Carolina Journal, “The by Don Carrington Proposal Was Never Approved and No Executive Editor Money Was Dis- RALEIGH Bursed.” Why Everal Weeks After N.C
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INSIDE THIS ISSUE: DEPARTMENTS N.C. solar North Carolina 2 C A R O L I N A Education 7 project rais- Local Government 10 From Page 1 14 es corporate Higher Education 17 welfare con- Books & the Arts 20 Opinion 24 cerns/2 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION May 2012 Vol. 21 No. 5 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Official Tried To Divert Funds To Own Nonprofit ning and research activities. The money was to come from McKoy remains on surplus federal CDBG funds from the years 2002, 2004, and 2007. job after being asked McKoy sought Crisco’s approval for the plan in January, but Crisco nev- to resign position er went along. Commerce spokesman Tim Crowley told Carolina Journal, “The By Don Carrington proposal was never approved and no Executive Editor money was dis- RALEIGH bursed.” Why everal weeks after N.C. Secretary Crisco turned the of Commerce Keith Crisco asked project down is Assistant Secretary Henry C. not clear. CJ has SMcKoy to resign over issues involving requested all the the attempted diversion of $2 million public records re- in government lated to McKoy’s funds to a non- project; so far, profit organiza- Commerce has Keith Crisco tion McKoy had The only address for the North Carolina Sustainability Center is a mailbox located turned over McK- controlled, McK- in this UPS store at a North Raleigh shopping center. (CJ photo by Don Carrington) oy’s cell phone re- oy remains on until last year. The money would be a Crisco, and oversees approximately 90 cords but no other documents. the job as of press windfall for an organization that ap- employees and a budget of more than This wasn’t the first time McKoy time. pears largely to have been dormant for $100 million. helped NCSC. Libby Smith, a Com- C a r o l i n a the past two years. Under McKoy’s plan, Buncombe, merce employee who is senior adviser to McKoy, also served as president of Henry McKoy Journal Online’s McKoy heads the Commerce Edgecombe, Orange, and Yadkin coun- initial report April Community Development Division ties would receive funds for a “Com- NCSC last year when she applied for 5 described how and distributes funds from the federal munity Capacity Building Program.” and received a $150,000 grant for the McKoy launched a plan last year to Community Development Block Grant Each county would receive $600,000 nonprofit from the Z. Smith Reynolds direct more than $2 million in federal program. He is a relative newcomer to and could retain 10 percent for han- Foundation. McKoy served as chair- funds to the North Carolina Sustain- public administration. Gov. Bev Per- dling the grant. Each county then man of NCSC while at his current ability Center, a small Raleigh-based due appointed him to the Commerce would be required to turn over the nonprofit organization that he chaired position in August 2010. He reports to remaining $540,000 to NCSC for plan- Continued as “Commerce,” Page 14 State May Try To Shut Down Nutrition Blogger PAID state board, is expansive. RALEIGH, NC U.S. POSTAGE When he was hospitalized with PERMIT NO. 1766 NONPROFIT ORG. Nutrition board says N.C. Board of diabetes in February 2009, he decided to avoid the fate of his grandmother, blog advice same as Dietetics/Nutrition who eventually died of the disease. He says Cooksey’s embraced the low-carb, high-protein ‘practicing dietetics’ Paleo diet, also known as the “cave- nutrition blog man” or “hunter-gatherer” diet. The By Sara BurrowS diet, he said, made him drug- and Associate Editor violates state law insulin-free within 30 days. By May of RALEIGH that year, he had lost 45 pounds and he North Carolina Board of Di- decided to start a blog about his suc- etetics/Nutrition is threaten- or nutrition” without a license. cess. ing to send a blogger to jail for According to the law, “practic- But this past January, the state Trecounting publicly his battle against ing” nutrition includes “assessing the board decided Cooksey’s blog — Di- diabetes and encouraging others to fol- nutritional needs of individuals and abetes-Warrior.net — violated state low his lifestyle. groups” and “providing nutrition law. The nutritional advice Cooksey Chapter 90, Article 25 of the counseling.” provides on the site amounts to “prac- North Carolina General Statutes makes Steve Cooksey has learned that The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 it a misdemeanor to “practice dietetics the definition, at least in the eyes of the Continued as “State,” Page 15 PAGE 2 MAY 2012 | CAROLINA JOURNAL North CaroliNa C A R O L I N A Complex Raises Corporate Welfare Concerns By Dan E. way rewards of lower energy costs. It’s a win-win for everyone.” Contributor Newman did not grant an interview for this story. He JOURNAL RALEIGH requested a list of questions to be sent to Joanna Baker, FLS Rick Henderson jumbo solar geothermal complex installed at a Robe- marketing manager, for his review. Baker responded with Managing Editor son County turkey processing plant is being hailed an email saying the solar thermal farm has been completed Don Carrington as the largest of its kind in the nation and a distinc- at no cost to Prestage Foods. Executive Editor Ation for North Carolina’s expanding solar industry. “FLS Energy owns the solar thermal system and sells Critics say it’s costly crony capitalism wrapped in cor- Prestage Foods the energy it needs to heat water,” the re- David N. Bass, Sara Burrows porate welfare, as the solar energy produced by the complex sponse said. “Prestage does not pay for any repairs or main- Mitch Kokai, Michael Lowrey will heat water that had been warmed with propane rather tenance costs of the project.” Associate Editors than electricity. They note that the solar array will not re- The response did not answer questions regarding the place electricity from the power grid. overall cost of the project, how much FLS received in tax Chad Adams, Kristy Bailey FLS Energy, an Asheville-based solar company, has credits for construction, how much it would be paid from Kristen Blair, Roy Cordato erected an array of 2,100 solar panels that heat as many as sales of the renewable energy certificates to Duke, or how Becki Gray, Sam A. Hieb 100,000 gallons of water daily at the Prestage Foods turkey Lindalyn Kakadelis, George Leef frequently a backup propane system would be needed to Karen McMahan, Donna Martinez plant in St. Pauls. The hot water is used to clean equipment supplement the solar energy. Karen Palasek, Marc Rotterman and processing rooms at the 260,000-square-foot plant. Nor did Baker respond to criticism of the project as a Michael Sanera, Barry Smith FLS owns and operates the solar thermal installation. It form of crony capitalism. John Staddon, George Stephens sells low-cost electricity to the farm and gets a lucrative mix Roy Cordato, vice president for research and resident Michael Walden, Dan Way of state tax credits for construc- scholar at JLF, questioned the Karen Welsh, Hal Young tion, and revenue from renew- fairness of the renewable ener- John Calvin Young able energy certificates sold to gy certificates for the Prestage Contributors Duke Energy. Power companies Foods project. are obligated by state mandate Under state statute, a re- to purchase a percentage of their Ziyi Mai, Baxter Rollins newable energy certificate is electricity from green power. Daniel Simpson, Alissa Whately awarded for every 1 megawatt Shane Williams “It’s a crony capitalism hour of electricity produced by Interns scheme that makes this solar green power. The certificates company rich while bilking can be bought, traded, or bar- taxpayers and ratepayers out tered. Published by of money out of their pockets,” “Most farms heat their The John Locke Foundation said Michael Sanera, director of water with propane, not elec- 200 W. Morgan St., # 200 research and local government tricity, so why are they [FLS] Raleigh, N.C. 27601 studies at the Raleigh-based getting to sell credit ... to the (919) 828-3876 • Fax: 821-5117 John Locke Foundation. www.JohnLocke.org power company for saving “People are unaware their electricity when they’re not Jon Ham power bill is higher to support saving electricity?” Cordato Vice President & Publisher these crony capitalism scams,” asked. “Solar is substituting for Sanera said. propane, not for electricity.” John Hood FLS has made similar deals with schools, community There is no shortage of propane, he said, and the subsi- Chairman & President colleges, and other government entities. Without the gov- dy the solar company receives is “a very bizarre allowance.” ernment-required incentives and subsidies, the deals would FLS did not reply to questions about that issue in Bak- Bruce Babcock, Herb Berkowitz collapse because the solar energy is more costly to produce er’s email response. Charlie Carter, Jim Fulghum than what is being generated at traditional power plants, Chuck Fuller, Bill Graham A request for an interview with officials in the North Sanera said. Carolina State Energy Office on the propane for renewable Robert Luddy, Assad Meymandi “This is a too-good-to-be-true deal that the snake oil Baker A. Mitchell Jr., Carl Mumpower, energy certificate issue was not granted. salesmen are selling,” Sanera said. FLS gets the high-yield J. Arthur Pope, Thomas A. Roberg, But Seth Effron, communications director, issued a income built into the front end of the renewable energy David Stover, J.M Bryan Taylor, short, written statement that said “alternative energy sourc- certificates, and by the time their clients have the option to Andy Wells es have been encouraged for a variety of policy objectives purchase the solar systems, the equipment likely will be ob- Board of Directors including moving away from imported fuel sources, adopt- solete, he said.