, are “built on a house of
cards.”
Mr. Gordon, for his part, contends that Mr. Koch “lives in a billionaire
bubble” and that his efforts to block Cape Wind are self-defeating
because climate change is already assaulting Cape Cod.
“Their beach is eroding, houses are falling into the sea, the ocean is
getting warmer, lobsters are migrating away,” Mr. Gordon said in an
interview in his Boston office. “It’s just sad that somebody who has the
means to spend millions of dollars can hold something up that’s going
to produce a lot of benefits for Massachusetts and this region.”
Mr. Koch is not the only opponent of Cape Wind. The late Senator Edward
M. Kennedy, the Massachusetts Democrat, whose Hyannis family compound
also looked out on Nantucket Sound, opposed the project too, as do many
fishermen and business owners on the Cape who worry it will hurt their
livelihoods. Hundreds of people have made donations to the alliance; Mr.
Koch’s $5 million in contributions account for only part of the $30
million raised.
But he is one of the few wealthy homeowners here who has taken a public
role in the fight. And his ties to the fossil-fuel industry, and the
fact that he is a Koch brother, make him a convenient target for
pro-wind supporters.
Major environmental groups support the wind farm as a necessary step
toward reducing carbon emissions, and they are furious with Mr. Koch.
But when he was warned last year that environmentalists were going to
start attacking him and try to stop his other projects, he said he
welcomed the fight.
“The environmentalists are already after me,” he told CommonWealth magazine
in April. “I’ve had the Turkish government after me, I’ve had the
I.R.S. after me and I’ve had a $50-billion-a-year corporation after me.
I’ve had the Turkish mafia after me, so bring it on, baby.”
Combative, flamboyant and litigious, Mr. Koch does not shy away from
public scrapes. He has been involved in dozens of lawsuits over the
years, including a tangled case against his own brothers that went on
for two decades and that Forbes called “perhaps the nastiest family feud
in American business history.”
Like his brothers David and Charles, who own Koch Industries Inc., Bill
Koch is a billionaire, though not on the same order of magnitude. Forbes
listed him in September as the 122nd richest person in the United
States, with a net worth of $3.8 billion; his brothers are tied for
fourth, with a net worth of $36 billion each.
David and Charles Koch, who are more conservative, use their money to
promote political movements like the Tea Party, to back a libertarian
social agenda and to protect their extensive fossil fuel holdings; Bill
spends his on an array of passions, including sailing (he won the
America’s Cup in 1992) and collecting wine, art (a wing at the Museum of
Fine Arts, Boston is named for him) and Western memorabilia (he bought a
ghost town in Colorado and is converting it into an authentic frontier
settlement).
But Bill Koch, who founded Oxbow,
a fossil-fuel-based company, three decades ago, has also been stepping
up his political donations. He is spending millions to beat back
environmental regulations and giving more than ever to like-minded
politicians. He told CommonWealth magazine that he wanted to help elect
people “who understand how foolhardy alternative energy is.”
His political contributions are generally less ideological than those of
his brothers and are focused chiefly on advancing his business
interests. Last year, Oxbow donated its largest amount ever, $4.35
million, to so-called super political action committees, according to
the Center for Public Integrity.
Mr. Koch has donated to both Democrats and Republicans; the determining
factor, he said, is whether they support policies that will benefit
Oxbow. Recently, most of his recipients have been Republicans, including
many House leaders who are seeking re-election next year.
Some say his protection of his fossil fuel interests goes hand-in-hand with his opposition to Cape Wind.
“No renewable energy resource holds as much potential as offshore wind
to displace many, many, many gigawatts of dirty, carbon-intensive
resources,” said Sue Reid, vice president and director of the
Massachusetts office of the Conservation Law Foundation, which supports Cape Wind.
Mr. Koch has said that the most persuasive arguments against Cape Wind
are economic, arguing that the project relies on government subsidies
that could vanish tomorrow and that it would raise the cost of
electricity, not lower it.
That point was bolstered last month by news that the biggest utilities
in Massachusetts had signed contracts to buy land-based wind power from
Maine and New Hampshire for 8 cents per kilowatt-hour; Cape Wind, by
comparison, has contracts with those same utilities to start at 19 cents
per kilowatt-hour, with built-in escalation clauses of 3.5% a
year. Ms. Parker of the Nantucket Sound alliance called this news “the
death knell for Cape Wind.”
But Mr. Gordon, the Cape Wind developer, said that his offshore turbines
would produce power more consistently, at peak demand, than those in
Maine and New Hampshire, and that he would be delivering power reliably
to “the fastest-growing electric load demand center in New England.”
And, he said, he was confident that Cape Wind would one day be up and running.
Mr. Koch was just as certain that it would never be built. “I am equally
confident,” he said in his e-mail, “that the project’s lack of merit
will result in its demise.”
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