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North Carolina INSIDE THIS ISSUE: DEPARTMENTS Government North Carolina 2 C A R O L I N A Education 7 goes all out Local Government 10 From Page 1 13 to bolster Higher Education 17 the biofuels Books & the Arts 20 Opinion 24 market/2 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION June 2012 Vol. 21 No. 6 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org EPA special agents interrogate Asheville Perdue Team Headed To Court man about email knowledged the flights and toldCJ that By Karen MCMahan travel provided to Perdue when she Contributor Several aides may be was conducting official state business RALEIGH was treated by the Office of the Lieu- n Asheville businessman called to testify tenant Governor as a gift to the state is left with more ques- from those providing the flights. tions than answers after about illegal giving A Wake County grand jury in- Aa May 2 visit to his home by two dicted Stubbs Nov. 28. He is accused of armed special By Don Carrington funneling more than $28,000 through agents from Executive Editor his law firm to pay for aircraft to fly the U.S. Envi- RALEIGH Perdue to campaign events during ronmental Pro- ven though Gov. Bev Perdue’s 2007 and 2008. The free flights were not tection Agency, 2008 campaign for governor reported on campaign finance reports, accompanied ended nearly four years ago, the a violation of campaign finance laws. by an Asheville Eupcoming trial of New Bern attorney The two specific charges are obstruc- police officer, Trawick “Buzzy” Stubbs should offer Trawick “Buzzy” Stubbs at a May 11 court tion of justice and causing the Perdue apparently to question him about further insight into her campaign’s appearance. (CJ photo by Don Carrington) campaign committee to file false re- what the EPA interpreted as a mysterious aircraft provider program. ports. If convicted, in addition to fines craft to attend political fundraisers. “cryptic and concerning” email. Wake County District Attorney and possibly prison, Stubbs likely In addition, Perdue has not ex- The incident is under inves- Colon Willoughby maintains that the would lose his law license. tigation by the office of Sen. Rich- plained fully a number of flights that Stubbs and his attorneys do not 10 flights Stubbs paid for, reported by she took as lieutenant governor. A Car- ard Burr, R-N.C. Perdue’s campaign staff months after dispute the basic facts surrounding the Larry Keller, who runs a olina Journal review of 2007-08 expen- charges, but they believe Willoughby the election, amounted to illegal cam- ditures by Perdue’s office reveals that, computer consulting business paign donations. should have focused on the Perdue from his Asheville home, sent in addition to not paying for a number campaign organization instead of The trial, scheduled to begin June of campaign-related flights, she also an email April 27 to the EPA 11, also may provide insight into Per- Stubbs. in an attempt to reach Al Arm- made no payments to private aircraft “We can’t blame [Stubbs] be- due’s decision not to seek a second endariz, EPA regional admin- owners for travel related to official cause the campaign was disorganized term as governor. istrator for Region 6. Two days state business. and didn’t know what it was doing,” Perdue never has acknowledged earlier, a video from 2010 was Records show flights that com- Stubbs’ attorney David Rudolf said at publicly when she learned her cam- bined official business with cam- paign did not pay for more than 40 Continued as “EPA,” Page 13 paign events. In October 2010, Perdue flights she took in privately owned air- spokeswoman Chrissy Pearson ac- Continued as “Members,” Page 14 ‘Sustainability’ Plan Involved Payments to SAS PAID According to the agreement, four RALEIGH, NC U.S. POSTAGE counties selected by McKoy — Orange, PERMIT NO. 1766 NONPROFIT ORG. Commerce’s McKoy Yadkin, Buncombe, and Edgecombe — each would have received $600,000. brought software Each county would keep $60,000 for participating in the scheme and trans- firm into scheme fer the remaining $540,000 to the North By Don Carrington Carolina Sustainability Center, a non- Executive Editor profit that McKoy chaired last year. RALEIGH Under the plan, the NCSC would Cover of a presentation produced by retain $165,000 from each county — ocuments obtained by Carolina SAS in November 2011 which identifies Journal show that a plan re- Henry McKoy as a new “key stakeholder.” $660,000 overall — and provide some cently scrapped by the North planning services for each county. The who oversees the annual allocation NCSC then would transfer the remain- DCarolina Department of Commerce in- of approximately $40 million in fed- ing $375,000 from each county, or a to- cluded a provision to pay Cary-based eral Community Development Block tal of $1.5 million, to the North Caro- software developer SAS $1.5 million in Grants, created the plan. Each dollar lina Association of Regional Councils federal funds meant to assist low- and would have traveled through three of Government, also known as COGs. moderate-income families. other entities, including a nonprofit Assistant Secretary for Commu- organization McKoy created, before The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 nity Development Henry C. McKoy, reaching SAS, documents show. Continued as “McKoy,” Page 15 PAGE 2 JUNE 2012 | CAROLINA JOURNAL North CaroliNa C A R O L I N A Government Tries To Bolster Biofuels Market By Dan e. Way Charlotte native and Appalachian State University graduate JOURNAL Contributor now working as a research fellow at the Property and Envi- RALEIGH ronment Research Center in Bozeman, Mont. Rick Henderson Managing Editor he unprecedented goal of creating a biofuels sector in “There’s mandate after mandate” from government North Carolina, from the planting to the propelling of for ethanol, Scarborough said. “But people aren’t going to Don Carrington vehicles with the renewable fuel, “is astonishing and buy it when it turns out to be more expensive than thought.” Executive Editor Tenormous,” Steven Burke admits. Government sets arbitrary targets “to drum up sup- Burke is president and CEO of the North Carolina Bio- port for the program, and the chances of meeting those are Sara Burrows, Mitch Kokai fuels Center in Oxford, created by the General Assembly in probably pretty slim,” he said. That includes a federal push Michael Lowrey, Barry Smith 2007 as a tax-fueled catalyst to foster a cellulosic biofuels to require ethanol to be 15 percent of the blend in gasoline Associate Editors market from trees, grasses, and nonfood crops. to goose the market artificially. The legislature allocated $4.5 million to the center in There are mandates for cellulosic ethanol production Chad Adams, Kristy Bailey the current fiscal year, down from $5 million in previous and the amount that needs to be blended in gasoline. The Kristen Blair, Roy Cordato years, to solve the still prohibitively costly renewable en- federal Renewable Fuel Standard Program mandates use of Becki Gray, Sam A. Hieb Lindalyn Kakadelis, George Leef ergy riddle. 36 billion gallons of renewable fuel annually by 2022. But Karen McMahan, Donna Martinez “North Carolina will use 500,000 acres of its land to producers have been fined for not blending enough of the Karen Palasek, Marc Rotterman produce 7.5 million tons of new [bio]mass that in $4.3 billion fuel. Michael Sanera, John Staddon worth of new facilities will make 500 million gallons of fuel” “The reason they weren’t blending it was because there George Stephens, Michael Walden by 2017, Burke said of the legisla- wasn’t any being made; there isn’t Dan E. Way, Karen Welsh ture’s “colossal” policy directive. a market,” Scarborough said. “It Hal Young, John Calvin Young Burke acknowledged “the just isn’t cost-effective without Contributors audacity of our goal, which I char- massive subsidies.” acterize as not impossible, just Biomass producers will get very hard.” involved once government energy Ziyi Mai, Baxter Rollins portfolio standards “create a pseu- Daniel Simpson, Alissa Whately But critics of this and similar Shane Williams projects argue that there would be do market” for their crops by gov- Interns no market for biofuels without tax- ernment mandate, not consumer payer subsidies and government demand, Scarborough said. mandates. They see the project as “Then energy producers are Published by a waste of public funds and an un- forced to go out and find that [sup- The John Locke Foundation warranted diversion of cropland ply], and they lobby governments 200 W. Morgan St., # 200 from the production of food to the to encourage people to produce Raleigh, N.C. 27601 creation of inefficient fuels. those resources at cost-effective (919) 828-3876 • Fax: 821-5117 The Biofuels Center is not a prices to them,” Scarborough said. www.JohnLocke.org science agency, does not produce “It simply cannot survive without anything, and has no research labs some sort of economic incentives, Jon Ham which means taxpayers.” Vice President & Publisher of its own. Yet it expects to foster an industry that would provide 10 Creating fuels from bio- mass is “an inefficient process” John Hood percent of North Carolina’s future because the feed crops are not Chairman & President transportation fuel needs by 2017 energy-dense. They require large and spin off bioplastics, biomateri- amounts of land and, of concern als, and biopharmaceutical manu- for drought-prone North Caro- Bruce Babcock, Herb Berkowitz facturing. Charlie Carter, Jim Fulghum lina, lots of water, Scarborough said. The center is working with universities, companies, Ethanol delivers “roughly about 30 percent less ener- Chuck Fuller, Bill Graham farmers, growers, counties, and municipalities to create the Robert Luddy, Assad Meymandi gy” than gasoline, so even when it’s selling for less per gal- Baker A.
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