The GlobalFoundries Deal Is Bad, But Maybe Not Quite Terrible

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Had a polite conversation (well, it was testy at first) with someone in the Scott administration who’s involved in the talks with GlobalFoundries over its desire to create its own utility exempt from laws and regulations that apply to all other utilities. As a reminder, the Scott administration and GF have signed a Letter of Intent en route to a formal agreement that would allow GF to have its way.

I came away from the chat with a bit more perspective, but my fundamental belief remains: This is a case of government bowing to the demands of an employer that’s too big to deny.

I’m not naming the official because our chat was off the record, and also because this post reflects my own view of the situation and not theirs.

First, a significant correction. I wrote that the Global Warming Solutions Act set a greenhouse gas emission baseline of 1990 while the LOI uses 2005, when emissions were at their peak. In fact, the GWSA also uses 2005 as its baseline for the 2025 target. 1990 applies for other, later targets.

So in the LOI, GF is agreeing to abide by the 2025 emissions target in the Global Warming Solutions Act. But three things are still true: First, GF’s current emissions are only a tick higher than the 2025 target so the company won’t have to do much at all. Second, the letter is riddled with exceptions and exemptions that would allow GF to exceed the target. Third, the LOI would allow GF to exceed its target under a variety of circumstances.

But there is one line in the LOI that leaves the door open for further state action.

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That GlobalFoundries Deal is All Kinds of Terrible

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Working on the Memorandum of Understanding (Not Exactly As Illustrated)

A few days ago, I wrote about GlobalFoundries’ bid to break away from Green Mountain Power and establish its own boutique utility. Well, it’s far worse than I thought. I’ve gotten a look at the Letter of Intent between GF and the Scott administration — no scoops, it’s a public document — and maaaaan, is it bad. Like, historically, unprecedentedly bad.

I won’t say the administration is acting as GF’s procurer, but I will say it’s told Vermont to put on a sequined microskirt and show the corporation a good time.

Really, I’m kinda shocked that there’s been no media coverage of this. It’s definitely newsworthy. Utility regulation is one of those boring, complicated matters chock full of legalese that tends to scare away reporters and editors. And readers, for that matter.

But compared to the usual thickets of legal and regulatory matters, this is an easy story to tell. It’s a story of a government bowing and scraping before a big business, sacrificing principle and sound policy in the process.

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Sh*t My Governor Says

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The topline of yesterday’s Covid presser was all about the schools. Id est, how the Scott administration is imposing policies and expectations on the schools but refusing to lift a finger to help them handle the additional workload.

But there were several other statements we shouldn’t allow to pass unmocked. So here’s a sampler, a Children’s Treasury if you will, of dumb stuff said by the governor plus a couple of entries from Finance Commissioner and Number Cruncher Extraordinaire Michael Pieciak.

We’ll start with Scott playing pure politics, something he likes to accuse other people of doing. As he continues to resist calls for tighter anti-Covid measures, he was asked what he’d do if the Legislature passed such measures and sent them to his desk.

“I don’t think it’s necessary,” he said. “If they want to come back into session and they want to introduce a mask mandate, they want to limit travel, they want to shut down bars and restaurants, they want to limit gatherings, they want to cancel Christmas, I mean, that’s up to them.”

The deliberate exaggeration of opposing views is classic passive-aggressive Phil Scott. But cancel Christmas? When did the governor start watching Fox News?

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Gov Sends Thoughts, Prayers to Public Schools

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“It’s unfortunate, the number of deaths,” he said. Yes, he did.

If the Scott administration were devising a pandemic strategy meant to put maximum pressure on our schools, it couldn’t do much better than this. At his weekly Covid presser, Gov. Phil Scott made it clear that he expects school officials to do everything they can to keep kids in the classroom, but they’re on their own for staffing an ever-evolving, incomplete regimen of Covid testing.

Other than that, Mrs. Lincoln, how was the play?

After brief statements from Scott and others, including the customary parade of carefully curated statistics from Finance Commissioner and CovidMeister Michael Pieciak, Education Secretary Dan French took to the podium and made it clear that the administration expected school systems to “maximize in-person learning” by any means necessary. His latest brainfart, “test to stay,” is a regimen of testing done at the beginning of the school day. Students who test negative can stay in class.

This policy, which is still being rolled out more than a month into the school year, puts the onus on school staff to conduct quick tests first thing in the morning. As for how the understaffed and overstressed schools should handle the additional work, French said, “I expect schools will add staff or reassign existing staff.”

But don’t think the state will kick in a single damn dime to cover the cost. French helpfully suggested that the schools use federal Covid relief funds to pay the freight. “Funding shouldn’t be the problem,” he said. I wonder how many districts have gobs of uncommitted federal dollars sloshing around right now.

But wait, it gets worse!

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We’ve Got an Overflow in the Moral Sewer of Vermont Politics

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Something stinks around here, and it looks like the Powers That Be are scrambling to keep anyone from identifying the source of the stench.

For those just tuning in, tonight’s VTDigger brings us the happy tidings of an agreement between federal prosecutors and Bill Stenger, one of the defendants in the EB-5 fraud case. The two sides have agreed on what evidence will be presented in Stenger’s case… and in exchange, Stenger’s lawyers won’t force a whole bunch of well-connected Vermonters to testify under oath.

See, Stenger’s defense had argued that state officials knew about the fraud long before it was publicly revealed and did nothing to stop it. Given the contents of a recent document dump, it’s clear that Team Shumlin knew a great deal and did their best to keep it under the rug. So their appearances under oath would have been at least embarrassing and perhaps incriminating.

The Vermonters in question include former governor Peter Shumlin and at least five top officials in his administration. They would have taken the stand next week, so this deal is a last-minute reprieve for these worthies. And yet another roadblock in the path of public disclosure. This fraud goes back at least a decade, and we’ve still only seen the faint outlines of official complicity.

Imagine, just for shits and giggles, Shumlin takes the stand and his testimony is at odds with the evidentiary record. Or he ducks the questions and pleads the Fifth. Not a good look, that.

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Is GlobalFoundries Too Big To Deny?

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They probably call this a “campus”

It may not be “an offer you can’t refuse,” but GlobalFoundries has done its best to put state government over a barrel on electricity costs. Vermont’s largest private-sector employer wants to cut ties with Green Mountain Power and form its own utility. It would buy its power on the regional wholesale market.

If it gets its way, the utility would not be subject to Vermont’s renewable energy standards or a variety of other laws and regulations. This isn’t a little thing; GF accounts for 8% of Vermont’s electricity consumption. If GF gets its way, we’d have a harder time reaching our greenhouse gas reduction targets.

Unless, ha ha ha, it voluntarily complies. Ha.

The case was filed last spring before the Public Utilities Commission and got a flurry of media attention at the time. Since then, it has followed the PUC’s customarily meandering process with filing after memo after legal brief after rejoinder. But things are about to heat up. And there are any number of indications that the Scott administration is in the bag for the GF petition.

Which is no surprise, since underlying all of this is GF’s persistent, non-specific rumblings about competitiveness and costs and well, wouldn’t it be a shame if something happened to your big shiny employer?

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Covid Is NOT The Flu

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Got into a bit of a tweetbeef ‘tother day with an acquaintance from Statehouse days. Not to name names, but he’s a lobbyist for… shall we say… Pat Leahy’s Favorite Body of Water Bedroom of Business Transactions?

Anyway, he squeezed out this little turd:

Covid is here to stay, we have just mitigated the effect so that has same odds and outcomes as the seasonal flu. You need to listen to scientist more…

“Listen to scientist,” you say.

I didn’t react well to this piece of nonsense, partly because I am at elevated risk & have a personal stake in this, partly because his follow-up tweets dripped with condescension, but mostly because this formerly fringe belief is rapidly and alarmingly entering the mainstream discourse. That’s dangerous.

And it’s bullshit.

And I have receipts. From “scientists” plural.

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While My Guitar Gently Veeps

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It’s been a while. For most of September, we’ve had some high-level stupid (the governor’s scattershot search for consistent pandemic messaging) but a relative lack of the kind of mid- and low-level stupid in the public arena that is the bread and butter of The Veepies. But now, we’re back!

First, the Policy? We Don’t Need No Stinkin’ Policy Award goes to the Vermont Principals’ Association, last seen hiding its head in the sand over the racist slurs targeting the Winooski High School boys’ soccer team. In response to the appalling incidents during a game with Enosburg High, Winooski district Superintendent Sean McMannon called on the VPA, which oversees high school athletics, to adopt stronger measures against the use of racial slurs.

The VPA’s response so far? Well, they’re staying out of it until the Franklin Northeast Supervisory Union does its own investigation. Otherwise, well, all they’re doing is considering a season-long ban for a Winooski athlete for allegedly head-butting an opponent. VPA president Jay Nichols says the organization might conduct an investigation after FNSU’s is complete. Franklin, by the way, is investigating the slurs AND alleged violence by Winooski players, so we’re both-sidesing this thing.

Great. But the topper, for me, is that McMannon called on the VPA to develop procedures for reporting and investigating racial abuse. Which indicates that the VPA doesn’t have any such procedure now. Which is, well, stupid.

After the jump: Stupid trooper tricks, a Raider obsession, and a bit of myopic journalismism.

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I Think I Can See a Little Smoke Coming Out His Ears

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happy place happy place happy place

Things are gettin’ a mite testy chez Phil Scott these days. His weekly Covid briefing for September 28 was an exercise in statistical diversion, gaslighting, word salad and straw man punching.

Oh, and the usual journalism FAIL. The reporters get the governor for two hours every week and they rarely take the opportunity to ask probing questions on the biggest immediate challenge we face. The reporting on Scott’s briefings is often more like stenography than journalism. The beginning of this week’s Question Time featured several consecutive questions that weren’t about Covid at all. The end of the sesh came early, after a number of reporters who’d signed up to ask questions decided that, well, actually, they didn’t have anything to ask.

It wasn’t an entirely dismal parade, but it was largely a missed opportunity to quiz the gov and his top officials on, for example, their policy stubbornness, statistical sleight-of-hand, failure to help the schools fight Covid, or the growing chorus of criticism from the medical and public health communities.

There was also, as discussed previously, an almost complete dearth of follow-up when some official evades an inquiry, fumbles an answer, or spews some serious bullshit. Which happens a lot. This is mainly an issue with the format, but it also reflects an unwillingness to abandon prepared questions in favor of follow-up, a lack of advance research, and probably attention spans too short to listen all the way through.

There was one solid journalistic exchange that got a bit too hot for the governor’s taste. It produced a lovely bouquet of evasion, misstatements, verbal stumbles and filibusters. Details after the jump.

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Boo This Man

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It’s possible, in this moment of his ultimate disgrace, to feel just a little bit sorry for ex-governor Peter Shumlin. From fall 2014 to summer 2015, he endured three separate political de-pantsings — any one of which could have felled a lesser man in his tracks. First, his near-defeat at the hands of political outsider (and truly terrible campaigner) Scott Milne; then, having to admit failure in his signature push for single-payer health care; and then, in the spring of 2015, finding out that the Quiros/Stenger EB-5 projects were built on fiscal and ethical quicksand.

That said, his governorship will have to go down in history as singularly disastrous.

We know this now because of the dogged efforts of VTDigger to unearth a trove of documents kept secret by state officials. Its pursuit of the EB-5 White Whale was rewarded last week by a federal judge’s ruling that the documents must be made public.

And now, after poring their way through the docs, Alan Keays and Anne Galloway have published one of the most damning political pieces in recent memory. They recount how Shumlin and his team knew by the spring of 2015 that the EB-5 projects were fundamentally fraudulent and doomed to collapse… and yet they kept on flogging the projects for a full year. Their efforts only ended in the spring of 2016 when the feds launched a massive civil suit against Bill Stenger and Ariel Quiros.

That’s bad. But Keays and Galloway document a variety of ways in which the story is even worse than that dreadful topline. Let’s run the highlights, shall we?

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