Burrillville residents refuse to drink tax treaty Kool-Aid


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
2016-10-27 Burrillville Town Council 07
Michael McElroy

Wednesday night’s Burrillville Town Council meeting hearkened back to the early days of public opposition against Invenergy’s $700 million fracked gas and diesel oil burning power plant planned for the town. Back then, we saw a public that was distrustful of the town council, and a town council that was not receptive to the idea of opposing the power plant, early on claiming to be powerless against the combined might of Invenergy, Governor Gina Raimondo’s office and regulators.

The town council then took the position, contrary to the Open Meetings Act, that people in the town were only allowed to talk about issues and subjects that were specifically listed on the town council’s agenda, cutting off discussion about the Algonquin pipeline if the power plant was on the agenda, or vice versa.  In December of last year, calls from the town council to trust them elicited groans of dismay from the audience.

2016-10-27 Burrillville Town Council 04Then, in April of this year, it was learned that the town council had been in secret negotiations for a tax treaty with Invenergy for months. The town council was still forcing residents to only speak about “agenda items” and working hard to curtail public discussion, contrary to the Open Meetings Act.  The growing resistance in Burrillville to the power plant felt disempowered. Not only were they fighting a multi-billion dollar power plant company funded by a Russian oligarch, they were fighting both the state and local governments. The fight seemed impossible and trust between the town council and residents couldn’t be worse. Or so they thought.

At an April 14 town council meeting Council President John Pacheco said that the town council learned about Invenergy’s plans when everyone else did, during a press conference held by Governor Raimondo announcing the plant, saying, “As a town council, we did not know this plant was actually going to happen until the Governor announced it.”

2016-10-27 Burrillville Town Council 05This turned out to be inaccurate. Videos of town council meetings from February and March of 2015, on the town council’s own website, showed the town council and state legislators paving the way for the controversial Invenergy power plant months before the governor officially announced the project. Over time some of the details about how Invenergy approached the town came to light, but the complete story, and who opened what doors to the power plant, has yet to be revealed.

The town council eventually came to a public position regarding the power plant: The town council would put on a public display of strict neutrality, taking no position for or against the power plant, until after all the advisory opinions from various town boards had been completed. This was so as to appear to not influence the outcomes of the various advisory opinions and give the Energy Facilities Siting Board (EFSB) a reason to suspect that the opinions might be slanted in some way.

2016-10-27 Burrillville Town Council 02State legislators Cale Keable and Paul Fogarty went a different route. They entered legislation at the state level that if passed, would give voters in Burrillville the ability to approve or reject any tax treaty negotiated between the town council and Invenergy.

The bill passed the House and was due for consideration and a vote in the Senate when the town council passed a resolution in opposition to the Keable Bill at the 11th hour, giving the Senate Judiciary Committee enough of a reason to vote down the bill. The relationship between the town council and residents was now overtly acrimonious. There were tears from Town Councilor Kimberly Brissette Brown and anger and accusations from Town Councilor Donald Fox. Residents spoke of feeling “humiliated” at the State House as the press release announcing the resolution was sprung on them by Senators Frank Lombardi and Steven Archambeault, who treated the residents with risible condescension.

2016-10-27 Burrillville Town Council 06
Lawyers and Town Councillors strategize during break

Since that low point, the town council and residents worked to rebuild trust. Residents by this time were long past being held to arbitrary and incorrect readings of the Open Meetings Act. They spoke their minds, expressed their concerns and the town council, to their credit, finally seemed to be listening. They seemed to come together as a town when Governor Gina Raimondo visited to hear resident concerns about the power plant.

After the lengthy process of creating the advisory opinions concluded, the town council passed an extremely robust resolution opposing the power plant and asked other city and town councils in and around Rhode Island to join them in opposition. Many already have and many more are considering joining Burrillville in opposition to the plant. But the Burrillville Town Council’s opposition came with a caveat: They still planned to sign a tax treaty with Invenergy, a tax treaty that the town residents want to hold off on signing.

At issue is the timing. The town council maintains that they have negotiated a solid tax treaty that will protect the town in the event the power plant is built, and guarantee a steady stream of income to the town. The residents want to wait until after the EFSB decides on Invenergy’s application before signing any treaty. Right now, the power plant’s application is suspended, pending Invenergy’s search for a new source of water. Signing the tax treaty, say residents, gives Invenergy extra leverage in negotiating a deal with another municipality, like, let’s say, Woonsocket, to purchase water. The town’s opposition to the power plant must be unified and consistent. Opposing the power plant with a resolution sends one message, signing a tax treaty with Invenergy sends another.

2016-10-27 Burrillville Town Council 01At Wednesday night’s hearing, Attorney Michael McElroy, who negotiated the tax treaty, said that the opposing the power plant and signing a tax treaty were not inconsistent actions and would not be seen that way. “I want to make it… clear that I see no inconsistency between entering into these agreements and dead set opposition to the plant,” said McElroy.

But McElroy is a lawyer. He is not a business man trying to buy water to cool a power plant. What businessman wouldn’t mention the tax treaty as proof that the town council is actually okay with having the power plant sited in their town? The resolution in opposition will be described behind closed doors as merely political theater, something to satisfy the rubes while the real business of government is imposed by the movers and shakers in secret meetings paid for with political contributions.

McElroy did his best to sell the tax treaty to the residents. He spent 45 minutes outlining the deal, expressing the need for a treaty. One reason McElroy gave, that didn’t sit well with residents, was that, “I want to get paid.” The money generated by this tax treaty will give the Town of Burrillville the money it needs to fight the siting of the power plant all the way to the Supreme Court, if need be. The lawyers and experts needed to fight such a case cost money, said McElroy, who included himself in those expenses.

McElroy suggested that if the town council did not pass the tax treaty, Invenergy might pull it off the table. He assured the audience that contrary to what Conservation Law Foundation senior attorney Jerry Elmer says, the plant will be built without a tax treaty in place.

Residents weren’t buying it. Towards the end of what turned out to be a five hours plus meeting, it was obvious that the town’s people were not willing to drink the tax treaty Kool-Aid. Forty people spoke against passing the tax treaty. Two spoke in favor of trusting the town council and McElroy’s advice.

Ultimately the town council recessed without doing anything on the tax treaty. There is a plan to take up the issue again next week.

2016-10-27 Burrillville Town Council 03
Midnight, during a short break

EPA forced to confront water pollution in Rhode Island


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
ri_mashapaugpond_litter3_clf
Mashapaug Pond

Conservation Law Foundation (CLF) argued Tuesday before the United States District Court for the District of Rhode Island concerning the failure of the U.S. Environmental Protection Agency (EPA) to adequately protect Rhode Island waterbodies from ongoing and devastating stormwater pollution. Despite determinations from EPA and Rhode Island’s Department of Environmental Management (DEM) that Mashapaug Pond, Bailey’s Brook, North Easton Pond, and other nearby waters are seriously harmed by runoff from surrounding commercial and industrial properties, EPA failed to require dischargers to obtain the necessary permits under the federal Clean Water Act.

ri_mashapaugpond_drain_clf
Mashapaug Pond

“One of the great sources of pride for Rhode Island – the Ocean State – ought to be our ponds, rivers and beautiful coastline, but decades of toxic runoff has imperiled our waters, closed our beaches and endangered important wildlife habitats,” said CLF attorney Max Greene. “There’s no question that nasty pollutants like nitrogen and phosphorus, the precursors to toxic algae blooms, are constantly flowing from industrial campuses and commercial shopping centers into nearby waterways, yet EPA has sat on its hands rather than take the legally-required steps to address this rampant contamination. Today, EPA was forced to answer for that neglect in federal court, and we’re optimistic that Rhode Island waters will soon be on the path to recovery.”

Today’s hearing comes on the heels of an announcement from Rhode Island DEM earlier this month that lower Narragansett Bay, lower Sakonnet River, and a portion of Rhode Island Sound are being closed due to toxic shellfish findings associated with harmful algae blooms.

For more information on CLF’s fight to protect Rhode Island from stormwater runoff, please see CLF’s white paper on the issue, “Closing the Clean Water Gap: Protecting our Waterways by Making All Polluters Pay.”

A copy of CLF’s filing can be read here, and photos of the endangered Mashapaug Pond can be seen here.

ri_mashapaugpond_mural3_clf

 

Proposed Burrillville power plant proves a windfall for Woonsocket Mayor Baldelli-Hunt


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

If you want to buy municipal water from Woonsocket, the first meeting with the mayor is free. The second meeting might cost a campaign donation. That is the appearance given when Adler, Pollack and Sheehan, the law firm representing the proposed power plant in Burrillville, had two meetings in September with Woonsocket Mayor Lisa Baldelli-Hunt, separated by an expensive fundraiser in a high end Italian eatery.

The revelation prompted one Burrillville resident to quip,”Maybe we should be giving the mayor some money.”

9-7-meeting

On September 7, according to information gleaned via an Access to Public Records Act (APRA) request, representatives from Mayor Baldelli-Hunt’s office met with representatives from Invenergy. City councilors, who were briefed after the fact, confirmed the meeting pertained to selling water to the power plant to cool its turbines.

Michael Marcello
Michael Marcello

This meeting lasted 30 minutes. City Solicitor Michael Marcello, who is also a state representative from District 41 representing Scituate and Cranston, would release no further information about this meeting, saying that the details are secret at this time. Marcello served with Baldelli-Hunt when she was a state rep from 2006-2013.

On September 15, at a fundraising event held at Trattoria Romana, three lawyers from the company Adler, Pollock and Sheehan (APS), the law firm representing Invenergy before the state’s Energy Facilities Siting Board, donated a total of $1,000 to Baldelli-Hunt’s campaign, according to the Mayor’s campaign finance reports – including a $250 donation from a lobbyist for Invenergy.

trat

Robert Brooks, APS
Robert Brooks, APS

Robert Brooks, Managing Partner and Chairman of the firm’s Labor and Employment Law Group, donated $250. This is the first time Brooks, a prolific political donor, has given Baldelli-Hunt any money.

ucci
Stephen Ucci, APS

Stephen Ucci, who is also a state representative for District 42, representing Cranston and Johnston, and who sits on the House’s Labor and Rules committees, donated $500. Ucci, who served with Baldelli-Hunt and Woonsocket City Solicitor Marcello while they both served in the House, has given a total of $750 to the mayor in the past.

beretta
Richard Beretta Jr, APS

Richard Beretta Jr, is not only listed on the APS website as “currently engaged in the permitting process for a 1000 MW power plant” (the one Invenergy plans for Burrillville) but is also listed  by the Rhode Island Secretary of State as a registered lobbyist for Invenergy. Beretta gave $250 on September 15. He previously gave Baldelli-Hunt $200 in February of 2015.

9-19-meeting

Four days after this fundraiser, in which employees of APS gave Baldelli-Hunt at least $1000, Invenergy had a second meeting with Baldelli-Hunt’s office. This meeting was also about procuring water and lasted an hour.

Mayor Baldelli-Hunt, who is running on a “pro-business” platform, has another fundraiser planned for November 3 at River Falls Restaurant, from 6-9pm.

Invenergy was recently granted a 90-day extension on their application because the company has failed to come up a with a water source to cool the plant. The Woonsocket Call reported yesterday that City Councillor Daniel Gendron knew nothing about the two meetings, saying, “Really? That’s more than I knew. And that in itself is concerning.”

baldelli-hunt-file
Lisa Baldelli-Hunt

According to The Call, Gendron and Council Vice President Albert Brien Jr “sent Baldelli-Hunt an e-mail Monday advising her that the City Charter requires the administration to keep members of the council in the loop about the status of business negotiations.” They have requested that the mayor, “expeditiously communicate with the council and provide ALL pertinent emails and other relevant communications between the city and representatives of Invenergy together with any other information that may enlighten all of us as to what exactly is being negotiated at this time.”

eugene-jalette
Eugene Jalette

Baldelli-Hunt has refused frequent calls for comment from RI Future for weeks now. At a candidate forum in Chan’s Restaurant in Woonsocket last night, Woonsocket Public’s Safety Director Eugene Jalette refused to let residents of Burrillville, Nick Katkevich of the FANG Collective or this reporter approach the mayor to ask questions.

ucci-contribution trat brooks-contribution

Pipeline tariff killed in Connecticut, Rhode Island an outlier


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

The Connecticut Department of Energy and Environmental Protection (DEEP) has decided against the proposal for gas capacity tariffs on the Spectra Access Northeast pipeline. This announcement comes on the heels of decisions by the Massachusetts Supreme Judicial Court and New Hampshire Public Utilities Commission rejecting similar proposals. The Rhode Island Public Utilities Commission (RIPUC) declined to kill the local version of the plan in September, but the plan seems doomed anyway.

“With yet another state abandoning proposals for more natural gas pipeline capacity, these efforts to expand fossil fuel infrastructure in New England have hit a virtually unsurpassable roadblock,” said Conservation Law Foundation (CLF) president Bradley Campbell in a statement. “Without Massachusetts, New Hampshire or Connecticut in the mix, Spectra has lost a whopping 84 percent of the customer base needed to finance this ill-conceived proposal. It’s time to kill this project altogether and look forward to opportunities for the clean, renewable alternatives that our families demand, our markets expect and our laws require.”

It is unknown when the RIPUC will act to reject the proposal here.

 

‘We have no fossil fuel industry here in Rhode Island,’ said Governor Raimondo this morning, but actually…


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
Gina Raimondo
Gina Raimondo

Governor Gina Raimondo was the introductory speaker Tuesday morning at the AWEA Offshore WindPower 2016 conference in Warwick. Raimondo spoke to the conference attendees, mostly representatives of various wind power companies and allied industries, with some federal and state government employees on hand as well. Raimondo was keen on selling Rhode Island as a place for the growth and development of renewable energy such as solar and wind.”

“I am an advocate for the environment,” said Raimondo, “and I usually begin my comments in audiences such as these talking about the reality of climate change… Climate change is real, caused by human activity and not going to go away on it’s own. It’s up to us, policy makers, business leaders, entrepreneurs to meet the challenge of climate change.”

2016-10-25-wind-conference-01Comparing the problem of climate change to her work on pension reform, Raimondo said, “Climate change isn’t that different from big, thorny fiscal issues, which is to say it’s not going to go away unless we take action and it’s only going to get harder the longer we wait. So we have to meet the challenges of climate change with urgency and a seriousness of purpose, in the same way we would with other fiscal challenges.”

The governor then made her pitch for creating jobs in the state. “As Governor of Rhode Island I want my state to be a leader. Number one, it’s the right thing to do, number two, I want our state to be known as the state that solves problems and meets challenges. But number three, the silver lining in meeting the challenge of climate change is that we can create jobs.

“The good news here is that we can create jobs in solar, in wind, in energy efficiency, and those are the kind of jobs that I want to have here in Rhode Island.

“My message is that all the things about Rhode Island that enabled us to be first, with Deepwater Wind, are the reason you ought to think about doing business in Rhode Island,” said Raimondo, before making a very questionable claim that, “we have no fossil fuel industry here in Rhode Island. We’re not ‘as attached’ to [the] ‘good old’ fossil fuel industry. That’s a big deal. That means we have a culture embracing of this industry [wind energy].”

The governor’s press secretary, David Ortiz, later clarified what Governor Raimondo meant by this statement, saying that, “her point was that the state has no fossil fuel deposits and does not extract natural gas, crude oil or coal.”

2016-10-25-wind-conference-02
Jeff Grybowski

Though this is true, it does not follow that Rhode Island has a “culture” embracing alternative energy. The fossil fuel industry has a giant economic, political and environmental presence in the state.

Putting aside the proposed Burrillville power plant, or any other of the proposed LNG infrastructure expansions in various stages of being approved, “Rhode Island’s Port of Providence,” according to the US Energy Information Administration (USEIA), “is a key regional transportation and heating fuel products hub” and “natural gas fueled 95 percent of Rhode Island’s net electricity generation in 2015.”

The USEIA goes on to say that Rhode Island “does not produce or refine petroleum,” as Raimondo’s office clarified, but, “Almost all of the transportation and heating fuel products consumed in Rhode Island, eastern Connecticut, and parts of Massachusetts are supplied via marine shipments through the Port of Providence. The port area has petroleum storage tanks, and a small-capacity petroleum product pipeline runs from the port to central Massachusetts.”

Sheldon Whithouse
Sheldon Whithouse

Rhode Island is heavily dependent on LNG imports. “Electric power generators and the residential sector are Rhode Island’s largest natural gas consumers. More than half of the natural gas consumed in the state goes to the electric power sector and almost all in-state electricity generation is fueled with natural gas,” says the USEIA, “Historically, natural gas has arrived in Rhode Island from producing areas in Canada and from the U.S. Gulf Coast and Mid-Continent regions, but increasing amounts of natural gas are coming from Appalachian Shales, particularly the Marcellus Shale of Pennsylvania.” This makes Rhode Island heavily dependent on fracked gas for its power generation.

And finally, as far as the dirtiest fossil fuel, coal, goes, “Providence is one of the leading coal import centers in the northeast, receiving one-tenth of the imported coal delivered to eastern customs districts in 2015. The state is part of the six-state Independent System Operator-New England (ISO-NE) regional grid. And, although Rhode Island and Vermont are the only two states in the nation with no coal-fired electricity generation, the ISO-NE grid remains dependent on coal-fired facilities during periods of peak electricity demand.”

David Cicilline
David Cicilline

So, although Rhode Island has no industry producing or refining fossil fuels, Rhode Island is heavily burdened and intertwined with the fossil fuel industry. We are soaking in fossil fuels as an importer and exporter. We fund the fracking of America with our energy choices, and even as we are economically and politically dictated to by companies like National Grid, Spectra, Invenergy and Motiva (a subsidiary of Saudi Aramco and Shell Oil Company, we bear the environmental scars of their abuse of our habitats and our health.

This is the fossil fuel industry in Rhode Island.

It is massive and it is killing us.


Also speaking at the AWEA Offshore WindPower 2016 conference was Deepwater Wind’s Jeff Grybowski, Senator Sheldon Whitehouse and Representative David Cicilline.

Burrillville Town Council about to have its Gaspee moment


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Raimondo in Burrillville 008On Wednesday the Burrillville Town Council will be discussing the proposed tax treaty with Invenergy, the company that wants to build a $700 million fracked gas and diesel oil burning power plant in the town. The timing of this discussion could not be worse. Invenergy just successfully petitioned the Energy Facilities Siting Board (EFSB), the governmental body tasked with with approving or rejecting the plant, for a 90 day extension on their application. Because Invenergy can’t find the water it needs to cool the plant, for the first time the company is on the ropes. Approving a tax treaty at this time will give the company a much needed win, and might turn the tide in their favor.

Invenergy is searching for the water they need. An Access to Public Records Act (APRA) request from RI Future has revealed that Woonsocket Mayor Lisa Badelli-Hunt’s office has had two meetings with Invenergy officials. On September 7 there was a 30 minute meeting and on September 20 there was a 60 minute meeting. Other meetings may have occurred since then. We know from statements made at the October 3 Woonsocket Town Council meeting that these discussions were not about siting the plant in Woonsocket. These discussions, assumed to be ongoing, are about water. Whatever bargaining position Invenergy has in their discussions with Woonsocket, or any other entity contemplating providing the water Invenergy needs, will be enhanced by the existence of an approved tax treaty.

Passing a tax treaty will send mixed signals to the rest of the state. On September 22 the Burrillville Town Council issued a strong statement in opposition to the proposed power plant. They sent out missives to cities and towns through Rhode Island, Connecticut and Massachusetts asking for other town and city councils to pass resolutions in solidarity with Burrillville. So far at least four municipalities have done so, Lincoln, Glocester, North Smithfield and Middletown. How foolish will these councils feel if Burrillville proceeds to negotiate with the company they’ve asked for support in opposing? How eager will other municipalities be to pass their own resolutions going forward?

Jerry Elmer, senior attorney for the Conservation Law Foundation (CLF) believes that the Town of Burrillville “is under zero obligation to enter into a tax treaty,” adding, “By ‘zero obligation,’ I mean: zero legal obligation, zero ethical obligation, zero political obligation. The Town has tax laws on the books, and those existing tax laws will determine Invenergy’s tax obligation if there is no tax treaty.

“Invenergy can (and likely will) make all kinds of threats about what will or will not happen in the absence of a tax treaty, but the threats are empty,” continues Elmer, “The bottom line is that: (a) The Town can simply choose not to enter into a tax treaty. (b) If the Town chooses not to enter into a tax treaty there is nothing that Invenergy can do. (c) If the Town chooses not to enter into a tax treaty, it is virtually certain that Invenergy will go away.

“But can’t Invenergy sue the Town of Burrillville to try to force the Town to enter a tax treaty?” asks Elmer, before answering, “Technically, the answer is “yes,” Invenergy can sue the town – and, yes, the town would have to spend some money to defend such a lawsuit. But Invenergy could not win such a lawsuit.  Remember what law school professors like to say: ‘You can always sue.’ I can sue you for wearing a blue suit (or for your taste in movies). But just because one can bring such a stupid, frivolous lawsuit does not mean that one can win such a stupid lawsuit.

“So, too, with Invenergy and a tax treaty.  The Town of Burrillville can decline to enter into a tax treaty with Invenergy, and there is nothing Invenergy can do to force the issue.

“The message to each and every member of the Town Council is simple, so simple it can be put into a single sentence: ‘Vote down any tax treaty.’ Or: ‘Don’t even vote on a tax treaty.’ Or: ‘Don’t vote on a tax treaty, and don’t approve a tax treaty.’ None of those sentences is complicated; none of those involves weird, technical legal mumbo-jumbo.  Everyone can understand the point.”

2016-07-26 PUC Burrillville 3033Attorney Alan Shoer, of Adler Pollock & Sheehan, has been representing Invenergy during their application process in front of the EFSB. A look at Shoer’s bio page on his law firm’s website runs down his skills and accomplishments. Shoer is presented as an expert in “all aspects of energy, environmental, and public utility law.” He has “experience in wind, solar, hydro and other renewable energy matters,” and “has represented developers, investors, contractors, utilities, and municipalities in several successful and innovative sustainable energy projects.”

Note what Shoer does not include in his online resumé: Anything at all to do with his strong advocacy for companies that want to expand Rhode Island’s dependence on fracked gas.

Like Governor Gina Raimondo, who never misses an opportunity to publicly champion wind and solar power but downplays her support of fracked gas, and like Senator Sheldon Whitehouse who humbly accepts the laurels heaped upon him for his environmental activism in the Senate but can’t find the time to publicly oppose fracked gas infrastructure in his own state, Alan Shoer seems to want his paid advocacy for fossil fuels companies like Invenergy to go unnoticed.

And this is for a good reason: Twenty years from now, no one will want their name to be attached to the moldering LNG monstrosities, brown fields and contaminated properties left in the wake of the coming fossil fuel collapse. Who wants to tell their children and their grandchildren that they helped destroy the environment when they knew the world was under threat and they knew that they were championing a dying and deadly industry? Carefully shaping their public image today is a way, hopes Raimondo, Whitehouse and Shoer, of shaping the way history will judge them.

But we won’t let the world forget their part in this, will we?

This is why Invenergy would be foolish in suing Burrillville. Not only can they not win, as Jerry Elmer points out above, but in doing so they will be exposing themselves as the villains they are. Burrillville may have to spend money defending themselves against such a lawsuit, but I will bet that most or all of the money Burrillville needs to defend themselves could come from something like an online GoFundMe effort. Fracked gas is enormously unpopular in New England, and becoming more unpopular by the day. Only those who continue to believe the lies of the fossil fuel companies, (and they’ve been lying for decades about climate change, as it turns out) that is, the most gullible or ideologically pathological, believe that fossil fuels are the future.

About 244 years ago, a group of Rhode Islanders in Warwick stood up against British tyranny and torched the Gaspee, starting a series of events that led to the American Revolution. Today, in Burrillville, a group of Rhode Islanders is standing up to the fossil fuel oligarchy and when they win, it will mark a turning point in the climate change battle, and the effects could be as significant as those at Gaspee Point in 1772. Rhode will become, in the words of Timmons Roberts, writing for the Brookings Institute, “a leader of a new energy age for the U.S.,” instead of “a middling actor locked into fossil fuel infrastructure for decades.”

The Burrillville Town Council has an opportunity Wednesday night to save the town, the state, and the world.

Be there.

Fang activists shut down TD Bank in PVD over Dakota Access Pipeline project


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

2016-10-20-fang-td-bank-09Two anti-pipeline activists temporarily shut down TD Bank in downtown Providence by locking themselves to a front door using elaborate cement and rebar tubes to prevent authorities from removing them.

Only the ATM was available to bank customers for about a half hour. Laura Borth and Steve Davis, both Fang Collective activists, were arrested and will be charged with disrupting a business, a misdemeanor.

TD Bank was targeted because it provides major financing to the Dakota Access Pipeline project that is being vociferously protested by the Standing Rock Sioux Tribe and others.

2016-10-20-fang-td-bank-16“Let The FANG Collective’s action serve as an example of what an ally group should look like,” said Krystal Two Bulls, a Sioux activist protesting the Dakota Access Pipeline. “If you live on this land, breathe the air and drink water… this is your fight too. Divest. Take action. Stand with us at Red Warrior Camp and Standing Rock. We call on all ally groups to take action and hold the banks who finance the Dakota Access Pipeline accountable.”

The Dakota Access Pipeline, or DAPL, is a $3.8 billion fracked-oil pipeline being constructed in the Bakken shale fields of North Dakota to Peoria, Illinois. It would cross Lakota Treaty Territory at the Standing Rock Sioux Reservation and traverse underneath the Missouri River. The Standing Rock Sioux tribe is leading an effort to stop the pipeline from being built.

“TD Bank is an active participant in the violence and oppression facing indigenous people in North Dakota,” said Laura Borth, in a statement prepared before her arrest. “I cannot remain idle as corporations and financial institutions aggressively put forth their greed for profit over the safety and wellbeing of people and the climate.”

Said Steve Davis, “TD Bank still has an opportunity to do the right thing and cut its line of credit for the Dakota Access Pipeline. We will keep coming back until they do just that.”

2016-10-20-fang-td-bank-01

2016-10-20-fang-td-bank-02

2016-10-20-fang-td-bank-03

2016-10-20-fang-td-bank-04

2016-10-20-fang-td-bank-05

2016-10-20-fang-td-bank-06

2016-10-20-fang-td-bank-07

2016-10-20-fang-td-bank-08

2016-10-20-fang-td-bank-10

2016-10-20-fang-td-bank-11

2016-10-20-fang-td-bank-12

2016-10-20-fang-td-bank-13

2016-10-20-fang-td-bank-14

2016-10-20-fang-td-bank-15

2016-10-20-fang-td-bank-17

2016-10-20-fang-td-bank-18

2016-10-20-fang-td-bank-19

2016-10-20-fang-td-bank-20

2016-10-20-fang-td-bank-21

2016-10-20-fang-td-bank-22

2016-10-20-fang-td-bank-23

Millions in tax credits earn Pawtucket’s Hope Artiste Village a protest


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

2016-10-15-hope-artiste-village-02 David Norton one of the leaders of the coalition that fought to keep the PawSox in Pawtucket and recently lost a Democratic primary election to unseat Pawtucket Representative David Coughlin, lead a protest outside Hope Artiste Village against Lance Robbins, controversial founder of Urban Smart Growth. As the ProJo reported, “Last month, the [R.I. Commerce Corporation] board authorized $3.6 million in Rebuild RI tax credits and $800,000 in sales-tax exemptions on construction material for developer Urban Smart Growth’s $38.9-million residential project at 200 Esten Ave., Pawtucket, just south of Hope Artiste Village.”

2016-10-15-hope-artiste-village-03The downside, as reported extensively in GoLocal.com, is that Robbins has a reputation as “the worst slumlord in L.A. history, ” and his local reputation, with some business owners, is no better. Three of those business owners, Rosinha Benros, Phyllis Arffa and John Arcaro, spoke at the protest, and their stories are troubling. Each claim that their businesses were destroyed by the actions of their landlord, Lance Robbins.

Also speaking at the protest were Independent candidate for Mayor of Pawtucket John Arcaro and Independent candidate for State Rep Lori Barden.

2016-10-15-hope-artiste-village-01

Even National Grid’s contractor doesn’t seem to know what’s going on in Fields Point


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

When allegations surfaced last month that National Grid was pushing ahead with their Fields Point liquefaction project despite lack of approval from the Federal Energy Regulatory Commission (FERC) and no proper permits from city and state agencies, Grid spokesperson David Graves was quick to deny it, saying, “The work underway at our property at 642 Allens Ave. property, which has been properly permitted, is unrelated to the liquefaction project.”

Then this picture was taken yesterday:

kiewit-01

When asked for an explanation, Graves today said, “Kiewit put this sign up without our knowledge. They are the contractor building the access road for equipment and personnel working on the LNG tank embankment improvement. They are also the contractor designated to oversee installation of the liquefaction equipment when we have the OK to proceed with that project. It appears that in their minds the projects are one and the same, which is not the case. There is no work going on associated with the liquefaction project. Kiewit has been told to take down the sign and replace it with one that clearly identifies what work is underway.”

It seems that the projects under way at Fields Point are so confusing and interconnected that even National Grid’s contractors are having trouble telling them apart.

NoLNGinPVD, an environmental group opposed to the liquefacton facility, issued the following statement: “This is another glaring example of why we cannot trust the process at National Grid’s word and why it is an embarrassment to our state that the “public” utility is pulling the strings of our public officials. DEM refuses to hold National Grid accountable and enforce the legally petitioned for Public Involvement Plan. The city council ordinance committee has shelved a resolution calling for public oversight. The federal delegation that spoke out when a similar project would have affected recreational usage of the bay by wealthy suburbanites is deafeningly silent when the burden of danger is and pollution is absorbed by working class people of color on the south side of Providence. National Grid and their contractor Kiewit do know what they are doing, they are forcing unneeded and dangerous fossil fuel infrastructure on a community of color that has raised many environmental justice concerns. They know this, and they think they can get away with it. We’re going to make sure they don’t.”

EFSB sentences Burrillville to 90 days of existential uncertainty


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
20161013_114807
Pre-hearing lawyer chat

Amid audience shouts of “Shame on you!” and “Merry Christmas, Invenergy!” the Energy Facilities Siting Board (EFSB) voted unanimously to grant Invenergy a 90 day suspension on their application to build a $700 million fracked gas and diesel oil burning power plant in Burrillville, effectively quadrupling Invenergy’s previous 30 day extension.

Once Pascoag voted to terminate their letter of intent with Invenergy to provide water to cool Invenergy’s proposed power plant, and Harrisville also declined to provide water, the company asked for 30 days to find an alternative source. They were granted a 30 day extension 30 days ago and despite negotiating with Woonsocket for the water needed to oil the power plant, nothing concrete was presented at today’s hearing.

Instead we heard Invenergy lawyer Alan Shoer claim that Pascog’s termination of their letter of intent came “very late in the process, after almost a year of working with Invenergy.” This made it impossible for Invenergy to come up with an alternative plan, complained Shoer. Attorney Jerry Elmer with the Conservation Law Foundation (CLF) later countered that “Invenergy made a careful, conscious, deliberate decision to file an application with the EFSB that had very tight, strict, statutory deadlines for things happening, before they had a secure water source… That was Invenergy’s sole election.”

In other words, continued Elmer, Invenergy knew that their non-binding letter of intent “may not result in a water source.”

Margaret Curran
Margaret Curran

The 90 day suspension comes with the minor caveat that Invenergy provide a status update in 60 days. The update must show concrete progress in securing a water source, though it is unclear what penalty Invenergy may face if they do not deliver an update that is satisfactory to the board. Criteria for the update seemed sketchy.

In 90 days, Invenergy must be able to present a water source to the board, along with a plan to transport the water to the location of the power plant. Burrillville recently provided a list of criteria that board member Janet Coit suggested would need to be satisfied for the suspension to be lifted. The criteria includes the source of the water, the means of transmission of the water, and the disposal of waste water, among other concerns.

In the event that Invenergy is unable to come up with a water supply, Coit suggested that the EFSB might be open to further suspensions at that time, effectively suggesting unlimited time for Invenergy to get their application in order, unless the board decides to dismiss the application per the motions from the Conservation Law Foundation and the Town of Burrillville.

Parag Agrawal
Parag Agrawal

Lawyer Michael McElroy gave a stellar speech to the board in support of dismissing Invenergy’s application, even going so far as to quote Marvel ComicsStan Lee. McElroy also directly confronted Chair Margaret Curran and board members Parag Agrawal and Janet Coit about concerns that the EFSB’s process “may be dictated by” Governor Gina Raimondo.

“The Town of Burrillville does not want this plant,” said McElroy, “I think that’s been made clear to this board. This plant would be a polluting monster that violates the town’s comprehensive plan and zoning ordinances and would negatively impact impact the quality of life for all Burrillville residents.

The EFSB, continued McElroy, “has been given extraordinary legal powers to grant permits that would otherwise be granted by my client, the Town of Burrillville. You have in essence become, among other things, the town’s planning board, its zoning board and its building inspector. But with such great power comes great responsibility. Your most important power and responsibility is to fully, fairly and impartially evaluate all of the issues that come before you after hearing from all of the parties on those issues.”

“The residents of the town and my clients have become concerned that throughout this process that the board’s votes on this process may be dictated by the governor, who has repeatedly and publicly expressed her support for this project despite the town’s overwhelming opposition. This board’s ill-advised and illegal previous attempts to silence the town and prevent it from being heard today only reinforces that concern.

McElroy urged the board to dismiss the docket, not suspend it. “Suspending the docket instead of dismissing it would give Invenergy what amounts to a gift of an indefinite suspension,” said McElroy. “The town has been fighting this battle now for almost a year at great monetary and emotional expense.”

20161013_114557
Donna Woods

McElroy’s fiery comments stand in sharp contrast to those of Jerry Elmer, who added that though the lack of water was a major issue that precipitated the motion to suspend, there was also the issue of a lack of information from Invenergy that caused six of the twelve advisory opinions to the board to be submitted incomplete.

After the board rendered its decision those watching the proceedings left the room singing “We shall overcome.”

Those from Burrillville I talked to were angry and disappointed by the ruling. They feel the process is corrupt and stacked against them. They feel that they are being forced to attend yet more town and city council meetings throughout the state in an effort to garner support and prevent the sale of water to Invenergy. Their holidays will now be filled with research, activism, environmental reports and endless meetings in towns and cities throughout the state and beyond to garner support for their cause and to prevent Invenergy from securing a source of water.

Yet though the process seems corrupt and Invenergy seems intent on grinding away their resolve, the people I talked to were adamant that they would not give up or stop fighting.

New Hampshire joins Mass. in rejecting pipeline tariff


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
Margaret Curran
RIPUC Chair Margaret Curran

National Grid’s proposed pipeline tariff, now under an indefinite stay per the Public Utilities Commission here in Rhode Island, was rejected in New Hampshire last week. The controversial and complicated plan, which would make electricity ratepayers in New England financially responsible for the creation and profitability of a new fracked gas pipeline, involves multiple companies working together across multiple states. Here’s a description from the New Hampshire Public Utilities Commission:

Herbert DeSimone III
RIPUC Boardmember Herbert DeSimone III

Eversource is a public utility headquartered in Manchester, operating under the laws of the State of New Hampshire as an electric distribution company (EDC). Algonquin is an owner-operator of an interstate gas pipeline located in New England. Algonquin is owned by a parent company, Spectra Energy Corp (Spectra), a publicly-traded corporation headquartered in Houston, Texas. Algonquin has partnered with Eversource’s corporate parent, Eversource Energy, headquartered in Boston, Massachusetts, and Hartford, Connecticut, and with National Grid, the parent company of EDC subsidiaries in Rhode Island and Massachusetts, to develop the Access Northeast pipeline. In general terms, Eversource Energy’s EDC subsidiaries in Connecticut, Massachusetts, and New Hampshire and National Grid’s EDC subsidiaries in Rhode Island and Massachusetts, are each individually seeking regulatory approval of gas capacity on the Access Northeast pipeline.”

When the Massachusetts Supreme Judicial Court ruled against National Grid’s pipeline tariff in Massachusetts, the Conservation Law Foundation brought a motion to dismiss the proposal here in Rhode Island. Instead, the PUC issued an indefinite stay in the proceedings, with the caveat that National Grid file a progress report on January 13, 2017.

Last week the New Hampshire PUC ruled against their state’s involvement in the plan, writing,

“The proposal before us would have Eversource purchase long-term gas pipeline capacity to be used by gas-fired electric generators, and include the net costs of its purchases and sales in its electric distribution rates. That proposal, however, goes against the overriding principle of restructuring, which is to harness the power of competitive markets to reduce costs to consumers by separating unregulated generation from fully regulated distribution. It would allow Eversource to reenter the generation market for an extended period, placing the risk of that decision on its customers. We cannot approve such an arrangement under existing laws. Accordingly, we dismiss Eversource’s petition.

“We acknowledge that the increased dependence on natural gas-fueled generation plants within the region and the constraints on gas capacity during peak periods of demand have resulted in electric price volatility. Eversource’s proposal is an interesting one, with the potential to reduce that volatility; but it is an approach that, in practice, would violate New Hampshire law following the restructuring of the electric industry. If the General Court believes EDCs should be allowed to make long-term commitments to purchase gas capacity and include the costs in distribution rates, the statutes can be amended to permit such activities.”

The Maine Public Utilities commission has voted in favor of the pipeline tariff.

Killingly power plant battle impacts Rhode Island


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

2016-10-10 Killingly 023As large as Invenergy‘s $700 million fracked gas and diesel oil burning power plant would be if it were to be actually built in the pristine wilderness of Burrillville, the project is but a small part of a colossal, three-state fracked gas infrastructure project that has been in development for years in the northwest corner of the Rhode Island and beyond. Eight power plants currently litter a 31 mile expanse of pipeline, from Killingly, Connecticut, through Rhode Island, to Medway, Massachusetts. If built, Burrillville would be power plant number nine and Killingly is the proposed site of power plant number ten.

Smaller than the power plant proposed for neighboring Burrillville, the “Killingly Energy Center” is slated to produce 550 MW of unneeded energy. It will produced nearly 2 million tons of emissions per year, adding to the emissions of the Lake Road Generating Facility, an 840 MW power plant already located in Killingly. Emissions, of course, know no political boundaries, so large parts of Rhode Island will be subjected to this increase in pollutants.

2016-10-10 Killingly 017The Killingly power plant is to be built in a residential neighborhood within a mile of 460 Killingly housing units. At least five schools and day cares, over 5,000 students, are within three miles of the proposed plant. Wyndham County, where Killingly is located, has asthma rates 18 percent higher than the rest of Connecticut.

To power the plant, a pipeline connection to the main AIM pipeline will be built, crossing the Quinebaug River, Wyndham Land Trust, the Airline Trail, Pomfret Audubon Society and Bafflin Sanctuary. Each area a precious resource.

Like Burrillville, the proposed power plant needs water. There is a concern that the aquifers will be strained and that residents will suffer a lack of water given that the power plant needs 90,000 gallons a day when burning fracked gas and as much as 400,000 gallons a day when burning diesel oil. Also, like Burrillville, there are safety and and noise issues to consider when a plant like this is built in a residential area.

2016-10-10 Killingly 022The Town of Killingly is categorized as a distressed community. Like other areas where these types of facilities are targeted, there are environmental justice issues to be considered. Very often the facilities are like these are aimed at low income communities that lack the financial means to either fight the power plant or resist the financial carrots dangled by the company building the plant.

NTE Energy, the prospective builder, has never completed a power plant. Formed in 2009 as a private equity funded company, there is a worry that the company will build the plant and sell it off for a quick profit. Currently the company has six power plants in development, two of which are under construction. The company has no experience in operating or maintaining a power plant.

Also, like in Rhode Island, the residents most impacted by the siting of a power plant in their community have no say in whether or not the plant will be built. The Connecticut Siting Council, the equivalent of Rhode Island’s Energy Facility Siting Board (EFSB) makes the final decision regarding the power plant in Killingly. The Siting Council has already determined that Connecticut has an excess of electricity generation into 2020, yet is still considering the power plant in Killingly.

Opposition to the power plant has begun in Killingly. The group is called Not Another Power Plant, and I found that they were very knowledgeable about the situation in Burrillville. I went there Monday afternoon to talk with residents who were holding signs and a press conference to get the word out. Below I speak to Connecticut State Senator Mae Flexer and Connecticut State Representative Danny Rovero about their opposition.

On Thursday October 20th beginning at 3:30 pm there will be a public field review of the proposed NTE/KEC site on Lake Road, Dayville. This will be an opportunity to see the area where NTE hopes to build the power plant. Afterwards there will be a Public Hearing with the Connecticut Siting Council at 6:30 pm at the Killingly High School Auditorium. Public comment will be heard at this meeting.

2016-10-10 Killingly 025

2016-10-10 Killingly 024

2016-10-10 Killingly 021

2016-10-10 Killingly 020

2016-10-10 Killingly 019

2016-10-10 Killingly 018

2016-10-10 Killingly 016

2016-10-10 Killingly 015

2016-10-10 Killingly 014

2016-10-10 Killingly 013

2016-10-10 Killingly 012

2016-10-10 Killingly 011

2016-10-10 Killingly 010

2016-10-10 Killingly 009

2016-10-10 Killingly 008

2016-10-10 Killingly 007

2016-10-10 Killingly 006

2016-10-10 Killingly 005

2016-10-10 Killingly 004

2016-10-10 Killingly 003

2016-10-10 Killingly 002

2016-10-10 Killingly 001

2016-10-10 Killingly 000

While championing renewables, Raimondo dog whistles fossil fuels


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
Newport Solar
Gina Raimondo

“At breakfast this morning my nine year old, out of the blue, said, ‘Mom, what are you doing about climate change?’” said Governor Gina Raimondo at a press event in the offices of Newport Solar on Monday, “What a perfect day to ask the question! So I told him all about this and he was proud of me that we were on that.”

Newport Solar in North Kingstown is where Raimondo chose to kick off National Energy Awareness Month with her new Office of Energy Resources (OER) commissioner Carol Grant. Newport Solar is a Rhode Island leader in solar installation, and its successful efforts should be lauded.

“Our clean energy sector in Rhode Island has created a slew of new opportunities for education and jobs, and that will continue as we move forward in building the clean energy industry,” said Raimondo at the event.

Commissioner Grant spoke about Rhode Island’s high ranking in the State Energy Efficiency Scorecard. The American Council on Energy‐Efficient Economy (ACEEE) recently ranked Rhode Island fourth in the country for best energy efficiency programs and policies. “We want to educate Rhode Islanders on the many benefits of the state’s energy efficiency and renewable energy programs,” said Grant, “and we look forward to further developing a future of clean, affordable, reliable and diversified energy.” [italics mine]

Also at the event was Michael Ryan, Vice President of Government Affairs at National Grid, encouraging Rhode Islanders to save energy.

Energy in Rhode Island needs to be “affordable, reliable, and clean” said Raimondo, “It’s got to be all three, and it can be all three.”

Later, Raimondo’s three criteria had mysteriously become four, or more. “So I’m going to continue to lead and push, as your governor, towards more clean, affordable, and reliable and diversified energy sources… to lead the nation in more and more sources of clean, renewable, affordable, sustainable energy.”

Towards the end of the presser, National Grid’s Michael Ryan, ironically standing in front of a large Newport Solar banner emblazoned with the tagline, “Think outside the grid,” mis-repeated Raimondo, saying that the energy must be “efficient, affordable and reliable.

“Those are key with National Grid.”

In the video below you can watch the complete press event. Solar, wind and efficiency were lauded but fracked gas, the third leg of Raimondo’s energy policy, and a key driver of National Grid’s business, was never mentioned except via subtle dog whistles.

These dog whistles are words like reliable, diversified and efficient. These are the words anti-environmentalists use when they want to scare us into accepting fracked gas as a bridge fuel, like when Rush Limbaugh said, “Solar panels are not sustainable, Millennials. May sound good, yes. ‘Clean, renewable energy.’ But what do you do when the sun’s down at night? What do you do when the clouds obscure the sun? We’re not there yet.”

Limbaugh admits that solar panels are clean and renewable. But he’s doubting their reliability and sustainability.

This is how a politician like Raimondo can appease companies like National Grid, which are actively working to expand Rhode Island’s dependence on fossil fuels, while publicly talking only about the work she’s doing on energy that’s actually clean and renewable.

On April 13 Raimondo appeared at a solar farm in East Providence to announce the results of the 2016 Rhode Island Clean Energy Jobs Report released by the Rhode Island OER and the Executive Office of Commerce. At this event Marion Gold, who publicly supported the power plant planned for Burrillville, was still the OER commissioner.

“The clean energy economy is supporting nearly 14,000 jobs,” said Raimondo, “a forty percent increase from last year. That is amazing.”

The press release for this event noted that this job growth was likely the result of the “maturation of the solar industry, start up activity in smart grid technologies, and the progress made on the construction of the Block Island Wind Farm.”

There was no mention at this event of fracked gas, Burrillville, Invenergy, Spectra pipelines, or National Grid’s expansion of LNG at Fields Point, until reporters asked the governor about it directly, at which point Raimondo somewhat reluctantly admitted that she does in fact support Invenergy’s $700 million fracked gas and diesel oil burning power plant planned for Burrillville.

In Raimondo’s capacity as vice chair of the Governors’ Wind Energy Coalition she was proud to “support the foresight of my colleagues to broaden the Coalition’s focus and include solar energy development as a policy priority. Wind and solar provide complementary benefits to the U.S. electric grid and will help diversify the country’s energy mix. The need for states to take a broader view of renewable power is clear.”

Again, no mention of her support for fracked gas.

Newport SolarRaimondo has consistently touted her support for renewables like wind and solar, only occasionally voicing her support for fracking. Raimondo never holds a press release in front of a fracked gas pipeline or compressor station. She holds them at wind turbines and solar farms, giving the appearance of a strong leader on the environment.

But National Grid and Invenergy need to know she’s on board with their plans, so she signals her support during the press conference with careful phrasing.

And if the governor’s phrasing is off message, National Grid’s Michael Ryan will misquote her. “Clean” energy is out, “reliable” energy is in. In other words, “Let them eat fracked gas.”

Raimondo’s choice of location for her press conferences demonstrates that if she is not embarrassed by her support of fracked gas, she at least is beginning to recognize how history will ultimately judge her support.

As Bill McKibben said in a recent message to Rhode Island, “Five to ten years ago we thought the transition was going to be from coal, to natural gas as some sort of bridge fuel, onto renewables and now, sadly, we realize we can’t do that in good faith, because natural gas… turns out to be a dead end, not a bridge to the future but a kind of rickety pier built out into the lake of hydrocarbons.”

Fracked gas was well known to be a bad idea when Raimondo stood with Invenergy’s CEO Michael Polsky and tried to sell the idea to Rhode Island. Raimondo’s support for Invenergy’s power plant was a massive political blunder with consequences not only for her political career, but for the future of Rhode Island and the world.

A future, and a world, her children will be living in.

Middletown first to consider solidarity with Burrillville against power plant


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
0047_Edit
Middletown Town Council

The Middletown Town Council appears to be the first town or city council in Rhode Island to take up the Burrillville Town Council’s call for solidarity in the face of Invenergy’s planned $700 million fracked gas and diesel oil burning power plant. As part of the vote to oppose the power plant, the Burrillville Town Council also voted to ask every city and town in Rhode Island to support them in their opposition.

At Monday’s town council meeting Claudia Gorman spoke about the issues surrounding the approval process and the wide ranging opposition to Invenergy’s plans both locally and statewide.

“Advisory opinions submitted during the ongoing permitting process have expressed reservations regarding the vagueness of Invenergy’s application, negative environmental impacts, incomplete or unsatisfactory mitigating practices, and a glaring lack of a source for the thousands and thousands of water needed to cool this operation,” said Gorman, “I hope my town council will support Burrillville, Rhode Island in their opposition to this major, industrial project called the Clear River Energy Center.”

After Gorman finished her statement Councillor Henry Lombardi Jr said that he has been following this because of issues Middletown is facing with “another energy issue.”

“Burrillville already has a power plant in their town, it is going to affect their water supply,” said Lombardi, “I watched some of the public comment and they are just vehemently opposed to this. Enough is enough. I would suggest that we strongly support this resolution.”

“I have already directed the town clerk to draw up the resolution to oppose it,” said Council President Robert Sylvia, “which will be on the next docket.”

In message to Rhode Island, Bill McKibben praises and undercuts Sheldon Whitehouse on climate change


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
McKibben
Bill McKibben

“Five to ten years ago we thought the transition was going to be from coal, to natural gas as some sort of bridge fuel, onto renewables,” said 350.org’s Bill McKibben in a message to Rhode Island, “and now, sadly, we realize we can’t do that in good faith, because natural gas turns out not to work that way, as a bridge fuel.”

McKibben, a leading voice on the dangers of climate change, was speaking in a video message to Senator Sheldon Whitehouse’s annual Rhode Island Energy & Environmental Leaders Day” conference at the Rhode Island Convention Center last Friday.

McKibben started his eight minute message with praise for Whitehouse, calling him an “indefatigable leader,” along with Senator Bernie Sanders, around climate change issues. McKibben called Whitehouse’s Friday dialogues on the Senate floor against climate change and ExxonMobile “relentless” and “remarkable.”

“There are moments when I hope that his last name turns out to be a key to his and our future, but that’s for another day,” said McKibben.

But McKibben was also relentless in his condemnation of natural gas.

Natural gas, said McKibben, “turns out to be a dead end, not a bridge to the future but a kind of rickety pier built out into the lake of hydrocarbons. So we’ve got to make the transition to renewables now, and fast.

“We have to forget about bridges and make that leap.”

Earlier that day, during a question and answer session, Senator Whitehouse once again declined to speak out against the natural gas infrastructure projects currently threatening Rhode Island’s ability to meet carbon and greenhouse gas reduction goals. Greg Gerritt, of ProsperityforRI.com, confronted Whitehouse, saying that the “resistance,” those engaged in front line battles against fossil fuel infrastructure, was ultimately going to have a greater effect than the carbon tax that Whitehouse champions.

“People are saying no more fossil fuel pipelines, no more power plants, no more compressor stations, and they’re putting their bodies out there,” said Gerritt, “I want us to think about how the dark money plays out in a place like Rhode Island where you can talk about climate change, but you can’t actually stop anything.

“The politicians are all saying, ‘even though we know that if we build this we can’t ever meet our carbon goal, we still want to build a power plant.’ And I want to know what are we going to do so that on the ground, here in our own communities, that this power of the fossil fuel industry gets stopped.”

Whitehouse countered that his job in the Senate “is to try to solve this in a place where it will have the most powerful effect that it can, across the board. I will never win this fight, from where I sit, plant by plant. I just won’t, can’t. Too many of them, too much going on, and frankly there are hundreds of others that are being built while some are being protested, there are hundreds of other pipelines being used while one is being protested.

“It’s not effective, to, in my view, uh, it makes a difference, it sends a message, I don’t undercut what people are doing. I think what we did with Keystone helped send a big message, but my job, I think, is two things:

“One, fix that problem of the huge subsidy [for fossil fuel companies] because $700 billion a year or $200 billion a year sends such a powerful message through the entire economy,

“The second is, I see Meg Curran here, the chairman (sic) of the Public Utilities Commission, and we’re working with them, we’re working with FERC, we’re working with the ISO, we’re working with NEPOOL group, to try to make sure that the rules for these siting things, get adjusted. because the rules for these siting plans leave out the enormous cost of carbon.

“So for me, it’s these federal ground rules, to make them responsive to clean energy, to get them to reward the cleanness of clean energy, and to make fossil fuel pay its cost… that’s where I’m focused.”

However, if we are to heed McKibben’s video message, then Whitehouse’s focus seems like a small step, not the leap that McKibben says we need.

“The good news,” said McKibben, “is the distance we have to  leap is shorter than we thought because the engineers have done such a good job with renewable technology. During the last ten years the price of solar panels dropped eighty percent. There’s not an economic statistic on our planet more important than that.

“What it means is that we now have a chance, an outside chance, of getting ahead of the physics of climate change. It would require a serious mobilization and a huge effort.”

McKibben has written about what such a mobilization would look like in the New Republic that is worth a read.

“I think we’re going to need real, powerful leadership in order to help us, as FDR helped us once upon a time to take those steps in the right direction.

“The question is not, ‘Are we going to do this?’ Everyone knows that 75 years from now we’ll power our planet with sun and wind,” said McKibben, “The question is ‘Are we going to do it in time to be able to slow down climate change?’ … It may be the most important question that humans have ever faced.

“I wrote the first book about it all back in 1989. The cheerful title of that book was The End of Nature. I fear that not much has happened since to make me want to change the title.

“We’re in a very deep hole,” said McKibben, “and the first rule of holes is to stop digging for coal, for oil or gas and start instead to take advantage of all that green power coming from above from the sun and the wind that we’ve been wasting for so long.”

Burrillville residents speak at Woonsocket City Council meeting to prevent water sale to Invenergy


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
20161003_202049
Mike Marcello

During a Woonsocket City Council meeting Monday evening it was revealed that the City of Woonsocket is in some kind of negotiations with Invenergy regarding its proposed $700 million fracked gas and diesel oil burning power plant. When the question was brought up, City Solicitor Michael Marcello answered only that the city council had been briefed in closed session and would not directly answer the question. As to the question of a power plant being built in the city, Marcello gave a direct answer: No.

City Councillor Daniel Gendron put an item on the city council’s agenda because of the number of calls he had received based on the rumors that such a deal was in the works. He also said that he prepared his question carefully, “so that I could read the question and give the administration [of Mayor Lisa Baldelli-Hunt] the opportunity to answer that question definitively. So what I would like to ask, and I’m asking this of the administration and of my fellow councilors, but specifically the administration. I was hoping the Mayor would be here to respond but, in her absence, somebody in the administration could answer.”

20161003_190512Gendron asked two questions. The first concerned rumors that Invenergy was in negotiations to locate the power plant in Woonsocket, as an alternative to locating the plant in Burrillville, where there has been fierce local and statewide opposition. The second concerned the possible sale of water to Invenergy, for the plant planned for Burrillville.

“My question is a simple question,” said Gendron, “Has the administration had any discussion or communication with Invenergy or anyone else with respect to either siting a power plant in the city or about acquiring water from the city to be used in connection with a power plant?”

Council President Robert Moreau suggested City Solicitor Michael Marcello answer the question. Gendron repeated once more that he was going to address it to the mayor, but would be satisfied with an answer from Marcello.

“Councilor,” answered Marcello, “as you know you are a member of the council and you were briefed by the administration in closed session.” The closed session Marcello refered to took place at 5:30pm, shortly before the 7pm city council meeting. “The reason that we have a closed session,” said Marcello, “is to keep communication closed until such time as the law requires us to disclose it. I will say that emphatically, that there have been no discussions with the administration, that we’re aware of, that I’m aware of, to relocate the power plant within the City of Woonsocket.

14469712_635752809921345_4452620182119671471_n“But with regard to your second question,” said Marcello, “you received a briefing in closed session, and that’s where that information must lay right now. In closed session.”

To the residents of Burrillville who had filled the city council chambers, this was confirmation of weeks of rumors.

“At the direction of our council I will not taint the sanctity, if you will, of the executive session meeting and I will not pursue this any further at your direction Mr. Marcello,” said Gendron.

“In summary,” said Council President Moreau, “that was pretty much what you’re going to hear about it tonight from this council because we had an executive session and the City Solicitor explained that we need to abide by that forum.”

20161003_202439“I put this item on the agenda tonight,” said Gendron, “for discussion purposes… that is what precipitated the executive session that took place prior to this meeting.” The item was “an effort to bring out the truth,” said Gendron. “I think that we needed to start this talk, we needed to squelch some of the rumors.” The solicitor denied completely that there was a power plant coming to Woonsocket, said Gendron. Before today, “none of [the city council] knew what was going on, and that was the benefit of the executive session.”

To the dozens of Burrillville residents and anti-fossil fuel activists from around the state, the city council meeting confirmed the existence of the “third option” ominously hinted at by Attorney Richard Sinapi at a meeting of the Harrisville Fire District and Water Board back in August. At that time Harrisville voted not to sell water to Invenergy, and it was known at that time that Pascoag was also going to vote against selling the power plant water.

Rumors had been swirling for weeks that Woonsocket was in negotiations with Invenergy regarding water. RI Future had put in an Access to Public Records Act request with the city on September 23rd regarding this issue. BASE (Burrillville Against Spectra Expansion), took to Facebook to ask people to call the office of Mayor Lisa Baldelli-Hunt “and urge her to stop negotiating a water deal with Invenergy.”

The time frame on any potential deal between Invenergy and Woonsocket is difficult to determine. Yesterday Invenergy was given ten days to prepare for a “show cause” hearing with the Energy Facilities Siting Board (EFSB). EFSB board member Janet Coit, who noted that Invenergy lacks a water plan said that, “from the perspective of the board, we have a big gap.” As part of the show cause hearing, Invenergy will have to submit their new water plan. Though Councillor Roger Jalette, (who is running for Mayor of Woonsocket) said that Invenergy might be making their case before a new city council after the elections in four weeks, Invenergy might not have that much time to wait until after an election.

There was also the hint that this issue may have implications for Woonsocket’s mayoral race between Jalette and Baldelli-Hunt, as Jalette said he is sympathetic to Burrillville’s cause.

During the public commentary period, the Woonsocket City Council was given a taste of what the Burrillville Town Council has been experiencing for nearly a year, that is, speaker after speaker objecting to new fossil fuel infrastructure being built in our state at a time when climate change threatens us all. “We don’t want it in our backyard,” said Ray Trinque of Burrillville, “and we don’t want it in your backyard and we don’t want it in anyone’s backyard…”

Burrillville resident Denise Potvin was born in Woonsocket and has family there still. Potvin said that Alan Shoer of Adler Pollock & Sheehan, one of Invenergy’s attorneys, “conveniently happens to be an attorney for the City of Woonsocket’s water department.” She mentioned that attorney Richard Sinapi is an attorney for Harrisville and large labor union with an interest in seeing the power plant built. “A lot happens behind the curtain,” said Potvin. She ended by suggesting the council educate itself by reading articles like this one on RI Future.

City Council Vice President Albert Brien interrupted public testimony and explained that right now, there was no proposal before the council.

Councillor Roger Jalette is leaving the city council as he runs against Lisa Baldelli-Hunt for Mayor of Woonsocket. “I want you to know that I am very very sensitive to your plight,” said Jalette. Jalette warned that there will be a new city council in four weeks, after the election, as neither he nor Council President Moreau will be on the council.

Burillville resident Jeremy Bailey pointed out that City Solicitor Michael Marcello is also a Ste Representative. Rep Marcello voted against a bill in May that would have allowed Burrillville residents to vote on any proposed tax treaty the town made with Invenergy. Rep Marcello was one of two representatives to attend the Northern Rhode Island Chamber of Commerce’s Eggs & Issues Breakfast Thursday morning where Invenergy‘s director of development John Niland was the guest speaker.

Invenergy power plant application faces suspension


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387
20161003_140439
EFSB

The Energy Facilities Siting Board (EFSB) today decided to issue an executive order demanding that Invenergy show cause as to why the docket for their proposed $700M fracked gas and diesel oil burning power plant shouldn’t be suspended until such a time as the company can produce a reasonable plan for where the company intends to get the water needed to cool the plant. The show cause hearing has been scheduled for October 13.

The suggestion for the show cause motion came from EFSB board member Janet Coit, who noted the lack of a water plan and said that “from the perspective of the board, we have a big gap.” All meetings past the October 10 date have been canceled, and may or may not be re-scheduled depending on the outcome of the show cause hearing.

20161003_140509The meeting of the EFSB in Warwick also dealt with a short list of procedural motions. The Harrisville Fire District had entered a late motion to intervene, but were denied without prejudice. This motion gave attorney Richard Sinapi the opportunity to rise and speak to the board in favor of Harrisville, only to be told, for the second time, that there was no input allowed from attorneys or the public at this open meeting.

Two motions by Invenergy, to hold confidential some evidence from previous hearings, including the testimony of Ryan Hardy and Invenergy’s responses to the Office of Energy Resources second set of data requests, were approved.

The decision as to whether to change venues for the final hearings on the project was put on hold. Anticipating great public interest in the hearings, and noting that the hearing room at the Public Utilities Commission where the EFSB meets is small, the Town of Burrillville asked for a change to a larger venue.

Instead, the EFSB is exploring options to televise the proceedings on both cable access and the web. The EFSB’s Todd Bianco told me after the meeting that some effort will be made to archive the videos so that people could watch them if their schedules prevent them from watching live.

Board member Parag Agrawal said that “fairness and transparency” were the most important considerations, so broadcasting the hearings was important.

Invenergy has sold energy into a forward capacity market. Not building the plant or completing construction late could cost the company millions. The company initially asked that the application be fast tracked. Today’s decision by the EFSB essentially amounts to another extension, and ultimately could result in a suspension or even dismissal of the docket if no credible water supply can be found.

PUC declines to kill pipeline tariff, but it’s dying any way


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

2016-09-29 RIPUC Pipeline Tariff 002The Rhode Island Public Utilities Commission (RIPUC) today ruled against Conservation Law Foundation (CLF)’s motion to dismiss National Grid‘s proposed pipeline tariff and instead issued an indefinite stay. CLF argued that National Grid’s plan to charge electrical consumers to underwrite and guarantee profits for its proposed ANE pipeline is no longer viable given a recent Massachusetts Supreme Judicial Court ruling that declared such pipeline tariffs unconstitutional under state law.

Since National Grid’s plan required the consent of all New England states, CLF moved to dismiss the docket here in Rhode Island, yet Meg Curran, chair of the RIPUC, didn’t agree that the project was necessarily dead, saying she still had questions about the project. Curran felt that National Grid’s offer to withdraw their application and refile at a later date or accept a ruling that the docket be put on hold were better options.

2016-09-29 RIPUC Pipeline Tariff 001RIPUC board member Herbert DeSimone Jr agreed. He said that dismissal would not be appropriate, and withdrawing the application would create “unnecessary redundancies” upon refiling, as all the evidence heard to date would have to be heard again and all motions re-decided. DeSimone suggested that the RIPUC issue an indefinite stay in the proceedings, with the caveat that National Grid file a progress report on January 13, 2017.

Curran and DeSimone then unanimously voted in favor of the plan. Marion Gold, the third member of the RIPUC, had recused herself.

The meeting was attended by representatives from and members of People’s Power and Light, the FANG Collective, Food and Water Watch, Toxics Action Center, Fossil Free RI, NoLNGinPVD and the RI Sierra Club.

“The Commission’s decision to delay this proceeding is a step toward the inevitable death of the pipeline tax. Forcing Rhode Island electric customers to foot the bill for a gas pipeline we don’t need defies our best interest and our laws,” Megan Herzog with the Conservation Law Foundation said. “Both Massachusetts and the federal government have rejected the project, and we will keep fighting until Rhode Island follows suit.”

“Rhode Island consumers should not have to take on the long-term risk of a new, unnecessary natural gas pipeline. We must protect electric customers from being charged for a natural gas pipeline, and the Massachusetts Supreme Judicial Court has already done this by deciding that the unprecedented cost-recovery scheme proposed by utilities is illegal, according to Mass. law,” said Priscilla De La Cruz of People’s Power and Light, also in attendance.

2016-09-29 RIPUC Pipeline Tariff 003

CLF files first-in-nation lawsuit over ExxonMobil climate cover-up


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

clf conservation law foundationConservation Law Foundation (CLF) filed a lawsuit today against ExxonMobil for its endangerment of communities along the Mystic River – the first lawsuit of its kind in the nation since revelations last year about the corporation’s decades-long campaign to discredit climate science. Today’s filing comes several months after CLF submitted a formal letter of intent to sue ExxonMobil, a development that was announced at a press conference in May. The suit focuses on Exxon’s violations of both the federal Clean Water Act (CWA) and the Resource Conservation and Recovery Act (RCRA), laws designed to protect the health and safety of waterfront communities in the face of climate change.

“For more than three decades, ExxonMobil has devoted its resources to deceiving the public about climate science while using its knowledge about climate change to advance its business operations,” said CLF president Bradley Campbell. “Communities were put in danger and remain in danger, all to cut costs for one of the most profitable corporations in the world. It’s time to make Exxon answer for decades of false statements to the public and to regulators and ensure that its Everett facility meets its legal obligation to protect thousands of people and the Boston Harbor estuary from toxic water pollution.”

In March of this year, Massachusetts Attorney General Maura Healey joined a coalition of 17 attorneys general seeking to hold fossil fuel companies accountable for campaigns to deceive customers, shareholders, and the public about climate risk. While CLF is the first organization officially to file a civil lawsuit against ExxonMobil for this deceit, many other legal actions are likely to follow.

Damali Vidot, Chelsea City Councilor-At-Large, commented, “As a mom and a representative of my community, I feel I have a responsibility to protect my kids and those I serve against the impacts of pollution in our water. I’m standing with CLF today because I believe Exxon must be held accountable for its actions.”

CLF’s trial team for the case will include nationally renowned attorney Allan Kanner of the Louisiana-based Kanner & Whiteley, whose firm has represented states and other plaintiffs in landmark cases against major oil companies, including claims arising from BP’s Deepwater Horizon spill.

Back to basics: RI will switch from costly, risky hedge funds


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387

hedge-fundsWhen Seth Magaziner ran for General Treasurer in 2014, he promised that his top priority would be putting Rhode Island’s ailing pension funds in a better position by securing higher returns on investment at the lowest practical risk.

I spoke to Seth this afternoon about his new plan for the pension funds which was unanimously approved today by the State Investment Commission.

The state’s public pension funds currently hold around $7.6 billion of which about $1.1 billion has been invested in so-called “hedge funds” that were originally intended to provide investors with good returns and security.

However, as numerous reports have shown, hedge fund performance hasn’t matched hedge fund promises, except perhaps for their managers who have become billionaires while handling other people’s money.

Searching for alternatives, the Treasurer’s office conducted months of research and consultation with financial experts. They also ran “thousands of models and projections” to come up with a better way to get better returns on investment without undue risk.

The result was announced by Seth today – a “Back to Basics” plan to move about half of the money the state has invested in hedge funds – around half a billion dollars – into safer, better investments such as low-fee index funds.

This will take place over the next two years.

I asked Seth to talk about the challenges of coming up with such a plan, such as public impatience with the pace of change.

“When you’re moving this much money,” he said, “You have to do it in an orderly fashion.” He said making such changes was “like steering an aircraft carrier – you can’t turn on a dime.”

Then there is the matter of exit fees involved when leaving investment vehicles such as hedge funds. “We wanted to make sure we avoided early redemption fees” which in some cases could be significant.

The other factor requiring a careful, deliberate approach is the need to find solid investment alternatives.

I told Seth that the dream of many people, me included, is to see pension fund money used to create local jobs and businesses. But I acknowledged the fact that pension law doesn’t really allow that to be a major pension fund priority.

Seth pointed out that the first duty of any pension trustee is to secure the best rate of return for beneficiaries with the least risk.

That said, among the alternatives they’ve explored are funds that invest in infrastructure. He noted the infrastructure investment market is very “hot” at the moment so the cost of buying in is high. Of course, the basic rule of investing is “buy low, sell high” not vice versa, so timing is a key issue.

Rhode Island has used its pension funds’ proxy voting rights to join with other public pension funds around the country to support shareholder resolutions against excessive executive pay and other abusive corporate practices. These pension funds control millions of shares so they carry some weight at corporate annual shareholder meetings.

The state pension fund is no longer in crisis as it was six years ago. Since Seth took office two years ago, the fund has run in the black for the two years, earning more than $390 million and beating the fund’s goal.
Rather than give back so much to hedge funds, the “Back to Basics” plan should reduce costs while boosting earnings while taking a cautious, prudent approach to risk.


Deprecated: Function get_magic_quotes_gpc() is deprecated in /hermes/bosnacweb08/bosnacweb08bf/b1577/ipg.rifuturecom/RIFutureNew/wp-includes/formatting.php on line 4387