Thursday, May 31, 2012
COMMISSION PULLS DUBIOUS HYDROGEN GRANT POLICY
CALIFORNIA
FOCUS
FOR RELEASE: TUESDAY, JUNE 5, 2012, OR THEREAFTER
FOR RELEASE: TUESDAY, JUNE 5, 2012, OR THEREAFTER
BY THOMAS D. ELIAS
“COMMISSION PULLS DUBIOUS HYDROGEN GRANT POLICY”
Less than two weeks after this column
exposed a situation where tens of millions of state tax dollars were given to
billion-dollar corporations – but only with approval from other billion-dollar
corporations – the California Energy Commission suddenly ended that practice.
In a message sent late May 25, the commission said it “is cancelling its grant
solicitation for hydrogen fueling stations in order to revise solicitation
protocols. The commission will issue a new solicitation at a future date.”
The grants, funded
by vehicle license fees under a 2007 law authored by former Democratic Assembly
Speaker Fabian Nunez and signed by ex-Gov. Arnold Schwarzenegger, amounted to
$16 million in 2010, with another $12 million winning tentative approval in
April. The April grants have now been canceled.
The grants are designed to encourage construction
of refueling stations for hydrogen fuel cell cars that are due to hit showrooms
by 2017. These will be built by eight automaking companies including Nissan,
Toyota, Honda, GM, Chrysler, Volkswagen, Daimler Benz and Hyundai.
The Energy Commission’s
Schwarzenegger-era policy was to require that at least one automaker approve
any refueling location before a grant application could even be considered.
All the $16 million in grants going to
private companies in 2010 were awarded to two large corporations, the
German-based Linde Group and Pennsylvania-based Air Products & Chemicals
Inc. Both are members of the the semi-private California Fuel Cell Partnership,
along with the eight carmakers and the Energy Commission. The partnership
promotes fuel cell cars.
Suspicions of collusion in the grant
approvals arose because Linde and Air Products executives interact at many
meetings and because the carmakers approved only one refueling location not
belonging to either of those companies.
Current Gov. Jerry Brown refused comment
on the Energy Commission’s flawed grant policy, but its cancellation came only
days after Brown became aware of problems with it. Commission Chairman Robert
Weisenmiller also refused comment before his agency sent an official message to
this column announcing the grant cancellations.
This makes it hard to trace the
decision-making process of the Brown administration on the grants.
“It was a ridiculous boondoggle,” said
Jamie Court, president of the Consumer Watchdog advocacy group. “The
cancellation of the protocols and the latest grants under them is a start to
rolling back the kind of back-door deals Schwarzenegger frequently made with
big donors to his political causes. It’s a big victory for taxpayers.”
The bizarre scene of
the Energy Commission giving private companies the power to authorize giveaways
of tax dollars was unprecedented in the memories of many experts. “I have never
heard of such an arrangement anytime, anywhere,” said Court, who added that the
cancelled arrangement essentially “opened the state treasury to big
corporations.”
The Energy
Commission said it will not end its program of funding hydrogen refueling
stations because “a robust hydrogen fuel station infrastructure is necessary to
support automakers’ rollout of fuel cell vehicles to comply with the state Air
Resources Board’s Zero Emission Vehicle program. Carmakers will meet that
mandate with a combination of electric cars and fuel cell vehicles.”
Even under the promised new protocols,
private companies and not the state will own stations built with taxpayer
dollars.
Both the Energy Commission and Ed
Heydorn, business development manager for Air Products’ hydrogen energy
systems, deny any collusion ever occurred. But both outfits concede they attend
Fuel Cell Partnership meetings and have other encounters with automaker
executives regularly, conversing freely with them. Most of those meetings are
not open to companies that cannot pay the Fuel Cell Partnership’s annual dues
of at least $87,800.
One major
justification for continuing the grants at all is that hydrogen fuel cell cars
will run on “green” energy. But much of the fuel Linde and Air Products will
sell is to come from natural gas, not a renewable energy source. Because the
state will require at least one-third of its power to come from renewable
sources like wind or solar by 2020, Air Products executive Heydorn says
one-third of gas to be sold in company stations funded by grants it received in
2010 will be biogas taken from landfills, which is classed as a renewable
resource.
Meanwhile, no state
money went, for example, to 15 prime-location stations where the much smaller
California-based HyGen Industries proposes pumps that would sell hydrogen made
from on-site electrolysis of water, considered a purely renewable source.
So the cancelled
the Energy Commission policy thwarted both small companies and greener energy,
while providing tens of millions to billion-dollar corporations at a time when
the state is pinching pennies on almost everything else.
Politically, the
cancellation is as wise a move as Brown could make. For it’s hard to see how
Brown’s November tax increase initiative could pass if voters saw grants continuing
to big corporations approved by other, even bigger corporations during these
tough times.
-30-
Email Thomas Elias at tdelias@aol.com. His book, "The
Burzynski Breakthrough: The Most Promising Cancer Treatment and the
Government’s Campaign to Squelch It," is now available in a soft cover
fourth edition. For more Elias columns, visit www.californiafocus.net
Saturday, May 26, 2012
NEWEST BUDGET PLAN MAY ASSURE LONG-TERM RECESSION
CALIFORNIA
FOCUS
FOR RELEASE: FRIDAY, JUNE 8, 2012, OR THEREAFTER
FOR RELEASE: FRIDAY, JUNE 8, 2012, OR THEREAFTER
BY THOMAS D. ELIAS
“NEWEST BUDGET
PLAN MAY ASSURE LONG-TERM RECESSION”
From the moment Gov. Jerry Brown
announced his latest budget revision proposal, complaints poured in both from
his political enemies and some interests that have usually supported him.
Republicans griped that Brown’s plan
depends on a November tax increase initiative to prevent several billion
dollars more in cuts atop the more than $8 billion he proposes. In-home care
workers complained that cuts to their program would eventually cost the state
far more than any immediate savings, as illnesses among invalid senior citizens
would go undetected until they’ve become cataclysmic.
The same sort of complaint came from
advocates of the Healthy Families program established more than 10 years ago by
then-Gov. Gray Davis to provide health care for indigent children. There was
also grousing from public employee unions, whose members’ hours will likely be
cut.
And there was the usual complaint from
the right that Brown didn’t depend solely on cutbacks to make up a projected
$16 billion deficit, instead pushing for his tax-increase proposition. An
attack on job creators, several bloggers called the whole plan.
The grousing from special interests
across the political spectrum missed the forest for concentrating on their
particular trees: This budget proposal does nothing to improve some of the
conditions that keep California’s unemployment rate well above the national
average.
There’s nothing in this budget plan to
make the state’s public universities more affordable, for instance. Yes, the
poorest students will still be able to get Cal Grants, but overall grants would
be cut by $38.4 million, essentially leaving out all but the very poor.
Meanwhile, the small (relative to its
costs) funding increase of $90 million for the University of California that
was planned in the January version of the budget is cut by $38 million. This
can only increase pressure for tuition and fee increases at a time when both UC
and the larger, but less elite, California State University system have already
raised student costs to levels where many candidates for admission find it
cheaper to attend private colleges. Within days of Brown releasing his revised
budget plan, UC Regents began discussing another 6 percent tuition increase,
which would be added to the 24 percent rise of the last two years.
The financial pressure on UC has
caused it to admit more out-of-state students than ever, in part because they
pay higher tuition. That’s one big reason a recent study concluded about half
the California high school graduates who would ordinarily be considered
qualified for UC admission are not going there.
How does this translate to continued
recession? CEO Magazine and others report that an educated workforce is one
major factor in business decisions about where to put new facilities and their
jobs. With most out-of-state UC students returning to their home states or
countries after graduation, California will be left with far fewer highly
educated prospective workers than it should have.
Further exacerbating this problem are
the constantly-rising fees and ever-smaller availability of classes at community
colleges. Similarly, there
is nothing in the latest budget proposal that takes aim at the state’s sky-high
dropout rate, expected to come in at somewhere between 26 percent and 32
percent in the annual report of the Department of Education, which was due out
in mid-May but has been delayed a bit, as usual.
Nothing makes for an uneducated
workforce more than high dropout rates, and this is one affliction California
has had for more than a decade, without doing much about it. Now those chickens
are coming home to roost, as older workers retire and many of the young people
who should be replacing them are simply unqualified.
Not that other places are much better;
dropout rates in Texas, for example, are similar to California’s.
Things would only get worse if Brown’s
tax increase initiative fails in the fall, as the last three tax-increase
propositions all have done. If that happens, $5.5 billion will be lopped from
state support for public schools and community colleges, $250 million each cut
from UC and the Cal States, not to mention more than $20 million in lowered
support for law enforcement and fire protection.
Police and fire protection are also
among the basic public services businesses check on when deciding where to
locate. They’re in for some cuts, too.
Brown may have needed to make
reductions like these, as he says. But in at least some cases, they will render
California less and less able to pull out of the current economic slump and
more likely to fall into new ones.
Given Californians’ penchant for
cutting taxes and public services, a trend dating back to the 1970s, it may be
appropriate to recall what both Thomas Jefferson and Alexis de Tocqueville
observed early in the 19th Century: In a democracy, the people get precisely
the government they deserve.
-30-
Email Thomas Elias
at tdelias@aol.com. His book, "The Burzynski Breakthrough: The Most
Promising Cancer Treatment and the Government’s Campaign to Squelch It,"
is now available in a soft cover fourth edition. For more Elias columns, visit www.californiafocus.net
ELECTION WILL DELIVER RESULTS OF 2008-10 REFORMS
CALIFORNIA
FOCUS
FOR RELEASE: TUESDAY, JUNE 5, 2012, OR THEREAFTER
FOR RELEASE: TUESDAY, JUNE 5, 2012, OR THEREAFTER
BY THOMAS D. ELIAS
“ELECTION
WILL DELIVER RESULTS OF 2008-10 REFORMS”
There
was never much doubt California voters were unhappy for many years with some
parts of their electoral system before they finally did something about it in
2008 and 2010.
By the time the polls close at 8 p.m.
today, we will have some idea about the
efficacy of those efforts to improve how we choose elected leaders. No need to
pay much attention to the Republican presidential primary staged simultaneously
with the state’s own non-partisan vote, as the outcome of that race was
determined weeks before any Californian cast a ballot.
Every change taking effect in this
election came via a popular initiative that responded to some kind of public
dissatisfaction, as the vast majority of politicians and virtually every
political party opposed all that was done.
The first change, passed by a large
margin in 2008, gave the once-a-decade task of drawing new boundary lines for
the state’s 120 legislative districts to a Citizens Redistricting Commission
chosen by the state auditor from a large group of applicants, all of whom tried
to prove they had no axes to grind. Republicans are still contesting one of the
commission’s products – the map of state Senate districts. Their complaint will
be decided by another initiative this November, but any shift this might
produce can’t take effect until two years from now.
Change No. 2, in 2010, expanded the
citizen’s commission brief to include redrawing the 53 congressional districts,
thus taking reapportionment completely away from politicians who previously used
it to ensure their own longevity in office.
That combines with another 2010
initiative which ended official party primaries in California except in
presidential voting. Instead of separate primaries in each party, there will be
just one in each district. The two top vote-getters in every district will face
off in the November runoff, with minor party candidates who usually get less
primary votes than unsuccessful hopefuls of the two big parties no longer
cluttering the runoff ballot.
This may produce some titanic
intra-party clashes in the fall. Polls indicate longtime San Fernando Valley
Democratic congressmen Brad Sherman and Howard Berman will both outpoll any
Republican in their district, their fates to be determined in the fall. The
same for Democratic Congresswomen Janice Hahn and Laura Richardson, who figure
to face off this fall after being tossed into a new district stretching from
the Los Angeles Harbor area north to Compton.
Even before those clashes, the
combination of new districts and a new system caused several longtime
congressional grandees to simply abandon hopes for reelection. That list
includes Ventura County Republican Elton Gallegly, San Bernardino County
Republican Jerry Lewis, San Dimas Republican David Dreier and San Joaquin Valley
Democrat Dennis Cardoza. Others departing, possibly in part because of the
electoral changes, include Republican Wally Herger, who has served 13 terms
from a mostly-rural Northern California district, and Democrat Lynn Woolsey, a
10-termer from a partially suburban area north of San Francisco.
There is no assurance all their
replacements will be either Democrats or Republicans. The best example of a
candidate with current allegiance to neither party is Ventura County Supervisor
Linda Parks, a former Republican now registered as an independent, who has a
strong chance to succeed Gallegly.
Minor parties don’t like the fact they
no longer have guaranteed slots on the runoff ballot, even though they never
had much chance to win even when they did have those spots. Previously, they
were guaranteed ballot spots and official standing if they got 2 percent of any
general election vote or had 1 percent of all registered voters. They will
still have that second way to maintain their status as official parties, so
there’s no assurance any of them will disappear.
One major purpose of all the changes,
as advertised by ex-Gov. Arnold Schwarzenegger and other sponsors, is to help
end gridlock and ideological bloc voting in Sacramento and Washington, D.C. by
spurring election of more moderate candidates.
This primary marks the first phase in
testing that promise. For once we have a race or two or three featuring two
persons from the same party, they’ll be forced to reach out to voters in other
parties in order to win a majority in their districts. If Democrats are forced
to seek Republican votes, and the other way around, the presumption is that
more moderation will follow.
But the best laid plans of mice and
men, as the great California author John Steinbeck often noted, do not always
pan out. Which means this primary is only Step 1 in assessing whether all the
electoral changes will actually lead to the changes they promised, in Congress
and the Legislature.
-30-
Email Thomas Elias at tdelias@aol.com. His book,
"The Burzynski Breakthrough: The Most Promising Cancer Treatment and the
Government’s Campaign to Squelch It," is now available in a soft cover
fourth edition. For more Elias columns, visit www.californiafocus.net
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