Pioneers Fill War Chest, Then Capitalize Has Look First of Two Articles Skeet with Cheney, Played Golf with Pros Ben Money in Electing a President

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D.C. Region THE BUSH MONEY MACHINE Fundraising’s Rewards Job Market Pioneers Fill War Chest, Then Capitalize Has Look First of two articles skeet with Cheney, played golf with pros Ben money in electing a president. Their way to do it Crenshaw and Fuzzy Zoeller and laughed at the was to create a network of people who could get By Thomas B. Edsall, Sarah Cohen jokes of comedian Dennis Miller are the heart of at least 100 friends, associates or employees to Of a Boom and James V. Grimaldi the most successful political money operation in give the maximum individual donation allowed Washington Post Staff Writers the nation’s history. Since 1998, Bush has raised by law to a presidential candidate: $1,000. a record $296.3 million in campaign funds, giv- The Pioneers have evolved from an initial Government Policy, GREENSBORO, Ga.—Joined by President ing him an overwhelming advantage in running group of family, friends and associates willing to Bush, Vice President Cheney and a host of celeb- against Vice President Al Gore and now Sen. bet on putting another Bush in the White House Spending Give Boost rities, hundreds of wealthy Republicans gath- John F. Kerry (D-Mass.). At least a third of the into an extraordinarily organized and disci- ered at the Ritz-Carlton Lodge here in the first total—many sources believe more than half— plined machine. It is now twice as big as it was in By Neil Irwin weekend in April, not for a fundraiser but for a was raised by 631 people. 2000 and fueled by the desire of corporate CE- Washington Post Staff Writer celebration of fundraisers. It was billed as an When four longtime supporters of George W. Os, Wall Street financial leaders, Washington “appreciation weekend,” and there was much to Bush in 1998 developed a name and a structure lobbyists and Republican officials to outdo each To find enough new workers for all its appreciate. for the elite cadre that the then-Texas governor other in demonstrating their support for Bush building projects, Bozzuto Construction K A look at Bush’s As Bush “Pioneers” who had raised at least would rely on in his campaign for president, the and his administration’s pro-business policies. Co. had to hire a headhunter. Consulting $100,000 each for the president’s reelection goal was simple. They wanted to escape the re- “This is the most impressive, organized, firm Booz Allen Hamilton Inc. is wooing political network. campaign, or “Rangers” who had raised straints of the public financing system that Con- MBA students with fancy dinners and Page A17 $200,000 each, the men and women who shot gress had hoped would mitigate the influence of See PIONEERS, A15, Col. 1 cocktail parties. Pohanka Automotive Group created a new position just to fill all the other vacant jobs. After three years of standing still, the Washington region’s job market is hop- ping, adding 60,600 jobs in the year end- Divided ed in March, on pace with the boom At Andrews, the Good Times Fly By years of 1997 and 1998. “This year everyone is starting to feel good again,” said Ralph W. Shrader, chief executive Iraqi South of Booz Allen, which has been on a hiring binge. What is different this time is the Posing New source of the new jobs. Instead of a roar- ing expansion driven by businesses, 4 out of 5 local jobs being created can be attributed to extremely low interest Obstacles rates, created by government stimulus, and booming government spending. The Federal Reserve Board lowered Shiite Foes of Militia the federal funds rate to 1 percent last June, its lowest level since 1958, a key Fail to Stem Uprising factor last year in booming sales of houses and autos in the Washington By Scott Wilson area. Washington Post Foreign Service Federal spending in the region rose by 7 percent in 2003, pumping an extra BAGHDAD, May 15—The battle for $6.1 billion into the local economy, driv- Iraq’s Shiite-populated south that en- ing hiring by government contractors gaged U.S. forces again Saturday is pre- while a tax cut put more money in the senting U.S. officials with a more serious hands of local consumers. political challenge than the insurgency’s Business and professional services still potent strongholds farther north, firms, a sector that is dominated in the U.S. officials and Iraqi political leaders Washington area by federal contractors, say. In heavy fighting over the past week, See ECONOMY, A8, Col. 1 U.S. forces have inflicted substantial cas- ualties on the Shiite Muslim militia loyal to Moqtada Sadr, a breakaway cleric wanted by U.S. forces on murder charg- es. U.S. and British troops battled Sadr’s forces Saturday in four southern cities, Pennsylvania including new fighting in Amarah near the Iranian border. Firefights between U.S. forces and insurgents in the east Pollution Baghdad slum named for Sadr’s assassi- nated father left 14 insurgents and two U.S. soldiers dead overnight Friday. Muddies The fighting reflects the U.S. strategy of squeezing Sadr militarily while allowing a group of local Shiite leaders to broker a deal, much as Sunni Muslim Bay Cleanup leaders did this month in the western PHOTOS BY RICH LIPSKI—THE WASHINGTON POST city of Fallujah. The Americans contend Two F/A-18s of the Navy’s Blue Angels fly by—one inverted—at the air show at Andrews Air Force Base. Watching the Canadian Snowbirds that Sadr is deeply unpopular among State Lags in Curbing perform are Kenneth Anderson, his wife, Judith, and their godchildren Omari Singleterry, 4, and Kymesha Cheeks, 6. Story, Page C1. many Shiites in the holy cities of Najaf Runoff From Farms and Karbala, where his men are ruining See IRAQ, A27, Col. 1 By David A. Fahrenthold Washington Post Staff Writer Massachusetts Clergy Are Divided MANOR TOWNSHIP, Pa.—The sail- Knowledge of boat harbors and crabbing grounds of the On Eve of Historic Same-Sex Unions Chesapeake Bay are miles from this shal- low stream that runs through fields reek- By Alan Cooperman hauled before an ecclesiastical court and lose Abusive Tactics ing of manure. Washington Post Staff Writer her ordination as an Episcopal priest. But the problems of the west branch of “Frankly, I find Cathy’s ministry so important Little Conestoga Creek in Lancaster LINCOLN, Mass., May 15—If there are no that I would not want to jeopardize it,” Tetreault May Go Higher County become the bay’s problems, soon- last-minute legal hitches and Massachusetts on said. er or later. Monday becomes the first state to allow same- Six months after its Supreme Judicial Court By R. Jeffrey Smith The animal waste that washes into the sex marriages, Lois Tetreault and Lois Johnson ruled that the state constitution guarantees the Washington Post Staff Writer water here contains pollutants that even- would like the pastor of the church they have at- right to marry the partner of one’s choice, Mas- tually are carried into the Susquehanna tended for more than a decade to perform their sachusetts is poised to put that historic decision Army intelligence officers suspected River and then into the bay, where they wedding later this year. into action by granting civil marriage licenses to BY ELISE AMENDOLA—ASSOCIATED PRESS that a Syrian and admitted jihadist who feed blooms of harmful algae. But they have not asked the Rev. Cathy gay couples. Legally, the ruling does not bind re- The Rev. William G. Sinkford is was detained at Abu Ghraib prison out- “It’s all based on a very sophisticated George of St. Anne’s in-the-Fields here, to offici- ligious institutions in any way. Churches, syna- president of the Unitarian side Baghdad knew about the illegal flow scientific principle: Water runs downhill,” ate, because they think she would have a hard Universalist Association, which of money, arms and foreign fighters into said William C. Baker, president of the time saying no. If she said yes, she could be See WEDDINGS, A12, Col. 1 has welcomed gay couples. Iraq. But he was smug, the officers said, Chesapeake Bay Foundation. “The Chesa- and refused to talk. So last November, peake Bay is downhill from Pennsylva- they devised a special plan for his in- nia.” terrogation, going beyond what Army The Keystone State does not have an rules normally allowed. inch of Chesapeake waterfront. But it is a INSIDE An Army colonel in charge of in- major source of the bay’s pollution, be- telligence-gathering at the prison, spell- cause Pennsylvania includes so much of Rescuing the Struggling to ing out the plan in a classified cable to the the watershed for the Susquehanna, a top U.S. military officer in Iraq, said in- massive river that provides half the bay’s Past Save the Children terrogators would use a method known fresh water. After centuries of neglect As children continue to die as “fear up harsh,” which military docu- A partner in the bay cleanup effort and years of hassles, at the hands of violence in ments said meant “significantly increas- since 1983, Pennsylvania dumps more ni- Maryland’s rich African D.C., sadness and anger ing the fear level in a security detainee.” trogen and phosphorus into the bay than American history is about remain. Loved ones tell the The aim was to make the 31-year-old Syr- Maryland or Virginia and has made far to have a bona fide stories of 13 young victims. ian think his only hope in life was to talk, less progress than those states in reduc- undermining his confidence in what they showcase. STYLE, ing the flow of those pollutants, the U.S. Page D1 termed “the Allah factor.” THE MAGAZINE Environmental Protection Agency said. Why Chelsea Cromartie’s According to the plan, interrogators case got top priority. needed the assistance of military police See PENNSYLVANIA, A10, Col. 1 METRO supervising his detention at the prison, who ordinarily play no role in interrogations under Army regulations. First, the The Post on the Internet: The Third Man interrogators were to throw chairs and washingtonpost.com The FBI has lost track of a tables in the man’s presence at the prison Smarty Jones Sets Preakness Record Yemeni who sought photos Contents of lower Manhattan in May See COMMAND, A28, Col. 1  2004 Smarty Jones will enter the Belmont Stakes with a chance to The become the first Triple Crown winner since 1978 after winning 2001. Washington 1 K Missionaries get a mixed Post 7 the Preakness by a record 11 ⁄2 lengths. SPORTS, Page E1 NATION, Page A7 Company reception in Iraq. | Page A24 DAILY 05-16-04 MD SU A15 CMYK

The Washington Post x K S Sunday, May 16, 2004 A15 THE BUSH MONEY MACHINE Fundraising’s Rewards 350 $338.6 million

Giving to George W: Dollars Mount and Smash Records 300 From his first run for governor of Texas in 1994, George W. Bush has demonstrated a knack for fundraising. In 1998, as Bush contemplated running president, four of his advisers created the Pioneer program as a way to introduce competition and accountability among fundraisers. The Bush Pioneers, who each raised $100,000 in individual 250 contributions of $1,000, allowed Bush to forgo federal funds and escape the $40.5 million cap on spending in the 2000 GOP primaries. The strategy allowed him to break all previous records within months of entering the race. In the 2000 general election campaign, Bush and Al Gore accepted federal funds and were limited to $68 million each in spending. This year’s take will nearly double the last election’s. $200 million 200

150

cumulative total in millions of dollars

$96.3 million 100

50 federal spending cap

$25.3 million $16 million

1st Texas Gubernatorial Campaign 2nd Texas Gubernatoria Campaign 1st Presidential Campaign Current Presidential Campaign

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Creation of Pioneers. Bipartisan Campaign Finance Reform Act signed into Creation of Rangers, law March 27, 2002. Went into effect Jan. 1, 2003. July 2003 SOURCE: Washington Post research, Federal Election Commission, Texas Ethics Commission, Center for Responsive Politics, Texans for Public Justice

GRAPHIC BY LOUIS SPIRITO—THE WASHINGTON POST Four Advisers Came Up With the Idea of Pioneers PIONEERS, From A1 $1,000 contribution limit. Francis came up with the idea of making focused and disciplined fundraising opera- it a competition. “We purposely set the bar tion I have ever been involved in,” declared high,” Francis said. “These are very suc- Dirk Van Dongen, president of the National cessful, very competitive people,” and the Association of Wholesaler-Distributors, requirement of raising at least $100,000 in who has been raising money for GOP candi- contributions of $1,000 or less was designed dates since 1980. “They have done just “to tap into their competitive instincts.” about everything right.” Not only would the fundraisers compete For achieving their fundraising goals, to make Pioneer, they would also vie to see Pioneers receive a relatively modest token, who could raise the most money, and, even the right to buy a set of silver cuff links with more significantly, who could recruit the an engraved Lone Star of Texas (Rangers largest number of other Pioneers. can buy a more expensive belt buckle set). The second problem was accountability. Their real reward is entree to the White Fundraisers are notorious for making ex- House and the upper levels of the adminis- travagant promises and claiming credit for tration. every name they recognize on a donor list. Of the 246 fundraisers identified by The BY ERIC GAY—ASSOCIATED PRESS BY KEVIN LAMARQUE—REUTERS “You can have an event that pulls in $3 mil- Post as Pioneers in the 2000 campaign, Then-Texas Gov. George W. Bush with one of the four founders of the President Bush and Labor Secretary Elaine L. Chao, one of three Pio- lion, and there will be 20 guys each saying 104—or slightly more than 40 percent— fundraising Pioneer organization, Donald L. Evans, a Texas oilman. neers placed in the Cabinet. Twenty-three were named ambassadors. they raised $1 million,” said a Republican ended up in a job or an appointment. A fundraiser who spoke under the condition of study by The Washington Post, partly using anonymity. information compiled by Texans for Public A system was needed to make certain Justice, which is planning to release a sep- there was no double or triple counting, that arate study of the Pioneers this week, found when a check came in for $1,000, proper that 23 Pioneers were named as ambassa- credit was given to the fundraiser who had dors and three were named to the Cabinet: solicited the money. Donald L. Evans at the Commerce Depart- Phillips proposed a solution: Every fund- ment, Elaine L. Chao at Labor and Tom raiser would be assigned his or her own Ridge at Homeland Security. At least 37 four-digit tracking number. A Pioneer Pioneers were named to postelection transi- would get credit only for those checks that tion teams, which helped place political arrived with the correct tracking number appointees into key regulatory positions clearly printed on them. affecting industry. In addition, prospective Pioneers would A more important reward than a job, per- have a direct line into the Bush campaign haps, is access. For about one-fifth of the finance offices. There they could routinely 2000 Pioneers, this is their business—they find out where they stood, compared with are lobbyists whose livelihoods depend on the rest of the field. Every month, they the perception that they can get things done BY J. SCOTT APPLEWHITE—ASSOCIATED PRESS BY NOEMI BRUZAK—ASSOCIATED PRESS would get printouts of donations. Everyone in the government. More than half the Pio- Bush tours the District police department with another Pioneer in- U.S. Ambassador to Hungary Nancy Goodman Brinker, left, in Buda- assigned a number could check regularly to neers are heads of companies—chief exec- stalled in the Cabinet, Homeland Security Secretary Tom Ridge. pest with a visiting Laura Bush. Brinker is one of 23 Pioneer envoys. see if their $1,000 pledges had been fulfilled. utive officers, company founders or manag- Soon after the 1998 Midland strategy ses- ing partners—whose bottom lines are the entire 2000 list of Pioneers, saying it is ans for Public Justice, a public interest money for the primary season before, in sion, Francis, Evans, Phillips and Meyer directly affected by a variety of government contained in computer files they can no lon- group that has tracked the Pioneer network order to spend their own wealth. Bush, in joined other campaign operatives in Dallas regulatory and tax decisions. ger access. for five years. contrast, was not going to use his own to put the plan to work. The four reported When Kenneth L. Lay, for example, a Bush campaign spokesman Scott Stanzel money—he was going to raise it from hun- directly to Karl Rove, Bush’s principal polit- 2000 Pioneer and then-chairman of Enron said, “Our campaign enjoys support from First Goal: $50 Million dreds of thousands of donors. ical adviser. Francis took charge of the Pio- Corp., was a member of the Energy Depart- nearly 1 million contributors from every The early signs were favorable. For neer program. In addition to Bush family ment transition team, he sent White House county in this nation. We’re proud of our No candidate in recent history was better months, Bush’s handlers had been signaling members and friends, Francis had essential- personnel director Clay Johnson III a list of broad-based support, and the Bush cam- positioned than George W. Bush to draw on that the Texas governor was ready to run for ly four spheres of money to mine, all of eight persons he recommended for appoint- paign has set the standard for disclosure.” so many disparate sources of wealth. The the White House. Big givers, in turn, were which overlapped at various points. ment to the Federal Energy Regulatory M. Teel Bivins, a rancher, Pioneer and task for the four Bush friends who met in promising support. The pledges posed two The first sphere was formed by the group Commission. Two were named to the five- member of the Texas Senate awaiting con- Midland, Tex., in late 1998—Texas Repub- problems. of men who had repeatedly gambled on member commission. firmation as ambassador to Sweden, spoke lican fundraiser and public relations special- The first was that the Bush network was George W. Bush as an entrepreneur, in- Lay had ties to Bush and his father, for- more openly in an interview with the BBC ist James B. Francis Jr., fundraiser Jeanne made up of men, and a scattering of women, vesting in failed Bush ventures in the oil mer president George H.W. Bush, and was in 2001. “You wouldn’t have direct access if Johnson Phillips, state Republican chair- who were used to writing big checks. Dona- business and then joining Bush in the highly typical of the 2000 Pioneers. Two-thirds of you had spent two years of your life working man Fred Meyer and Don Evans, then a Tex- tions to Bush’s gubernatorial campaigns, to profitable acquisition of the Texas Rangers them had some connection to the Bush fami- hard to get this guy elected president, rais- as oil man—was to figure out how to capital- the Republican National Committee’s baseball team. The Rangers made millions ly or Bush himself—from his days in college ing hundreds of thousands of dollars?” he ize on the extensive network of rich and “Team 100,” to Jeb Bush’s Florida Repub- for Bush and his partners. and business school, his early oil wildcatting said. “You dance with them what brung ya.” powerful people that the governor, his fa- lican Party and to the Bushes’ earlier oil and The second sphere was made up of the in West Texas, his partial ownership of the For the 2004 election, the composition of ther, brothers, uncles, grandfather and baseball ventures had no contribution lim- Texas political elite and business communi- Texas Rangers baseball team and the politi- the Pioneers has changed, reflecting the great-grandparents had built up over the its. Transfers and gifts of $100,000 or more ty that supported him as governor. Many cal machine he developed as governor. broad support the Bush administration has past century. were commonplace within this universe. were involved in the energy industry. “It’s clearly the case that these net- given and received from industries ranging This account of the founding of the Pio- Federal elections, however, were differ- Others sought tighter restrictions on law- working operations have been the key driv- from health care to energy. neers is drawn from interviews with three of ent. A key provision of the 1974 Watergate suits against corporations and physicians. ing Bush fundraising,” said Anthony Corra- Of the 246 known Pioneers from the 2000 the four participants. reforms for the first time set a limit on indi- Gov. Bush had won approval of state legisla- do, a visiting scholar at the Brookings election, about half—126—are Pioneers or Two wings of the family, the Bushes and vidual contributions to a presidential cam- tion favorable to both of these constituen- Institution and a political scientist at Colby Rangers again. They are joined by 385 new the Walkers, had long been entrenched in paign: a relatively paltry $1,000. cies. College. “The fact that we have great num- Pioneers and Rangers whose backgrounds the industrial Midwest and on Wall Street. “We had to turn these people into money The third sphere was made up of the Re- bers of these individuals raising larger and are less from Texas and the Bush circle than This establishment, in turn, had produced raisers instead of money givers,” Francis publican financial elite with strong ties to larger sums means there are going to be from the nation’s business elite, particularly the investors who had bankrolled the ven- said in a recent interview—to get them to Bush’s father, the 41st president. more individuals, postcampaign, making Wall Street and such major players as Bear ture of George H.W. Bush into the oil in- do the dirty work of politics, to make hun- During the Nixon and Ford administra- claims for policy preferences and ambassa- Stearns & Co. Inc., Kohlberg Kravis Rob- dustry after World War II, his acquisition of dreds of calls to clients, subcontractors, to tions, the senior Bush had cemented allianc- dorial posts.” erts & Co.; Goldman Sachs Group Inc., wealth through oil and his ascent to national their corporate subordinates, to their law es on crucial fronts, serving in top posts at Asked whether the president gives any Merrill Lynch & Co. Inc., Credit Suisse prominence. partners and fellow lobbyists and plead for the United Nations, the Republican Nation- special preference to campaign contributors First Boston Inc. and Morgan Stanley & Co. The 41st president had, in pursuing his cash. al Committee and the Central Intelligence in making decisions about policy, appoint- Inc. own political ambitions, built up a financial Their problem can be illustrated by look- Agency. More importantly, during three ments or other matters, White House The campaign’s most productive Zip network that he in turn could pass on to two ing at the $41 million Bush had collected for runs for the presidency, two terms as vice spokesman Trent Duffy said, “Absolutely code this year is Manhattan’s 10021: the Up- of his sons, George W. and Jeb. his two gubernatorial bids under rules president and one as president, the elder not.” The president, Duffy said, “bases his per East Side, bounded by Fifth Avenue, At the time of the 1998 Midland meeting, allowing unlimited contributions. If the Bush had cultivated and assiduously main- policy decisions on what’s best for the East 80th Street, East 61st Street and the Evans, Phillips, Francis and Meyer had the same number of people had contributed tained a national base of major donors and American people.” East River. relatively modest goal of raising a minimum under federal campaign rules with a limit of fundraisers. Many were ready and willing to Pioneers interviewed for these articles “This is the most successful political of $50 million to reject public financing for just $1,000 each, Bush would have raised support his son—including some of the 252 were reluctant to discuss on the record their fundraising mechanism in the history of pol- the 2000 Republican primaries and to be only $14.3 million. members of the Republican National Com- contacts with the administration. “That’s itics, and it will be emulated by other candi- free to spend without limit until the summer At the 1998 Midland meeting, the goal mittee’s “Team 100,” each of whom had dead man’s talk,” one said. The Bush cam- dates and campaigns in the future,” said nominating conventions. was to figure how to get “two steps paign declined repeated requests to reveal Craig McDonald, executive director of Tex- Other Republicans had rejected public ahead”—to use Meyer’s phrase—of the See PIONEERS, A16, Col. 1 DAILY 05-16-04 MD SU A16 CMYK

A16 Sunday, May 16, 2004 S K x The Washington Post THE BUSH MONEY MACHINE Fundraising’s Rewards Suns of the Pioneers

Karl Rove Jack Oliver Fred Meyer Jeanne Johnson Phillips James B. Francis Jr. Adviser to the president Family insider Former Texas GOP chairman Fundraiser GOP public relations specialist The Pioneer strategy team reported directly Trusted insider in Bush’s political family One of four Bush friends who helped figure Phillips proposed a solution to the problem of Francis was in charge of the Pioneer to Rove. Rove has become a “little gun-shy” who managed the fundraising effort for out how to capitalize on the extensive giving Pioneers proper credit: Every program. He took part in the 1998 Midland when dealing with association executives both of his presidential campaigns. Oliver’s network of rich and powerful people that fundraiser would be assigned a four-digit meeting that set the goal to raise a and lobbyists, fearful that his involvement main function was to tell Rove “what Bush and his family had built up over the tracking number. A Pioneer would get credit minimum $50 million to reject public with any special interest might produce people had really done” to raise money, past 50 years. only for checks that arrived with the correct financing for the 2000 Republican adverse publicity. one Republican official said. tracking number clearly printed on them. primaries. Donors Asked to Build Pioneer, Ranger Networks

PIONEERS, From A15 liaison office. Those people know who you are and can usually deal with the issue,” an- given the party at least $100,000. other Ranger said. “You don’t seek out the The importance of this legacy to George maitre d’ unless you really need to.” W. Bush is clearly reflected in the composi- Several major fundraisers in the lobbying tion of the 246 men and women who would community complained that as the election become Pioneers in 2000. At least 60—24 approaches, Rove has become a “little gun- percent—had been supporters of Bush’s shy” when dealing with association exec- father in the 1980 or 1988 campaigns. utives and lobbyists, fearful that his involve- The fourth sphere was composed of the ment with any special interest might pro- supporters of Bush’s fellow Republican gov- duce adverse publicity. ernors, most importantly those of his broth- “It’s different now that we are in cam- er, Jeb Bush in Florida. By November 1999, paign mode,” the lobbyist said. “Karl well before any primaries or caucuses had doesn’t even want to be involved in courtesy been held, George W. Bush already had the visits [with clients]. ‘Don’t bring this to my endorsements of 26 of 30 GOP governors. office,’ he’ll say. He’s been snakebitten” be- The Bush campaign tapped these sources cause of past controversies over his alleged to raise a then-record $96.3 million for the involvement with groups seeking special primaries in 2000, far outdistancing Demo- favors, especially decisions involving steel crat Gore’s $49.5 million. Both candidates import tariffs. received $68 million in public financing for In response to questions about his con- the general election campaign. tacts with Pioneers and Rangers, Rove said, In 2002, Congress enacted the McCain- “I talk to a wide variety of people, members Feingold bill banning contributions to politi- of the campaign from the grass roots on up. cal parties of what is known as “soft . . . It’s part of my job to keep an open ear to money”—unlimited donations from corpo- what people are saying around the county.” rations, unions or the wealthy. Instead, the White House sources said that if anyone legislation raised the “hard money” limit on refers to fundraising while seeking some- contributions to candidates from $1,000 to thing from the administration, the policy is $2,000. BY THOMAS B. EDSALL—THE WASHINGTON POST to then “vet” the request with the White “The organization of the Pioneers and At a resort in Georgia last month, Republicans gathered to celebrate success in collecting money for the candidacies of George W. Bush. House counsel’s office to make sure no reg- Rangers is significant, and it is the way of ulations or laws are being violated. the future,” said Ken Goldstein, a University Commerce Secretary Evans also plays a of Wisconsin political scientist. “People key role. “Evans acts as a kind of court of with Rolodexes and the ability to raise For $235 a set, Bush Pioneers, appeals . . . everybody knows that Evans is money have always been valuable, but with who raise $100,000 each, are one of the president’s best friends. So he can the passage of McCain-Feingold, they have eligible to purchase silver cuff be very effective intervening for you with become especially valuable. . . . [T]he abili- links, right, with black onyx just about any department,” one fundraiser- ty to get friends, colleagues and business as- inlays. Bush Rangers, who lobbyist said. sociates to give the maximum hard money raise $200,000 apiece, are This lobbyist described the following sit- amount is now even more valuable.” eligible to purchase a sterling uations as the type in which Evans can effec- With soft money banned, the 2004 Bush silver belt buckle set, below, tively help: “Say you’ve got a bunch of tele- campaign has greatly expanded the Pioneer for $900. com companies that are frozen out of doing program, setting a new record of more than business in Russia, and [the] State [Depart- $200 million raised so far. This year, Kerry, ment] won’t do anything, or your sugar peo- the presumptive Democratic nominee, fol- ple can’t get a fair hearing at USTR [the lowed Bush’s lead and rejected public fi- Office of the U.S. Trade Representative] in nancing for his primary campaign, fearing negotiations with Mexico. . . . [Evans] can he would be crushed by the Bush organiza- make them stop and listen. He can get some- tion if he were forced to abide by the thing unstuck.” $45 million spending limits that accompany Evans was the one fellow Pioneer Ken public financing. Kerry recently released a Lay turned to in desperation in the fall of list of 182 people who have each raised a 2001, when Enron spiraled toward bank- minimum of $50,000, helping to bring his ruptcy. Lay wanted help with the company’s total to at least $110 million. M. Teel Bivins, a Pioneer and Texas politician credit rating, but Enron was in too much The Democrats are increasingly relying awaiting Senate confirmation as U.S. trouble, and Evans was unable to oblige. on independent groups known as 527s, after ambassador to Sweden, told the BBC in their designation in the tax code. They cur- 2001: “You dance with them what brung ya.” For 2004: Super Rangers rently raise unlimited funds for political ads that have been used to attack Bush. Two Last month at the Ritz-Carlton Lodge on prominent examples are the Media Fund that can be singled out from the pack and ing them credit—and supposedly all the specifically did not want to go—I could Lake Oconee, after the golf and the enter- and Moveon.org. Financier George Soros tracked with precision. Some of their trans- access and influence that comes with huge not—be farther than a 10-hour plane ride tainment and a reception with Bush for the and Peter B. Lewis, chairman of the Pro- actions with the administration can also be campaign contributions,” said McDonald of because of my [elderly] parents. I wanted to elite Rangers, the “appreciation” of the cam- gressive Corp., have each given more than tracked. Texans for Public Justice. He said the Bush be in the European continent somewhere, paign’s leading fundraisers gave way, inevi- $7 million to these organizations. Sometimes the interests of Pioneers are campaign has never released a complete list particularly a country like this, where I tably, to a business meeting. For the general election campaign, Bush relayed in subtle, indirect ways, through of Pioneers and Rangers with the specific thought I could try to make some kind of dif- On a bright Saturday morning, more than and Kerry are accepting public money; each members of Congress or Republican lead- amounts of money they have raised. Once, ference.” 300 of Bush’s Pioneers and Rangers es- will get $75 million. ers, especially in the case of major adminis- in response to a lawsuit, campaign officials Patronage decisions for Pioneers and oth- chewed the links to gather in a windowless Until the conventions this summer, Bush tration bills enacted since Bush took office: said that such a list was not available. er friends of the president are made largely conference room. Sipping imported mineral can enjoy his spending advantage over three bills granting tax relief to the wealthy “It is unbelievable that the most suc- by Rove, the White House senior political water and coffee, Wall Street mingled with Kerry, saturating the airwaves with ads that and to corporations, the 2003 Medicare bill cessful fundraising list in the history of poli- adviser, and Andrew H. Card Jr., the chief of Texas. help to define Kerry, particularly in the supported by the drug industry and other tics has been misplaced,” McDonald said. staff, in consultation with the Office of Pres- A Post reporter walked into the session, battleground states. major health lobbies, and pending legisla- Gary C. Jacobson, a University of Califor- idential Personnel, which handles the vet- which the campaign described later as an The Bush reelection campaign is current- tion providing tax breaks and regulatory nia at San Diego political scientist who spe- ting process, according to senior Repub- event closed to the media. The speakers ly riding a wave of Wall Street money and relief to the energy sector. cializes in campaign finance, said the Pio- licans who would speak only on the “were under the belief that they were speak- has consolidated the Republican establish- At another level, requests for tickets to an neer program “is a way of allowing condition of anonymity. Any donor who ing privately with our contributors,” cam- ment with the backing of prominent Wash- event, such as a White House party, are like- individuals to accumulate political clout de- wants to be considered for a major job must paign communications director Nicolle ington lobbyists and trade association exec- ly to be more overt than the nuanced spite the fact that contribution limits are rel- indicate interest to one of those two men, Devenish said. utives. They are not only highly effective approach needed to get on the radar for a atively low.” the Republicans said. There they learned that the Rangers fundraisers themselves but also their client presidential appointment. “You can no longer give $100,000 and be These Republicans acknowledged that fi- would soon lose their top status, just as the and membership lists include some of the “It is noticed that you are doing extra an ambassador, but you might be able to nance issues were taken into account, but Pioneers had before them. Raising $200,000 most regulated, and most politically active, work and you have a lot of friends in the ad- raise that amount and accumulate the same said there were instances of donors being was a starting point, they were told. But to corporations in every state. ministration,” said Rep. Jennifer Dunn (R- kind of political debt,” Jacobson said. disappointed and people getting plum posi- qualify as a “Super Ranger,” they would At least 64 Rangers and Pioneers are Wash.), a Pioneer who was considered for a Nancy Goodman Brinker, one of the 23 tions who had done little to help the cam- have to raise an additional $300,000 for the lobbyists, including Jack Abramoff, who presidential appointment. Her son, Reagan Pioneers from the 2000 campaign who be- paign treasury. Republican National Committee, where the until recently specialized in representing Dunn, was hired by the Justice Department, came an ambassador, said she does not re- In making decisions immediately after individual contribution limit is $25,000. Indian tribes with gambling interests; Kirk and her new husband, E. Keith Thomson, member exactly when or who first brought the election, Rove consulted Jack Oliver, a “The name of the game is maxing out the Blalock, whose clients include Fannie Mae, was appointed last year as the director of up a diplomatic appointment. She said it trusted insider in Bush’s political family dollars,” Oliver told the gathering. the Health Insurance Association of Amer- the Office of Trade Relations. “A lot [of Pio- “seemed to evolve” after someone asked her who managed the fundraising effort for both As the Super Ranger notion was unveiled, ica, and the Business Roundtable; Jack N. neers] have a particular interest and you whether she wanted to serve. The next of his presidential campaigns. Oliver’s main attendees shifted in their seats. Some Gerard, president of the National Mining have lots of contacts, and you say, ‘I’d like to thing she knew, she was talking to Clay function was to tell Rove “what people had looked up eagerly, but others demurred. Association; and Lanny Griffith, whose sign up to be an ambassador when one Johnson in the White House personnel of- really done” to raise money, one of the se- “The rest of us, who don’t have members or clients include the American Trucking Asso- comes along.’ ” fice about her choices. “One of the reasons nior Republicans said. Now, such decisions clients with deep enough pockets to come ciations, Brown & Williamson Tobacco The Pioneer tracking system ensures that why I chose and asked to be placed in Buda- are made entirely within the White House, up with $25,000 said, ‘Oh, [expletive],’ ” Corp., the Southern Co., a major energy hard work gets noticed. That’s why Rep. pest,” Brinker said at her Senate confirma- the official said, and Rove and Card also said one attendee who asked to remain concern, and State Street Corp. Rob Portman (R-Ohio) signed up this year. tion hearing, “was because I think there’s have sway over lesser favors, and “scrub the anonymous. He read that Dunn, Speaker J. Dennis Has- been an amazing story of loyalty by this lists” of invitations to White House holiday To reach the new goals, Travis Thomas, On Track to Appointments tert (R-Ill.), and others were Pioneers. Port- country.” parties. the Bush-Cheney finance director, explained man had already raised money, “but I didn’t Brinker said one of her primary concerns, “I can call Karl, and I can call about half of to the gathered Rangers and Pioneers how Big donors, Republican and Democrat, have a tracking number. I finally decided to before accepting the nomination, was her the Cabinet, and they will either take the call they could hold fundraisers in their homes have always received benefits from the ad- get one. I wanted to be supportive, and be parents, who are in their eighties. The presi- or call back,” said one lobbyist Ranger, who featuring an appearance by the president ministrations that received their largess. viewed as supportive.” dential personnel team works with a poten- described such access as “my bread and but- that would bring in $2 million to $3 million Bill Clinton brought big donors into the Critics complain that the Pioneer and tial nominee to find a good fit, which she ter” and spoke only on the condition of ano- in bundled contributions. Private homes, he White House and let them sleep in the Lin- Ranger program allows the campaign to called “matching talent with interests.” She nymity. He and others noted that going to pointed out, are more comfortable for the coln bedroom and appointed some to gov- track those who raise big money while knew George W. Bush from his days in top officials in either the White House or in president. ernment jobs. cloaking details about them from the public; Texas, where she founded the Susan G. Cabinet departments is only used as a last And, Thomas added, “If it is in a private The Bush campaign’s innovation in the campaigns are required to report the names Komen Breast Cancer Foundation, named resort on important issues and not always residence, it can be closed to the press.” late 1990s was to institutionalize what other of the individual donors, but not the fund- for her sister who died of breast cancer. with success. administrations had done more informally, raisers who solicit the donations. “There were discussions where your “It’s much better to start with an assis- Staff writer Mike Allen and researcher which is to create a special class of donors “The campaign is tracking them and giv- talents fit in which country,” Brinker said. “I tant secretary or the White House public Alice Crites contributed to this report. DAILY 05-16-04 MD RE A17 CMYK

The Washington Post x K R Sunday, May 16, 2004 A17 THE BUSH MONEY MACHINE Fundraising’s Rewards Spheres of Influence George W. Bush reached into each of the spheres surrounding his life to find business ventures and contacts made through the Republican Governors Association fundraisers for his first presidential bid. These Pioneers, who raised a minimum and his partial ownership of the Texas Rangers baseball team. He also drew from of $100,000 each in individual contributions of $1,000 or less in 2000, have his family’s storied political life, tapping appointees and fundraisers from his changed the face of national campaign finance. They helped him raise a record father’s presidential bids, his brother’s political supporters in Florida and supporters $96.3 million and allowed him to turn down federal matching funds that would and appointees from his six years as Texas governor. The Post found that about have limited his spending during the primary elections. For Bush, they include 170 of the 246 Pioneers in 2000 fell into one of these realms. Of the Pioneers, more classmates from Yale and Harvard, childhood friends, investors in his early than 100, or 40 percent, won a federal appointment after the election.

D S Goddard Jr S Mitchell J Fourquet Goldman P Montgomery III R Wright R Letbetter Reliant Energy Key to symbols: Sachs A R Sanchez Jr D Branch G W Ceverha

Communities T Loeffler Bush appointee Foundation of Texas R Kinder J Huffines P Coneway P Oxford D Jordan Pioneers Enron R Heath N Serafy Jr Non-appointee A Shivers Jr

L Beecherl Jr D Nixon D Laney T Kuhn Other key Bush supporters K Lay R Romero Edison Univ Texas / G Williams Electric UTIMCO Institute F Webber Organization

R Whilden A W Riter D Powell Names that appear in E Nye boldface are referenced in the accompanying article. J Vaughn Jr

J B Allen Vinson & Elkins R Reed Jr R Kjellender T Marinis Jr Many of the closest members of this circle touch on several spheres of the Bush Associated family’s lives. For clarity, not all of these W Danhof B Paxon General Contractors T Hicks R S Hicks of Texas connections are shown. The Bush K Rove campaigns would not provide a full list of Pioneers for the 2000 election and never M Payne Federalist Akin, G Bayoud Jr K Johnson T Johnson released a complete list at the time. The Society Gump membership of the group is based on J O’Neill III TEXAS individual releases from the 2000 B Kilberg J Langdon Jr T Bivens J Francis Jr GOVERNORSHIP R Farmer R Staubach S Brauer campaign, lists compiled by Texans for Public Justice, other published reports R Spogli M Reynolds III J Reynolds III J O’Donnell and interviews by The Washington Post. BUSH OIL T Foley J Bush More detailed information on individual VENTURES Pioneers can be found in our interactive R Freeman B Freeman W DeWitt Jr J Paul Jr graphic at www.washingtonpost.com TEXAS RANGERS D Evans R Holland III S Kass R Betts

D Muchmore

E Rose III PROFESSIONAL BASEBALL T Bridgewater N Bush FRIENDS L Coleman Jr D Bush Koch & FAMILY D Stapleton C Stapleton

V Miller M Boone Harken W Huizenga J C Huizenga R Pickens Energy K Hubbard A Hubbard J Click

H Hertell F Lavin W H T Bush L Bass

F Meyer

L Bathgate II R Day Jr E Chao R Schnabel C Wyly Jr N Brinker J Blosser J Arrizurieta

W L Brown Jr A P Anderson

H Leach G Argyros Z Zachariah

R Boschwitz

N Siegel S Siegel

C McMillian

R & A Wagner FLORIDA A R Carpenter J Bogosian GOVERNOR GEORGE H. W. BUSH JEB BUSH CSX

M Estrin T Petway III

M Hightower Carlyle Group C Evers III W Foley II

W Berman J Palmer Sr R Wallace REPUBLICAN J Fuqua H G Morse GOVERNORS P Durkin ASSOCIATION A Hoffman JrA Austin M Guzzetta J Rood D Van Dongen R W Johnson IV R Martinez

Donaldson M Racicot C Cawley C Brown II W Scherer Jr T Fiorentino Lufkin & Jenrette G Pataki J Price L Ruvo

J Dunn A Hall T Ridge C Todd Whitman E Havens

D Hedley C Pruet A Spanos D Berman J Hennessy P Terpeluk Jr

H Collins J Austin E Rose D Girard- M Kazmir W Palatucci S Rogich diCarlo S Kamins P Secchia K Boyd W Weld D Metzner

C Burnham J Mermoud R Dedman Jr J Simmons J Engler C Sobel G Medina Progress Republican Dughi, Hewit M Greenberg For America Jewish Coalition & Palatucci H Prechter C Glazer B Owens A Novak M Stamatakis

R O’Connell R Devlin

American D Miner J Connolly J Nicholson C Kojaian Net2Phone S Goldsmith S Fox M & J Silverstein C Christie International Group

74 Pioneers were less closely connected.

A Alexander W Brisben L Brorsen C Carrington M Chayet M Fong A Gioia R Grand T Hammonds J Haslam II J Hirl R Weiser C Jenny H Kozlov E Kvamme W Martini S Minikes J Ong R Egan D Schar G Steil C Swindells

S Trujillo R Vazquez J R Williams K Zangara G Slayton D Albert J Barton H Beck III J Canizaro S Canton R Chernin N Conti B Corker J Culberston J Dwyer J Fairbanks R Fee C Floyd A & D McWilliams G Gilmore W Gormley

J Harless F J Hall J Haver D Horowitz N Horton, Jr R Hubbard R Hug G Hughey Jr W Johnson C Keeland E G Kendrick J Kittle Jr F Lazenby J Love J Mahaffey S McCutchin R Murphy P Murray C Nash Jr P Nesbitt A Nevares A Parker

S Payne J RaineyJ Saltsman Jr J Schleicher J Stafford T WagnerM Walda P Welday J Westcott

104 Pioneers won jobs after the election: About half of the 246 Pioneers from 2000 have made it onto the 2004 Bush campaign’s fundraising Pioneers include: list of 511 Pioneers and Rangers. The campaign has broadened its reach across the country, relying Department of less on the Bush family’s powerful networks in Texas and Florida. Homeland Security Secretary Tom Ridge 2000 Pioneers 2004 Pioneers and Rangers Former Enron CEO Kenneth Lay

0 1-5 6-20 23 ambassadors 21-50 13 full-time jobs (including Cabinet members) > 50 44 board or commission members FFormerormer NFL 24 transition team members quarquarterbackterback RRogeroger StaubachStaubach At least 13 members of transition teams were later appointed to other posts by the administration.

SOURCE: Washington Post research and interviews, Texans for Public Justice, Bush-Cheney 2000 campaign, Leadership Directories, White House news releases, published reports

GRAPHIC BY SARAH COHEN AND LOUIS SPIRITO, WITH RESEARCH BY ALICE CRITES—THE WASHINGTON POST DAILY 05-17-04 MD SU A1 CMYK

Weather HOME Today: Mostly cloudy, thunderstorm. High 80. Low 65. EDITION Tuesday: Partly sunny, storm Inside: Washington Business or shower. High 84. Low 66 ABCDE Today’s Contents on Page A2 NEWSSTAND Details, Page B8 35¢ HOME DELIVERY 31¢ Prices may vary in areas outside metropolitan 127th Year No. 164 S DCMDVA K Monday, May 17, 2004 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on Page A2)

THE BUSH MONEY MACHINE An Industry Gets Its Way Israel Plans Fundraiser Denies Link Between Money, Access To Destroy EPA Rule on Hazardous Waste Favored Ohio Businessman Who Is a Big GOP Donor More Gaza Second of two articles publican Party and Republican candidates. quarters here, Farmer said his campaign inated with chemical solvents be wrung Farmer’s family controls Cintas Corp., a donations were made with no strings at- dry for them to be treated as laundry, not By James V. Grimaldi $2.7 billion company that rents and laun- tached. He said he supports Republicans hazardous waste. Last November, the EPA Dwellings and Thomas B. Edsall ders uniforms and industrial shop towels. because they believe in “less government, changed its position, adopting a more Washington Post Staff Writers For years, Farmer’s industry has been at more individual freedom, more individual lenient proposal for the woven towels. odds with the Environmental Protection responsibility.” Farmer and his industry were overjoyed, Palestinians Flee Homes; MASON, Ohio—Richard T. Farmer is Agency over increased regulation of shop “If you think I’m giving money to get ac- because the change promised to save them one of America’s richest men and a Bush towels, particularly a Clinton administra- cess to [President Bush], you’re crazy,” millions and preserve their advantage over Powell Voices Criticism Pioneer by virtue of having raised at least tion proposal that, though not fatal, Farmer said. “I’m just trying to get the the competition—paper towels. “It would $100,000 for the 2000 campaign. Over the “would have cost us a lot of money,” Farm- right guy elected. That’s all I care about.” have been a big problem,” Farmer said. Robin Shulman Glenn Frankel past 15 years, he and his wife have given er said. The Clinton proposal would have re- By and $3.1 million to Bush campaigns, the Re- In a recent interview at company head- quired that woven shop towels contam- See PIONEERS, A8, Col. 2 Washington Post Foreign Service RAFAH REFUGEE CAMP, Gaza Strip, May 17—Dozens of Palestinians fled their homes here Sunday in anticipation of another wave of demolitions that Israeli military officials warned will be carried out soon. Secre- Two-Thirds 50 YEARS AFTER BROWN tary of State Colin L. Powell said the United States opposes the demolitions and appealed In Summerton, S.C., Divisions Remain to Israel to halt the destruction in the after- math of a week of violence. Of Federal Israel’s Supreme Court on Sunday rejected a petition from a Palestinian rights group seeking to stop the razing of homes in Rafah, Workers which is located on the border between the Gaza Strip and Egypt. The three judges said the army had a “real, imminent need” that justified the demolitions. Get a Bonus A senior Israeli security official said the army was awaiting legal approval from the By Christopher Lee and Hal Straus state attorney general’s office before launch- Washington Post Staff Writers ing a new operation. “If we get a green light, we will move in,” said the official, who could Almost two-thirds of 1.6 million civilian not be identified under the ground rules of full-time federal employees received merit the government briefing. bonuses or special time-off awards in fiscal The official said the army had asked for 2002, according to a comprehensive exam- permission to widen its security corridor ination of federal records obtained by The from 100 yards to between 200 and 300 yards Washington Post. in a swath of territory where it says buildings Of the 62 percent who got awards, half are used by Palestinian gunmen and by smug- received $811 or more. The typical bonus glers ferrying arms and ammunition from amounted to 1.6 percent of salary. The Egypt to Rafah in deep tunnels. He would not awards ranged from less than $100 to estimate the number of buildings that could more than $25,000. At some agencies, be destroyed, but Israel Radio reported that more than 90 percent of General Schedule workers collected a bonus. Government- See RAFAH, A15, Col. 3 wide, about 2,900 employees received cash bonuses totaling more than $10,000 each. The disclosure of the figures brought varying reactions. Some civil service spe- cialists said the proliferation of bonuses re- inforces a common belief that many federal War Dangers workers are rewarded for little more than showing up. Some agency and union officials said it was evidence of a talented Don’t Deter workforce that performs admirably, and of- ten at salary levels inferior to those of the private sector. PHOTOS BY KEVIN CLARK—THE WASHINGTON POST For the Bush administration, the num- U.S. Workers Adrian Lindsay, 16, left, helps Charles Hart, 15, with an algebra problem in a class taught by Lottie Fleming, standing, at Scott’s bers underscore the challenge President Branch High School in Summerton, S.C. The school is 98 percent African American after whites fled in the wake of desegregation. Bush faces in his drive to revamp personnel systems to more strongly tie pay to per- Jobs Offering High Pay formance, an endeavor underway at the departments of Defense and Homeland Lure Thousands to Iraq Security. White House officials have called Schools and Lives the federal pay system broken, saying it re- By Jackie Spinner Washington Post Staff Writer See AWARDS, A10, Col. 1 Are Still Separate BURNET, Tex.—Late on the night of April 9, Sylvia and Allen Petty sat on the In Town That Helped Trigger Ruling, front porch of their small rental house here in the hill country northwest of Austin and talked about the future. With six daughters, The Desegregation Revolution Fizzled ages 4 months to 14, it was the only time of day they had to themselves, what they called Michael Dobbs Court case known as Brown v. By their “midnight dates.” Board of Education. On May Washington Post Staff Writer They had been discussing for a couple 17, 1954, Chief Justice Earl weeks the idea of Allen Petty, 31, going to SUMMERTON, S.C.—In the late Warren announced the court’s Iraq. Two fellow truck drivers at his compa- 1940s a slim, bespectacled preacher decision that the doctrine of ny in the adjoining town of Marble Falls had named Joseph A. DeLaine became out- “separate but equal” had no BY MICHAEL LLOYD—OREGONIAN VIA ASSOCIATED PRESS already left for jobs driving trucks for KBR, a raged that the children of farmers who place in U.S. public schools. It Former Oregon governor Neil Goldschmidt subsidiary of Houston-based Halliburton Co. lived on the cotton plantations down by was a ruling that helped trig- had sex with a 14-year-old girl in the 1970s. That day, insurgents in Iraq had attacked the Santee River had to walk two hours ger the civil rights revolu- a KBR convoy and killed four contract em- each way to an all-black school. He per- tion—and change the face of ployees. But Allen Petty’s $30,000 salary just suaded one of his parishioners to file a America forever. Headmaster Michael Connors gets a group hug didn’t stretch far enough. The family had no lawsuit seeking a school bus. But not the place where the from students at Clarendon Hall, the almost Oregon Roiled insurance, no money for movies or new That petition eventually grew into a revolution began. all-white private academy in Summerton. clothes, no savings, no credit, and their car demand for school desegregation, and Fifty years later, white chil- was on loan from Sylvia Petty’s father. this small town’s dispute became the dren and black children in Summerton Branch High School, a segregated, all- By Politician’s “We really prayed,” she recalled. “This is a foundation of the omnibus Supreme still lead largely separate lives. Scott’s black school in 1954, is still more than beautiful town, but we’re not making it here. 98 percent African American. Its 480 I told him, ‘Baby, you have to go.’ ” Sordid Secret K Secretary Paige says Brown ruling shaped his ideas. students include just six whites and two | Page A19 Allen Petty applied to KBR for a truck- Blaine Harden driving job the next day, one of thousands of By K Exempt from law, private schools slowly bowed. | Page B1 See SUMMERTON, A6, Col. 1 Washington Post Staff Writer Americans competing, despite the dangers, for jobs with the contractors working to sup- PORTLAND, Ore.—Neil Goldschmidt, ply the U.S. military or rebuild the country. the visionary former politician who trans- After a week of training, he left for Iraq on formed this Northwest city into a cool and the first Saturday in May. enviable place to live, was back this year doing the deals he does so well. Standing on the Left? You Must Be on Vacation See RECRUIT, A16, Col. 1 Not since his surprise retirement after By Lyndsey Layton one term as governor in 1991, when he was Washington Post Staff Writer only 50 and wildly popular, had his profile K CACI contract: From routine been so high. The former mayor of Port- Here comes Sarah Shain, typical Metro tasks to interrogations. | Page E1 land and secretary of transportation under rider. The 22-year-old District resident is President Jimmy Carter had taken com- hustling down the left side of the escala- mand of a statewide push to improve high- tor to the lower platform at Metro Center, er education. Now 63 and adept in the art of clacking on the moving metal steps in her cashing in on his good name, he was also sensible pumps, until she hits a road- INSIDE the public face for an out-of-state attempt to block: a pair of tanned tourists in shorts buy Oregon’s largest utility. standing two abreast, talking and block- Nano Whatchamacallits Then, a sordid 30-year-old secret, one ing her path to the Orange Line train Creations in atomic-scale that Goldschmidt had paid about $250,000 idling at the bottom of the escalator. nanotechnology are so new and unusual to hide away, oozed out of the shadows. “The train is right there and you see that scientists are just grappling with a Willamette Week, an alternative newspaper the doors closing and it’s like, ‘Get out of standard terminology to name them. in Portland, obtained court documents my way!’ ” said Shain, a behavioral and SCIENCE, Page A7 showing that Goldschmidt, while mayor social researcher who missed that train during the mid-1970s, had sex on many by seconds. BY BILL O’LEARY—THE WASHINGTON POST The Post on the Internet: occasions with a 14-year-old girl. The reve- Then, a moment of empathy. “A lot of A family riding four abreast on an escalator at Metro Center risks the wrath of washingtonpost.com lation, which continues to mesmerize and the people who visit here come here from impatient commuters. Six million tourists are expected this summer. depress people across Oregon, has de- Middle America where there is no sub- Contents stroyed the sterling reputation and lucra- way, so they’re not used to it,” said Shain, capital of the free world, where every sec- and briefing books. But it also is a place  2004 tive career of the man who put Portland on who grew up in Kentucky. “You have to ond counts. The people who live and that attracts vacationers from around the The Washington the national map. just expect that if you live in this city. You work here take themselves seriously, globe, people who feel a familiarity with 1 Post have to deal with the tourists.” striding purposefully with their written Company See GOLDSCHMIDT, A11, Col. 3 This is the paradox of daily life in the testimony, task force recommendations See METRO, A12, Col. 1 DAILY 05-17-04 MD SU A8 CMYK

A8 Monday, May 17, 2004 S K x The Washington Post THE BUSH MONEY MACHINE An Industry Gets Its Way Toxic Towel Timeline Writing the Rule These are key events in the efforts to change the shop towel rule In 2002, as the Environmental Protection Agency was drafting a proposed rule on shop towels juxtaposed with major political donations by Richard T. Farmer, contaminated with solvents, officials in the Office of Solid Waste consulted with an attorney chairman of the Cintas Corp., the industry’s biggest company. The representing two industrial laundry trade groups. What follows is part of an e-mail exchange. EPA and Farmer say his giving had no influence on the process. 1 Previewing the rule with the lobbyist Jan. 1 The industrial laundry industry is fighting a rule proposed by the Environmental Protection Agency In August 2002, the EPA’s Kathy in 1997 to require laundries to pretreat wastewater. Blanton e-mailed to industrial laundry lobbyist William M. Guerry Jr. that March 12 Farmer gives to National Republican $150,000 she’d been asked by a supervisor “to Congressional Committee (NRCC). forward to you the language we have put together to address the laundries’ March 29 Farmer and immediate family members each $4,000 give the maximum allowable to Bush. concerns on the rule’s impact.”

May 6 Farmer gives to annual GOP dinner. $50,000 2 Sending it back, with edits Aug. 19

1999 The EPA withdraws pretreatment wastewater rule, saying the better way to control pollution is by Ten days later, Guerry replied, saying, removing solvents from towels at factories. “Thank you for providing [the trade groups] with the opportunity to Aug. 19 Farmer gives to the Republican National $15,000 suggest the following clarification to Committee (RNC). the EPA’s draft, proposed, shop towel Oct. 26 Farmer gives to RNC. $250,000 preamble language.” He then sent back the language, edited. Dec. 30 Farmer and immediate family contribute to joint $144,000 fundraiser for state Republican parties.

Jan. 21 EPA informally proposes a new rule to exempt 3 Edits in the proposed rule contaminated shop towels from hazardous waste regulations if wrung dry and stored in containers. This is how the language appeared in the Federal Register when the March 14 Farmer gives to joint fundraiser for GOP $200,000 proposed rule was published in congressional candidates. November 2003. June 23 Cintas-affiliated Summer Hill Inc. gives to RNC. $100,000 2000 Aug. 31 Farmer’s sister gives to RNC. $20,000 Guerry said the change was important to prevent “chaos” in the states, where the Copies of the full e-mails can be Sept. 27 Farmer’s brother-in-law and Cintas board $19,950 language could have been misread. EPA director give to NRCC. found along with other documents spokeswoman said Marjorie Buckholtz said at www.washingtonpost.com. Dec. 1 Farmer gives to the Bush-Cheney Recount Fund. $5,000 sharing language with a lobbyist “is a very common part of the process.” Laundry rivals Source: EPA documents obtained under Jan. 1 Farmer gives to the Bush-Cheney Inauguration Fund. $100,000 said they were not given such an opportunity. the Freedom of Information Act Feb. 12 Trade groups write EPA Administrator Christine Todd Whitman asking her “to ensure that this THE WASHINGTON POST industry is not unnecessarily regulated.”

March 6 Farmer gives to RNC. $15,000 March 30 Farmer and wife contribute to NRCC. $50,000 Changing Way Government Regulates April 24 Farmer gives to RNC. $120,000 PIONEERS, From A1 nient one that gives shop towels a Top 10 Pioneers hazardous-waste exemption without April 25 Farmer and wife give to RNC. $30,000 After a series of telephone calls, e- the need to wring them dry or store Cintas Corp. chairman Richard T. Farmer is the No. 1 political May 8 Whitman responds to letter: “Partnerships with our mails, letters and meetings with rep- them in special containers. stakeholders will be an important part of how we resentatives of the laundry industry, contributor among Pioneers, elite Republican fundraisers who Laundry trade groups appealed will do business at EPA.” the EPA had provided industrial- have successfully solicited a minimum of $100,000 each in directly to EPA Administrator Whit-

2001 laundry lobbyists with an advance individual contributions. Many of the Pioneers are also large man in February 2001: “The draft May 16 Farmer gives to the President’s Dinner. $50,000 copy of a portion of the proposed individual contributors to Republican candidates and party regulation in its current form . . . in- July 11 EPA attorney John Michaud writes in an e-mail rule, which the lobbyists edited and causes. Farmer’s campaign contributions have increased creases the regulatory burden.” “management asked us to ... address the laundry the agency adopted. In May, Whitman sent a concilia- industry’s concern over the reusable wipes being That same opportunity was not significantly over the past 15 years. tory response: “Partnerships with identified as a solid waste.” given to the rule’s opponents—envi- our stakeholders will be an impor- RICHARD T. AND JOYCE FARMER’S ronmental groups, a labor union, NAME TOTAL tant part of how we will do business July 13 FEDERAL POLITICAL EPA meets with industry to discuss a solid and hazardous-waste landfill operators 1 Richard T. Farmer $3,123,921 CONTRIBUTIONS at EPA.” hazardous waste exemption for shop towels. and paper towel manufacturers who In thousands of dollars To aid in the effort, the industry Industry officials say EPA indicates the rule would 2 Sam Fox 1,832,789 argue their product should be treat- urged contributions to its Textile not impose “any new additional requirements.” 3 Alex G. Spanos 1,725,177 All contributions $1,100 ed as environmentally equal to laun- were made to the Rental Services Association’s Politi- 4 Joseph C. Canizaro 1,498,694 Republican Party 1,000 Dec. 17 Laundry trade groups and their attorneys meet with dered towels. The opponents say in- or Republican cal Action Committee. “Will PAC do- Michael Shapiro, EPA Solid Waste Office director, dustrial laundries send tens of 5 Charles J. Wyly Jr. 1,354,613 candidates 900 nations open doors, get appoint- and provide a legal rationale for exempting shop thousands of tons of hazardous 800 ments and allow your message to be 6 Robert Addison Day Jr. 1,143,222 towels from hazardous and solid waste rules. chemicals to municipal sewage treat- 700 delivered? Absolutely,” Textile ment plants and landfills where tox- 7 James H. Click 1,092,420 600 Rental magazine said in its March Jan. 31 Farmer gives to RNC. $100,000 ics can get into groundwater, 8 Robert Wood Johnson IV 1,067,836 500 2002 edition. March 18 The Office of Solid Waste and EPA’s Office of General streams and rivers. Labor unions 9 Howard H. Leach 1,047,408 400 Counsel disagree over a solid-waste exclusion for contend that the towels expose 300 Exemption Sought at EPA shop towels. 10 Kenneth & Linda Lay 1,036,320 workers to cancer-causing fumes. 200 Cintas said in a statement that the In Richard Farmer, the industry March 19 Farmer gives to the NRCC. 100 $250,000 rewritten rule will prevent pollution NOTE: Includes contributions from 1989 to 2004 from the contributor had one of the biggest political giv- and his immediate family to Republican candidates, the Republican 0 March 25 Farmer contacts Rep. Rob Portman and Sen. George because “reusable shop towels are Party and the Bush inauguration fund. ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ers in the country. V. Voinovich, who write Whitman, asking her to friendlier to the environment” than SOURCE: Center for Responsive Politics Through January For President George H.W. Bush, resolve the conflict between the Office of Solid disposable paper towels. Farmer, now 69, was a member of Waste and the Office of General Counsel. The proposed shop towel rule is THE WASHINGTON POST “Team 100,” donors who gave more but one example of a policy change illegal. There is nothing illegal, how- than $100,000 to Republican Party- March 26 William M. Guerry Jr. sends the EPA office of Solid Waste chief Bob Dellinger “the requested draft by the Bush administration that fa- ever, about the adoption of broad building committees. When George language” for a new rule outlining an exemption for vors a company controlled by a Bush legislation or regulations benefiting W. Bush ran for office in 2000, Farm- shop towels from solid waste rules if they “contain Pioneer or Ranger, who as a group sectors of the business communi- er’s “golfing buddy,” Cincinnati fi- no ‘free liquids.’” Under the proposal, towels would have helped the president bank a ty—such as laundries disposing of nancier Mercer Reynolds III, re- not have to be wrung dry. record $200 million for the 2004 wastewater containing toxic chem- cruited Farmer to be a Pioneer, election campaign. The shop towel icals—that happen be a source of Farmer said. This year, he earned $150,000 April 25 Farmer gives to NRCC. case reflects the subtle interactions major fundraisers and donors. the more exalted Ranger status by April 29 Farmer gives to the President’s Dinner. $50,000 between corporations and an admin- For example, securities and in- raising a minimum of $200,000 in in- istration determined to roll back vestment banking firms have bene- dividual contributions. April 29 Whitman responds to Portman and Voinovich by what it considers to be regulatory fited enormously from reduced cap- Farmer said that his big gifts are confirming that EPA is considering a solid waste overkill. For many big donors, get- ital gains and dividend taxes BY MARK LYONS FOR THE WASHINGTON POST not connected to political favors. exemption for shop towels. ting “the right guy elected,” as Farm- initiated by the Bush White House. Top donor Richard T. Farmer: “Just In the case of shop towel reg- May 20 EPA officials sign off on solid-waste exemption for er puts it, is an end in itself. Six produced 17 Pioneers and Rang- trying to get the right guy elected. ” ulation, Farmer said Cintas itself woven shop towels. EPA Assistant Administrator ers this year, and employees in those was unconcerned. “We huddled up Marianne Lamont Horinko said firms have raised $2.53 million. Alto- In 1997, the Clinton administra- and [decided] no matter what hap- June 4 EPA officials Dellinger and Kathy Blanton meet

2002 Farmer’s campaign contributions gether, finance industry employees tion proposed a clean-water rule re- pens here, it will have no impact on industry officials and Guerry and confirm that the had nothing to do with the agency’s have raised $19.68 million for the quiring industrial laundries to pre- Cintas,” he said. EPA plans a solid waste exemption for shop towels. decision. Although Cintas was rep- 2004 election campaign, according treat their wastewater to remove Later in the interview, when spe- Aug. 2 EPA’s Blanton e-mails Guerry “language we have resented by the industrial-laundry to an analysis produced for The chemical solvents. The Uniform & cifically asked about the Clinton-era put together to address the laundries’ concerns.” lobbyists in discussions with the Washington Post by Dwight L. Mor- Textile Service Association (UTSA) proposal, he said it would have hurt EPA, Farmer said he himself did not ris & Associates. and Textile Rental Services Associa- Cintas by making it difficult for the Aug. 15 Guerry writes back suggesting numerous changes, directly contact the administration Twenty-four Rangers and Pio- tion of America (TRSA) mounted a company to provide the full range of including the deletion of a phrase stating that shop about the proposed rule. He did say neers are either drug industry exec- $1.2 million lobbying campaign services its customers demand. towels “remain regulated” and substituting that, at the behest of the laundry in- utives or lobbyists whose companies against the proposed rule, arguing Shop towels are now about 5 percent “regulatory status...remains unchanged.” dustry, he called members of the stand to get more business from the that toxic pollutants are removed at of Cintas’s business, but they remain Aug. 20 Blanton’s presentation to an industry meeting in Ohio congressional delegation, who administration’s Medicare drug ben- the laundries or by municipal waste- an important service to customers Baltimore sympathizes with industry’s “major wrote to then-EPA Administrator efit bill passed last year. water treatment plants. The trade who also rent uniforms. concerns.” Christine Todd Whitman. Twenty-five energy company ex- groups said the proposal would have Farmer said he never contacted In a summary of the rule, the EPA ecutives, along with 15 energy in- cost them more than $400 million. the administration about the new Aug. 30 Farmer gives $250,000 and Farmer’s brother-in- $400,000 said it would improve “clarity and dustry lobbyists, are either Pioneers In 1999, the Clinton EPA with- rule. He said he did complain about law gives $150,000 to the National Republican consistency” of regulation, “provide or Rangers. Many have been deeply drew the rule. The next year, with the rule to Ohio Republican Sen. Senatorial Committee (NRSC). regulatory relief, and save affected involved in developing the adminis- Clinton still in the White House, the George V. Voinovich and Rep. Rob Sept. 12 Blanton and Dellinger meet industry in Alexandria. facilities over $30 million.” Whit- tration’s energy policy. Seven of EPA floated a new draft rule that Portman, a fellow Bush Pioneer and Dellinger says the rule will be a “common sense, man—who resigned from the EPA those Pioneers served on the Bush proposed to exempt shop towels chairman of Bush’s campaign in non-intrusive approach ...EPA doesn’t want to make last year and has since become a energy transition team. The admin- from hazardous-waste requirements Ohio this year. this onerous. ... The agency doesn’t seek to add to Bush Ranger—declined to be in- istration’s energy bill, which re- only if factories squeezed the towels Farmer said he made the calls in generator facilities’ expenses.” terviewed. But she said through a mains stalled by a largely Demo- “dry”—defined as containing no 2002 on behalf of the two laundry spokesman that contacts such as cratic filibuster in the Senate, would more than five grams of solvents— trade groups. Cintas is the biggest Oct. 24 Farmer gives to NRCC. $5,000 those from the Ohio congressional provide billions of dollars in benefits before placing them in sealed con- company in the industry, but Farmer Nov. 5 Farmer’s sister gives to RNC. $15,000 delegation “are helpful because they to the energy industry. tainers and sending them to laun- said that complaints from hundreds highlight an interest and a constitu- dries. of small laundries probably had May 23 Farmer gives to NRCC. $25,000 ent’s interest” and “that just feeds in- Industry: $400 Million Cost Calling this “an extremist view in more impact than his calls. “It would June 20 Cintas CEO Scott Farmer and his wife contribute $7,000 to the deliberative process.” the EPA,” the laundry industry have put small guys out of business,” $4,000, the maximum allowable donation to Bush’s Fred Meyer, the former chairman The proposed shop towel rule forcefully opposed the new proposal he said. reelection. Farmer’s sister and her husband of the Texas Republican Party who shows how the process can play out as overregulation. Portman said in a recent inter- contribute $3,000. in 1998 helped set up the Pioneers to the advantage of a Pioneer. But environmental activists, labor view that he was first contacted by for then-Texas Gov. George W. Bush, For more than two decades, the groups and paper towel makers said one of the trade groups, which he June 30 Farmer and his wife contribute maximum to Bush. $4,000 said there is a good reason money EPA has grappled with how to reg- the laundries and local treatment knew represented Cintas, “one of will always flow to political cam- ulate the cloth towels used to wipe plants frequently exceed their man- those big companies in our district.”

2003 Aug. 12 Farmer gives to NRSC. $25,000 paigns. “There are too many things up chemicals in printing plants, fac- dated pollution limits. Sixty-five Cin- He said he considered it a constitu- Sept. 30 Bush attends Cincinnati fundraiser. Farmer helps $25,000 that are important to too many peo- tories and industrial shops. Each tas laundries in 15 states and Cana- ent issue. “I do remember talking to raise $1.7 million. His wife gives to RNC. ple,” Meyer said. “The existence of year, 3 billion of them sop up more da have exceeded pollution limits on Dick about it at least once,” he said. businesses and billions of dollars are than 100,000 tons of hazardous sol- more than 1,100 occasions in the About the same time in 2002 that Nov. 20 EPA proposes rule folding in industry’s changes and giving solid and hazardous waste exemptions for affected.” vents such as benzene, xylene, tolu- past several years, according to pub- Farmer was making his calls and the shop towels not dripping with waste. Democrats have their own history ene and methyl ethyl ketone. lic records gathered by the Sierra trade groups were contacting mem- of rewarding large donors. President “Why should these materials be Club and the Union of Needletrades, bers of Congress, he made a major March 9 EPA holds hearing on rule. Franklin Delano Roosevelt appoint- regulated as a hazardous waste?” the Industrial and Textile Employees contribution. On March 19, 2002, ed major contributor Joseph P. Ken- EPA said in a document given to the (UNITE). Farmer gave $250,000 to the Nation- nedy to be ambassador to Britain. For the EPA and the laundry in- al Republican Congressional Com- April 9 EPA closes comment. Rule awaits final action. laundry industry in 2000. “Because 2004 Lyndon B. Johnson funneled con- they have the potential to cause dustry, things changed when Bush mittee. tracts to Texas firms. fires, or to be the source of fugitive took office in 2001. The industry On March 25, Portman and Voi- SOURCE: Environmental Protection Agency, trade groups, Center For Responsive Politics. Douments can be found at www.washingtonpost.com Direct quid pro quos—specific air emissions, and ground water con- pushed hard to derail the Clinton novich co-wrote a letter to Whitman THE WASHINGTON POST benefits in exchange for cash—are tamination.” proposed rule in favor of a more le- asking her to support a more encom- DAILY 05-17-04 MD SU A9 CMYK

The Washington Post x K S Monday, May 17, 2004 A9 THE BUSH MONEY MACHINE An Industry Gets Its Way

EPA and Pioneers and Power The Shop Towel Rule Across Federal Spectrum passing waste exemption for shop towels—this one from solid waste regulation. Gaining a solid-waste ex- The Bush Pioneers, who agree to raise a minimum of $100,000 each for the Bush campaign, are well-connected emption would remove a further lay- throughout the Bush administration. Here are some examples of the subtle interaction of political fundraising and public policy. er of regulation because some states apply additional taxes, fees and special handling requirements to solid Hunt Oil Co. Chemical Industry waste. Whitman spokesman Joe Martyak ush Pioneer Jose Fourquet played a t least half a dozen members of the said such a letter from lawmakers pivotal role in the financing of a mas- chemical industry became Bush Pio- “helps to precipitate a meeting to sive Peruvian natural gas project that neers in 2000, among them Frederick find out what’s the glitch. You help to benefited Hunt Oil Co., whose chair- L. Webber, then-chairman and chief man,B Ray L. Hunt, signed up to be a Pioneer unglitch it, to move it along.” Aexecutive of the American Chemistry Council; At this point, EPA attorneys were and is a longtime ally of the president. J. Roger Hirl, former president of the group balking at the solid-waste exemp- The Camisea Natural Gas Project is set to and chief executive of Occidental Chemical tion, Portman and Voinovich said in extract fossil fuel from one of the world’s most Corp. in Dallas; and Allan B. Hubbard of E & A their letter. pristine tropical rain forests and pipe it over Industries Inc., who attended Harvard Busi- A month later, Whitman wrote the Andes toward Lima and the coast, where it ness School with Bush. Portman and Voinovich that the EPA will end up at a depot near a marine sanctuary. Before leaving the chemical manufacturers’ was considering the solid-waste ex- Hunt is one of several participants in the proj- trade group in 2002, Webber had led a fierce emption and assured that it would ect. His company hired Halliburton’s Kellogg battle over plant security. “incorporate suggested changes Brown & Root to design a $1 billion export ter- After Sept. 11, 2001, chemical and petro- where appropriate.” minal on the coast. leum plants faced the prospect of new in- Three weeks later, EPA officials Fourquet, the Treasury Department’s U.S. spections to ensure security was sufficient to signed off on the exemption, accord- representative to the Inter-American Devel- prevent terrorist attacks. Reports for years ing to the trade group’s timeline. opment Bank, rebuffed the official written and had warned of chemical plant vulnerabilities. Jim O’Leary, the EPA official who oral recommendation from other U.S. officials BY GERALD MARTINEAU—THE WASHINGTON POST Federal studies said a properly mounted attack wrote the original language that was to vote “no” on the project. Instead, he ab- Hunt Oil official Jeanne Johnson could kill millions. After the terrorist attacks, rewritten, said there was no political stained on $135 million in financing for the Phillips, a founder of the Bush the Bush administration ordered the reports interference from Whitman’s office. project, allowing it to proceed. Opposition Pioneers and former ambassador. removed from the Internet. “That’s nonsense,” O’Leary said. from the United States, a primary funder of the The Environmental Protection Agency took “We called it the way we saw it. No IDB bank, would have jeopardized the deal. Pioneer and Bush ally Ray L. Hunt, the lead in formulating a policy to regulate one interfered.” In a strongly worded memo sent before the left, chairman of Hunt Oil Co., chemical plant security. EPA officials said that vote, the U.S. Agency for International Devel- participated in a natural gas under the Clean Air Act these plants had a A Rule That Isn’t ‘Onerous’ opment told the Treasury Department that fed- project in a Peruvian rain forest. “general duty” to secure their facilities against eral law required Fourquet to cast a “no” vote A Hunt Oil official recently terrorist attack. Then-EPA Administrator On Aug. 2, EPA’s Kathy Blanton, because environmental reviews were deficient. became envoy to Saudi Arabia. Christine Todd Whitman ordered a policy de- who replaced O’Leary, e-mailed to in- In addition, others on a federal interagency veloped. In 2002, EPA outlined this new en- dustry attorney William M. Guerry task force urged opposition. forcement regime, according to internal docu- Jr. the “language we have put togeth- A separate proposal for financing from the ments obtained by the Natural Resources er to address the laundries’ con- Export-Import Bank of the United States fell Defense Council. cerns,” according to a copy of the e- short over environmental concerns. April H. Separately, Sen. Jon S. Corzine (D-N.J.) mail obtained under the Freedom of Foley, a Bush appointee and the Ex-Im Bank proposed legislation that would mandate that Information Act. board member who cast the deciding “no” EPA take the lead role in enforcing plant secu- Guerry wrote back on Aug. 15 vote, said the president questioned her about it rity. with proposed changes, documents afterward. She told Friends of the Earth cam- Chemical industry officials argued that the show. Among them was deletion of a paign director Jon Sohn, that President Bush plants were already bolstering security and phrase in the preamble stating that brought it up during an overnight stay at Camp they appealed to the administration to keep shop towels “remain regulated.” In- David. Bush asked her to explain her vote to EPA away from the issue. stead, the lobbyist wanted the words national security adviser Condoleezza Rice, Webber and Greg Lebedev, who eventually “regulatory status . . . remains un- who was involved in providing direction to replaced him as chief executive of the Amer- changed.” Fourquet in how to vote. ican Chemistry Council, took a group of in- Guerry, in an interview, said the Foley declined to discuss her vote. dustry executives to the White House, where change was important to make sure The Camisea project also encountered fierce they met with Bush political adviser Karl Rove that states did not misread the rule opposition from worldwide environmental and the White House Council on Environ- as a significant change in policy. Oth- groups and some members of Congress, who mental Quality in September 2002, Lebedev erwise there would have been “cha- predicted the massive extraction and pipeline said. The group urged the administration to os” and a “train wreck,” he said. EPA project would destroy the rain forest in the oppose the Corzine bill. officials shared the language with Southeastern Amazon and endanger its indige- Afterward, Rove wrote one of the attendees, him, he said, because “they recog- nous people. Environmental groups issued re- the president of BP Amoco Chemical Co. “We nized that we had the expertise they ports recently saying their worst fears are com- have a similar set of concerns,” Rove stated in needed.” ing true—indigenous people coming down a letter that was obtained under the Freedom Blanton said she sent Guerry just with illnesses, a massive fish kill in Paracas BY RAY LUSTIG—THE WASHINGTON POST of Information Act by Greenpeace. part of the regulatory language. “I Bay. Webber, who now is president of the Alli- can see how, from the outside, that it Media releases from the Bush campaign do Rep. Jennifer Dunn (R-Wash.), ance of Automobile Manufacturers, declined to would look like colluding or some- not say whether Hunt formally reached Pio- above, whose district is home to comment. Lebedev, the lobbyist, said: “We had thing. [But] these were the people neer status, but court documents list Hunt as Microsoft Corp., sought an end to a meeting with Karl Rove. We think that’s a who were going to be most affected being given Pioneer Solicitor Tracking No. the Clinton administration’s good thing. We take people to meetings with by the rule and they were the ones 1002. The Bush campaign has stopped an- antitrust suit against the people in government around town all the with the expertise.” She said at this swering questions about who was in the pro- software firm. She says there is a time.” point the EPA had already had suffi- gram. “different atmosphere” now on In 2003, the White House gave responsibili- cient input from the paper towel peo- Hunt has declined repeated requests for in- regulation. She is one of the first ty for chemical plant security to the Depart- ple and others affected by the rule. formation about the bank’s vote or his cam- Bush Pioneers. ment of Homeland Security. The new depart- Opponents, including the union, paign contributions. Federal records show he ment, however, does not have authority to has given nearly $100,000 to Republican environmentalists and paper towel Microsoft chief financial officer enforce security upgrades at the plants, ac- makers, say they were not given an causes in the past four years, including individ- cording to environmental groups, members of ual donations to the Bush campaign. John Connors, right, is a Bush advance look at the language. Ralph Pioneer, one of two at company. Congress and the chemical industry. Lebedev Solarski, a Kimberly-Clark Corp. ex- There are other significant Bush connec- said the American Chemical Council is work- ecutive who chairs a task force of pa- tions to Hunt. His chief of public affairs, James ing with Congress on legislation to give the de- per towel makers, said his group Curtis Oberwetter, recently became Bush’s am- partment that authority. would have been glad to have one. bassador to Saudi Arabia. He was replaced at “Kathy Blanton and Bob Dellinger Hunt Oil by Jeanne Johnson Phillips, one of the at EPA were asked on multiple occa- creators of the Bush Pioneer program, a cur- Friends in High Places sions for advance copies and we were rent campaign adviser and former ambassador consistently denied,” Solarski wrote under Bush to the Organization for Economic om Loeffler, a 2000 Pioneer and a 2004 in an e-mail to The Post. Cooperation and Development in Paris. Ranger, has been a Bush family loyalist EPA officials attended two in- Bush also appointed Hunt to the Federal Re- for more than a quarter century. Now, dustry meetings to discuss the pro- serve Bank of Dallas and to the Foreign In- Loeffler is marketing those ties in the posed rule, one in Baltimore on Aug. telligence Advisory Board. Tlobby shop he has opened here. 20 and one in Old Town Alexandria Fourquet, 37, who was an investment banker His firm, Loeffler Jonas & Tuggey, notes on on Sept. 12. On Aug. 30, Farmer do- before he joined the administration, resigned its Web site: “Members of the firm’s Govern- nated $250,000 to the National Re- his post last month. He did not return phone ment Affairs Group have strong ties to the cur- publican Senatorial Committee. calls. rent Administration, having worked directly EPA’s Office of Solid Waste Direc- with the President, the Vice President, the tor Dellinger spoke at the Alexandria Microsoft Corp. White House Chief of Staff, Cabinet Secretar- meeting. His comments later ap- mong the top priorities for Bush Pio- ies and their principal deputies and aides.” peared in the trade group’s maga- neer and Rep. Jennifer Dunn (R- Those links were forged in President zine: “EPA doesn’t want to make this Wash.) was an end to the Justice De- George H.W. Bush’s 1988 campaign, when onerous.” partment’s antitrust lawsuit against Loeffler was Texas co-chairman. In 1994, Loef- Instead of screw-on, sealed con- AMicrosoft Corp. Dunn represents Redmond, fler was finance co-chair of George W. Bush’s tainers for transporting contaminat- Wash., where the software giant is based. gubernatorial campaign in Texas. In the two ed woven towels from factories to In 2000, the Clinton Justice Department Bush campaigns for governor, Loeffler was the laundries, which were proposed in won the major parts of its case against Micro- largest donor, $141,000. 2000, Dellinger said, a piece of ply- soft and proposed breaking the world’s largest In the 1998 election cycle, he served as na- wood over a barrel would meet the software company in two. An appeals court tional co-chair of the Republican National new EPA proposed standard. threw out the breakup plan the next year and Committee’s “Team 100” program for donors Also, the EPA opted not to require sent the matter back to U.S. District Court. of $100,000 or more, and then held the same ti- the towels to be wrung out. “The The Bush Justice Department then settled the tle during George W. Bush’s presidential cam- point of that is not to make it harder matter on terms widely seen as favorable to Mi- paign in 1999-2000. to do than what you would do crosoft. Critics say that the settlement fails to In May 2000, Loeffler left the now-defunct through your normal course of busi- address the harm Microsoft’s monopoly power Arter & Hadden, taking the Cleveland-based ness,” Dellinger said. inflicted on other companies. The Justice De- firm’s San Antonio lawyers, to found his own However, he told the group, the partment defended the settlement as a fair res- lobby-law firm, Loeffler Jonas & Tuggey, with paper towel industry would have to olution of the case. A federal judge accepted offices here and in San Antonio. wring out its towels to make sure the terms. Since Bush’s election, Loeffler’s firm has they had no more than five grams of Last week, the Bush administration nom- grown fivefold, an impressive feat for a K solvent on them before being inated the lead Justice Department negotiator Street newcomer. In 2001, its first year in dumped. in the Microsoft case, Deborah P. Majoras, to Washington, Loeffler Jonas & Tuggey received The new proposed rule was pub- be chairman of the Federal Trade Commission. $1.01 million in lobbying fees. lished in the Federal Register on “I just think it is a different atmosphere BY KELLY WILKINSON—INDIANAPOLIS STAR In the next two years, that total skyrocket- Nov. 20, 2003. now,” said Dunn, who was one of the first Pio- President Bush joshes with Allan ed, to $4.09 million and $5.71 million, re- Paper industry officials say that neers, exceeding her $100,000 commitment B. Hubbard at a fundraiser in spectively. Among clients he picked up: Bris- the EPA is ignoring its own studies with the help of Microsoft donors. “In the Clin- Indianapolis. Hubbard, a Bush tol-Myers Squibb Co., Lockheed Martin Corp., showing that laundries create 30 per- ton administration, the Justice Department Pioneer and chemical industry Motorola Inc., the National Association of cent more waste than paper towels in brought suit against them. President Bush said executive, attended Harvard Broadcasters, SBC Communications Inc. and the form of sludge—lint, debris, tox- ‘I’m for innovation—not regulation.’ That was Business School with Bush. Southwest Airlines Co. ics and other substances extracted important to Microsoft that he kept his word.” Loeffler declined to be interviewed for this from laundry wastewater—sent to This year, Microsoft has two Pioneers, John Pioneer Frederick L. Webber, article, but in January 2001 he told Roll Call, a municipal landfills. Connors and John Kelly. More than 100 people left, took a group of chemical newspaper that covers Congress, that he had “This is a case study,” Solarski from Microsoft attended an event for Bush, industry executives to a meeting recently “visited with the president-elect and said, “for how an industry has used Dunn said. Employees have given more than with Bush political adviser Karl said that any way that I can be helpful, I will be. the regulatory process to gain a mar- $160,000 in contributions, placing Microsoft Rove. They were opposing the I will not be a part of the administration. I’m ket advantage.” among the top companies donating to Bush, ac- EPA on plant security. sure that as times go forward, wherever my cording to the Center for Responsive Politics. strengths can assist, I’ll be called upon.” Post database editor Sarah Cohen — James V. Grimaldi and Thomas B. Edsall and researcher Alice Crites contributed to this report.