Tag Archives: Globalfoundries

And By “Those Populations” I Mean, You Know, People

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Huzzah, huzzah, the great amorphous bipartisan centrist policy apparatus has burped out another moral failure. I’m talking about Gov. Phil Scott’s plan to wind down rental assistance and emergency housing, which belies his perpetual commitment to protecting the most vulnerable.

Well, yesterday, the Legislature’s Joint Fiscal Committee, including its Democratic majority, signed off on the plan.

Does this help explain why so many Democrats were happy to vote for the Republican governor, or why so many were uneasy at the prospect of fierce housing advocate Brenda Siegel becoming governor and putting everybody’s feet to the fire?

Yep.

To be fair to the distinguished panel, they didn’t have much choice. The Legislature isn’t in session, and the JFC (unfortunate acronym alert) doesn’t have the authority or time to craft a replacement policy. But it would have been nice to hear a little more kicking and screaming.

We did get some pushback from Rep. Emilie Kornheiser, vice chair of House Ways & Means. “I am having trouble seeing my way towards March, April, when a lot of people will be handed tents.”

Tents. And we like to call ourselves the greatest country in the World.

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GlobalFoundries Gonna Try Again For That Thing They Say They Don’t Need

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Hey, remember when the state Public Utility Commission ruled against GlobalFoundries’ request to become its own electricity provider? Well, the PUC gave the company until March 11 to come back with a new filing.

For those keeping score at home, that’s tomorrow.

And yes indeed, I’ve been told that GlobalFoundries will file for reconsideration by the PUC despite the fact that it had insisted it would go ahead with its plan without PUC approval.

In its February ruling, the PUC said it had the authority to grant GF its independent status, but not to give GF an exemption from Vermont’s renewable energy standards. After the ruling, GF said it would go ahead without that exemption because meeting the RES targets would be no problem.

I guess the overlords of Essex have had a change of heart. Which isn’t too much of a surprise, since they’ve done that before.

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Nice Little Regulatory System You’ve Got Here, It’d Be a Shame if Anything Happened To It

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Hey, it’s time for an update on the latest bit of corporate extortion from our buddies at GlobalFoundries, the biggest private sector employer in Chittenden County. Throughout its tenure — and before it, through much of IBM’s residency at the Essex Junction facility — the companies have used their heft to get various benefits from the state government, each time hinting to pull up stakes and leave for more corporate-friendly climes if it didn’t get its way.

This time there’s a double threat. GF is seeking to set up its own private utility so it can buy power on the regional market free of various state regulations, including renewable energy and greenhouse gas standards. It’s seeking Public Utility Commission approval for the move — and threatening to go ahead with or without PUC approval.

GF makes a, shall we say, interesting argument. In essence, it argues that it doesn’t need PUC approval, but it’s applying to the PUC anyway in order to preserve Vermont’s regulatory framework. Yup, the company says it’s acting to preserve a regulatory system by seeking to essentially opt out of the system. That’s a funny way to support a system, no?

But a question has arisen over whether or not the PUC can even consider the case. The Conservation Law Foundation and AllEarth Renewables say the PUC has no jurisdiction over the request because state law doesn’t make any provision for anything like private utilities.

Last month, the parties submitted legal arguments and counter-arguments for the Commission to ponder. Wednesday 12/8 is the deadline for any additional filings on the issue; after that, presumably the PUC will schedule a hearing. All documents, public comments, schedules, etc., can be accessed on this page in the PUC website.

So where do the parties stand? I’ll give you a simplified (and hopefully reasonably accurate) version after the jump.

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So Much Horse Hockey in Such a Small Paddock

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Honestly, I wouldn’t expect our area Chambers of Commerce to do anything but support GlobalFoundries in its bid to operate its own utility, thus sidestepping the Global Warming Solutions Act and other state rules and regulations. The Chambers are on the side of business, after all, and any threat to GF’s presence in Essex Junction is a threat to the region’s economy as a whole — including the Chambers’ constituencies. But this toxic little opinion piece from the Vermont and Lake Champlain Chambers plus the Greater Burlington Industrial Corporation is an exercise in desperation and deception.

The thesis, as stated in the headline above, is that GlobalFoundries “will help combat climate change.” Huh. So exempting GF from the GWSA will help us fight climate change? Do tell.

In order to prove this unlikely theory, Cioffi et al. proceed to put their thumbs on the scale at every opportunity, spinning out unlikely scenarios full of conditional clauses while offering no evidence whatsoever that the deal will be a blow against climate change.

Let’s run through the deceptions, shall we?

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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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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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When Republicans Attack!

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Hey, how’s everybody doin’? Been out in California for the last several days, which explains the relative lack of blogging.

Thanks to the Internet, however, I was able to enjoy the sad spectacle of our two Republican candidates for governor tossing insults back and forth.

Starting with Bruce Lisman’s latest missive that, once again, ties Phil Scott to the Shumlin administration. Quite accurately, it must be said. After all, Phil did spend roughly four years as a member of the Shumlin cabinet — a gesture of cross-partisan generosity on Shumlin’s part that cost him a fair amount of criticism. From me, among others; I thought it was a bad idea to help burnish Scott’s moderate, unpartisan credentials.

Guess I was wrong, not only is Our Lite Gov not using his credential, he’d prefer we all forgot about it. In fact, he’d slip it into a Vermont Yankee storage cask if he could.

Lisman did stretch the truth in depicting Scott as “support[ing] Governor Shumlin’s failed health care exchange.” As far as I can recall, Scott never actually supported Vermont Health Connect; leader that he is, he didn’t actually take a stand on the idea. That is, until he started thinking seriously about running for governor himself.

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The sun sets on the Vermont Enterprise Fund

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Hey, remember in January, when the state Emergency Board approved two grants from the Vermont Enterprise Fund? GlobalFoundries was given $1 million, and $200,000 went to BHS Composites. Well, turns out those will be the last VEF grants ever awarded. During its recently concluded session, the Legislature rejected Governor Shumlin’s bid to add new money to the Fund — and decided not to extend the program.

The Fund is empty, and in the absence of legislative action, the program will sunset at the end of the fiscal year.

“It’s disappointing,” says Shumlin spox Scott Coriell*. “The Enterprise Fund has been a useful tool, but we do have other tools at our disposal.”

*Say that five times fast.

There was some funny business around those January grants that may have sealed the fate of the two-year-old program.

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GlobalFoundries: Too big to fail?

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Chittenden County is blessed — and a little bit cursed — by the presence of a large high-tech employer: GlobalFoundries, formerly d.b.a. IBM. The Essex facility is a major driver of the area’s economy, and the entire state’s economy for that matter.

And GlobalFoundries knows this, and they seem to know they have us over a barrel.

This is my inference based on a new report by the Associated Press’ master gardener Dave Gram, who has used public-records requests to discover the extent of GF’s demands on the state.

We already knew about the questionable $1 million from the Enterprise Fund. Gram now brings us tidings of a $17 million highway project that GF wants fast-tracked. It would involve improvements on Route 22A, which happens to be the most direct route from the Burlington area to New York State. (22A goes straight through downtown Vergennes. Hope you like your new highway, Vergennians!)

But otherwise it’s of little utility to intra-state traffic. For general transportation, trade and tourism puposes, improvements to US-7 would be more efficacious. But I have a feeling that what GlobalFoundries wants, GlobalFoundries will get.

(Now, if GF can convince New York State to build a decent highway from the Vermont border west of Rutland to I-87, then that would be a great benefit to the western Vermont economy as a whole. If they can do that, then our investment in 22A would be a worthwhile tradeoff.)

GlobalFoundries also wants state backing for “payments to GlobalFoundries from the Regional Greenhouse Gas Initiative, a multi-state pact that spins off money to states with a low carbon footprint.” Gram’s report doesn’t go into the reasoning behind GF’s request; in the absence of more information, I have a feeling that there are more pertinent uses for the money.

But hey, GlobalFoundries is a yoooge employer, and its loss would cripple Vermont’s economy. We may not have much choice.

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