STATE OF MARYLAND BOARD OF PUBLIC WORKS ANNAPOLIS, MARYLAND
December 2, 2020 10:04 a.m.
12/2/20 Board of Public Works 2
PRESENT
HONORABLE BOYD RUTHERFORD Lieutenant Governor
HONORABLE NANCY KOPP Treasurer
HONORABLE PETER FRANCHOT Comptroller
JOHN GONTRUM Secretary, Board of Public Works
ELLINGTON CHURCHILL Secretary, Department of General Services
DAVID BRINKLEY Secretary, Department of Budget and Management
GREG SLATER Secretary, Department of Transportation
JEANNIE HADDAWAY-RICCIO Secretary, Department of Natural Resources
MIKE LEAHY Secretary, Department of Information Technology
JIMMY RHEE Special Secretary Office of Small, Minority and Women Business Affairs
LISA GRIGSBY Recording Secretary, Board of Public Works
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CONTENTS
Subject Agenda Witness Page Lieutenant Governor Presentation of Chesapeake Bay Rutherford Ambassador Award to Joel Jeannie Haddaway- 10 Dunn Riccio Joel Dunn John Gontrum Bill Morgante David Bohannon Dr. Heidi Anderson Josh Tulkin Brian Quinn Susan Olsen Sen. Mary Beth Carozza Ankit Jain Wetlands License for Eastern Del. Charles Otto SEC 4, Shore Natural Gas Pipeline Anthony Field 20 p. 4 Company Del. Sheree Sample- Hughes Sophie Rapley Charles Glass Del. Carl Anderton Craig Mathies Ian Fleming Bill Chambers John Sharpe Dan Ervin
Emergency Design and SEC A1, John Gontrum 122 Construction Services for MDH p. 40 Dennis Schrader
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Emergency Electric Work at SEC A2, John Gontrum the Baltimore City Convention 122 p. 42 Dennis Schrader Center
Emergency Design and SEC A3, John Gontrum 122 Construction Services for MDH p. 44 Dennis Schrader
Facilities Maintenance and Minor Repair Services at SEC A4, John Gontrum 122 Baltimore Convention Center p. 46 Dennis Schrader Field Hospital COVID-19 EVS Housekeeping Services at Baltimore SEC A5, John Gontrum 122 Convention Center Field p. 49 Dennis Schrader Hospital
Medical Services for COVID-19 SEC A6, John Gontrum 122 on Behalf of MDH and DPSCS p. 51 Dennis Schrader
Jeannie Haddaway- DNR Agenda DNR 137 Riccio
SaaS Enterprise Resource Tom Hickey USM 3-S, Planning System Kim Watson 139 p. 84 Implementation Jeff Hollingsworth Construction Management at USM 4-C-BP, Risk Services for Percy Julian Tom Hickey 152 p. 88 Science Building Modification of Contract for DOT 2-GM- Lease of Land and Facilities MOD, Greg Slater 153 Cargo Building D at BWI p. 94 Thurgood Marshall Airport Modification of Contract for DOT 3-GM- Lease of Space at BWI MOD, Greg Slater 153 Thurgood Marshall Airport p. 97 Terminal Building
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Modification of Contract for DOT 5-GM- Various Concession Services at MOD, Greg Slater 153 BWI Thurgood Marshall p. 103 Airport Maintenance and Repair of DOT 6-M, Greg Slater Promobot Robots at BWI 153 p. 114 Ricky Smith Thurgood Marshall Airport
Grant to Board of Directors of DGS 1-CGL, Ellington Churchill 163 Cornerstone Montgomery, Inc. p. 124
Grant top Board of Directors of DGS 7-CGL, Sheppard Pratt Health System, Ellington Churchill 163 p. 131 Inc.
Grant to Board of Directors of DGS 12-CGL, Ellington Churchill 163 the Friends of Jerusalem Mill p. 136
Resurface Day Use Road at DGS 16-C. Ellington Churchill 163 Smallwood State Park p. 141
Modification of Contract for Existing Fund Managers for DGS 25-GM- Small, Minority, and Women- Ellington Churchill MOD, 164 Owned Businesses Account Kelly Schulz p. 163 Funded by Video Lottery Terminal Proceeds Declare Surplus the Properties Known as the William Donald DGS 26-RP, Ellington Churchill 165 Schaefer House Located on p. 168 Druid Park Lake Drive
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PROCEEDINGS
LIEUTENANT GOVERNOR RUTHERFORD: Well, good
morning. Good morning, members of the Board, Madam Treasurer, Mr.
Comptroller. We’re doing another virtual meeting. It’s almost a year we’ve been
doing this virtually, so I think we’re pretty used to this. I hope the public is used to
it at this point.
I hope everyone had a healthy and happy Thanksgiving. I know it
was very different this year than most years, not having large family gatherings and
friends and others over. But you know, we want to make sure that we all stay safe
during this COVID-19 and I’ll say crisis that we have. And you know,
unfortunately we’re seeing here in Maryland, as well as throughout the country, a
rise in of the number of infections and even hospitalizations. But I will say that I,
you know, we’re grateful to our fellow Marylanders who are taking the public
health protocol seriously. At the same time, we do understand all of us have
COVID fatigue. We all want to get back to normal. But we’re not going to be able
to do that if we don’t follow the, what I like to say, the three Ws: wear your mask,
wash your hands, and watch your distance. And so, you know, we want to make
sure that we’re able to, you know, recover from this. That includes, and I know the
Comptroller has mentioned this several times, making sure that our businesses can
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continue to operate, that people can continue to work. But we have to get back to
normal.
And so, you know, we continue at the State level, of course, to work
to address the surge in cases, the new surge in cases and hospitalizations. The
Governor announced yesterday a number of measures, particularly as it relates to
hospitalizations, as well as calling on, you know, additional aid from healthcare
workers. We’ve asked the medical schools to allow for credit as well as the schools
that are teaching healthcare individuals, be it nursing or in public health, to allow
for them to receive credit for coming in and working and volunteering in the
hospitals and other public health agencies. We have put in some protocols with the
hospitals and with Hospital Association that they will start reducing elective
procedures when we reach a certain threshold in terms of the number of patients
that are in the hospital. Not just COVID patients, but patients overall, because the
concern is for not just the beds but the potential that individuals may need ICU
ventilators and things of that nature. Similar to where we were back in the spring,
but in this case in working with the hospitals we are not calling for them to stop
elective procedures right now but to be very conscious. And once we hit a certain,
if we hit a certain threshold, that then they would actually stop those procedures so
that we could free up the beds and the resources for those who might be severely
ill.
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So we still are calling on everyone in the community to work hard
to protect themselves and their loved ones and our community in general. And
there is good news on the horizon. We expect that we will be receiving vaccines in
the very near future. I did just see across the wires that the UK has approved the
Pfizer vaccine. We’re waiting for approval here, but we’re expecting that probably
as early as mid-December that we could start seeing the first shipments coming in.
Now the two things that I want to stress with that is the priority is
going to be our frontline healthcare workers. So everyone is not going to get a
vaccine or the ability to get a vaccine right away. We’re only going to get a small
amount. And so it’s going to have to go to the healthcare workers. And then after
that, it will go into those who are in the nursing homes and assisted care facilities.
And it’s likely that it would be the staff that will be the first ones, because the staff
are the ones who are, they are the ones that we saw last spring that were bringing it
in unintentionally because we had shut down visitations. So we have to address
that issue first before we even get to the individual residents. So that’s the one
thing. And then the other part with the vaccines is everyone needs to get it when
it’s available. You know, I know that there are people out there that are, you know,
and this has started before COVID, that there are people who don’t like vaccines.
They just, they think they are all, whatever they think it is. We have to get past
that. We need people to take the vaccines. You know? And those that even say
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that I don’t want to be the first one. Well, you’re not going to be the first one, okay?
By the time we get to everyone, including the, you know, us, it will probably be the
spring if we’re fortunate to be able to get to, you know, the general public where
you can go to your primary care provider or CVS to be able to get the vaccines.
Lastly on that note --
TREASURER KOPP: You know, could I just --
LIEUTENANT GOVERNOR RUTHERFORD: Yes?
TREASURER KOPP: -- it just occurred to me that that order in
which, order of priority, which I think is absolutely right, it also should serve to
show people that the people who know the most about the illness and about health,
the healthcare workers, the workers on the frontline, are the first ones who are
taking it and who want it. And that ought to give --
LIEUTENANT GOVERNOR RUTHERFORD: That’s a good
point.
TREASURER KOPP: -- more confidence.
LIEUTENANT GOVERNOR RUTHERFORD: That’s a very good
point, is that they are the ones who are taking it. There are a number of healthcare
workers and doctors who are also in the trials themselves. So they are willing to
do that. And so, you know, that should give some confidence to those who are
skeptical. Now, the anti-vaxxers, they are in a different world. So you know,
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hopefully we can get through to some of them. But I did hear recently that the hope
is that 70 percent of the population will take the vaccine. And if we can get to 70
percent, that can basically, you know, quash the pandemic. So, you know,
combined with people who have already had it, that may have built up some
antibodies and a limited immunity, we should be in a much better shape.
Lastly on vaccines, we do still encourage everyone to get their flu
vaccine. It’s very important that you get the flu vaccine so that you don’t get sick
with the seasonal flu and tie up emergency rooms and your primary care doctors
and others. So we still are encouraging that. I saw that Baltimore City is initiating
a program to really encourage their residents to get those flu shots. So those who
are listening, all those at home that are listening to this, make sure you get your flu
shot, please.
And with that, I want to turn to, I have an award, which
unfortunately I put it under my Board of Public Works book, of the Ambassador to
the Chesapeake. And this is being provided, and we’ll get it to him, Joel Dunn,
who leads the Chesapeake Conservancy. And their mission is to protect the lands
and landscape that are vital to the Chesapeake Bay and preserve the rich heritage
of the region. Joel’s efforts have bettered the community and the State, and that
started actually long before he got involved with the Conservancy there, the
Chesapeake Conservancy.
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For years, he had served on countless commissions, including the
Maryland Joint Study Committee on Program Open Space, the Partners for Open
Space, the Severn River Commission. He recently was appointed to the Maryland
Outdoor Recreation Economic Commission. Congratulations, Joel, on that. I have
a particular interest in the outdoor recreation. My, and I’ll just full disclosure, the
Secretary knows that my nephew was very involved when he worked at DNR in
bringing that to the attention of the former Secretary of DNR, that he saw other
states that were engaging and promoting outdoor recreation. So thank you for your
service there. And he has served on many committees and he has been really a
benefit to, providing benefits to Maryland and generations to come, including
establishing the Captain John Smith Chesapeake National Historic Trail. And I just
want to say to properly recognize his contributions, I want to ask, and I see she is
signed on, Secretary Jeannie Haddaway-Riccio of the Maryland Department of
Natural Resources to present Joel with the Ambassador of the Chesapeake Award.
MS. HADDAWAY-RICCIO: Well good morning, and thank you,
Governor. It really is an honor to be able to participate in this presentation, albeit
virtual. You hear me talk about partnerships a lot and that is because government
alone certainly cannot achieve all of the goals that we have for our environment in
Maryland and throughout the world. And one of our strongest partnerships is with
the Chesapeake Conservancy under Joel’s leadership. This is one of the highest
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and most prestigious awards that the State confers upon citizens who are active
leaders in the fight for the Chesapeake Bay. So Joel, thank you very much for all
that you do. Thank you for your partnership. And we look forward to continuing
to work with you for many more successes to come.
MR. DUNN: Thank you so much, Lieutenant Governor, Secretary
Riccio. Thank you so much for this honor. I’m so humbled. I’m so grateful. I
want to compliment you on your leadership. Lieutenant Governor, I know you are
visiting all our State parks. And as I understand it, you have visited 39 of our 75
so far. I compliment you on that. We’re really lucky to have such beautiful parks
in our State and we’re lucky to have your passionate support for their creation and
their maintenance.
You know, conservation is a worthy endeavor, but it takes years of
relentless effort, decades sometimes, in order to succeed. And it wouldn’t be
possible without a committed team of partners, staff, and board members at the
Chesapeake Conservancy, the support, encouragement, and consolation sometimes
that I receive from my wife on my successes and failures. And this challenging
work is really made easier by political leaders like you and Governor Hogan,
Comptroller Franchot, Treasurer Kopp, the members of the General Assembly that
are committed to protecting our environment. And you guys have just been
outstanding in providing full funding for Program Open Space, the Chesapeake and
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Coastal Bays Trust Fund, the Bay Restoration Fund, defending our federal
programs, like the Chesapeake Bay Program, and the National Park Service’s
Chesapeake Gateways Program. And of course, my favorite is the Hogan
administration’s recent support of the establishment of a Chesapeake National
Recreation Area, which is, we still have a lot of work to do to get that done. But
you know, that would put us on par with the Grand Canyon or Everglades or the
Great Smokies. So, you know, I’ll keep my remarks short and just say thank you
to all of you and for your commitment to conservation, to the protection of the
Chesapeake Bay. You know, future generations like my two little daughters, I have
a two-year-old and a five-year-old, they benefit from your outstanding commitment
and leadership and they have the opportunity to experience the wonders and joyful
experiences out in nature at places that are State Parks and local parks, like Quiet
Waters Park, which is on your Agenda today. And that wouldn’t be possible
without your extraordinary leadership and support. So thank you, and thank you
for this wonderful honor.
LIEUTENANT GOVERNOR RUTHERFORD: Well, thank you,
Joel.
TREASURER KOPP: Congratulations and thank you.
COMPTROLLER FRANCHOT: Hey Joel, it’s the Comptroller. Do
you have any opinion on this particular gas pipeline project we’re about to spend
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some time looking at? No, I’m only kidding. Congratulations on your award. It’s
well deserved. And congrats to the Hogan administration for their efforts. I’m just
kidding on the other item, because I know a number of people are signed up. But
thank you for your leadership. And good things are going to happen to the Bay
down the road.
MR. DUNN: Thank you for your leadership and I’m very grateful.
Thank you.
TREASURER KOPP: Could I ask, Governor, it went too quickly
for me. Is Joel the Ambassador to the Chesapeake or for the Chesapeake? Or both?
LIEUTENANT GOVERNOR RUTHERFORD: Well the title
actually says Chesapeake Bay Ambassador. And Secretary Haddaway-Riccio can
probably explain it a lot better.
TREASURER KOPP: I think both.
LIEUTENANT GOVERNOR RUTHERFORD: Okay.
MS. HADDAWAY-RICCIO: I would definitely go with both,
Madam Treasurer. Joel is an excellent example of an Ambassador for the
Chesapeake because he certainly helps to spread the message of the importance, as
he so eloquently highlighted, his children being the beneficiaries of a better future
because of all the work we do. That’s a great example of being an Ambassador for
the Chesapeake Bay by influencing others to participate and help out as well.
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LIEUTENANT GOVERNOR RUTHERFORD: And Joel, you
mentioned the support for, the federal support for the Chesapeake Bay. The
Governor recently sent a letter to the Biden-Harris transition team outlining three
priorities of the State, and one of them was the continued funding and the increased
funding for Chesapeake Bay relief efforts. So that is a priority for us.
MR. DUNN: Well I noticed that, sir, and I celebrated the moment I
noticed it. So thank you so much. I mean, everyone loves the Chesapeake Bay.
No matter where you are from in the Chesapeake Bay watershed, no matter your
history, everyone loves the Chesapeake. We can all agree that it’s a priority to
protect it, restore it. It’s the lifeblood of our community. It literally runs through
our veins. And I’m just, I’m grateful to be a part of a community that’s working to
protect it for future generations and I’m grateful to be a partner with all of you.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Well, thank
you. Okay, with that, thank you, Madam Secretary. And I’ll turn to Treasurer
Kopp for opening comments.
TREASURER KOPP: I don’t think I have anything to add,
Governor, except good morning to you both. This is a great day, yes. In response
to your question, we did have a blessed Thanksgiving. And it did just give you a
chance to sit back and realize how much, even in these difficult times, we have to
give thanks for. And how much, in turn, we have to reach out and help others
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starting the next day. It was exhausting Zooming across the country at four
different events. But a wonderful thing, and I thank you for asking.
LIEUTENANT GOVERNOR RUTHERFORD: Good. Good. Mr.
Comptroller?
COMPTROLLER FRANCHOT: Yes, thank you, Lieutenant
Governor, and Madam Treasurer. I know we have a full Agenda today so I’ll try
to be brief and I want to concur with both of you. I hope everyone had a safe,
relaxing, and happy Thanksgiving. I can’t remember when the last time was that
my wife Annie and I celebrated Thanksgiving just by ourselves, two of us sitting in
the dining room.
LIEUTENANT GOVERNOR RUTHERFORD: Pre-children.
COMPTROLLER FRANCHOT: We ordered take-out from a local
Indian restaurant and I highly recommend that, having gone through the more or
less roasted turkey mode. This was a different presentation and it was superb. We
both looked at each other at the end of it and said maybe this could start something
new for us. Of course, the next day Annie had to roast a turkey because she felt left
out, okay? So we’ve been eating leftovers for two or three nights now. But I hope
everyone was able to visit virtually with, or not, with their children and their
spouses. You know, obviously our wonderful grandchildren we didn’t see, and
family members. And that’s like so many Marylanders across our State. You
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know, everybody is heeding the advice of the medical experts. But they are also
heeding, and Lieutenant Governor just please pass this along to Governor Hogan,
they are also heeding the fact that he is clear, that he is present, that he is having
press conferences, that he is urging everybody to take care of themselves and also
not get into a position where they are, you know, spreading a new wave of COVID-
19 cases.
Obviously, we’re very concerned with the fact that our healthcare
system may be overwhelmed by the new surge. And you know, I just think that
frankly, Boyd, let me give a hats off. My staff sometimes gets mad at me for giving
praise these days. But you know, your team has done a commendable job in
communicating the seriousness of the public health issue. And please pass that
along to the Governor and other team members. It’s not easy.
Obviously, the holiday season is a very awkward time because it’s
the most wonderful time of the year and, you know, we’re being urged to be vigilant
and take simple steps and do social distancing and keep our elbows up. And as the
Governor so famously said, I’m allowed to say this because I’m quoting him, “Wear
the damn mask.” I mean, really. Thank you for -- well, I don’t want to get in
trouble for using -- I should have said wear the darn mask, I guess. But he said,
“Wear the damn mask.” And it’s true.
LIEUTENANT GOVERNOR RUTHERFORD: Mm-hmm.
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COMPTROLLER FRANCHOT: It’s, we only need it for a couple
of more months, I think. For the sake of the lives and the livelihoods of our family,
friends, and neighbors, it’s my sincere hope that all of us as a State rise to the
occasion and assume personal responsibility in ensuring that we’re doing our part
to contain the spread of this deadly virus.
And Governor, to end, if I could, just on a slightly lighter note, I’d
like to wish my long-time friend, many, many, many decades, my colleague
Treasurer Kopp, an advance Happy Birthday before next Monday. My heartfelt
gratitude, Nancy, for your friendship and your outstanding leadership for the State,
not just on fiscal matters but everything that has made our State such a wonderful
place to live in. Happy Birthday.
TREASURER KOPP: Thank you very much, December 7th, a day
that lives in infamy.
(Laughter.)
COMPTROLLER FRANCHOT: Yes, I didn’t mention that.
LIEUTENANT GOVERNOR RUTHERFORD: -- all right.
COMPTROLLER FRANCHOT: It’s a good day.
LIEUTENANT GOVERNOR RUTHERFORD: Yes. Yes. Well --
COMPTROLLER FRANCHOT: Thank you.
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LIEUTENANT GOVERNOR RUTHERFORD: Well, thank you
all. Does the modern generation know that quote, Madam Treasurer, you know? I
mean, I grew up with that. And --
TREASURER KOPP: Probably not. I keep actually running into
blank stares when I say things more and more often and I know there’s no point of
reference. And nonetheless, it was a day that will live in infamy.
LIEUTENANT GOVERNOR RUTHERFORD: Oh yes, yes. Well,
and I know we’ve got to get to the Agenda, and I’m just going to mention this
quickly. That I’m a, my wife and I are fans of a lot of the older movies, and of
course they are in black and white. And so we will mention -- she came home from
work just maybe two weeks ago and --
TREASURER KOPP: We’ll always have Paris.
LIEUTENANT GOVERNOR RUTHERFORD: -- and she was
flabbergasted that there was a younger person in her office who had never heard of
Alfred Hitchcock, had no idea. She mentioned a number of the movies and he had
no idea. There was a former member of my staff and she was in her thirties and
she said she doesn’t watch anything that’s in black and white. I mean, just
prohibition on black and white movies.
TREASURER KOPP: Yeah, I actually have run into that in the last
week. It’s very disconcerting, because the points of reference aren’t there anymore.
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LIEUTENANT GOVERNOR RUTHERFORD: Exactly.
TREASURER KOPP: I met, I was talking to my sister about a
professional, a professional comedian who had never heard of Groucho Marx or
Sid Caesar. I find that just --
LIEUTENANT GOVERNOR RUTHERFORD: Yes. Yes. I know.
So, okay, we’re dating ourselves -- okay.
(Laughter.)
TREASURER KOPP: -- yes.
LIEUTENANT GOVERNOR RUTHERFORD: All right. The
Secretary’s Agenda? John? John Gontrum? We’re going -- there he is.
SECRETARY GONTRUM: Hi, Good morning, Governor, Madam
Treasurer, Mr. Comptroller. We have 27 items on the Secretary’s Agenda and 12
reports of emergency procurement. Item 9 is being withdrawn at the request of the
Department of Housing and Community Development. I’m happy to assist with
answering any questions.
LIEUTENANT GOVERNOR RUTHERFORD: I’d like to go to
Item 4 on the Agenda and --
SECRETARY GONTRUM: Item 4 is a State tidal wetlands license.
We have Bill Morgante, the Board’s Wetlands Administrator, prepared to address
the item.
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LIEUTENANT GOVERNOR RUTHERFORD: Okay. If we can
turn to Bill, that will be great.
MR. MORGANTE: Good morning, Governor, Madam Treasurer,
Mr. Comptroller. For the record, Bill Morgante, Wetlands Administrator with the
State.
The wetlands license before us today is part of the larger Eastern
Shore Natural Gas Pipeline Company project to construct, own, and operate an
approximately seven-mile buried pipeline beginning in Salisbury in Wicomico
County and extending into Somerset County. The purpose of the pipeline is to
supply energy in the form of natural gas to portions of Wicomico and Somerset
Counties, including to the University of Maryland Eastern Shore and ECI. The
applicant requests a wetlands license to horizontally directionally drill below the
tidal South Prong Wicomico River in Salisbury to install the pipeline. I concur with
MDE that approval of the license with special conditions is appropriate.
During the project public comment period, MDE received
communications in support and in opposition to this application. MDE conducted
a virtual public information hearing on July 7th of this year with 96 members of the
public attending virtually. I attended this hearing as well and actually tallied five
speakers in favor and 26 against. And I would just like to quote part of MDE’s
report and recommendation that summarizes their finding on this. Their report and
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recommendation explained, “though well-recognized that fossil fuel use
contributes to climate change, the focus of MDE’s review is avoiding and
minimizing tidal wetland impacts for this project, whose purpose is transporting
natural gas. Impact to tidal wetlands associated with the project will not contribute
to flooding, storm surge and sea level rise, or reduce the ability of the tidal wetlands
to function as a carbon sink.”
After MDE’s R & R was sent to the Board of Public Works,
following my own tidal wetland regulations I sent notice to MDE’s list of 162
interested persons and posted the R & R from MDE on the Board’s wetlands
administration webpage. Recipients were then invited to submit comments if they
had continuing concerns. As of 5:00 p.m. yesterday, BPW had received a total of
40 comments, 19 in support, 20 in opposition, and one neutral. Out of those
comments, one letter of support actually contained 13 signatures, one letter in
opposition represented four environmental organizations, another letter in
opposition represented 29 individuals or groups, and a third opposition letter
actually included 599 names. Some comments contained concerns related to the
wetlands and the HDD work, yet most referenced other environmental concerns.
In light of MDE’s report, the project plans, concerns raised, and
responses received, I’ve determined that the question relative to this wetlands
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license issuance really concerns the HDD crossing of the South Prong, and I’d like
to offer the following four reasons for, in support of that.
First, in applying the legal standard from the Four Seasons 2012
case, when the Court of Appeals interpreted the Board’s decision-making to
“preserve the wetlands and prevent their despoliation or destruction,” and not be
based on other considerations, I believe that the Board’s evaluation of this license,
and consequently my own as Administrator, is confined to the impacts of the
proposed license activity on the South Prong tidal wetlands.
The second reason, I’ve reviewed the public comments submitted
directly to the Board, all of them. Most opposed to the project cited reasons not
related to the wetland crossing of the South Prong. These concerns included
impacts to climate change, the combined impacts with the companion Chesapeake
Utilities Pipeline, renewable energy providing greater public benefit than natural
gas infrastructure, and a preference for renewable energy power sources at the
University of Maryland and ECI. I agree with MDE that fossil fuel use contributes
to climate change. Yet, the license issuance here should focus on the wetland
impacts, in this case the HDD work under the South Prong.
My third reason, I carefully reviewed the project HDD plans, since
those, I feel like, to me are the crux of the impacts to the wetlands. And I posed
questions to the design engineer concerning pressure limits for the drilling fluid
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allowed during the drilling operation. I found the project design plans and notes
concerning fluid pressure limits to be confusing and then proposed three additional
HDD license conditions regarding this. One of these conditions concerns setting
maximum drilling fluid pressure limits, another concerns actions to take if that
pressure is reached, and a third requires the independent monitor who would be
monitoring the project to report on the contractor’s adherence to these limits.
My fourth and final reason is this proposed license activity is
consistent with past license work with the State and State tidal wetlands. The Board
has licensed at least four similar HDD projects over the past three years. This
pending application does not propose any unique impacts to the State’s tidal
wetlands relative to other previously approved HDD projects.
So overall I recommend the Board approve the license with six
additional license conditions, three regarding the drilling fluid pressure limits,
which I believe really strengthen protection of the South Prong wetlands from
drilling fluid leak; a fourth condition that includes consideration of rainfall patterns
and turbidity in erosion and sediment control; a fifth condition regarding altering
trees within the right-of-way; and a sixth condition requiring compensation since
this pipeline will be installed under the State tidal wetlands. All the conditions
recommended actually in the companion Chesapeake Utilities report and
recommendation would be incorporated into this wetlands license. And MDE
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concurs with these conditions, and I concur with MDE’s recommendation that
issuance of this license with the addition of the five special conditions is in the best
interest of the State.
I’m happy to answer any questions you have, BPW. General
Counsel Bohannon and MDE Secretary Grumbles are also available to answer your
questions.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Any
questions for Mr. Morgante?
COMPTROLLER FRANCHOT: Yes, I had a question. Because
Mr. Morgante, thank you for your expertise and your knowledge. I just happen to
completely disagree with you. I mean, really, this is not an issue of a small number
of wetlands plants that can be moved around or not moved around. This is
something that -- well, we got 4,000 emails from people opposed to this project.
So to respond that, oh well, really there are just a couple of hundred plants that need
to be moved from one side to another, or we think the wetlands will still be there, I
think is just limited way too much. I mean, I’m thinking of the pipeline that the
Board of Public Works unanimously opposed in 2019, the Potomac Pipeline. You
know, I was proud to vote against that for reasons. I’m not sure how I’m going to
vote on this. But I think to limit the Board of Public Works’ tidal wetlands approval
to something as specific as you just mentioned is just -- I understand where you are
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coming from. I understand where the Court is coming from. I just want to register
my strong disagreement. And you need two votes to turn this down or vote for it.
And I would just suggest the Board of Public Works is not limited to those specific
parameters. People can disagree with me. But I just wanted to make sure you were
aware of my concern that you’ve got yourself defined into such a narrow little space
that it almost becomes a formality as far as getting approval from the Board of
Public Works. And I don’t think that’s the case. But I’m just the Comptroller and
just one vote. But thank you for obviously presenting something in a professional
way, I just happen to disagree with you.
MR. MORGANTE: Can I respond to that?
LIEUTENANT GOVERNOR RUTHERFORD: Yes, please.
COMPTROLLER FRANCHOT: Sure.
MR. MORGANTE: So, Mr. Comptroller, I respect your opinion and
your view on this. I mean, the fact is that actually the horizontal directional drill
will go under the South Prong. So, there’s actually zero wetland plants that would
be affected by this. I mean, it has, it has virtually no impact on existing wetlands.
So, I mean, that is the reality of the work that they are proposing. I’m not making
light of other concerns that were brought up. It’s just, I feel like -- and I’ve looked
at this very, very carefully. This is a very difficult project to comment on for me
personally. But I guess I honestly feel that the focus of why this license is before
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the Board of Public Works is because it’s a wetlands license. So, I just really
strongly believe that the impacts, that what should really be looked at in evaluating
this are the impacts to the wetlands.
COMPTROLLER FRANCHOT: Four thousand emails. Obviously,
you know, I just think that it’s, it’s too hermetically sealed in a little crawl space
somewhere. So and I understand where you are coming from, and I always have
applauded your knowledge. I’m just suggesting this is a reed too thin to stand on
as far as approving a project like this that has so much public concern.
LIEUTENANT GOVERNOR RUTHERFORD: But Mr.
Comptroller, I think as Mr. Morgante had pointed out, the courts have defined what
the role is for the Wetlands Administrator. So it’s been, you know, determined by
Maryland State Courts have defined what is his responsibilities. And of the many
emails, 4,000 that you have received, emails that the Treasurer, that we’ve received,
both emails and letters, and phone calls with regard to concerns, most of which do
not relate to the wetlands. It relates to other issues, and we’ll hear from individuals
who are going to be talking in opposition as well as support of the project. And we
can address some of those concerns that are being raised. And I will also point out
that many of the people who are most concerned about it do not live in the Lower
Shore.
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Many of them already have access, if they don’t have natural gas at
home. So they do receive the benefits of that and they are not subjected to the
particulate matter that is coming from ECI or the diesel fuel or fuel oil and
petroleum emissions that come from University of Maryland Eastern Shore. And
so we will hear. And I’m going to call on Dr. Anderson from the University of
Maryland Eastern Shore next so she can talk about the impact and the ability to
have natural gas at her facility. Whereas they are looking at how they can better
utilize renewables as well, but she will explain that much better.
TREASURER KOPP: Could I ask, Bill, one question before we get
to President Anderson? One of the many communications we got said that they
fear the excavation methods necessary for the pipeline’s construction will use
significant amounts of water, cause sediment to build up in the streams and
wetlands, and have potential for blow outs that would increase drilling mud into
nearby streams. Are, your expert advice, do the conditions that you have put on
respond to all these concerns?
MR. MORGANTE: I believe so, yes. You know, I think as the
project had originally come to the Board, I think I mentioned in my remarks that
there were questions that I had about the drilling fluid pressure. You know, the
mud in the streams, just to clarify that when they drill underneath the stream 28 feet
below, that all the soil material that’s removed is taken off site. That does not stay
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on site. That cannot get into the stream at all. And there are actually, and on these
horizontal directional drilling projects, there is an independent monitor that is
brought in, you know, unique to all other kinds of environmental projects to really,
that’s independent from the contractor, independent from anyone else involved to
really monitor what goes on. So they will also be reporting to MDE and to the
Board. But to kind of get back to your exact question, I think that the, the additional
conditions about drilling fluid pressure limits I think just add a further level of
protection because of the way the design was put forward on this.
TREASURER KOPP: What is the fluid that’s used in the drilling?
MR. MORGANTE: It is bentonite clay mixed with water. So it
actually is a naturally occurring substance, but it is bentonite clay. But again, all
the material that’s put in to actually make the tunnel is removed and taken off site
afterwards.
TREASURER KOPP: Okay.
MR. MORGANTE: That should not be leaking into the South
Prong.
TREASURER KOPP: Okay. Bill, the Comptroller mentioned the
Western Maryland Pipeline, which apparently was not constrained by the same
limitations. Our, the Board of Public Works authority was not constrained by the
same limitations so we were able to legally vote against it. How is this different?
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SECRETARY GONTRUM: Pardon me, Madam Treasurer. That
may be a question better posed, respectfully, to David Bohannon, the Board’s
General Counsel, who is with us this morning to explain the difference between the
provisions in the Environment Article and the provisions in State Finance and
Procurement § 10-305, the Disposition of State Property. Mr. Bohannon, are you
with us?
MR. BOHANNON: Good morning. Yes. So this is in front of you
under Environment § 16-202(g), which really has been interpreted by the courts as
being limited to the impacts to the wetlands being acted upon in the application.
The Western Maryland Pipeline was coming in front of the Board as a property
disposition. That’s handled under State Finance and Procurement § 10-305. In that
case, the Board has a much wider purview in acting in terms of the disposition of
the property.
TREASURER KOPP: Because it wasn’t a tidal wetlands?
MR. BOHANNON: It wasn’t a tidal wetlands. At that far out, it was
not tidally impacted.
TREASURER KOPP: I have to say, I feel the Comptroller’s
frustration, maybe even more than he. It’s more with the courts and with the
Legislature for not, after the Four Seasons, coming back and clarifying authority.
But that’s history. So thank you. I mean, that was, that was the immediate legal
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question. So you agree that under Four Seasons, I assume you advised Mr.
Morgante, that --
MR. BOHANNON: I do. If I may take a moment, the quote that I
have from Four Seasons is at the very end. And in that case, the quote was, “at
issue before the Board, as we have noted, was whether the impact on the affected
wetlands of the four elements, the four elements in that particular application, that
comprised that application, was sufficiently adverse as to make it in the State’s
interest to deny the application.” So the question here really is does this HDD work
have such an impact on the wetlands to make it adverse to the State?
TREASURER KOPP: -- specific wetlands, did it, the river did it --
COMPTROLLER FRANCHOT: Yeah. I’ll just mention, Madam
Treasurer, since you brought that up, that Four Seasons project is one of the worst
examples of urban sprawl ruining the health of the Chesapeake Bay that I could
possibly ever conceive of. So thank you very much for like limiting the jurisdiction
of the Board. But in the, you know, thank the court system, but they are completely
wrong. Because that Four Seasons project is exactly what is ruining the
Chesapeake Bay right now. And it’s not talked about enough. It’s called urban
sprawl.
TREASURER KOPP: Okay. Well, I’m not sure that it’s urban
sprawl or that it’s the very worst. But I think it was a very bad project. I agree with
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you completely about it, as I did then. But because of the impact on Kent Island,
traffic, and other things, not on the specific wetlands. I just --
LIEUTENANT GOVERNOR RUTHERFORD: Right.
TREASURER KOPP: Anyhow I’m --
LIEUTENANT GOVERNOR RUTHERFORD: Well, Madam
Treasurer, I think you pointed out the challenge, you know, correctly. And it is up
to the Legislature to clarify that if that is the, you know, in the interests of the State,
to clarify that role in terms of the Board of Public Works. And so we have a duty
to follow the law.
I want to turn to Dr. Anderson because I know that her time is
limited. I originally said that I thought I could get her on around 10:15 and it’s now
10:50 or thereabouts. So, Dr. Anderson?
DR. ANDERSON: Hello, can you hear me?
LIEUTENANT GOVERNOR RUTHERFORD: We can hear you,
we can’t see you, though.
DR. ANDERSON: I don’t know what’s going on with the camera.
I apologize for that. Part of that may be broadband, that we need here so
desperately.
LIEUTENANT GOVERNOR RUTHERFORD: Yes.
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DR. ANDERSON: I had to get that in. Let me start by saying good
morning and thank you very much for having me. And I’m saying good morning
to the Lieutenant Governor, the Comptroller, and also the Treasurer. It has been
my pleasure to talk with all of you most recently over the last few weeks about this
particular important matter.
As the 16th President of the University of Maryland Eastern Shore,
I am representing almost 5,000 individuals, that’s our faculty, students, and staff.
And I want to start by saying we are direly committed to Governor Hogan’s
executive order that he issued on June 25, 2019, and that was directing our
institutions and other institutions in the State to make sure that we focus on reducing
energy consumption by ten percent by 2029.
During my short time here at UMES, my team and I have already
begun to implement new strategies towards renewable energy and we are
developing a new comprehensive plan. I have already sent that plan to you, at least
an executive summary of that plan, so I will respect your time today by not
repeating all of the details in that plan. But since this is a public forum, I will just
point out that that plan outlines our commitment to renewable energies. It outlines
our directions and our approaches under, utilizing wind, solar, geothermal,
greenhouse gas emissions, and also consumption and conservation.
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But what I would like the spend the time going through is just giving
you a few key points. First of all, UMES agrees strongly with MDE’s
recommendation to issue this wetlands license. Briefly, this natural gas project will
allow UMES and the local residents of Somerset County to get rid of the dirtiest oil
fuels that we are now using as energy here on the Eastern Shore. It will allow us to
lower our energy costs, currently from over $21 per million BTUs for fuel oil, we
could lower that to less than half. It will allow us to have economic development
in the form of jobs that are so direly needed here on the Shore. And it will allow
us to become more environmental friendly by reducing the carbon dioxide
emissions that are on our campus by down to 38 percent, and also at 65 percent at
ECI.
And let me add that we agree with moving forward and it is
important for us to do all of our part to move forward as a nation, but also as a world
toward cleaner energies. We agree that we must make sure that our wildlife, our
marine life, and our human lives are protected from less clean energy sources.
However, today investing in this important natural gas project allows us to
immediately reduce our carbon dioxide emissions on the Lower Eastern Shore. As
I said, it allows us to leverage the funds that we are now putting into dirty oil fuels
into cleaner energy sources.
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Furthermore, for the people in Somerset County, the poorest county
of this State, it will allow us to begin to help the health issues that impact them from
the use of these dirty fuels that are used on the Shore. Please keep in mind that
Somerset County is not only the poorest county, but the people here have the
greatest healthcare disparities than any county in the State. Emergency room visits
among our children who have asthma is two times that than other Marylanders.
Our commitment to clean energy is unwavering and it is steadfast.
But I strongly believe that reducing harmful emissions in Maryland is best achieved
through a diversified approach. According to the U.S. Energy Information
Administration, CO2 emissions are down by 30 percent since 2005, and the
conversion from dirtier fuels to natural gas is a leading contributor to this reduction.
SECRETARY GONTRUM: Dr. Anderson, I apologize for
interrupting. The Board has requested that public comments be limited to no more
than three minutes. So if you could begin to conclude, that would be appreciated,
please.
DR. ANDERSON: Let me conclude -- thank you very much. I
apologize. Let me conclude by saying it is my sincere hope that you not only
consider the marine life, the wildlife, the plants, and the future, but that you strongly
consider the human lives that are existing here today. And as a historically black
college and university, and one that is located, again like I said, in the poorest
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county of the State with a large African American population, this natural gas
pipeline will be a game changer for our community and our county. I strongly urge
your support for this effort and thank you for the opportunity to speak on behalf of
our university.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Dr.
Anderson.
DR. ANDERSON: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Any questions for
Dr. Anderson?
TREASURER KOPP: I do have one question, if I could. You say,
Dr. Anderson, that you are in support of moving towards renewables, like solar,
wind, geothermal, and not relying on natural gas other than as a bridge. But in fact,
have you made moves in this direction?
DR. ANDERSON: Yes, we have. We have made moves with solar
at this particular time. We’ve made moves with wind energy, with also geothermal.
We are reducing greenhouse gas emissions on a number of fronts. We have made
a number of issues and we have a number of goals in progress at this particular
time. And our plan is to move forward with this and be completed with our plan
by 2025.
TREASURER KOPP: 2025, and you do use solar now, as I recall?
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DR. ANDERSON: Yes, we do. We have solar now and we are
expanding that.
LIEUTENANT GOVERNOR RUTHERFORD: And you have
geothermal in one of your newer buildings --
DR. ANDERSON: We have geothermal in two of our buildings and
are about to put it in two additional new buildings. And in fact, save the date, April
30th, we’re going to invite you over to our Health Professions Building hard hat
ceremony that we’re going to have. And you’ll see what we’re doing there.
TREASURER KOPP: I hope we can make it in person.
LIEUTENANT GOVERNOR RUTHERFORD: Very good.
COMPTROLLER FRANCHOT: Well now, Madam President, let
me jump in and say if you’re talking geothermal, that’s the music I want to hear.
Because years ago I brought this concept up when I was first elected, and it was
treated a little bit like I was a communist sympathizer from Takoma Park talking
about --
TREASURER KOPP: -- in those days --
COMPTROLLER FRANCHOT: -- some strange Russian thing.
Now, geothermal is all over the Eastern Shore, and frankly the State of Maryland,
and congratulations to you. I just wanted to, do you have any data on what your
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institution will reduce CO2 emissions by if you replace the dirty oil that you use
right now with natural gas?
DR. ANDERSON: Yes, we will reduce it to 38 percent.
COMPTROLLER FRANCHOT: You will reduce it by 38 percent?
DR. ANDERSON: Yes.
COMPTROLLER FRANCHOT: Your CO2 emissions?
DR. ANDERSON: That is correct, by 38 percent. Yes.
COMPTROLLER FRANCHOT: Okay.
LIEUTENANT GOVERNOR RUTHERFORD: Five million
pounds, as I understand.
TREASURER KOPP: Five million?
COMPTROLLER FRANCHOT: What’s that?
LIEUTENANT GOVERNOR RUTHERFORD: Five million
pounds --
DR. ANDERSON: Five --
LIEUTENANT GOVERNOR RUTHERFORD: -- on what
Maryland Energy Administration has said, and a 38 percent reduction of CO2
emissions.
DR. ANDERSON: Yes.
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LIEUTENANT GOVERNOR RUTHERFORD: For UMES alone.
And that doesn’t include NOx reductions of close to 60 percent, and sulfur oxide
reductions of close to 90 percent.
DR. ANDERSON: Mm-hmm.
LIEUTENANT GOVERNOR RUTHERFORD: So, you know,
when we talk about, you know, the impacts on the environment and greenhouse gas
emissions, doing the status quo is much more harmful to the folks on the Eastern
Shore and our environment in general than moving to this fuel. And as the President
mentioned, when we look at the reductions of CO2 in the atmosphere -- and
Maryland was pointed out as one of the lead states in reducing CO2. It was largely
due to conversion of coal to natural gas. And while we are all working towards
renewable energy sources, they are not quite there yet to be able to provide heat
and fuel to the two largest employers in Somerset County. And they are still paying
a high cost for dirtier fuel right now that is, you know, adding pollution into the air
in that county.
COMPTROLLER FRANCHOT: Could I just, I’m not going to ask
questions of everyone, but Madam President, since you are here you can be -- the
African American population that are going to be impacted by this particular project
--
DR. ANDERSON: Mm-hmm.
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COMPTROLLER FRANCHOT: -- and I just want to ask, I thought
I saw somewhere that in contradiction to you, the NAACP is urging us to reject this
project. Is that something you are aware of? Because --
DR. ANDERSON: I am not aware of that. We have had
conversations with our downtown County Commissioners and we have regular
meetings with them on regular basis and they know that we are in large support of
this particular project.
COMPTROLLER FRANCHOT: And --
DR. ANDERSON: So, I’m not aware of that --
COMPTROLLER FRANCHOT: And I have a letter from the
Salisbury City Council saying turn down this project.
LIEUTENANT GOVERNOR RUTHERFORD: Yeah, Salisbury
City Council, Salisbury has natural gas. So --
DR. ANDERSON: They --
LIEUTENANT GOVERNOR RUTHERFORD: -- an issue?
DR. ANDERSON: Salisbury has had natural gas since 1959.
LIEUTENANT GOVERNOR RUTHERFORD: Right.
COMPTROLLER FRANCHOT: No, I’m just asking because we
brought up this issue of, you know, these concerns --
DR. ANDERSON: Equity.
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COMPTROLLER FRANCHOT: -- about disadvantaged
individuals or economically challenged, and I’m just --
LIEUTENANT GOVERNOR RUTHERFORD: Yeah but --
COMPTROLLER FRANCHOT: -- calling out what I see.
LIEUTENANT GOVERNOR RUTHERFORD: Well, I’m calling
out the fact that most of the folks who are complaining about this, including we’ll
have a speaker who represents or is a liaison to the Dorchester County branch of
the NAACP, are in areas of the State that have natural gas. They have a choice.
DR. ANDERSON: Yes.
LIEUTENANT GOVERNOR RUTHERFORD: They can make
that decision if they want to use natural gas or not. I live in Howard County.
Natural gas is in the street. We have not converted but I have that choice. And
what a number of these people are doing is denying the choice of the residents and
the businesses in that community, which is as was said the poorest community in
the State. So this really gets under my skin because I think it goes to the elitism of
people who live in an area where they can make choices that are trying to make the
choices for people who don’t, and then subjecting them to fuel that is polluting their
environment, that they are breathing in these emissions.
By doing this conversion according to the experts, it’s equivalent to
taking 11,000 vehicles off the road. Doesn’t that have an effect on greenhouse gas
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emissions and on the environment? So, you know, I’m not going to apologize for
getting emotional about this and being particularly concerned. But I see it as
elitism. Even the fact that the NAACP, they are a national group. It’s mostly
people who are sitting in places where they have a choice. And probably have had
natural gas for many, many years, and cook off of it, and they enjoy the fact that
it’s cheaper than --
DR. ANDERSON: Yes.
LIEUTENANT GOVERNOR RUTHERFORD: -- the electric bills
that some of us have. And so now it’s like, no, we know what’s best for you because
we don’t like where your energy is going to come from.
COMPTROLLER FRANCHOT: Lieutenant Governor, I didn’t
mean to rile you up. I was just asking --
LIEUTENANT GOVERNOR RUTHERFORD: Well, I was riled
up before.
COMPTROLLER FRANCHOT: -- the question.
LIEUTENANT GOVERNOR RUTHERFORD: I was riled up
before because elitism bothers me. And it’s coming from those who already have
the privilege of having natural gas, that they want to deny this. And it’s going to
cost, it costs the University of Maryland Eastern Shore more money, they can save
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upwards of $700,000 a year in energy costs that can be reinvested into the school
and into their students. So --
DR. ANDERSON: Lieutenant Governor, you said it very well and I
agree with your passion. I have lived here for two years now and this is something
that we sorely need from the standpoint of cost and also for our health. Even the
short time I’ve been living here, you know, my breathing has already been impacted
and it wasn’t before. And so this is something that the citizens here really, we really
do need. But thank you for your passion.
TREASURER KOPP: Could I ask one last question? Madam
President --
DR. ANDERSON: Yes?
TREASURER KOPP: -- you indicated that you would be saving a
significant sum. And I thought I heard, but I don’t want to put words in your mouth,
that that savings could be invested, reinvested into the movement towards
renewables. Is that what you meant to say?
DR. ANDERSON: Yes. That is our plan. Where we will save
monies, we will reinvest into renewable energies.
TREASURER KOPP: All right. So --
DR. ANDERSON: Which means we can move faster in getting
more renewable energies.
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TREASURER KOPP: -- we’ll be looking forward to hearing reports
on that.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Thank you,
Madam President. I know you have meetings and I apologize for making you wait
so long.
DR. ANDERSON: That is no problem. That’s not a, that’s okay.
Thank you all again for having me and allowing me to testify on this today.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you.
COMPTROLLER FRANCHOT: Hey, call us in a few hours
because this is going to take a while. But I’m sorry if we delayed you a little bit.
But --
DR. ANDERSON: No problem. I have others who will be on the
line here continuing. So we’ll talk with you later, for sure.
COMPTROLLER FRANCHOT: Let me just add while you are
here, Madam President, UMES is a gem. When you drive in, I literally think that
I’m at an institution that, you know, I had a completely different image of. This is,
you have a world class facility there right on the Eastern Shore. And I’m sure it’s
the envy of a lot of, you know, colleges around the country that wish they had what
you have on your campus.
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DR. ANDERSON: Comptroller, you are exactly correct. And thank
you for that. We want to get all three of you over here whenever you can, and I’ve
already got the Eastern Shore delegation who comes over quite regularly. But you
are correct. We --
COMPTROLLER FRANCHOT: -- geothermal, I’ll be there.
DR. ANDERSON: We will make sure you get here. And Treasurer
Kopp, we’re going to have you and the Lieutenant Governor over as well.
TREASURER KOPP: Thank you.
DR. ANDERSON: You are welcome anytime.
LIEUTENANT GOVERNOR RUTHERFORD: I look forward to
coming back to campus. Thank you.
DR. ANDERSON: Thank you. We look forward to having you
again. Okay. Have a good day.
LIEUTENANT GOVERNOR RUTHERFORD: All right. We have
Josh Tulkin from the Sierra Club. I don’t think it’s the Eastern Shore branch, but
Josh Tulkin can tell us. Mr. Tulkin, did I pronounce your name correctly?
MR. TULKIN: Good morning. Can you hear me?
LIEUTENANT GOVERNOR RUTHERFORD: Yes.
MR. TULKIN: It is Tulkin.
LIEUTENANT GOVERNOR RUTHERFORD: Tulkin.
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MR. TULKIN: Can you all see me? I can’t see myself, so I have no
idea.
LIEUTENANT GOVERNOR RUTHERFORD: No, I don’t see you
yet.
SECRETARY GONTRUM: No, sir. Mr. Tulkin only -- so for these
virtual Board meetings, I apologize, I won’t take up too much time. But we decided
back in March that to keep the number of participants manageable onscreen that
only certain select groups of individuals would appear on screen. Of course, the
three Board members, the Agenda presenters, cabinet secretaries, elected officials,
and presidents of universities, which of course includes Dr. Anderson. The other
136 potential people who might participate in this meeting are participating by
audio only, including yourself, Mr. Tulkin.
MR. TULKIN: Thank you very much for that clarification.
SECRETARY GONTRUM: You’re welcome. Please proceed.
TREASURER KOPP: Can I just say that I don’t think the rest of us
knew about that --
MR. TULKIN: My only regret is that I had to put on a suit and no
one got to see it.
(Laughter.)
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LIEUTENANT GOVERNOR RUTHERFORD: You dressed up for
the occasion?
MR. TULKIN: Exactly. Good morning, everybody. Thank you
very much for taking my testimony. My name is Josh Tulkin. I’m the Director of
the Maryland Chapter of the Sierra Club.
There are a lot of issues that we’d like to address today. I think
several speakers will talk later about whether or not climate change should be
germane to this decision. I would like to talk about some of the energy equity issues
that the Lieutenant Governor raised, and also about the issue of climate change.
It is critical that we provide clean renewable energy and heating
solutions to the whole State, particularly to those regions that have been long
neglected. The Eastern Shore, parts of Southern Maryland, and Western Maryland
have been neglected when it comes to access to energy resources. They should be
prioritized with the cleanest, most renewable options. If this was the best, cleanest,
renewable option available, I think people would accept it more. But in this
particular case, when the State put out an RFP to provide heating and electricity for
UMES, they only asked for options looking at gas. All options were not explored.
So to say this is the best option is assuming that we looked at all the options. We
did not.
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We actually know that electric heating combined with renewable
energy is becoming cost competitive. It’s significantly environmentally beneficial,
particularly when it comes to indoor air quality, which no one has been speaking
about today, the indoor air quality impact of burning methane for heat. This is an
energy equity issue. But to offer somebody just the lesser of two evils, this is 2000,
2020, we know what environmentally friendly options look like. And burning
fossil fuels is not environmentally friendly.
With regards to the technicalities on a wetlands permit, I just want
to express to all of you, Comptroller Franchot summed it up earlier. It’s astounding
that in 2020 we would be discussing building a pipeline with a decades-long legacy.
This is not a bridge fuel. This is -- a bridge would be a year or two. This is going
to be a multi-decade investment. And as a result, to suggest that it needs to be
approved on a technicality flies in the face of all of the efforts the General Assembly
has already made to make it clear that climate change is meant to be a priority. We
passed a Greenhouse Gas Reduction Act. There is a Commission on Climate
Change. The Commission on Climate Change recommended that we move away
from, not expand, the use of fossil fuels for heating, and has directed all the agencies
to put these values into effect. So I think the General Assembly has been really,
really clear as to what the expectation is in terms of moving away from fossil fuels.
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We do have energy equity issues. But Lieutenant Governor, as you
spoke to the issue of access for this community, electricity is generated in Anne
Arundel County by coal-fired power plants that is polluting those members and is
transmitted to the Eastern Shore. So this can’t be every man, every woman for
themselves. We need to be coming together to provide clear renewable options to
everybody so that we can move off of coal and off of gas, rather than having some
like scramble to the bottom of the hill.
When the Governor signed the ban on fracking, he recognized and
spoke that we need to view this as one Maryland. We can’t just give Western
Maryland the right to frack saying that it’s their local control issue, and the same is
true here. Air pollution doesn’t care about county borders. So I agree with you that
we need to prioritize these communities and help get them off of these polluting
sources. But to move from wood chips to methane is just the lesser of two evils
when we know that there are clean renewable options available.
We would urge the Board to reject this permit. But, if you are not
prepared to do so, we would urge you to table this until the other wetlands permit
for this whole pipeline is reviewed later by the Department of the Environment.
Several speakers, including Dr. Anderson, spoke about the benefits of the whole
pipeline, and yet we’ve been denied the ability to talk about the negative impacts
of the whole pipeline. So this conversation is conflating the benefits of the whole
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pipeline while not creating or allowing space for people to review the consequences
of the whole pipeline. And they should be reviewed in their entirety. Thank you
very much for your time.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you. And,
you know, as you mentioned, electricity is also generated from coal and a number
of other sources, not just renewables. So when you are talking about an electric
plus renewable, electric comes from a lot of sources, including natural gas. The
largest contributor now in our electric grid is natural gas, but coal is still a part of
that. And as these entities transition, because coal is very expensive now, it’s not
just a question of, you know, cost competitive, it’s cheaper to utilize natural gas
than it is for coal as an energy provider. So I appreciate your comments. And are
there any questions for Mr. Tulkin?
TREASURER KOPP: I have a question of John, I think, apropos of
what Mr. Tulkin said about a multi-decade investment. In point of fact, how long
is the, would the contract with the provider be? Is the service contract for multi-
decades?
SECRETARY GONTRUM: So Madam Treasurer, I happen to
know the answer. However, the contract, just so we’re all on the same page, so the
contract for the natural gas itself to the public institutions is not before the Board
of Public Works. It’s actually part of the delegated authority that the Board has
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given to State agencies to enter into commodity contracts, which that is classified
under, independent of the Board’s review authority. My understanding is that the
contract for natural gas I believe is ten years, with subsequent renewal options. The
wetlands license itself, for what it’s worth, that’s under discussion today is a three-
year license to complete the HDD work under the South Prong of the Wicomico
River.
TREASURER KOPP: So depending on the market and the
Legislature funding, this could actually be a bridge. I mean, this is a straight
question. I don’t know the answer. This actually could be a bridge and we don’t
have to keep using natural gas as long as a pipeline remains in existence. Is that
fair to say?
LIEUTENANT GOVERNOR RUTHERFORD: I would think so.
It’s just like, you know, our homes. You know, if you currently are getting natural
gas, you can probably, you know, just essentially stop using it. You know, so you
know --
TREASURER KOPP: I understand. But --
LIEUTENANT GOVERNOR RUTHERFORD: Yeah. I mean, it’s
a commodity contract. So I guess the contract is going to be for a period of time to
accept a certain amount of gas.
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TREASURER KOPP: I think we all agree that natural gas should be
a bridge, if used at all, should be a bridge to renewables if we’re going to meet the
State’s goals. I’m trying to understand whether that’s in fact legally or technically
feasible to say UMES after this certain date we, it wouldn’t be us, it would be the
Legislature or the Governor in terms of funding, don’t support your putting the
money in this any longer. You now have the capacity to move to geothermal or
solar. I know that’s not before us. I’m just trying to understand --
LIEUTENANT GOVERNOR RUTHERFORD: And that’s --
TREASURER KOPP: -- making at the moment.
LIEUTENANT GOVERNOR RUTHERFORD: And we would
hope that the technology is there at that period of time that they can do it, and we
would think the cost would be sufficient that they could do it. But, you know,
you’re right. That’s not something that’s before us.
I’m going to turn to Brian Quinn, who represents the Eastern Shore
Natural Gas Pipeline Company. Is Mr. Quinn here?
MR. QUINN: Yes.
LIEUTENANT GOVERNOR RUTHERFORD: Oh, there he is.
MR. QUINN: Governor Rutherford, Brian Quinn for the record here
today representing the Eastern Shore Natural Gas Company, who is the applicant
for Tidal Wetlands License 19-0143. Both MDE and the Board’s Administrator
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have independently recommended that the Board grant this license and the
company wholeheartedly agrees with this recommendation.
If I could, I’d like to just refocus the discussion back to the purpose
of today’s hearing. We’re before you today seeking a wetlands license. And
Maryland law, as the Maryland Wetlands Administrator and your counsel just
explained, defines the contours of the Board’s jurisdiction. It’s interesting to hear
the Sierra Club refer to the law as a technicality, but it’s the law. And this proposed
6.8-mile line traverses underneath a total of 76 feet of tidal wetlands. I’ll repeat
that, 6.8 miles, or 35,000 feet, and it traverses under 76 feet of wetlands. The impact
of this project on tidal wetlands is negligible and accordingly MDE in consultation
with DNR and the Historic Trust recommends that the Board approve this license.
Having said that, Comptroller Franchot, I’m happy to talk about the
environmental benefits that this project presents. You’ve heard Dr. Anderson
mention them. This will provide numerous and immediate environmental,
immediate reductions in CO2 to Somerset County by replacing dirtier fuels, lower
energy costs, and direct economic benefits to Somerset County. Moreover, the
infrastructure here will also support a local anaerobic digester project to be located
near ECI that will produce renewable natural gas from poultry waste.
The numerous benefits here are why this project has received
overwhelming local support from Delegate Sample-Hughes, Delegate Otto, Senator
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Carozza, the Board of Somerset County Commissioners, Tri-County Council of the
Lower Eastern Shore, and many other towns in Somerset County. The benefits of
this project are particularly important for UMES, as you have heard, an HBCU that
would much rather spend its limited resources on educating students as opposed to
higher energy bills for dirtier fuels.
To be clear, this project doesn’t preclude renewable development.
You just heard UMES explain their plans. Nothing in this project prohibits solar
or wind wherever it is allowed in Somerset County.
With that, I know my time is limited. I just wanted to say the
applicant and its many supporters respectfully request your favorable vote. And
I’m happy to answer any questions.
COMPTROLLER FRANCHOT: Could I just ask, are you Mr.
Quinn that used to work for the Appropriations Committee?
MR. QUINN: Guilty.
COMPTROLLER FRANCHOT: Holy mackerel.
MR. QUINN: Guilty. Guilty.
COMPTROLLER FRANCHOT: Yeah, no, I’m delighted to, I think
the Treasurer and I may have been in that, on that committee many years ago with
you there. I have a vague memory of that. So thank you for your testimony. I
wanted to ask you about the, what I heard was some kind of conversation about a
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project where you would allow so-called sustainable renewable natural gas. What
exactly is that? And is there any actual partnership and vision where there is such
a thing as sustainable renewable natural gas? I take it that’s not -- I’m not sure even
what that is. But can you provide some information as to whether that’s more
expensive or not, or less expensive?
MR. QUINN: Thank you, Comptroller Franchot. Yeah, I believe
you’re not referring to the chicken waste energy project that will be located in
Westover. But there is, there are projects -- this goes to the stranded asset argument
that I still don’t understand that the other side is making. But what we are talking
about is natural gas infrastructure. What can be delivered through those pipes can
be what’s known as certificated differentiated natural gas. And it’s natural gas that
is certified that it was not produced, it was produced in a cleaner way, not produced
from fracking. It’s an emerging product that I believe I have sent some folks some
emails about. It’s available. So just as an electric customer can choose renewable
sources for their energy on their energy bill, natural gas customers can choose to
provide, choose to be served by certificated natural gas, which is natural gas that is
certified that it was harvested through respectable ways that don’t include fracking.
COMPTROLLER FRANCHOT: Thank you.
MR. QUINN: You’re welcome.
LIEUTENANT GOVERNOR RUTHERFORD: I think --
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COMPTROLLER FRANCHOT: I take it it’s more expensive,
though?
MR. QUINN: Yes, sir.
COMPTROLLER FRANCHOT: Okay. Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Mr. Quinn, I think
you should include that, your discussion about the anaerobic digester and the fact
that, you know, there have been attempts in the past to utilize this technology that
is not new. I mean, I saw it years ago when I worked for USDA. Over at the BARC
facility they have anaerobic digesters. Which is, for those who don’t know what
BARC is, that’s Beltsville Agricultural Research Center, part of the Agricultural
Research Service of the U.S. Department of Agriculture. And they use animal
waste that they convert to energy right over there. So Mr. Quinn, can you talk about
what the plans are with regard to this Eastern Shore program?
MR. QUINN: Yes. Governor Rutherford, thank you for the
question. And you are right. It has been around a while. You guys may remember
back in 2011 when Mr. Harkins was in charge of MES there was an aerobic digester
that was going to be placed right where we are talking about here. And one of the
reasons -- and the developer ran out of money. And one of the reasons the project
went away was for high transportation costs that relate to bringing those, that RNG
into the grid. Back then you had to put it on diesel trucks and take it away. So
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here, this infrastructure will help support a renewable natural gas project that is
going to be constructed by CleanBay Renewables -- and I’m trying to find the press
release for it. It came out a couple of months ago. And I don’t have it in front of
me but I’ll find it.
LIEUTENANT GOVERNOR RUTHERFORD: -- on that.
MR. QUINN: No, no. I’ll find it. I think -- yeah, here it is right
here. Yeah. And it’s a project that they are about to break ground very shortly.
They have already done some initial engineering and site work and this project. All
the details are in there about how much chicken waste this can turn into energy.
But I can tell you, it’s enough of a source of natural gas that it could provide the
amount of demand that will be added to the system by ECI and UMES. So what I
mean by that is this anaerobic digester project can provide the source of gas that
UMES and ECI need just on its own when it’s constructed.
LIEUTENANT GOVERNOR RUTHERFORD: And then it will
also address the challenge that we have on the Shore with regard to the excess
chicken waste that is there.
MR. QUINN: Yes, absolutely, Governor Rutherford, thank you
again. It really kills two birds, addresses two issues. I shouldn’t say that. But yes,
it helps address nutrient runoff in the Bay which has been a consistent problem
down there. There is another anaerobic digester facility that Chesapeake is
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involved with and Eastern Shore Natural Gas is involved with up in Delaware that’s
under construction now. And but, you know, these facilities are really strongly
supported by the poultry industries of Delaware and Maryland.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you. Any
more questions for Mr. Quinn? Okay. Thank you, Brian. Susan Olsen is here.
She’s the Environmental Liaison to the NAACP Dorchester Branch. Ms. Olsen?
MS. OLSEN: Yes. Thank you for allowing me to speak today. I
would also like to note that I’m not speaking alone. At least 50 delegates and a host
of environmental groups have signed on in opposition to this permit.
The NAACP Maryland State Conference is in opposition to the
wetlands permit. We humbly ask that you look at this through the lens of
environmental justice. Voices in support of the pipelines have stated that methane
leaks will only go into the atmosphere like it’s no big deal, as if these leaks are
inconsequential. Nothing could be further from the truth. Methane is over 80 times
more potent than the greenhouse gas carbon dioxide and 100 times as effective at
trapping heat. Its impact on global warming will be significant.
It has been widely documented that the Eastern Shore’s severe
flooding will be increasing dramatically in the years to come. This pipeline would
be built on a hazardous flood plain. Accelerating global warming by releasing
methane will exponentially increase Somerset County’s already hazardous weather
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conditions. The county has limited resources to mitigate the damages that will
surely be incurred.
As Treasurer Kopp noted, the excavation methods used during
construction of pipelines is risky in that they involve using large quantities of water,
cause sediment to build up in streams and wetlands, and have the potential for blow
outs that would release toxic drilling mud into nearby streams and onto agricultural
land. This process threatens Somerset County’s two biggest industries: agriculture
and tourism.
Fracking companies are going bankrupt at an alarming rate and gas
companies are going out of business. In a recent op ed in the Baltimore Sun,
Treasurer Kopp warned investors about investing in gas companies. We do not
believe that this pipeline will last for the duration it is expected to last. Since there
is no exit plan, Somerset County residents will be left with stranded assets.
We are concerned that a recent analysis determined that this project
will run primarily through majority minority and low-income communities of
environmental justice eligible Census block groups. The proposed pipelines will
place undue toxic burdens on these communities.
Due to the negative impacts to the environment and the
disproportionate burden imposed on communities of color, we request that you vote
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no on this wetlands license. Again, thank you for allowing me the privilege of
speaking.
LIEUTENANT GOVERNOR RUTHERFORD: Well, thank you,
Ms. Olsen of the Dorchester County Branch. Are you from Dorchester County
yourself?
MS. OLSEN: Yes, I am.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. So you are
in a county that already has natural gas. I guess, you know, you probably heard
me, you know, rant a little bit ago about my concern that it’s, you know, the current
system, what we currently are doing at ECI, as well as the other residents who have
to utilize fuel oil and propane to heat and cook from, is producing more greenhouse
gas emissions than what the natural gas going to these facilities would do. And
what we’re talking about and what’s being debated is also a choice for people to
decide whether they want natural gas or not. If it does go to the businesses or
homes, they can decide if they want to take that natural gas, as well as just hearing
testimony with regard to the ability to utilize the waste in energy that can be utilized.
And so, you know, the current situation, and will be the situation for a number of
years before we are able to convert to full renewables, is that, you know, 50,000
tons a year of wood chips are going to ECI. By eliminating that, you are reducing
99 percent of the particulate that’s in the air, the soot and the other particulates that
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are in the air; the 65 percent reduction in CO2; 35 percent reduction over at the
University of Maryland Eastern Shore.
So in terms of an environmental justice argument, subjecting the
people there in Somerset County to continue to breathe in the emissions that’s
equivalent to 11,000 vehicles on the road, to me it seems to go the other way, that
the justice would be to allow them to have the choice, that being the residents. But
also, the two largest employers in that county to be able to reduce their emissions
by such a large measure. And just on a particulates alone, that’s almost 100 percent
reduction in the particulates.
So, I know, and I understand the feeling in terms of the future and
the impact overall. But it just, it seems like it’s, you know, folks denying choice to
individuals who don’t live there and then are saying that it’s environmental justice
to allow them to continue to breathe in dirty air. So I just, that’s my rant for today.
And those Delegates that you mentioned and Senators who said they support it,
none of them live on the Eastern Shore. And all of them live in communities where
natural gas is available. And I would ask them do they currently have natural gas,
and have they converted over from the natural gas that they have, to stop utilizing
their natural gas and converted to other means. And as we already discussed, and
as you know very well, electricity in this State largely comes from natural gas with
some coal and some nuclear. So, all right.
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MS. OLSEN: Yes, sir. We were kind of hoping that we could
somehow get Somerset County to leapfrog to renewable energy. How long would
it take, you don’t think it’s possible, to get another RFP that includes renewable
energy so that we could get them started on that?
LIEUTENANT GOVERNOR RUTHERFORD: Well I think, you
know, we already know that University of Maryland Eastern Shore is utilizing
renewable energy.
MS. OLSEN: Right.
LIEUTENANT GOVERNOR RUTHERFORD: And you know, we
can do, you know, through Public Safety and Corrections, they can look at ways to
reduce their energy. We use energy performance improvement contracts. We
actually have I think one on the Agenda for DGS. I’m not sure, was that Public
Safety? But I don’t remember offhand. So there are a number of ways that the
State is taking to reduce energy consumption.
And let me just say something. I want to point out something, if no
one has looked at my bio. When I was at Agriculture, and the U.S. Department of
Agriculture is larger in terms of employees, in terms of its budget, in terms of the
land and facilities that it maintains than the entire State of Maryland. USDA
manages more land than is in the entire State of Maryland. The Forest Service is a
part. The Agricultural Research Service is a part. Labs all over the State, as well
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as, you know, facilities in other countries. I was in charge of the Sustainable
Operations Council. I started that to make sure that we operated our facilities in a
way that was sustainable, that we reduced our footprint, our carbon footprint, in all
the areas that we have, the facilities, our roads that we maintained in the National
Forests. You know, and so I’m very familiar with this.
I ran the bio-based products program to shift from petroleum-based
products to bio-based products that could be compostable. The bio-based program
that started over at, or was tried and has been running at the House of
Representatives was directly related to the efforts that I was making to get bio-
based products into these federal facilities. So I have some, not a lot, not as much
as you do, Ms. Olsen, or Mr. Tulkin, in terms of some credibility in the
environmental area. But I’ve actually been in the operations side of how we can,
you know, maintain the missions of these agencies and at the same time be
sustainable. But I thank you for your comments, thank you for your efforts. And -
-
MS. OLSEN: Thank you very much.
LIEUTENANT GOVERNOR RUTHERFORD: -- Ms. Olsen?
Thank you.
TREASURER KOPP: Governor, Lieutenant Governor -- I believe
Governor is the correct address. I would reiterate, I know it’s not before us right
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now, but to the extent the administration and the Legislature can push, as they must
if we are to attain our mandated goals, push the use of renewable energy, not just
at these places but around the State, I think it is important to note that when the
economy allows, UMES and ECI can move more and more and should move more
and more to renewables, regardless of their option if this passes, their option to use
natural gas. And I’m sure you agree.
LIEUTENANT GOVERNOR RUTHERFORD: No, absolutely. I
don’t have a problem with that. I mean, the Comptroller mentioned geothermal.
When I was at the Department of General Services and the Comptroller was fussing
at me when he was a mere Delegate, not a mere Delegate, a great Delegate, you
know, he would fuss at me for many things as I was Secretary. We were pushing
for geothermal in new federal facilities. So, you know, that is something that we
were trying to push through. It’s much more efficient now, I think, as the
Comptroller says. But you know, in terms of even then as a longer term payback it
was a better way to go. And a number of our facilities personnel, our engineers,
were very high on it and they convinced me as well that we needed to implement
more geothermal.
I’d like to turn to Senator Mary Beth Carozza. I know she wanted
to speak. She is the Senator from that area. Senator, good to see you.
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SENATOR CAROZZA: Governor Rutherford and Comptroller
Franchot and Treasurer Kopp, greetings from Maryland’s beautiful Eastern Shore.
I first want to thank each of you for all the time and effort you have taken to consider
this one priority item for to grant a wetlands permit to bring natural gas to Somerset
County.
As you may know, I am Somerset County’s sole representative in
the Maryland Senate and I am testifying in strong support for approval of this tidal
wetlands permit, keeping in mind that we’re focusing on a segment 6.8 miles
crosses only 76 feet of wetlands.
As much time as each one of you have spent on Item 4, I hope you
will understand and appreciate the perseverance of the people of Somerset County
who have been working to bring natural gas to Somerset County for over two
decades. It is worth repeating that Somerset County is one of only three counties
in Maryland without natural gas. This disadvantage has prevented the type of
economic development opportunities that other areas of the State benefit on a daily
basis. Even before I represented Somerset County in the Maryland Senate, the
county commissioners and local businesses and community leaders were working
with the Shore delegation and other members in Annapolis advocating to bring
natural gas to Somerset County.
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I’d like to point out that it’s a win-win-win on all fronts, and you
have heard some of these points in earlier testimony. But first, natural gas is
cheaper. We’ve talked about the cost savings to the State of Maryland with
approximately $10 million maintaining the boiler and cogeneration facility at ECI,
and you heard about the cost savings from Dr. Anderson at UMES.
Second, natural gas is cleaner than the current sources of fuel being
used at ECI and UMES. We’ve talked about that today. But again, I think we need
to focus on that. Natural gas is cleaner than the current sources being used. And
you’ve heard some of the numbers that conversion would reduce the CO2 emissions
at ECI and UMES by 65 percent and 35 percent respectively.
Third, the availability of natural gas is a catalyst for growth and
development in one of the most economically challenging areas of the State.
I also want to focus a little bit on the questions that have been raised
by outside groups about using renewable energy in Somerset County. And again,
as you’ve heard, I want to point out that Somerset County and UMES have
implemented multiple alternative energy projects over the years, including wind,
solar, and waste to energy projects. I have personally reviewed UMES’ clean
renewable energy plan and those projects are on track.
I also want to point out one of the first projects that I worked with
with Dr. Heidi Anderson when she first became UMES President was a poultry
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waste to energy project. And what most impressed me is that Dr. Anderson
understood that you could have these partnerships, true private-public partnerships,
that would promote these alternative energy projects.
As has already been pointed out in Mr. Quinn’s testimony that this
Somerset natural gas project that we are talking about today is supporting the
development of an anaerobic digestion facility that will produce renewable natural
gas.
Today, Somerset County is poised to move forward with bringing
natural gas from Wicomico to Somerset County. It has been over two decades.
Bringing natural gas is long overdue. It has the overwhelming support from local
residents, businesses, elected officials, and community leaders that have made this
a priority. With great respect, with an appeal to fairness and choice, and on behalf
of my constituents, I urge you to approve this priority local Item 4. Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you,
Madam Senator. Are there any questions for Senator Carozza?
TREASURER KOPP: With great trepidation, do you have any
thoughts about the position of the Salisbury City Council --
SENATOR CAROZZA: I actually, Madam Treasurer, was taken
aback by it, given the fact that Salisbury and Wicomico County have natural gas. I
can tell you that the business leaders in Wicomico County, Salisbury Chamber of
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Commerce, and members of the Greater Salisbury Committee, I was on a Zoom
call with them earlier in support and the leadership and members of the Greater
Salisbury Committee and the Salisbury Chamber of Commerce are supporting the
bringing natural gas to Somerset County. And I want to point out, it’s not just about
Somerset County. It would be a regional advantage. And we really try on the
Shore, you know, given that we have the challenge of our lower numbers, to work
together and to have these regional priorities. So to me it was notable that the
Greater Salisbury Committee made up of our business and community leaders, and
the members of the Salisbury Area Chamber of Commerce, are in full support of
bringing natural gas to Somerset County.
TREASURER KOPP: Thank you. The only thing I would say,
Senator, is I recognize that you’ve been working on this, Somerset County has been
working on this for decades. I would only point out that a lot has changed in two
decades, both the price of comparative energy sources and the capacity, the ability
to use different sources. And I would hope that you would agree that Maryland is
on its way to being based on renewable resources. And that natural gas is in fact a
bridge to the future. Not a huge long bridge, a reasonable size bridge, to the future.
And we’re not going to end with, simply with natural gas.
SENATOR CAROZZA: Well, Madam Treasurer, the reason I
included talking about the renewables and alternative energy sources in my
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testimony is I wanted to point out that Somerset County and UMES have multiple
alternative energy projects. And I think that’s been lost in some of the
communications. At the same time, pointing out that when you talk about a bridge,
at this point Somerset County is just trying to talk about, you know, a choice that
they should have and that other areas already benefit from that source.
TREASURER KOPP: But I hope the Legislature will be looking at
the proposals of the Maryland Climate Change Commission, including changing
40 by ‘30 to 50 by ‘30, or something in between. And keep moving hard towards
a renewable sustainable future. And we look forward to your being a leader in that
effort.
SENATOR CAROZZA: I am on that committee and I’m sure we
will be spending a lot of time on that.
TREASURER KOPP: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: If there are no
other questions, thank you very much, Senator Carozza.
SENATOR CAROZZA: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: I’m going to turn
to Mister, and I will probably pronounce your name wrong, Ankit Jain from the
Sierra Club. We typically would ask for one rep, one company. But I think Mr.
Jain is representing or speaking for a number of other organizations as well. So,
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we will allow Mr. Ankit -- I hope I am pronouncing the name somewhat correctly
so you can at least let me know. Maybe I’m butchering the name so much so that
he doesn’t recognize it.
MR. JAIN: No, I’m here. I just wanted to make sure I didn’t cut you
off. Thank you so much. It’s Ankit Jain. Thanks for letting me speak. I’ll actually
be speaking just on behalf of the Sierra Club, but I’ll be speaking to the more
technical legal aspect, which is I think why they allowed us to have two comments
and also just some of the aspect with MDE’s review process.
So, I’m an attorney with the Sierra Club and I’m based out of
Washington, D.C., so and working a lot in Maryland. And I’d like to address the
legal authority that this Board has. In its report and recommendation, MDE claimed
that it only had the, it could only look at the immediate impacts to wetlands in its
analysis of the harms the project would cause. And we just heard Mr. Morgante
and Mr. Bohannon argue that the Board is similarly restricted in what it can
consider. I would like to explain why MDE’s conclusion was wrong and why the
Board can consider broader impacts of this pipeline beyond the immediate impacts
to wetlands.
So, the Board must decide whether a project is in the best interests
of the State prior to granting a permit. The only Court of Appeals case interpreting
this standard is Maryland Board of Public Works v. K. Hovnanian’s Four Seasons
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at Kent Island, sorry that’s a mouthful, from 2012. And it’s important to note that
this is one case. There is no long history of case law here. I think some people
have mentioned, you know, past cases. There is only one case. That case analyzed
a mixed use adult community. The most important aspect of that case was the
Court’s conclusion that the Board cannot act as a super land use authority in its
considerations. But that case is distinguishable from and does not apply directly to
the pipeline matter that is before the Board right now because that case dealt with
a structure clearly subject to local zoning laws and under the jurisdiction of the
Critical Area Commission.
This permit deals with an interstate pipeline that is not subject to any
local zoning approval, nor is the Critical Area Commission evaluating the project.
Thus, in rejecting the pipeline there is no danger the Board will be acting as a super
land use authority.
But even if that case applied to this permit, in that case the Court
ruled that the only harms the Board could consider were impacts to wetlands, and
since opponents did not raise any such impacts the project had to be approved.
Here, clean energy advocates have pointed out numerous harmful impacts the
project would cause the State’s wetlands. According to the Four Seasons case, the
Board is allowed to approve the project even if it harms wetlands if it is still in the
best interests of the State. But clean energy advocates have pointed out that the
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project is actually harmful to the State because of the climate impacts and the
stranded asset risks it presents. You know, there has been some discussion that we
could approve the pipeline and have it only work for ten years. I don’t think it’s
that simple. A pipeline costs a lot of money. I don’t know if we can say if it’s only
running for ten years are we going to make the money back. Who is going to pay
for the cost of this pipeline then? And therefore for these reasons, the Board should
reject the permit application.
Finally, nothing about the Four Seasons case requires the Board to
consider only the immediate impacts the project would have on wetlands. As clean
energy advocates explained in their comments, this project would accelerate
climate change in the region which would cause severe impacts to local wetlands.
Thus, there is no question that the Board can and should consider the climate change
induced impacts this project will cause to the region’s wetlands.
For all these reasons, Sierra Club believes MDE should have
considered the broader negative impacts this project will have to the ecology and
economy of the Eastern Shore and we urge the Board to consider these impacts in
its decision making. But I know that this is a very technical issue so we would also
support the Board delaying a decision on this pipeline so it has more time to
examine its legal authority here. Thank you for allowing me to speak.
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LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Mr.
Jain. Any questions for Mr. Jain? I think we have Secretary Grumbles on the line.
I don’t know if he would want to respond to any of the concerns raised by Mr. Jain
without, I guess, going into a, you know, legal tribunal debate in terms of what the
precedent of the Court of Appeals.
MR. GRUMBLES: I’ll take the hint and not go into a legal tribunal
debate, Governor. I would just simply say that MDE appreciates the
professionalism of the Wetlands Administrator and I appreciate the professionalism
of our staff.
We followed the law. We looked at each of the 19 criteria that apply
to wetlands permitting for the State Department of the Environment and we feel
confident that the wetlands license, and in conjunction with Bill Morgante’s
additions, adequately protects the ecology, the economy, the development, the
aesthetics, the overall interests involved. And I would just simply say, Lieutenant
Governor, that the, several of the points that have been raised today are also covered
in the special conditions which are fully within the wetlands permitting law, such
as the requirement to report on any potential air emissions and to develop a
contingency plan for resolving any leaks. And we recognize that there will be a
broader debate beyond the Board of Public Works on continuing to move more
aggressively towards decarbonization. But MDE feels that this wetlands permit
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adequately not only meets the law under the State wetlands program that we operate
under, but also has included provisions that, in agreement with the Wetlands
Administrator, focus on potential emissions and an independent monitoring. And
therefore we feel good about the overall permit and feel that it is a proper use of
our legal authority and also keeping in mind the bigger picture for future policy
discussions.
TREASURER KOPP: Could I ask the Secretary a question since --
LIEUTENANT GOVERNOR RUTHERFORD: Yes, please.
TREASURER KOPP: One of the other, one of the concerns,
underlying concerns that’s been raised is the impact of climate change on the either
saline or non-saline inundation as it might impact the pipeline or shifts in land or
erosion as it might impact the pipeline. Not just the digging of the pipeline, which
I understand you looked at and you put conditions on, but actually the impact on
the stability of the pipeline. Did you look at that question when you looked at the
potential of the license?
MR. GRUMBLES: We did. You know, climate change is not one
of the 19 criteria in the State law. But making sure the stability of the soils and the
potential for inundation or ground shifting is very obviously from our perspective
a component of any review of the pipeline construction, its impact on wetlands, and
whether or not the soils are stable or there is going to be flooding or inundation.
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And we concluded that there are sufficient safeguards. But that also, that’s one
reason why we included 22, now I guess it’s going to be 28, special conditions into
the permit. But we did look at that and we do appreciate the concern about
resilience with respect to any type of public works project or linear facility. So we
looked at that.
LIEUTENANT GOVERNOR RUTHERFORD: Any other
questions for the Secretary? Okay, thank you. Thank you, Mr. Secretary. I’m
going to call up Delegate Otto. Delegate Otto, is he still on?
DELEGATE OTTO: There we go. Thank you, Governor,
for this opportunity to come before you. I’ve been in office ten years and this is
only the second time I have come before the Board of Public Works. I’ve had
confidence in the Treasurer and the Comptroller and even Governor O’Malley
when he was Governor, of doing what was best for our poor county, the bottom of
the heap on every economic scale, unfortunately. And this is a project that we’ve
been working on for many, many years. Like I say, I’ve been in office ten years
and it started way before that. And before natural gas was one of the most efficient
and economical to purchase. And now we have other projects, as they were referred
to, with the conversion of anaerobic digestion, and I know other counties capture
natural gas from their landfills and need an outlet to put that into. So this is a, it’s
a win-win opportunity, as the Senator said earlier, for the taxpayers of Maryland,
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the environment, and for the opportunities to be afforded to the economically
challenged that we have in Somerset County. And Mr. Comptroller, I thank you
for your attire today. I was appalled that I didn’t have a tie in the truck. These
Zoom meetings have gotten me to the point of not preparing as well as I should.
So, I sent you written commentary and you understand, you’ve been to our
communities. And the other time that I was before the Board of Public Works was
the approval of the Somerset Technical High School. And those are the important
things and we need places for those people to work. Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you. Well,
you know, I appreciate that. Any questions for the good Delegate? Well, thank
you. And I like your Deere tractors behind you. All right. Okay. I’d like to call
Anthony Field. He’s the Maryland Campaign Coordinator for Chesapeake Climate
Action Network.
MR. FIELD: Yes, hello, can you all hear me?
LIEUTENANT GOVERNOR RUTHERFORD: Yes, sir.
MR. FIELD: Perfect. Well, thank you very much. Good morning,
Comptroller, Governor, Treasurer Kopp. And I guess Happy Early Birthday to the
Treasurer.
TREASURER KOPP: Thank you.
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MR. FIELD: My name is Anthony Field and I’m the Maryland
Campaign Coordinator for the Chesapeake Climate Action Network. Thank you
for the opportunity to come in today on one of two proposed pipelines that would
connect to bring fracked gas from Delaware into Maryland counties and will come
through Somerset. CCAN and our Eastern Shore members are concerned that this
pipeline threatens the region’s ecosystems, drinking water supplies, while causing
irreparable damage to the land and our climate.
With a strong commitment to clean energy and a ban on fracking,
importing fracked gas runs counter to Maryland’s commitment to climate change.
In fact, new recommendations from the Maryland Commission on Climate Change
clearly warn against dangerous energy projects that fail to reduce our reliance on
fossil fuels. The commission reports that we must increase the goals of Maryland’s
Greenhouse Gas Reduction Act to reach net zero emissions by 2045 and consider
environmental justice impacts in order to avoid climate catastrophe. Approving the
Eastern Shore pipelines would set Maryland back as a leader on climate change and
would ignore important environmental justice considerations.
The proposed pipeline would be built in predominantly low income
and minority Census tracks, adding to already overburdened communities,
communities that due to a flawed RFP process are being told that they have only
one choice to replace their existing energy source, that choice being gas. But that
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is a false choice, in our eyes. The Maryland Environmental Service foreclosed the
possibility of alternative energy sources by only requesting applications from gas.
There was no opportunity to compare benefits and the costs of alternatives, such as
electrification through solar or wind and geothermal. This is not an example of
good governance and should be seen itself as an injustice.
The Eastern Shore of Maryland has been called ground zero for sea
level rise due to climate change. If the Board approves these pipelines,
Marylanders, the land on which they live, and their health will be put at risk. We
spent the good first 15 minutes or so of this talking about the COVID pandemic and
how people in their communities should wear masks and have vaccines to help with
community health. This is in my eyes a similar issue. You know, in a decade’s
time, 20-years’ time, we know, or even now we know the harmful impacts of indoor
and outdoor air pollution and that methane brings to our climate and air. And does
the Board members today want this vote on their conscience when community
members of that community look back to see that they were using gas within their
homes and businesses and think, you know, what were we thinking?
So, today’s vote is an opportunity for the Board to protect our Shore
and take the first step towards correcting years of injustices. The Eastern Shore
deserves a clean, sustainable, efficient source of energy and jobs that does not
threaten their health, land, and water. I apologize for the dog noises in the back.
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Thank you for the opportunity to comment today. CCAN and our Eastern Shore
members urge you to reject the Delmar pipelines wetlands license.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Well, thank
you. And again, it troubles me when people talk environmental justice when for
the residents it’s much more of a choice that is being provided to them. There is
nothing to stop an individual, other than cost, for them to seek out solar energy on
their property, on their houses, to ask their utility companies for, you know, more
renewables on their, for their heating and fueling purposes. However, the status
quo, which essentially you are advocating right now, and yes, conversion at some
time, but the status quo is continuing to bring 50,000 tons of wood chips into the
county to burn and produce particulate matter that could be reduced by 99 percent,
99.5 percent.
The conversion is like taking 11,000 vehicles off the road. We talk
about on the Board of Public Works going to electric vehicles to help meet our
greenhouse gas goals. This is equivalent to 11,000 of those gas-powered vehicles
off the road. The diesel that is used to bring in fuel oil and propane, and not just to
residents but to University of Maryland Eastern Shore, and they are utilizing
environmentally friendly energy through geothermal and solar power, and the
President mentioned wind. So we talk about environmental justice. But what’s the
justice with regard to what is going on right now and condemning the individuals
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who are there to the same thing? And the right-of-ways that are being utilized run
along existing right-of-ways of 13. Now, you can say historically that’s, you know,
problematic. But it’s, you know, and there are provisions put in with regard to
potential leakage of and how they would handle that situation. I just wanted to
respond. Are there any questions for Mr. Field? If not, I will turn to Delegate
Sample-Hughes. I believe you are still on?
DELEGATE SAMPLE-HUGHES: I’m still here.
LIEUTENANT GOVERNOR RUTHERFORD: Oh, very good.
DELEGATE SAMPLE-HUGHES: I think I’m doing this right. Oh.
LIEUTENANT GOVERNOR RUTHERFORD: There you are. We
see your face there.
DELEGATE SAMPLE-HUGHES: Well, actually now it’s good
afternoon. And --
LIEUTENANT GOVERNOR RUTHERFORD: Yes, it is.
DELEGATE SAMPLE-HUGHES: -- Governor, thank you for
allowing me to be here, Madam Treasurer, and our Comptroller. You know, I just
really would like to say I thought you started off your meeting this morning quite
fitting, giving the Ambassador award to Mr. Dunn. Certainly, I believe that it’s all
of our responsibility to ensure that our land and our wetlands are protected, you
know, whether or not it is picking up the trash as you go along your morning walk,
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as I did this morning myself, and hoping that the drainage systems in our
communities still are thriving. But anywhere to possibly being a civil engineer and
doing your due diligence in your line of work to that end.
When I started my career in 1999 in Pocomoke City, I was charged
with the responsibility of making sure our Program Open Space Program was
effective and working and ensuring that our communities were thriving on that end.
So this work for me is certainly not new. It’s something that has spanned over the
past 20 or more years. And it gives me great pleasure to stand with Somerset
County and a portion of Wicomico County on this particular project here today.
I did not take this lightly because, I’ll be honest with you, I
researched, listened, researched, and listened some more, and even this morning
even prayed about it. Because I want to make sure we’re doing the right thing and
making sure that we are adhering to the goals and the long term impact that our
community certainly needs and that it will have for generations to come.
You know, when I did the research, because I always like to stick to
the specific topic here, but I did the research and I looked at the data and the
information that had come as a result of the report that you have before you. But
the South Prong and what I understand it to be is a stable waterway and it minimizes
the impacts of this project. I should say it minimizes the impact to the tidal
wetlands.
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The other piece that I thought was very appropriate in this was the
additional conditions that were brought before you, whereas there will be a report
to provide monitoring adherence to these specific requirements. Also, that the
pressure limits, that will be brought to your attention and made those aware if and
when something were to occur. So those safeguards alone for me is palatable and
is something that I believe that we need to move forward.
I wanted to say, and this may be a little ironic to say it in this vein,
is that, you know, I’ve been on this train for a long time and I’ve seen the plight of
Somerset County. I’ve seen how the Commissioners and the residents to that end
want and desire to have the same economic opportunities as other parts of our State.
This is an opportunity for that to occur. When they can look to their industrial park
to be thriving and to be able to stand on their own economic benefits, that’s really
something to be proud of and to be thankful that they can do that. You know, too
often we’re always scrolling down the list and seeing which county is thriving,
which one is not. And I’m always seeing Somerset County at the very bottom of
that list. And I know it was referenced by the Delegate from Somerset County. But
that’s the truth and that’s the case and there’s where we are today. And we need to
make sure that we are poised as a State to address the economic issues, address the
ecological issues, and to go beyond that. And with that being said, this opportunity
here today to approve this license is one step towards that.
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The last thing I will just mention is that I met with the Sierra Club.
I met with the NAACP. I met with the President of UMES, and all of these entities
that have spoken to you today and tried to understand where each one was coming
from. And with that being said, I believe that we can continue to be in a place to
understand where we are but to help each other move to the ultimate goal of where
we want to be as a State. So, I don’t want you to think that your concerns are not
being heard.
I also heard from my colleagues in the House of Delegates. It was
also referenced that 42 delegates signed a letter. Okay. Well, those 42 delegates
once again are on the Western Shore of Maryland and able to benefit from natural
gas. So while I respect everybody’s opinion, I also know that I’m living and
breathing the benefits of natural gas here in the portion that I reside in Wicomico
County. And I want to expect, and should allow, the other parts of this county,
excuse me, this part of the Eastern Shore to realize and to be a part of the same
benefits.
So again, I stand before you today as a member of the NAACP, as a
member of the Maryland House of Delegates, and all of these entities, in wanting
what is best for our entire State. But I have to say once again, I need to know that
it’s best and it’s the best practice that we can give to Somerset County to ensure
that we are continuing to thrive. Because too often we are left behind, and I don’t
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think we need to be left behind any longer, especially with the number of years that
it has been that we have not had what we, I believe, is due to stand on our own
economic feet.
So thank you again, and a pleasure for being with you today. And I
look for us to continue to work together.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you,
Delegate. Any questions for the good Delegate?
TREASURER KOPP: I do. Delegate, you are in a very special
position as Speaker pro tem of the House of Delegates.
DELEGATE SAMPLE-HUGHES: Yes, I am.
TREASURER KOPP: I think very highly, as you know, of Speakers
pro tem. And you have heard the discussion and you know the discussion very
well, and you know the concerns that the Comptroller started off with and that I of
course share, and the Lieutenant Governor shares, about reaching a state of
resilience and sustainability which requires moving to renewable energy within the,
by 2024, but we hope a 50 percent reduction from 2006 by 2030. And natural gas
is not one of these renewable sources.
On the other hand, it is a savings to our institutions in Somerset
County and to the community, financial savings and actually a savings in reduction
of air pollution and CO2 and greenhouse gases. Understanding that, can we count
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on you to help the Maryland Climate Change Commission in its work to try to
encourage the Governor and the Legislature to adopt the goals laid out so that we
can make significant progress soon before our children and grandchildren get much
older in attaining this sustainable future?
DELEGATE SAMPLE-HUGHES: Absolutely. And I say that from
this perspective. You know, the Legislature, we have made inroads. And yes, there
is more that we can and should be doing. I look to the fact that, and the other part
that I represent is Dorchester County, just on yesterday we had the conversation
about the erosion and the monies that we need from the State and the federal level
to help Janes Island and Barren Island, again, an effort to ensure that climate change
is at the forefront of our minds. But to look more holistically and worldly, at the
State we have a responsibility overall, not just putting it again on the backs of
Somerset County or the Eastern Shore, but looking at it globally and holistically to
ensure that we are moving in a better direction to ensure that climate change is at
the forefront. And I believe we can get there. And we’ve got to get there, simply
because we know the end result would not be a good one if we did not do our job
and do our due diligence. But we cannot do it fighting against each other.
I think that’s what is frustrating for me, is that we have to be
respectful of where each one of us are in our pockets of the world, of the State of
Maryland, and use our expertise to the good. And I said this to the Sierra Club, you
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know, it’s no secret. You know, they have their expertise in the environment. The
University of Maryland Eastern Shore, they have research teams. They have
students that are on the battlefield trying to understand this and wanting to work
together. We’ve been able to do that in other areas to improve our air quality and
to improve our economics. So we have to do that with climate change and we’re
going to do that together and not working against each other. So I’m just very
optimistic. I just think if we continue in that vein, we’re all going to be better off.
TREASURER KOPP: Thank you. I look forward to your
leadership.
DELEGATE SAMPLE-HUGHES: Sure, thank you.
TREASURER KOPP: -- leadership.
DELEGATE SAMPLE-HUGHES: Absolutely. Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Very good. Well,
thank you, Madam Delegate, and House, and Speaker pro tem, excuse me. I’m
starting to get a little tired here.
DELEGATE SAMPLE-HUGHES: Oh, I understand. But thank you
again today.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you. Okay.
Ms. Rapley, Sophie Rapley. I think she is a student, maybe at UMES.
MS. RAPLEY: Hello?
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LIEUTENANT GOVERNOR RUTHERFORD: Yes, Ms. Rapley?
MS. RAPLEY: Hello. So my name is Sophie Rapley. I am a
student, not at UMES, but I’m here as a resident of Maryland who is deeply
concerned about the community and environmental justice impacts of this proposed
pipeline.
Maryland is supposed to be a leader on climate change. Building
new fossil fuel infrastructure is taking us in the opposite direction. Natural gas is
not renewable and it is not clean energy. Students and businesses along the Eastern
Shore deserve infrastructure that is sustainable and does not pose threats to nearby
wetlands. I find it extremely alarming that gas was the only energy source
considered by the State. Truly renewable energy must be the standard moving
forward if we want to protect our Shore.
A majority of the Census tracks along the path of the pipeline are
environmental justice eligible. Why are we subjecting Maryland’s most vulnerable
communities to subpar, potentially dangerous solutions? Building new fossil fuel
infrastructure is not the answer. I urge you to reject this pipeline to avoid increasing
climate and human health catastrophe. Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you very
much. I’m sorry, I was mistaken. I thought you were a student at UMES. And I
appreciate that. I’m going to repeat my point about the environmental justice
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aspects of subjecting the population to the dirtier fuels, the emissions associated
with dirtier fuels that are used now. I think the, you know, in the name of
environmental justice one should be looking to convert to something cleaner. And
yes, renewables would be cleaner and will be cleaner, and some of the institutions
there, the two institutions, or at least UMES is moving in that direction. But right
now, the status quo is tons of emissions are coming and particulate matter are
coming from what is going on now with the dirtier fuels, like fuel oil, propane,
wood chips in the case of ECI. So I thank you very much for your comments and
I appreciate your concern.
COMPTROLLER FRANCHOT: Governor, could I just ask if MES
is on the phone to please answer the concern that Sophie raised about a procurement
RFP that limited this to natural gas only? I keep hearing that. Is that the case, that
in fact that’s what MES did? And what is their justification for that?
LIEUTENANT GOVERNOR RUTHERFORD: Do we have a
representative from MES on the line?
SECRETARY GONTRUM: Dr. Glass, are you available to speak to
that question, please?
DR. GLASS: Yes, sir, Secretary Gontrum. Good afternoon,
Governor Rutherford, Treasurer Kopp, Comptroller Franchot. For the record, my
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name is Dr. Charles Glass. I’m the Acting Director of the Maryland Environmental
Service.
From my knowledge, there was an investigation of alternative
energy sources back in 2012-2014. I’ll have to look that up. I did not study that
before the meeting today. The RFI and the RFP were only for natural gas. The
primary reason for that was that ECI, the Eastern Correctional Institute, needs an
uninterruptible, stable source of fuel for both steam for heating and electricity
generation by cogeneration. Those were the predominant reasons. That security
focus was the predominant reason natural gas was focused on for ECI.
COMPTROLLER FRANCHOT: And could you just update us on
that? Because I understand all sorts of progress has been made with battery storage
and the ability to, whatever, have continuity with renewables. Are you suggesting
that that is still the position of your agency as far as future procurement?
DR. GLASS: So, I believe there are lots of advances going on. MES
is involved in solar siting and solar panel construction. Our own facility receives a
lot of its energy from our solar panels at our headquarters office. However, the
stable generation, when you talk about Tesla batteries in a facility and lots of solar
panels in a green field, there is still a lot of work to be done in those areas for
sustainable energy 24/7/365 in a security environment. So we are always looking
at our energy goals. We are always exploring new opportunities. We have received
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a small contract to help CleanBay with marketing the actual biological product from
their anaerobic digestion processes. As you mentioned, the material you like to use
in your garden, those types of facilities, that type of material development is
happening throughout the State of Maryland. And MES is engaged with both
Bioenergy DevCo and CleanBay Energies and have been for some time prior to my
presence at MES.
COMPTROLLER FRANCHOT: I’ll defer to the Treasurer. She’s
the leader of a lot of our thinking about how to make progress. And I find it kind
of surprising that the Maryland Environmental Service has this view that apparently
any institution or facility in Maryland that needs continuous source of electricity is
ineligible for renewable consideration, that it’s all going to be natural gas or some
fossil fuel, apparently. And I find that to be stunningly inaccurate and unsupported.
But I’ll defer to you because you are the leader on climate change, and you know,
it certainly seems odd to me --
TREASURER KOPP: (Indiscernible).
COMPTROLLER FRANCHOT: -- the organization and take
environmental out of it.
LIEUTENANT GOVERNOR RUTHERFORD: I don’t think he
said that. Go ahead, Madam Treasurer.
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TREASURER KOPP: No, I was going to say, I’m not sure that’s
what I heard Dr. Glass say.
LIEUTENANT GOVERNOR RUTHERFORD: He didn’t say that.
DR. GLASS: That’s not what I said.
LIEUTENANT GOVERNOR RUTHERFORD: Yeah, I don’t know
what you’re trying --
COMPTROLLER FRANCHOT: -- I guess I misspoke, but I --.
LIEUTENANT GOVERNOR RUTHERFORD: You did.
COMPTROLLER FRANCHOT: -- heard you say the reason you
only restricted this to natural gas is because there is no stable 24/7 ability for
renewables to supply energy to a facility like ECS. And I find that a rather
extraordinary comment in the year 2020, when we’re all concerned about climate
change, which is a crisis happening in front of us. So I’m just, I’m not an expert,
I’m just stunned that that was your, what I understood to be your testimony as to
why you limited this to just natural gas.
DR. GLASS: I will get the study to you where MES first --
COMPTROLLER FRANCHOT: (Indiscernible) study?
DR. GLASS: There was an investigation of alternative energy
sources for large facilities in the State of Maryland. I believe that was sometime in
the time range of 2012 and 2014 in my studies. I did not go back to that to study
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that for this hearing today. But I have been informed of an investigation of
alternative energy sources for large facilities. That was done prior to an RFI,
request for information, put out to industry for, yes, natural gas at the facility, and
then an RFP for natural gas at ECI and UMES. (Indiscernible) --
COMPTROLLER FRANCHOT: So your testimony, not to
interrupt, but your testimony is that if you were doing an RFI and RFP now for ECS
it would be open to all sorts of renewables based on the progress and, you know,
skill and innovation of the private sector, etcetera, as far as battery storage and other
ways to guarantee 24/7 delivery?
DR. GLASS: In a --
COMPTROLLER FRANCHOT: (Indiscernible).
DR. GLASS: I am stating that in an environment at the cost that
we’re talking about for a correctional institution to have 24/7 energy for electricity
and heat, and it to be independent. You have to understand, it has to be
uninterruptible and so it has to be able to flip to generation, if it’s going to be on
natural gas, or with the wood burning chips at a steady supply 24/7/365 days of the
year. If the power goes off in a prison, it can’t stay off. So wind, solar, and
renewable natural gas supply of energy are not at the place today where I believe
that is possible in an economical manner.
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COMPTROLLER FRANCHOT: That’s an extraordinarily
inaccurate statement and I’m happy to give you some updated information.
Because you are basically talking about, you know, something that just frankly
needs to be updated from 2012 or whenever you did the earlier study. Thank you.
DR. GLASS: Thank you, sir.
LIEUTENANT GOVERNOR RUTHERFORD: I think, Mr.
Comptroller, he was, you know, speaking also about his, you know, his
understandings as a professional engineer in terms of where technology is today for
uninterrupted power in a facility as large and as complicated as a correctional
facility. So I just wanted to point that out.
COMPTROLLER FRANCHOT: Okay.
LIEUTENANT GOVERNOR RUTHERFORD: Any other
questions for Mr. Glass? Okay. Delegate Anderton -- thank you.
DR. GLASS: Thank you, Governor.
LIEUTENANT GOVERNOR RUTHERFORD: Delegate Anderton
had signed up to speak.
DELEGATE ANDERTON: Yes, can you hear me?
LIEUTENANT GOVERNOR RUTHERFORD: Yes, sir, and see
you.
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DELEGATE ANDERTON: All right. Thank you. Thank you so
much for letting me speak in front of you for just a few moments. I hope you notice
over this shoulder, the Ravens flag. It is gameday. Mr. Governor, I hope you are
ready for Monday night.
LIEUTENANT GOVERNOR RUTHERFORD: Tuesday night, I
think it is.
DELEGATE ANDERTON: Tuesday night, you are right. Tuesday
night football.
LIEUTENANT GOVERNOR RUTHERFORD: Can you see my
tie?
DELEGATE ANDERTON: We’re going to have a good time
Tuesday night, I promise. But, you know, I’ve been listening to the conversations
today and I applaud my colleagues for being so well prepared, their statements.
And Madam Treasurer, Mr. Comptroller, I’m sorry, I didn’t want to leave you out
as well. Thank you for letting me hang out with you for just a few minutes.
I wanted to bring a little perspective. I represent Wicomico County,
I’m very blessed to do so, in the Maryland General Assembly. But I grew up in
Somerset County. My entire family is still there. And for far too long, Somerset
County has always been told to wait. Wait for this and wait for that for the
opportunity to economically thrive like other areas of the State. Somerset County
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with natural gas being brought down to Princess Anne to capitalize on a relationship
with Wallops Island, that hasn’t been addressed but that is something that is very
apparent that could happen. Look at UMES with their aviation program. There is
an excellent opportunity for collaboration there between the Salisbury Airport,
Wallops Island, and UMES. But something is missing, and that is that
infrastructure of energy that is very prudent and is long, long overdue. My whole
life growing up, I’ve heard stories of natural gas coming, natural gas coming.
You know, there are a lot of things that we could talk about. You
know, we could talk about, you know, the 50, my colleagues who have submitted
a letter of opposition who don’t live on the Shore. You know, we could talk about,
you know, the Council in Salisbury. I represent Salisbury and they, we disagree on
this. You know. They oppose expanding the pipeline. But I look at this as cases
of those who have dictating to those who have not. And I think we need to get past
that. You know, we talk about environmental justice and things of that nature, and
those are very important. But we need to also talk about economic justice or
economic opportunity and make sure that that is important as well for the quality
of life of the people in Somerset County.
For six years, you have done me well as a legislator. You have
approved every project that has come before you that benefits the lives of the people
I am blessed to serve. And today, I’m hopeful our undefeated streak continues,
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unlike the undefeated streak that is going to end today, by improving something for
my family so they can have the option that I have. I have the option to choose
between whether or not I want natural gas or my electricity generated in another
fashion. I don’t have natural gas. I chose not to. I want my family to have that
same option.
And so again, I thank you for the opportunity. I know that this
meeting has gone on for a long time. And so I will quickly subside. But I just
wanted to acknowledge that this is vitally important for not only the economic
growth but the quality of life growth of Somerset County. And I think it’s time to
stop telling Somerset to wait and say, okay, you are on the pad, let’s launch. So
thank you so much.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you,
Delegate. Any questions for the good Delegate? Thank you very much.
DELEGATE ANDERTON: Thank you. Thank you all.
LIEUTENANT GOVERNOR RUTHERFORD: I’d like to then go
to the President of the Somerset County Commissioners, Craig Mathies. We’re not
hearing you. Oh, there we go.
MR. MATHIES: Yes, good morning, Governor, and --
LIEUTENANT GOVERNOR RUTHERFORD: Good morning.
Afternoon, I mean.
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MR. MATHIES: -- Mr. Comptroller and -- I’m sorry, afternoon --
and Treasurer. And like someone said earlier, Happy Birthday in the coming days.
You know, I come to you this morning with many hats. I’ve listened
to a lot of the conversation. You know, I come to you as the Commissioner
President. I’m also Past President of the Somerset County NAACP, and I’m also a
Pastor. So it deeply touches me when I hear individuals who do not live on the
Shore. And I understand as political officials, you think about so often your
political future and there’s more votes on the Western Shore than it is on the Eastern
Shore. And I understand that. So I kind of sympathize to some degree. But as an
elected official, we represent all of the constituents. And being a State elected
official, you represent every individual from every aspect and corner of the State of
Maryland.
Somerset County, it’s been said, has been deprived for many, many
years. It so often appears like a situation of the haves versus the have nots. I’m
listening to the haves tell the have nots what you are not entitled to. But in order
for this county to be a real good economic resource for the entire State, you have
42 percent of this county is African American. And the NAACP talks about this,
but the Bible says that my people perish for lack of knowledge. They came before
you not knowing any odd thing about where this pipeline is going. It’s not going
directly through the minority community. Most of that pipeline is going to be on
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U.S. 13. And if they are really concerned about the minority community, get jobs.
Nobody from those other counties that are talking about we shouldn’t get it are
offering the opportunity for economic growth. Nobody is putting up money so that
we have the opportunity that our citizens can become gainfully employed. Because
when people are employed, they put more back into the economy. And that monies
or those resources would benefit the entire State of Maryland.
So, I come before you today asking you to not deprive the citizens
of Somerset County the opportunity for economic growth. Because for so long,
industry has resisted coming to Somerset County because the fuel resources were
of poor quality. There was not the opportunity for advancement. Right now,
Somerset currently has a large solar project which produces over 110 megawatts.
So Somerset County is seeking to have renewable resources. We just need help
from people like you in order to attract gainful businesses to come to this company
so that we can raise the level of economic growth and opportunity for the residents
of Somerset County.
And I plead with you, consider the fact that so many of these
individuals that are asking you not to approve this project, they don’t live here.
Some of them have never been on the Eastern Shore. So therefore, how in the world
can they actually know the predicament and the plight of the citizens of Somerset
County? And for the NAACP, that really bothered me. To speak of anything that
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would hinder of the opportunity for economic growth for minorities, that is utterly
ridiculous.
And we have the opportunity now for UMES to progress. We have
the opportunity to reduce the pollution impact to our environment. Because when
you look at the statistics, the health of the citizens of Somerset County, it is
deplorable because of the fact of the fossil fuels and the things that are polluting
our air. And we really and truly are looking for means to become more
economically independent and we’re not looking for a handout, we’re just looking
for a hand. So, if you would be so kind as to give us strong consideration.
And one last thing, so many individuals from the political realm and
elected officials have come to the Shore and told the citizens of Somerset County
we’re going to do this to help you or we’re going to do that to help you. But yet,
when opportunity presents itself, we don’t get the help that you promised us. And
we desperately need this opportunity. Because as I said, we’re not looking for a
handout. We just want a hand to advance the opportunity for our citizens to become
self-sufficient and have a better means of supporting their families and enjoy a
better standard of life. I thank you for your time and I hope you give us very strong
consideration because we truly, truly, truly need this opportunity. And this is an
opportunity for our economic growth. So I implore you to please consider giving
us this opportunity.
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LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Mr.
Commissioner. I attach myself to all of your comments. And thank you very much
for your commitment to the people of Somerset County, your passion, and I
appreciate it very much. And particularly pointing out that the vast majority of the
people who are complaining about this do not live on the Lower Shore, do not live
on the Shore at all, and generally have natural gas. They have at least that option.
MR. MATHIES: Correct.
LIEUTENANT GOVERNOR RUTHERFORD: And they are
talking about denying that option, and in the name of environmental justice. And I
keep pounding on this. To subject people to the dirtier fuels right now, I mean,
where were they years ago, and where are they right now?
MR. MATHIES: Yes.
LIEUTENANT GOVERNOR RUTHERFORD: They would at
least say let’s address this issue now. So thank you. I don’t know if there are any
other questions for the good Commissioner.
TREASURER KOPP: Commissioner, could I say I hear what you
are saying. I, too, am a member of the Sierra Club and when I was growing up in
Chicago at the age of ten my parents gave me a membership in the NAACP, because
that’s what we treasured then. I would ask you only, as the Speaker pro tem
suggested, to believe that, yes, most of the opponents are from the Western Shore.
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And many have never been to the Eastern Shore. But that their concerns about the
future, about climate change, and stability, are truly held. They are not just
hypocritical, and that we all have to work together to build a future which is
sustainable for everyone together.
MR. MATHIES: Yes. Well, I agree wholeheartedly. But
unfortunately, the climate that we’re now engaged in as a country --
TREASURER KOPP: Yes.
MR. MATHIES: -- it doesn’t project unity. And unfortunately, the
only way for any individuals to be able to overcome things that are, that you don’t
particularly view in the same manner as others, you first have to discuss it. You
know, you don’t have to be, you don’t have to be -- as a Pastor, one of the things I
always say is can we not reason together? So if we can discuss it, and look at our
differences, but yet realize that beyond all of the disagreement, the common goal
should be that we make it better for the vast majority. Not for a selected group, but
for the vast majority. And if we can do that, as elected officials and as servants to
our various communities, then we have made the right choice. Or it shouldn’t be
just for a select few. It should be for the betterment of the entire State of Maryland.
And if there is economic growth in Somerset County, guess what? There’s not a
whole lot on the Eastern Shore where people can spend their money other than
Ocean City. So that means Macy’s is closed in the mall, so we’re going to travel
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to the Western Shore to buy suits and all kinds of other things because that’s where
we’re going to find the deals that we need. So if you would help us to develop that
economic growth that we need and opportunity, believe you me, it’s going to
benefit the entire State of Maryland. Thank you so much.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you. And
we’re only as strong as our weakest partner.
MR. MATHIES: Correct. And right now, we’re at the bottom of the
list. So help to pull us up out of the ditch, would you please?
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Well, thank
you. I don’t know if there are any other questions for the good Commissioner. But
thank you very much, sir. Thank you. I appreciate your passion.
MR. MATHIES: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: And I stand with
you. Now I’m going to call on Mr. Ian Fleming of Washington Inn and Tavern in
Princess Anne.
MR. FLEMING: Good afternoon. Thank you for letting me speak
today, Madam Treasurer, Mr. Governor, Comptroller Franchot. My name is Ian
Fleming. I am a small business owner. I became a Marylander in 2010 with the
acquisition of the 1710 Robert Morris Inn in Oxford, and thereafter (indiscernible)
I reopened the 1744 Washington Inn in Princess Anne with great State and
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community support. The inn was built in 1744 and has been serving the community
for over 275 years.
LIEUTENANT GOVERNOR RUTHERFORD: Wow.
MR. FLEMING: It’s the second oldest inn in the State and the Town
of Princess Anne exemplifies historic small town America, it being established in
1733 and serving as the county seat for Somerset County, the southernmost county
in Maryland and, indeed, the (indiscernible) in the State, too. It is believed that
George Washington stayed many times during (indiscernible) and the Inn was
named in his honor. Today the Inn is still a relatively bustling operation, strictly
following the COVID protocols set out by Governor Hogan for our industry sector.
We use a wood stove to heat our common public areas on the first floor and
electricity to heat our guest rooms, and we have propane gas tanks to service our
kitchens with our award-winning meals.
Having natural gas delivered to Princess Anne would help us to
reduce our energy expenses, more than anything giving us the option to choose
natural gas as our fuel source of choice as well as possibly eliminating the use of
our wood stoves, which is a healthier environment for our employees and our
customers.
In addition to all of that is that ecotourism is going to become more
and more important for hospitality businesses on the Eastern Shore. People look to
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come to the Shore to enjoy our environment and ecotourism for hotels is important
and we need any opportunity to improve those credentials.
So, I ask the Board of Public Works to approve these permits and
support energy choice, the environment, and the economic health of Princess Anne.
Thank you very much.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Mr.
Fleming. Any questions for Mr. Fleming?
TREASURER KOPP: I look forward to visiting.
LIEUTENANT GOVERNOR RUTHERFORD: Yes. It’s
interesting, it reminds me, and the Treasurer and I were kind of joking a little bit
earlier before getting on the call, about, you know, kind of things that were in kind
of cultural history, in a sense, what at the time might have been pop culture but no
longer is. But I remember signs being around that said “Washington Slept Here.”
You know, that it was like how many places did Washington actually sleep? But
there were signs that used to be I know in Georgetown in D.C. there were, you
know, old signs that would say “Washington Slept Here.” And it may be a vacant
lot at that point but it used to be a tavern that was there. And you probably actually
have, you know, a lot of credibility associated with that. So, thank you for your
testimony and, as the Treasurer said, I look forward to coming down to and
exploring your inn.
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MR. FLEMING: Thank you very much.
LIEUTENANT GOVERNOR RUTHERFORD: And your world-
renowned meals. So thank you.
MR. FLEMING: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: I’m going to call
Jamie Wink of Wink’s Sporting Goods in Princess Anne. Mr. Wink, are you still
out there? I heard something. I don’t know if that was us. Mr. Wink, is that you
trying to come on?
SECRETARY GONTRUM: I do not see Mr. Wink in attendance.
LIEUTENANT GOVERNOR RUTHERFORD: Oh, okay. Then
we’ll move on. Mr. Bill Chambers, who is with the, the President and CEO of
Salisbury Chamber of Commerce. Okay, Mr. Chambers may not be there.
SECRETARY GONTRUM: Mr. Chambers is present. It appears
his audio is self-muted.
MR. CHAMBERS: I’m here. I’m sorry about that.
LIEUTENANT GOVERNOR RUTHERFORD: There you go.
MR. CHAMBERS: Good afternoon, Governor, good afternoon,
Comptroller Franchot and Treasurer Kopp. It’s an honor to be here before all of
you this morning, or excuse me, this afternoon, now.
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The Salisbury Area Chamber is a regional chamber. Our
headquarters are here in Salisbury, Maryland. And I really appreciate the
opportunity to weigh in on the Somerset natural gas project, and specifically today’s
consideration of the wetlands permit for Eastern Shore Natural Gas for their
important part of this project.
While most of our beloved State has seen overall positive economic
growth the past half-decade or so, Maryland’s Somerset County has continued its
unfortunate legacy as an economic development dead zone. The Somerset natural
gas project will be a true game changer for Somerset County, its citizens, and its
businesses and organizational communities. The Chamber is focused on economic
growth, job creation, and expanding the commercial tax base for our Lower Shore
communities and Maryland as a whole. This project more than fits those criteria
and will change the landscape for business expansion in Somerset, grow new
businesses in Somerset County, and bring new business investment to all of our
Lower Shore counties, and bring significant economic benefits to the State as a
whole. In short, this project is a no brainer.
On behalf of our Chamber and our 700-member businesses and
organizations, we implore you to vote favorably on today’s wetlands permit
application and we look forward to the approval of the whole project and the dawn
of a new day in Somerset County.
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LIEUTENANT GOVERNOR RUTHERFORD: Thank you. Thank
you, Mr. Chambers. Any questions for Mr. Chambers? The appropriate name for
the President of a Chamber of Commerce is Chambers.
(Laughter.)
LIEUTENANT GOVERNOR RUTHERFORD: Thank you. I’m
going to go to Mr. Dennis Williams, President of the Princess Anne Chamber of
Commerce. Mr. Williams? I don’t know if he’s --
SECRETARY GONTRUM: I’m not seeing Mr. Williams.
LIEUTENANT GOVERNOR RUTHERFORD: Okay, maybe he
had to drop off. We have a few other members, or others signed up. I see Jim
Mathias from the University of Maryland Eastern Shore, but the President has
already spoken. I don’t think we need to go to him at this point. I’d like to go to
John Sharpe from Salisbury, if he’s available.
MR. SHARPE: I’m available, and greetings. I will dispense with
the formalities, just except to thank you for your public service to the citizens of
Maryland.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you.
MR. SHARPE: Which includes Wicomico County and Somerset
County. I am a lifelong resident of Wicomico County. I’m a property owner. One
of my properties spans across a tributary of the North Prong of the Wicomico River
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and I am currently in my mother’s house near the South Prong. I consider myself
an environmentalist, not an activist. I have friends who have been students and
employees at UMES, and I myself have worked as a technician in the ECI energy
plant.
Two years ago, I noticed that Chesapeake Utilities was finally
installing a distribution line down my street and I jumped at the chance to have
natural gas installed in my mother’s house. It has made a world of difference, both
in difference in the cost of heating oil and the hassle of making sure that an aging
oil tank was filled. So I’m an advocate of natural gas. It is the cleanest burning
fossil fuel. And although I’m still waiting for Dr. Emmett Brown to bring his Mr.
Fusion machine. But that’s always 20 years away.
I just wrote down four bullets regarding the current environment. I
witnessed the installation of a gas pipeline in Lower Delaware on my way to work
last year and I was very impressed at the sophistication of the installation.
Regarding economic development, I mean, so many others have spoken regarding
Somerset County. I would just point out that the total population of Somerset
County would not fill half of the Ravens Stadium. And the median income for a
family in Somerset County is less than $38,000. That’s the median, $38,000.
Twenty percent of the population, that’s one out of every five people in Somerset
County, are below the poverty level. In terms of environmental justice, I witness
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the trucks taking the wood chips down to ECI and they’re all diesel powered. I
lived in China for 20 years and I’m aware that solar panels manufactured in China
use electricity generated by soft coal. And that’s the worst fuel and I suffered
bronchitis while I was a teacher there because of the pollution. Natural gas is a
wonderful fuel. Regarding climate change and intersecting these other bullet
points, I think that it’s horrible to try to place upon the citizens and residents of
Somerset County any responsibility for climate change, especially given the
conditions in China, Russia, and India. So I’m an advocate of extending natural
gas to our poorest county, where the people desperately need economic
development. Thank you very much for listening to me.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Mr.
Sharpe. Any questions for Mr. Sharpe? Okay. Thank you again. And Dan Ervin
from Salisbury University? Is Mr. Ervin on the line?
DR. ERVIN: Yes, can you hear me?
LIEUTENANT GOVERNOR RUTHERFORD: There we go. Yes.
Yes, sir.
DR. ERVIN: Hello. My name is Dan Ervin and I am a professor of
finance at Salisbury University. I live in Wicomico County and I have requested
time to speak in favor of the projects that will bring the natural gas to Somerset
County. Thank you for allowing me time to speak.
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In full disclosure, prior to my position at Salisbury University, I had
a career as an engineer at Duke Energy in North Carolina and as a financial analyst
at Kentucky Utilities in Kentucky. I understand the economics and engineering
that make up the energy industry.
It is important to develop natural gas assets as wind and solar
resources are added to the generation mix on the Eastern Shore. Natural gas is an
excellent source of energy to pair with renewables for several reasons. If Maryland
wants to continue to expand the development of renewables in the region, we will
need natural gas because of its affordability, reliability, and it is dispatchable. So
it can fill the supply needs when the renewables are unable to produce power.
Natural gas is also a reliable and affordable energy choice that
benefits local employers and working families where it is available. When you
intentionally restrict energy choices in a community, you place those that live and
work there at a disadvantage. The economic benefits of access to a reliable supply
of natural gas is well documented and these projects to bring natural gas to
Somerset County have the potential to be a great boost to the local economy.
For Somerset County, with 23 percent of the population living in
poverty, the highest in Maryland, this decision should be a clear one to support the
expansion of natural gas into the community to benefit employers and working
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families living there. Thank you for your time. And I will ask you to vote
affirmatively to support the delivery of natural gas to Somerset County.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Dr.
Ervin. Any questions for the good doctor? And I will just say my youngest is a
graduate of Salisbury University. Thank you for what you do there.
TREASURER KOPP: Thank you.
DR. ERVIN: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: The last person we
have is Roland Condon, who signed up to speak. Mr. Condon? Is he signed on,
John?
SECRETARY GONTRUM: I’m not seeing Mr. Condon, no, sir.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Maybe we
lost him through this.
Okay. I don’t know that there’s any discussion. But I move that we
take this matter separate from the rest of the Secretary’s Agenda. And --
TREASURER KOPP: Second.
LIEUTENANT GOVERNOR RUTHERFORD: -- I ask for a
motion on this matter and a vote.
TREASURER KOPP: I would move, Governor, to support the
granting of the license.
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COMPTROLLER FRANCHOT: Well, I think the effort is to
separate it, right?
LIEUTENANT GOVERNOR RUTHERFORD: Yes, from --
TREASURER KOPP: Oh --
COMPTROLLER FRANCHOT: I would --
LIEUTENANT GOVERNOR RUTHERFORD: -- the item --
COMPTROLLER FRANCHOT: -- I would second that motion and
I assume we can have a vote.
LIEUTENANT GOVERNOR RUTHERFORD: Yes. So those in
favor, that’s aye. I’m an aye.
TREASURER KOPP: On separating it?
LIEUTENANT GOVERNOR RUTHERFORD: No, just for Item 4.
We’re voting on Item 4 alone. I guess I confused everybody. Yeah.
COMPTROLLER FRANCHOT: I believe the item has been
separated, and now we can have a discussion if anybody wants to make a comment.
And I have a brief comment.
LIEUTENANT GOVERNOR RUTHERFORD: Okay, please.
COMPTROLLER FRANCHOT: Yeah, no, people may have
noticed that I was standing up during the meeting. I was trying to experiment with
a personal thing that if I stand up maybe the meeting will go faster. Well --
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LIEUTENANT GOVERNOR RUTHERFORD: It didn’t.
COMPTROLLER FRANCHOT: -- it’s three hours long --
LIEUTENANT GOVERNOR RUTHERFORD: I thought your
back was bothering you or something.
COMPTROLLER FRANCHOT: Yeah, no, it’s my back is fine,
thank you. But it did, the little experiment did not work. We spent three hours on
this item. But I just want to remind everybody how important the overall subject
matter is. And I know that we sometimes get lost in the details. But if anybody is
interested in the threat to Planet Earth from global warming, just go and look at
David Attenborough’s new documentary. You can just ask for it. It’s called “A
Life on Our Planet.” It’s brand new. It’s an absolutely riveting condemnation of
us as a global community turning our back on what’s going on in the environment.
So I want to just start by saying everyone who provided testimony,
despite the length of today and despite the somewhat weeds that we got into as far
as details, I just want to applaud everyone, particularly the elected officials who
speak in favor of this, Delegate Otto, and Senator Carozza, Delegate Sample-
Hughes, and Commissioner Mathies. I mean, what, you know, just very powerful
comments. And I personally appreciate it. But I also really want to recognize the
folks that were speaking on the other side, because Josh Tulkin, and Mike Tidwell
didn’t speak but he has been communicating with me, he’s a neighbor of mine back
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in Takoma Park, my local legislator Lorig Charkoudian, is an absolute champion
on the global warming climate change. And I loved the testimony of Sophie Rapley
and encourage her obviously to stay as a student and as a graduate focused on this
issue. Because it is an existential threat to the planet, not just our country or a
locality in our country.
It’s obviously evident that the item has generated a lot of interest,
not only in Somerset County and the Eastern Shore but across the State. I frankly
over the last several months I’ve had the opportunity to meet with stakeholders on
both sides of this issue. My office has received thousands of emails and phone calls
and social media communications from Marylanders who have strong opinions on
the project. And I just want to reiterate, I greatly appreciate hearing from everyone
on both sides of the issue.
It’s undeniable, however, and this is, probably no other politician in
recent history has visited Somerset County more than I have. It’s undeniable that
in Somerset County, the most economically disadvantaged jurisdiction in our State,
for years they not only feel but they actually have been deprived of their fair share
of attention, investment, and resources from all of us at the State level in Annapolis,
etcetera. That’s why I made it a point to visit the county on a regular basis over the
course of my 14 years as Comptroller. And I’ve often visited with business leaders,
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residents and heard firsthand from the citizens of Somerset about the challenges
they are facing.
In 2015 I led the fight to put the Great Bay wind power project in
Somerset, which would have been a tremendous source of local jobs and local
energy. But unfortunately that was deep sixed by powerful people in the
Legislature and frankly at the federal level.
So, I just want to concur that obviously propane, really dirty oil, and
burning wood chips are not exactly on anyone’s list of clean energy. But the fact
that Somerset County has not had access to natural gas is quite frankly an economic
injustice to the residents that live there. For years, Maryland businesses and
residents have benefitted from lower natural gas costs and Somerset County has
simply been left behind. And when we tried to get renewable energy down there,
it was blocked. And as a result, local businesses are stuck paying high cost energy
bills rather than focusing on their own operations and on economic development.
The county has the State’s highest poverty rate, the second highest
unemployment rate, lowest median household income according to the 2018
Census. Environmentally, Somerset residents suffer from polluted air as a result of
the dirty fuel they are forced to burn for energy. A much cleaner option, natural
gas, could significantly reduce harmful emissions. As has been testified today, I
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believe ECI and UMES would respectfully lower their CO2 emissions by 65
percent and 38 percent.
Obviously, I’ve been a leader over the years on environmental
justice and protection of our State’s natural resources. I was proud to vote against
the Potomac Pipeline out in Western Maryland in 2019 and help lead the fight
against the Four Seasons project. And obviously, the Great Bay project, you know,
was something that was incredibly disappointing for me. But I do acquiesce to
some of the testimony that the agreement that we’re signing with Chesapeake
Utilities and UMES is a ten-year agreement with a ten-year renewal, so we’re going
to get a chance to revisit this. I can understand the testimony that folks in Somerset
need something now, not five years from now. They need something now. And
they were extraordinarily disappointed, I think, four or five years ago with the Great
Bay Energy. And obviously, they believe that we are moving to a cleaner option
and we’re going to continue to invest in renewables, which the Treasurer and the
Lieutenant Governor and I are all strong supporters of.
So, I just believe that we are in a situation which is calling out for
bold action, but this is not exactly a bold action that is productive immediately, nor
is it particularly fair to the citizens of Somerset County. So, a solution where ECI
continues to burn wood chips for the next five or more years -- and trust me I was
in the Legislature and helped authorize the famous wood chip burning furnace. We
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thought we were doing something good for the environment. Instead, it turned out
to be the opposite. So I strongly believe this project will be somewhat of an
immediate beneficial help to the environment by lowering emissions from the
university and the prison significantly, all the while adding only a small amount to
the State’s natural gas use. So I’m going to vote yes on this license, but I join with
the Treasurer, and I’m sure the Lieutenant Governor also, this is, it’s critical that
this vote not be interpreted as an endorsement for fossil fuels and long term
dependency on natural gas. This is a temporary measure. It must be treated as
such. The State must continue to make progress to comply with our own goals and
commitments concerning clean energy.
And I once again want to just reach out to the folks on the
environmental side that testified today and thank them for their activism and
advocacy and just applaud everybody for the substance that they presented to us
today. And I’m going to vote yes on granting this particular license. Thank you,
Governor and Madam Treasurer.
TREASURER KOPP: Governor, it doesn’t happen too often that I
say I agree completely with what the Comptroller has said. But in this instance, I
do.
There is no doubt, and as a member of the Climate Change
Commission I have already voted that I believe we have to move more quickly to
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reduce our dependence on fossil fuels and that can only be done through, really
through electrification of buildings and vehicle, the vehicle fleets. That’s the only
way really that it can be done. And I also believe that everything we have to do has
to be within the context of environmental justice, climate justice. That’s, those are
the frameworks.
But this vote is not on a concept or the framework. It’s on a specific
item before us. And neither the Comptroller nor I like this, but the Court, our
Assistant Attorney General, the Assistant Attorney General in Central Office who
is in charge of opinions and advice, all agree that the item before the Board today
is simply approval of the 76-foot horizontal drilling under the river. And questions,
serious, good questions have been raised about that drilling and about, A, the impact
of climate change on the pipeline that will be there for quite a while whether we
use it or not, and the process of drilling. Not dredging, because it’s not going to be
dredged. But I believe that our experts, the ones we listen to at the Department of
the Environment, and our Wetlands Advisor, all agree that with the conditions that
we are going to approve with approving this item, it is in fact safe and will not
despoil the wetlands, which is the test until the Legislature changes that test or
changes the authority of the Board of Public Works to look at broader questions.
I’m not personally in favor of expanding the authority of the Board of Public
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Works. But if that is what the majority of the Legislature thinks is appropriate, then
that’s the policy decision. We’re not here to make that policy decision.
I, so I believe that we are constrained in the item before us. We have
looked at all the facts. We have listened to very good testimony on both sides,
although most of it is not focused on the specific item and the issues before us, and
agree with the Comptroller on supporting the item.
I also appreciate, as the Comptroller did, not only the fact that that
specific item is before us and we are limited to approving that, but the fact is that
this means there will be an immediate significant reduction both in cost and in
carbon emissions as the two State institutions move off of wood chips, which we
thought was a great innovation, and propane and heating oil, to natural gas, which
is cleaner, even though we believe it should only be a bridge to true renewables.
And I believe that the inequity of the situation regarding Somerset County, its
economic and environmental disadvantage have to be acknowledged and
addressed. Within that framework of equity, I believe we have an obligation not
only to make sure that the burdens of the change to sustainability are borne equally
by the entire State, but that those who have been thus far not supported and left
behind must be brought up to equity. And I think that this item is one relatively
small way of doing it.
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So I do support the Comptroller’s motion, will vote for it, do believe
natural gas should be a short bridge, do not believe that we have to use natural gas
any longer than absolutely necessary, and I am very glad, by the way, to hear the
President of the University of Maryland Eastern Shore say that the savings, several
hundred thousand dollars a year, the savings from going off of the worst fuels are
going to be used to invest in renewables. And I think that’s, unfortunately
sometimes we have to, as Churchill said, go by littles, go incrementally and not
simply discard everything from the past for the new ways.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Very good.
You said it’s not often that you agree with the Comptroller totally, and it’s probably
even less often to rare, if not ever, that I agree with the Comptroller totally in his
comments. I thought it was very well articulated. He laid out, you know, arguments
on both sides and, you know, relaying the challenges.
I appreciate, Madam Treasurer, your pointing out the equity issue.
And in my rant earlier I probably was not nearly as eloquent in terms of pointing
out the equity in terms of the portion and portions, but specifically Salisbury, or not
Salisbury, Somerset County that has been, you know, kind of left behind in many
of the initiatives that many of us are able to enjoy. And so, with that, I guess we
are putting it to the vote. The two of you have said that you support it. I support
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it. I think that’s three-oh, if my arithmetic is correct. Do people even say arithmetic
anymore, going back to these older terms?
TREASURER KOPP: No, I think they say math. Which we never
used to get until about the fifth grade.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. So --
COMPTROLLER FRANCHOT: Governor, I wonder if we could
get a half-hour break just for --
LIEUTENANT GOVERNOR RUTHERFORD: Oh, okay. A half-
hour is fine. I was going to say five minutes. But if you want a half-hour, and we’ll
pick up the remainder of the Agenda items. Is a half-hour what you want? Can we
make it 20 minutes?
COMPTROLLER FRANCHOT: A half-hour would be great for
me.
LIEUTENANT GOVERNOR RUTHERFORD: Let’s go 30
minutes, then. Okay.
TREASURER KOPP: How about until 1:30?
LIEUTENANT GOVERNOR RUTHERFORD: Okay, 1:30?
TREASURER KOPP: Or just 1:35, whatever you all want.
LIEUTENANT GOVERNOR RUTHERFORD: How about 1:30,
Mr. Comptroller?
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COMPTROLLER FRANCHOT: That’s fine.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Thank you.
We’ll take a short --
SECRETARY GONTRUM: Wonderful. We’ll adjourn. Please,
members, be mindful of the fact that your audio and cameras will remain active,
presumably unless you turn them off, during the period until we resume. Thank
you.
(Short recess taken.)
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Well, we’re
ready to continue with the Secretary’s Agenda. Any additional questions on the
Secretary’s Agenda?
COMPTROLLER FRANCHOT: Madam Treasurer?
TREASURER KOPP: I don’t think so.
COMPTROLLER FRANCHOT: I have a question on Items 1
through 6. It’s a generic issue. A1 through A6.
LIEUTENANT GOVERNOR RUTHERFORD: Oh, okay. Okay.
SECRETARY GONTRUM: Items A1 through A6 are emergency
reports from the Department of General Services on behalf of the Department of
Health. We do have Secretary Schrader available.
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COMPTROLLER FRANCHOT: Yes. I’m pleased that hopefully
he is available. And I think it would be remiss if I didn’t comment or at least ask
about the, since I have Secretary Schrader here, the Lab Genomics test kits that
were procured from South Korea, given the Washington Post story published two
weeks ago.
I was grateful and have consistently applauded the Hogan
administration for their leadership and management of the pandemic, especially
given the fact that the Trump administration abdicated their responsibilities at the
national level and forced states like Maryland to fend for themselves and procure
their own test kits, ventilators, PPE, and other supplies. However, I did, I was
surprised at the revelations in the Washington Post article, which was a long article,
information that was never presented to this Board or shared with our staff, and the
Department of Health has brought items related to Lab Genomics in the past.
As Comptroller of the State and a member of the Board of Public
Works, there are a lot of unanswered questions that I believe need to be clarified,
especially since even Health Department officials couldn’t account for some
irregularities as reported by the Washington Post. So Secretary Schrader, thank
you for agreeing to at least try to answer a couple of these questions. First, with
respect to CIAN Diagnostics in the article, you indicated you did not know in the
article why the State was paying CIAN $98 per test when we provided them with
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the test kit. Now that two weeks have passed since that article’s publication, have
you been able to get some clarity on why they were charging us such a large amount
of money given that we were providing them with the actual test?
MR. SCHRADER: Mr. Comptroller, can you hear me?
COMPTROLLER FRANCHOT: I can, yes.
MR. SCHRADER: Great. Thank you, Governor and Treasurer
Kopp, Comptroller Franchot. What we had told the reporter and they did not print
is that we originally had six contracts that we brought forward and the $98 was the
test. We renegotiated the rates in August and early September when we started
giving CIAN the tests, and that rate was $93. So we took a $5 discount off the price
of the test when we started giving them the tests to run. So we had told that to the
reporter, but they did not publish that.
COMPTROLLER FRANCHOT: Okay. And what is the payment
we made to other labs similar to CIAN Diagnostics?
MR. SCHRADER: They range in the $90 to $100 range, sir, across
the board. You know, it depended. So like LabCorp was $100. $69 for Quest, $100
for MAICO. University of Maryland Lab was $90, CIAN $93, and ICMD was
$100. So the preponderance of them were between $90 and $100 with three --
COMPTROLLER FRANCHOT: Okay.
MR. SCHRADER: -- half of them at $100.
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COMPTROLLER FRANCHOT: And they were using their own
tests kits, I take it, or not?
MR. SCHRADER: Correct. That’s correct.
COMPTROLLER FRANCHOT: Okay.
MR. SCHRADER: Except for -- oh, one clarification, sir. UMPA,
the University of Maryland, for a period used 125,000 of our tests. But they were
also giving deep discounts to nursing homes and State agencies, which were down
around $40 a test. So we had a significant discount on those tests.
COMPTROLLER FRANCHOT: Okay. And when did you at the
Department of Health, or your colleagues, when were you made aware of
irregularities and defects associated with the Lab Genomics test kits? I’m thinking
that maybe it’s the University of Maryland ones. Because I remember some of it
was affiliated with the industry complaining that 37 percent, 37 of their employees
had been diagnosed as COVID positive by these early tests and obviously caused
tremendous consternation. All 37 were retested and all the tests were incorrect. So
I take it early on there was some indication that there was a problem with some of
the test kits, I take it, or not?
MR. SCHRADER: So, if I may clarify, Mr. Comptroller, because I
know this gets a little complicated, the false positives were part of the second
upgraded batch, not the initial batch. There were no tests done on the first batch
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for patients that were tested. That was, so the false positives that we became aware
of were on the second batch. And our Office of Healthcare Quality did a, not a
study, but went in and did a compliance review for the UM Lab and found that the
kits were not part of the problem from what they could tell. And that’s a public
document.
So, there are two different things. The original kits, there were no
tests done with those.
COMPTROLLER FRANCHOT: And how many were those? What
was the number of those kits that were not used?
MR. SCHRADER: About 496,500. I think in the process of trying
to validate the tests with various labs, we used about 3,500 of them. But --
COMPTROLLER FRANCHOT: Okay. So --
MR. SCHRADER: -- (Indiscernible) --
COMPTROLLER FRANCHOT: -- you put aside, even though we
had gotten them. And then I take it they were --
TREASURER KOPP: -- just to --
COMPTROLLER FRANCHOT: I’m sorry. Madam Treasurer, go
ahead.
TREASURER KOPP: -- the ones from South Korea?
LIEUTENANT GOVERNOR RUTHERFORD: Yes. Yes.
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TREASURER KOPP: Thank you.
MR. SCHRADER: Yes. And ma’am, if I might, both batches were
from South Korea, it was just two different batches. And the first batch was sent
back to, the manufacturer actually picked them up and took them away. And that
was after they sent us the upgraded tests. And those are the ones we’ve been using
and we’re up to 430,000 of the 500,000 have now been used to test.
COMPTROLLER FRANCHOT: But you sent back the first batch
minus 3,500, I guess, that were used --
MR. SCHRADER: -- yes, sir. Yes.
COMPTROLLER FRANCHOT: And so, I guess a second question,
unless the Treasurer wants to, but feel free to jump in, why did we add $2.5 million
to the swap of 500,000 tests that we were concerned about with 500,000 new tests?
MR. SCHRADER: Yes. So let me first say that I don’t have intimate
knowledge of this because I wasn’t involved in the process. I’ve been
reconstructing the fact pattern for a variety of questions that we’ve been getting
from different sources. But what I understand is that, and you have to remember at
that point in time in April, March, April, May, we were in chaos because we didn’t
have enough tests. We started with 50 and we built to 50,000. So the, when we
were negotiating with the contractor, the folks involved, their objective was to get
those tests here. And, you know, one could criticize it and say, well, maybe we
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shouldn’t have spent that money. But at that time, and I was involved in the search
part of it where we were buying ventilators and the market, the things weren’t just
available. We were paying a lot of money. The market has changed again, because
the availability is different today. But at that time, we were in crisis.
COMPTROLLER FRANCHOT: Okay. So, and I’m not
suggesting that there was anything that I’m particularly focused on. I’m just trying
to get an idea. Because this was back in, sometime in April or May when you were
learning that there were problems with the tests and then you swapped it out and
came to us in September, the September 2nd Board meeting, with a $9 million
emergency contract. And I guess the question is, shouldn’t some of that knowledge
about defective tests initially at least we should have been informed about it?
MR. SCHRADER: So, well here’s the fact pattern, sir. And then
maybe we can have a conversation about it. Is that I became involved personally
in driving testing around mid-June. And my understanding is that at some point in
early June, there had been a request to put this emergency first batch on the Board
Agenda. From what I understand, the Board was not ready to take it up at that time
and they said come back when you have a lot more information. I got involved.
And by then the other tests were being sent back and we had the new tests. And by
the end of June, we had done about 29,000, by the end of August, about 100,000.
By the time we got to the Board in September, we were talking about the second
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batch and the other batch was gone. So the focus was really on the second batch
and explaining it. And because we had not paid anything for the other batch and it
had already been given back, it never really came to the Board for a vote. So it had
been delayed initially, but then when they went back it never came back to the
Board. Because we were focused on the second batch in September.
COMPTROLLER FRANCHOT: Yeah, I’m not suggesting there
was --
LIEUTENANT GOVERNOR RUTHERFORD: Can I speak --
COMPTROLLER FRANCHOT: I’m sorry. Go ahead, Lieutenant
Governor.
LIEUTENANT GOVERNOR RUTHERFORD: I just also want to,
you know, clarify, and you know, something that Dennis just said. And you
remember, it was first brought back I think Dennis said in June, but it was all in a
spreadsheet of all these different items. And the Board, and I believe, you know,
the Treasurer and yourself, wanted to see them separated out. And so it took some
time to go back and separate out. There were some questions about I guess the, you
know, the invoicing process and the accounting process that took some time to go
back through. And that’s why it then was delayed and brought in September, the
initial batch. And then as an emergency procurement. And then I think maybe a
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week or two later, there was the other batch was brought in, maybe two weeks later.
The --
COMPTROLLER FRANCHOT: Yeah, I’m not suggesting that
Secretary Schrader did anything wrong here personally, because I know he has
arrived in midstream. I’m just wondering why did we pay $2.5 million more than
we originally agreed to. Is that simply market rate or something, Secretary
Schrader?
MR. SCHRADER: My understanding from the discussions I’ve had
trying to get the answer to that question, it’s a very legitimate question, is that we
were under pressure and we were negotiating with the manufacturer, and the
manufacturer was not willing to just replace the tests. They felt they were entitled
to some remuneration. And at the time, because of the crisis we were in and we
wanted the tests, and it has turned out to be a good thing we had them, that there
was a sense at that time by those involved that the $2.5 million would be valuable
to get the tests here. I can’t speak to the, with firsthand knowledge. Everything I
am telling you is secondhand.
COMPTROLLER FRANCHOT: Yeah, no, I’m really, I’m putting
you off in a different category just because of the, you know, fact that you joined
midstream on some of these issues. But in early September, apparently there were
76 staff and patients at a nursing home in Howard County who tested positive for
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the virus. It was quickly learned, apparently, that these were false positives and
that they had all been tested using the Lab Genomics tests. So I assume that those
76 false positive cases were also replicated in other tests that we conducted with
the Lab Genomics kits. So have you been able to track false positives and tally
what the actual total is?
MR. SCHRADER: Well, let me make sure I answer this question
clearly. When this happened, we, you know, number one, we don’t, we get some
false positives from time to time. But a lot of times they will rerun the tests. But
in this particular case, when we heard about this we talked to the lab and there were
actually from what I understand two or three nursing homes that had false positives.
But then when we went back and looked at the labs, there was no indication that
there was a problem with the tests. We had the Office of Healthcare Quality go in
and do a compliance review and their report says there was nothing that they could
say that indicated there was a problem with the test kits themselves. They were
focused more on the procedures of the lab. There are a lot of different reasons why
a test could be false positive. It could be how the sample is collected. It could have
been the people at the nursing home, their methodology for getting the sample. It
could have been how they were handled at the lab. So, there were a number of
recommendations to the UMB Lab in their processing that were within the report
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that they have implemented. So there was no indication that the kits themselves
caused the false positives.
COMPTROLLER FRANCHOT: Okay. Is that the reason then the
company also felt justified in adding $2.5 million for replacing what we thought
were faulty tests, and they claimed they weren’t? Or do they claim they were okay
tests, it’s just that we didn’t implement them right or something?
MR. SCHRADER: So, let me make sure I’m answering your
question, Mr. Comptroller. You are talking about the manufacturer and the two
batches of tests?
COMPTROLLER FRANCHOT: Yeah, I’m talking about --
MR. SCHRADER: Okay.
COMPTROLLER FRANCHOT: -- the South Korean tests, and I’m
particularly interested in the ones that were used here at the State House complex
for State employees.
MR. SCHRADER: Those are the new tests. Those are all working
fine and have consistently worked fine over the last four or five months as we’ve
been using them.
COMPTROLLER FRANCHOT: So that’s --
MR. SCHRADER: Out of the first batch -- oh, I’m sorry. Go ahead,
sir.
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COMPTROLLER FRANCHOT: No, I’m sorry. Go ahead.
MR. SCHRADER: Yeah. So, on the first batch, the way this
unfolded is we were validating the tests with three different labs. We had UMB,
we had CIAN, and one other. They were able to use the tests, but the problem is
they were slow and it was, for lack of a better, a non-technical term, they were
clunky. We then asked the State Public Health Lab to look at this first batch and
tell us what the issue was, and they realized that the formula that we had gotten was
an early formula and was not consistent with what the FDA had on its website. On
the May 13th and 14th, we got them on the phone, based on the records that I’ve
been able to find and in talking with our lab director. And they talked to the folks
in Korea and said, hey, this test is having some difficulty and it’s not exactly the
formula. They said, you’re right. We’ve got the formula updated. We can get you
the new tests. So --
COMPTROLLER FRANCHOT: What month was that Mr.
Secretary?
MR. SCHRADER: The original, the original batch of Korean tests.
COMPTROLLER FRANCHOT: But what month are you referring
to as far as --
MR. SCHRADER: I’m sorry, sir?
TREASURER KOPP: What time? When?
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COMPTROLLER FRANCHOT: When?
MR. SCHRADER: This was May, early May. This was in early
May.
COMPTROLLER FRANCHOT: So, all 500,000 tests minus the
3,500 that had already been used, they were all shipped back to South Korea? Is
that --
MR. SCHRADER: They were picked up by the manufacturer and
they were, they took control of them. Where they actually sent them, we don’t
know. Because once they were gone, they were being stored at the Maryland State
Police Laboratory. And once they were gone, they were gone. And we have the
shipper document. Just so you know, Mr. Comptroller, we’ve gotten a lot of
questions in an audit from DLS and we’ve answered a lot of these questions in
detail. So that’s, we’ve given them all of our records. So there has been a full
disclosure on this whole process.
COMPTROLLER FRANCHOT: Yeah, no, I have no complaints
with you, Dennis. Trust me.
MR. SCHRADER: Yes, sir. No. I understand.
COMPTROLLER FRANCHOT: I’m just trying to ascertain
because a false positive, I can assure you, obviously you are aware of this, it’s
incredibly disruptive. And one of my staff had a false positive, I believe, from
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across, you know, where the State tests were given. And you know, it was very
disruptive. Because everybody has to, you know, make protocol adjustments.
That’s just one person. But it turns out it was a false positive.
MR. SCHRADER: Right. Yes. Yes.
COMPTROLLER FRANCHOT: She didn’t --
MR. SCHRADER: Yes.
COMPTROLLER FRANCHOT: -- had two or three subsequent
PCR tests and there is nothing there. And so I’m just suggesting that I hope what
you’re saying is right, that we are keeping track of false positives.
MR. SCHRADER: Yes.
COMPTROLLER FRANCHOT: We got kind of a back of the hand
ho-hum when we asked about how many. They said not very many at all, or
something to that effect. And but I’m curious as to whether you have seen anything.
I take it the new batch was used largely here at the State House testing site?
MR. SCHRADER: Recently they have, but we’ve used a lot of it for
community testing, State agencies, and others. If I might add one other thing, sir.
We have been working on implementing the point of care testing, the antigen tests
that the federal government sent to us. And those have, are very good, you get very
few false negatives. But as you said, on those tests, and we’ve been comparing
them to the PCR tests to get a feel for how we might use them because we’ve got
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quite a number of them from the federal government. And we, our data, and we
have data on about I believe 6,000 samples now, does show a rate of false positives
that, which is why we’re still doing the confirmatory PCR. But the false negatives
are good. And what, the goal is to weed out the people who are positive, but there
is, it does create some situations. I would not deny what you said. But those are
different tests than the PCR tests.
COMPTROLLER FRANCHOT: Yeah, I understand that. And then
finally on a related but separate subject, are you familiar with any estimated costs
for the vaccine and storage distribution, etcetera, etcetera --
MR. SCHRADER: The vaccine?
COMPTROLLER FRANCHOT: -- for I think the Lieutenant
Governor mentioned the preparation for this. But is there any cost estimate?
MR. SCHRADER: We’re still developing those, Mr. Comptroller.
We’re not done with that. We’ve got a whole team of people pulling that together
and I know that we’re anxious, the Governor is anxious to get that information out.
And so we’re driving really hard and soon we should have that kind of information
available for you.
COMPTROLLER FRANCHOT: Well, just keep me on your mind
later on in the year when everyone else has been vaccinated. I’m willing to have
one of all five vaccines.
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(Laughter.)
COMPTROLLER FRANCHOT: You can give me five in a row, and
I’ll be happy. So but obviously after everybody who is important gets treated,
because well, thank you for those responses. And we may have some follow up
things after the staff --
MR. SCHRADER: Absolutely, sir. Thank you very much.
COMPTROLLER FRANCHOT: Yes, all the best.
LIEUTENANT GOVERNOR RUTHERFORD: Thank you, Mr.
Secretary. Any additional questions on the Secretary’s Agenda?
COMPTROLLER FRANCHOT: Not for me.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. Did we
have a motion to approve the remainder?
COMPTROLLER FRANCHOT: Move approval.
LIEUTENANT GOVERNOR RUTHERFORD: Item 4 was voted
separately. So, the remainder of the Agenda?
TREASURER KOPP: Second.
LIEUTENANT GOVERNOR RUTHERFORD: We’re all in favor.
Okay. All right. Department of Natural Resources. Hi, you’re still --
MS. HADDAWAY-RICCIO: Hi, good afternoon. It’s me again.
Good afternoon, Governor, Madam Treasurer, and Mr. Comptroller. For the
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record, Jeannie Haddaway-Riccio, Secretary of the Maryland Department of
Natural Resources. We have 11 items on our Real Property Agenda today. Item
5A has been revised, and I am happy to try to answer any questions you may have.
COMPTROLLER FRANCHOT: If appropriate, I move approval.
But I don’t want to --
LIEUTENANT GOVERNOR RUTHERFORD: Well, thank you.
And I just want to say, and I want to thank the good Secretary, I am taking some
personal time this weekend and spending a weekend in one of our fabulous National
Parks. It’s a little getaway. And you know, the fact that I’ve been able to visit on
my own time and my own expense, I’m going to be in one of the fabulous parks
actually enjoying the snow. So I’m looking forward to that. I think we have a
motion, so do we have votes on this?
TREASURER KOPP: Second.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. I think we
are all in favor.
VOICE: (Indiscernible) I can’t talk.
LIEUTENANT GOVERNOR RUTHERFORD: I don’t know who
that was.
(Laughter.)
COMPTROLLER FRANCHOT: I’ve been there, done that.
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MS. HADDAWAY-RICCIO: That was not me.
LIEUTENANT GOVERNOR RUTHERFORD: Okay.
MS. HADDAWAY-RICCIO: Thank you all very much.
LIEUTENANT GOVERNOR RUTHERFORD: Okay, thank you.
It was approved three-nothing. Thank you. Okay. University System of
Maryland?
MR. HICKEY: Sorry about that, that was me. Tom Hickey
representing University System of Maryland. We are presenting four items for your
consideration and we’re happy to answer any questions.
LIEUTENANT GOVERNOR RUTHERFORD: Any questions for
Mr. Hickey?
COMPTROLLER FRANCHOT: I had a question about Item 3-S,
Mr. Hickey. This is a $100 million if all the options are exercised contract award
and I guess I have just, I just want to review the RFP process, if you could help me
understand how we and the State are going to be convinced that we’re getting the
best deal possible. I’m told that after vendor selection for implementation through
the RFP process, negotiations occurred and resulted in additional services related
to Workday. So that just caught my eye as something that seemed unusual.
MR. HICKEY: There were negotiations that took place after the
Notice of Intent to Award to increase the services available. I do have, I’m not sure
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if Carlo Colella, who is the Vice President for Administration and Finance, for the
University of Maryland College Park is still on the call. I also have Jeff
Hollingsworth, who is the Chief Information Officer for University of Maryland,
as well as Kim Watson, who is the Assistant Vice President for Procurement and
Strategic Sourcing all available to discuss this. So I don’t know if they are available
now?
LIEUTENANT GOVERNOR RUTHERFORD: Maybe we lost
them in the break.
MS. WATSON: Tom, I’m available.
LIEUTENANT GOVERNOR RUTHERFORD: Oh, there we go.
MS. WATSON: This is Kim Watson. Good afternoon, Treasurer
Kopp, Lieutenant Governor Rutherford, and Comptroller Franchot. In response to
your question, we did go through a competitive solicitation process and we did
make a determination to issue the Notice of Intent to Award and proceed in
negotiations with the selected consultant firm based upon that competitive
solicitation. As discussions ensued, we determined that we needed some additional
support services with regard to the student information system portion of the RFP.
Those services had been proposed in an unsolicited manner by another competitor
and I think through that process it was determined that yes, those services would be
helpful for us so they were negotiated in. Huron was the lowest price and the top
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supplier from a solicitation standpoint. They were the top in terms of meeting all
of our requirements and providing what we were looking for. So they were ranked
the highest, and they were also ranked the highest on pricing, or provided us the
best price.
COMPTROLLER FRANCHOT: What was the initial contract for,
where they were given notice of award, compared to what the final amount is,
which is $100 million. What was the original amount?
MS. WATSON: The original amount -- I have to go back to it here.
Excuse me a moment. The original amount of the contract that they had offered
was $32,856,156. That was their original proposal without the additional scope of
work.
COMPTROLLER FRANCHOT: I’m sorry, give me that rough
ballpark --
MS. WATSON: $32 million --
COMPTROLLER FRANCHOT: -- how much was originally
intended to in the initial notice of award?
MS. WATSON: $32 million --
COMPTROLLER FRANCHOT: How much was that contract?
MS. WATSON: The original, the original RFP price or their original
proposed price was $32 million (indiscernible) --
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COMPTROLLER FRANCHOT: So, you went from $32 million to
$100 million? How could that be?
MS. WATSON: No, the --
MR. HOLLINGSWORTH: No, excuse me. There are two contracts
here. This is Jeff Hollingsworth, Mr. Comptroller.
MS. WATSON: Yes.
MR. HOLLINGSWORTH: This is a single item proposing a
Workday contract and an implementation services contract. The aggregate value
of the two contracts if all options are exercised is $100 million. The implementation
component was originally $32 million and I believe the amount coming forward is
$44 million. I’m trying to find the exact amount right now.
MS. WATSON: It’s $42 million.
MR. HOLLINGSWORTH: $42 million.
MS. WATSON: The implementation is $42 million --
MR. HOLLINGSWORTH: What is important is because the other
partner, the number two item, Accenture, bid the full scope, we did have an apples
to apples comparison after the revision from the preferred offeror of the price, and
the price was substantially better with Huron than the Accenture bid --
COMPTROLLER FRANCHOT: Okay. And did you ask --
MR. HOLLINGSWORTH: -- for the same exact scope of work.
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COMPTROLLER FRANCHOT: -- Accenture if they wanted to
revise their bid based on the fact that it was now for different services?
MR. HOLLINGSWORTH: No, they had actually bid the same
service. They originally in their response bid the scope of work that we are now
putting forward for Huron. Huron --
COMPTROLLER FRANCHOT: -- think that’s somewhat unfair
that Accenture did that and then you added in after the fact with, you know, it’s not
an insignificant amount of money, $10 million or $12 million --
MR. HOLLINGSWORTH: Correct.
COMPTROLLER FRANCHOT: -- it seems kind of odd that --
MR. HOLLINGSWORTH: Right. What Huron did was they
acknowledged in their response the need for this additional scope of work and
wanted to price it as an option or to be negotiated in the future. We didn’t want to
sign the base contract with this future liability unknown hanging over our heads.
And so that’s why we asked them to price it all now, which then made their pricing
of the same scope of work to match what Accenture had priced.
COMPTROLLER FRANCHOT: Have you done that on any other
regular basis? It seems like an odd way to come up with a final --
MR. HOLLINGSWORTH: I will defer to our procurement expert
on that one.
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MS. WATSON: I would say this is not a routine methodology that
we would use. So this is an anomaly --
COMPTROLLER FRANCHOT: And --
MS. WATSON: -- doing this in other circumstances.
COMPTROLLER FRANCHOT: Yeah, I know. I can’t think of
seeing one of these. So, I guess my question is, why exactly did you do it here?
And what assurance do we have that, you know, all of the vendors were treated
evenly?
MR. HOLLINGSWORTH: The --
MS. WATSON: Well we -- sorry, Jeff.
MR. HOLLINGSWORTH: I want to say there’s two things. First
of all, remember that each of these proposals is evaluated both on technical and
fiscal criteria. The technical evaluation for all three included the full scope of work
that you are now seeing before you and the rankings were done on that before the
fiscal amounts were opened. So the technical rankings were on the full scope of
work by all three proposers that you are seeing before you. It’s that when we
opened the pricing data, we discovered that one of, that Huron had excluded pricing
this particular scope of work they described and what they were going to do and
they said they wished to price it in the future. And what we did was we allowed
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them to price that so that we then had a fair comparison of the full scope of work
between the two highest ranked offerors.
COMPTROLLER FRANCHOT: Yeah, well I’m not, I don’t have
the private sector experience of the Lieutenant Governor, but that seems kind of
unfair to me. In other words, we’re going to give you the business, but, you know,
you need to fill in the blank on this part here. So what would you like us to pay
you?
TREASURER KOPP: They are still bidding $12 million less than -
-
MS. WATSON: Yes.
MR. HOLLINGSWORTH: Than Accenture.
TREASURER KOPP: -- than Accenture.
MS. WATSON: Yes.
TREASURER KOPP: Isn’t that right?
MR. HOLLINGSWORTH: Yes.
MS. WATSON: That’s correct.
COMPTROLLER FRANCHOT: Yeah, why didn’t you give the
opportunity to Accenture?
MS. WATSON: Accenture had already --
MR. HOLLINGSWORTH: They had already bid the work --
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COMPTROLLER FRANCHOT: Yeah. But then you tell the other
side basically, I assume, what the rough amount is. I mean, it just seems odd. And
you know, I’m not quite sure what to do with it because it just strikes me as just
irregular, I guess would put it the right way. Because we’re accustomed to seeing
apples to apples, and what you are bringing us is apples to oranges.
MS. WATSON: Well, excuse me, Comptroller Franchot. I think
this is a situation where we have proposers who proposed on really essentially the
same thing. We had one proposer who didn’t provide the pricing in their proposal.
We went back to them and we did it during negotiation to request that pricing so
we could do that fair comparison.
COMPTROLLER FRANCHOT: Okay. I understand but you told
them after you told them you were going to pick them.
MS. WATSON: Well at that point we had issued the Notice of Intent
to Award, correct.
COMPTROLLER FRANCHOT: Yeah. That’s a problem. Not that
I’m expert in procurement. Boyd, you are far more expert than I. But I think that
raises a few eyebrows. But --
LIEUTENANT GOVERNOR RUTHERFORD: Yeah. That’s a
little, that’s a little different. The question I would have, did Huron know what
Accenture bid? That would then be I think a big issue here.
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MS. WATSON: No.
MR. HOLLINGSWORTH: Absolutely not.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. All right.
Well, okay. I don’t, I don’t think, you know, that would be the biggest concern, is
that if they knew, you know, what the bid was and they can, you know, make sure
that they are below that number. So I’m not --
TREASURER KOPP: I have I think a similar question. There is
still, after all is said and done, the $12 million difference. Can they really do it for
that sum?
MR. HOLLINGSWORTH: We have extreme confidence in the
firm. They were technically ranked highest in part because of their experience in
higher education.
TREASURER KOPP: But Accenture has experience in higher ed,
doesn’t it?
MR. HOLLINGSWORTH: The particular team they put forward
did not have the same depth of experience. Because we asked not only for the firm,
but the specific principals that would be working on the work.
TREASURER KOPP: Well, I’m sure the Board of Regents is going
to be holding you to that amount. If they come back and need another $10 million,
that’s going to be a problem.
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LIEUTENANT GOVERNOR RUTHERFORD: Yes.
MR. HOLLINGSWORTH: Yes.
LIEUTENANT GOVERNOR RUTHERFORD: Particularly since
the University System, you know, has some challenges, you know, financially
given the coronavirus and enrollment and the challenges that they have had. Okay.
I do have a, I have a question, though, because there is some concern expressed
about integration with FMIS. I don’t want to, you know, spend a lot of time with
that. And there was some discussion that there may be a procurement module that
the system may explore when we have, you know, eMaryland Marketing
(Marketplace) Advantage that is being implemented. Is there any concerns or they
may be two different issues.
MR. HICKEY: The contracts that are before you today do not
include any procurement module whatsoever. We did have a nice discussion with
Bob Gleason and Mike Haifley last night --
LIEUTENANT GOVERNOR RUTHERFORD: Okay.
MR. HICKEY: -- to discuss this project. We have been part of the
eMMA executive steering committee. We helped draft the RFP for eMMA, the
project that is underway now. So we are at the table. In fact, there was a meeting
at 1:00 that I was supposed to be at for --
LIEUTENANT GOVERNOR RUTHERFORD: I know --
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MR. HICKEY: -- executive steering committee.
LIEUTENANT GOVERNOR RUTHERFORD: -- supposed to be
on that, too.
MR. HICKEY: So, we’re very anxious, you know, for the next
phases of the eMMA project and we are going to evaluate that, you know, once the
State integration has taken place.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. And any
concerns about FMIS and the integration there?
MR. HICKEY: It’s my understanding that these particular contracts
will not integrate with FMIS.
LIEUTENANT GOVERNOR RUTHERFORD: Oh, they won’t?
Okay. Okay. All right.
MR. HICKEY: This is their own enterprise resource system, so this
is their individual financial, student information services and human resources.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. All right.
Very good.
TREASURER KOPP: Could --
COMPTROLLER FRANCHOT: Governor, could I ask that this
item be voted on separately? I don’t really feel comfortable with the, I mean, I’m
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not suggesting that there’s anything untoward with the folks involved. I’m just
suggesting I don’t like the --
TREASURER KOPP: Process?
LIEUTENANT GOVERNOR RUTHERFORD: Process?
COMPTROLLER FRANCHOT: -- the uniqueness of this project
or process. So I’m going to register a no vote. I’m assuming both of you will vote
yes, but let me know if you are not because I might change my vote. No, I’m
kidding.
LIEUTENANT GOVERNOR RUTHERFORD: -- change your
mind. Okay. Yes, that’s fine. Are there any other questions on the University
Agenda?
COMPTROLLER FRANCHOT: With that vote, move approval.
TREASURER KOPP: I do have a question on that one, just to follow
up. We did get an inquiry from DLS. Can I assume that you are speaking with, the
people at DGS OSP responded also to the DLS concerns? I think they were the
same concern.
MR. HICKEY: I spoke directly with DLS and with Bob Gleason
and Mike Haifley. So we’re in contact with both --
TREASURER KOPP: Great.
MR. HICKEY: -- organizations.
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LIEUTENANT GOVERNOR RUTHERFORD: Okay.
TREASURER KOPP: I would second the motion.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. So --
SECRETARY GONTRUM: If I can just confirm that Item 3 was a
two to one vote, a vote to approve the item?
COMPTROLLER FRANCHOT: Correct.
LIEUTENANT GOVERNOR RUTHERFORD: I’m now voting in
favor of Item 3. We were just talking about that. Madam Treasurer?
MR. HICKEY: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: You are aye on
Item 3?
TREASURER KOPP: Yes, Second.
SECRETARY GONTRUM: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Okay.
SECRETARY GONTRUM: I appreciate it. Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: And do we have a
motion for the rest of the University System Agenda?
COMPTROLLER FRANCHOT: Move approval, if that’s
appropriate.
LIEUTENANT GOVERNOR RUTHERFORD: Okay.
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MR. HICKEY: Thank you very much. And again, I apologize for
my outburst earlier.
(Laughter.)
LIEUTENANT GOVERNOR RUTHERFORD: -- remote --
TREASURER KOPP: Mr. Hickey, just harkening you back for a
second to this morning and early afternoon. I am impressed to see the additional
information on sustainability regarding Item 4 and look forward to seeing that sort
of information --
LIEUTENANT GOVERNOR RUTHERFORD: That --
TREASURER KOPP: -- that’s good.
MR. HICKEY: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. All right.
So I think we have approval for the University System, correct?
COMPTROLLER FRANCHOT: Correct.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. All in favor
on the remainder with the exception of Item 3. Okay. Department of
Transportation?
MR. SLATER: Good afternoon. I hope everyone is doing well.
Good afternoon, Governor, Madam Treasurer, Mr. Comptroller. For the record,
my name is Greg Slater, Secretary for the Maryland Department of Transportation.
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The Maryland Department of Transportation has ten items for your consideration
today and myself and representatives are certainly here to answer any questions that
you may have.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. I’m not
going to belabor it. I just don’t like seeing several retroactive items from, in this
case, Maryland Aviation. I know they are revenue contracts, but at least be a little
more diligent in this matter.
MR. SLATER: Yes, sir.
COMPTROLLER FRANCHOT: If I could just second that,
Lieutenant Governor. The explanation in the briefing document was they were not
brought to us because they were “inadvertently not brought to the Board for
approval.” So that just, you know, kind of --
TREASURER KOPP: Well it’s better than if it were intentional.
COMPTROLLER FRANCHOT: What?
TREASURER KOPP: It’s better than if it were intentional.
LIEUTENANT GOVERNOR RUTHERFORD: Intentional.
COMPTROLLER FRANCHOT: Yeah, okay. But I would hate to
see that rationale repeated after this, because it obviously catches your eye as to
what is going on. So I’m glad Mr. Slater is there and in charge and I have complete
confidence in him. But I do have a question, Lieutenant Governor, about Item 6-M.
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LIEUTENANT GOVERNOR RUTHERFORD: Oh yes, mm-hmm.
COMPTROLLER FRANCHOT: And it’s related to this
inadvertence of inadvertently not bringing contracts before us.
MR. SLATER: Yes, sir. I have our Executive Director Ricky Smith
on the line to answer any questions you may have as well.
COMPTROLLER FRANCHOT: Great. So this is an item that the
Airport is asking for approval of a sole source maintenance contract for six
interactive Promobot robots that we’ve heard much about recently, the R2D2s or
whatever they are up there. The contract provides for the maintenance, service,
repair, adjusting, and testing of interactive customer service robots at BWI
Thurgood Marshall Airport. The request also brings the assignment of the robots
and personal property from SP Plus to MDOT MAA for approval.
So, it’s my understanding the acquisition of these customer service
robots were the subject of an Office of Legislative Audit that found some
irregularities and potential violations of the procurement process. If I’m
understanding it correctly, the MAA authorized, reimbursed the vendor for
acquiring six customer service robots that to this day have not been utilized. So
first, if I could just ask Mr. Smith for what was the original intended use of the
robots or Mr. Slater?
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MR. SMITH: This is Ricky Smith, Executive Director of the
Maryland Aviation Administration. Good afternoon, Madam Comptroller,
Governor -- Madam Treasurer, I’m sorry, and Mr. Comptroller. It’s been a long
day. Sorry about that.
So, the original purpose of the robots was to, and still is, is to provide
way finding and parking support services to our customers. So as you can imagine,
customer service is a real big deal for the Airport and we are in a very competitive
environment, as with some other airports. But our situation is somewhat unique in
that we have two other airports to the south of us. And so, airports across the
country and the world are looking for innovative and cost effective approaches to
delivering customer services. So it was recommended to us by our parking
management service to consider robots as a means to, one, providing information
on parking and other ground transportation services, as well as way finding
information and information on destinations outside of the Airport. And so the
robots have been programmed to provide way finding information, information on
destinations outside of the Airport, in multiple languages.
In order to bring online the parking payment feature, for example,
we first have to have the maintenance contract in place because that requires some
additional work for them. And so the original purpose was to bring them on to
provide additional extended support of our customer service efforts and to be able
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to do that in a manner that was consistent with what the industry seems to be doing
in terms of using automation and technology to engage with our customers.
COMPTROLLER FRANCHOT: Okay. So this contract is for
$1,431,600 for customer service. Have these robots been used since their
acquisition in November 2018?
MR. SMITH: So back in last year, the spring of last year, we actually
had the robots out on the floor doing a pilot, engaging with passengers to get a feel
for how the passengers would receive them and how they would interact. Since
then, we have been programming the robots. Once the legislative audit came out,
we stalled all actions on the robots because the expectation was that we would get
Board of Public Works approval before we did anything else with the robots. And
so back in June, we came to the Board and we thanked the Board for approving a
transaction to repay the, to assign the robots to us. And what we are now trying to
do is to get the Board of Public Works to approve the maintenance contract that
will allow the repairs and enhancements to the robots so we can then begin using
them. Our plan is to have them on the floor late January, early February.
COMPTROLLER FRANCHOT: And I take it they are going to be
able to process parking payments?
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MR. SMITH: Yes, sir. The plan is to have them process parking
payments and to have that done in compliance with standards that are in place for
protecting such transactions.
COMPTROLLER FRANCHOT: So, the reason I bring it up in part
is because these are Russian robotics --
MR. SMITH: Yes.
COMPTROLLER FRANCHOT: -- from a Russian robotics startup
company, which describes itself as the largest manufacturer of so-called service
robots in Northern and Eastern Europe. I guess just to be blunt about it, Ricky, are
you guys convinced these things are secure from a technical thing given the fact
that Russia is not exactly a friend of the United States?
MR. SMITH: The answer is yes. So they are Russian manufactured
robots. The Russians manufacture basically the shell. The operating system is a
Linux operating system, which is a world renowned U.S. company that controls the
operating system. Today, until we install the parking payment system, the robots
are only providing information, they are not collecting any information other than
the number of times somebody might ask a particular question because that gives
us feedback on what the customers’ concerns and interests are. Once the parking
system is in place, which would include a credit card system, they will then begin
collecting information through the credit cards. And as I said earlier, the credit card
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system will be installed with the industry’s credit card standards in place, security
standards in place.
COMPTROLLER FRANCHOT: Okay. Are there any additional
costs involved with that that you are going to bring before the Board?
MR. SMITH: There are no additional costs associated with this. The
$843,000 item is a not to exceed, and so it is no guarantee that we will spend that
entire amount. But based on what we know we need to do with the robots today to
get them on the floor to provide the services that we want, we baked that into this
maintenance agreement.
COMPTROLLER FRANCHOT: And is it true that former
Governor Schwarzenegger out in California is suing the company because one of
the robots apparently out in an airport there was dressed up to look just like Arnold
Schwarzenegger.
MR. SMITH: Well, they are muscular figures. But I’m not aware
of Arnold Schwarzenegger suing --
COMPTROLLER FRANCHOT: Well, when we get good and bored
down here, if you could bring one down and show it to us, I would be delighted.
MR. SMITH: Absolutely. Absolutely.
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COMPTROLLER FRANCHOT: Keep us in the loop as to the
security, because that does, I mean, half the time I think this Echo thing or Alexa
that is in my kitchen is listening to me rather than me --
LIEUTENANT GOVERNOR RUTHERFORD: It is.
COMPTROLLER FRANCHOT: -- play some music or something.
MR. SMITH: We will certainly arrange for a demonstration or a tour
at your will.
COMPTROLLER FRANCHOT: Oh fabulous. Thank you.
TREASURER KOPP: Just to make sure, Ricky, I think I understood
you. Whatever would be collecting information, oral or from a credit card, that
information stays with the system that is not connected in any way to the Russian
company?
MR. SMITH: So, my IT team tells me that it is a local data-based
system, that it is not a system that is transferring --
TREASURER KOPP: Through the internet.
MR. SMITH: -- outside of the locale. It is a locally based system.
TREASURER KOPP: Okey-doke. And --
MR. SMITH: And again -- I’m sorry, go ahead, Madam Treasurer.
TREASURER KOPP: I just want to make sure that this was, that
this did not result in actual live people losing jobs, did it? Or will it?
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MR. SMITH: No, but I will say this. I mean, we have a real need to
expand our presence in parts of the terminal to provide this kind of way finding
support to customers. And we do have one ambassador contract that provides that
kind of support with our security checkpoints and our Customs and Border
Protection. It is a very, very expensive contract to provide the kind of services that
the robots will be providing. And so we don’t think it’s in the best fiscal interests
of the State to expand that contract to provide the service. And we don’t think that
we will be able to bring on additional State employees to provide that service
anytime soon. And that would be even more expensive. So we think from an
economic standpoint, it’s the best approach to go. We also think that there is an
entertainment element to it as well. When we had the robots out on the floor about
a year or so ago, the passengers were, they really enjoyed interacting with the
robots.
TREASURER KOPP: But let me just say, I get that. I love little
robots. But I’m not for getting rid of live people --
MR. SMITH: Yes.
TREASURER KOPP: -- and using Russian robots instead.
MR. SMITH: So, what I will say is no, we are not, we are not laying
off or furloughing anybody for the purpose of these robots. We do not currently
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have employees on our staff or our payroll that provide this service. The service is
provided by some volunteers and the contract that I just mentioned to you.
MR. SLATER: Madam Treasurer, I might add too that we have a
wonderful volunteer program over at the Airport. A number of our senior citizens
and retired folks come out there and help, and they are a great asset to us. And in
fact, that was one of the immediate challenges that we had to deal with in the
pandemic, was we were very concerned that some of our older citizens were out
and about in the Airport and we wanted to make sure that there was some protection
in place there.
TREASURER KOPP: You’ll keep an eye on that. Ricky, I
appreciate what you said. You seemed to be wording it very carefully, though,
which makes me a little nervous.
MR. SMITH: I’m sorry. I certainly don’t want to create any
skepticism.
TREASURER KOPP: Well, I’m just a skeptical person. But could
I ask also, Mr. Secretary, a propos of Item 5, I don’t want to go back to Item 5, but
if you can keep us informed as you develop with the concessionaires and how in
the face of the economic impact on them of coronavirus, etcetera, how we’re
dealing with them fairly.
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MR. SLATER: Absolutely. I can actually set up some time
specifically to talk about those, if it’s helpful. You know, this Item 5 was some
rent relief that was instituted pretty quickly, but we’re working something
separately trying to find the best package for our concessionaires. And many of
those are small businesses that have been in the Airport for quite some time, and
we want to make sure that they are there when that traveling public returns.
MR. SMITH: Yeah, I do want to add one clarification. Because
there is a tendency to use concessionaires loosely. This item does not involve any
of our food and retail operations. That’s just one type of concessionaire. All
revenue generating contracts and those service providers at the Airport are
considered concessionaires.
TREASURER KOPP: Okay.
COMPTROLLER FRANCHOT: -- Madam Treasurer, thank you
for bringing that up.
MR. SLATER: We absolutely value your input. I anticipate us
coming back to the Board at some point with some modifications associated with
the concessionaires. So we would love some input on that as that is being
developed.
TREASURER KOPP: Okay. Thank you.
MR. SMITH: Absolutely.
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LIEUTENANT GOVERNOR RUTHERFORD: Thank you. Any
additional questions on the Transportation Agenda?
COMPTROLLER FRANCHOT: Move approval.
TREASURER KOPP: Second.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. All in
favor? I think we have a three-oh vote on that. Thank you, Mr. Secretary.
MR. SLATER: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: Department of
General Services, I know they have been waiting a long time.
MR. CHURCHILL: Good afternoon, Governor, Madam Treasurer,
Mr. Comptroller. For the record, I’m Ellington Churchill, Secretary for the
Maryland Department of General Services. Today on our Agenda we have 33 items
for your consideration. We are withdrawing Items 9 and 14. And we are available
to answer any questions you may have at this time.
LIEUTENANT GOVERNOR RUTHERFORD: I’m, you know,
this has been a long day. I do want to just commend the capital grants and loans
that are going that are particularly addressing areas of mental health. That is
something that is very important to me. Cornerstone Montgomery does an excellent
job in that area. I’m glad to see that they are getting the, you know, State assistance.
Also, Sheppard Pratt, which is putting in, building a new facility in Howard County
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along Route 95. It’s going to be well needed additional space, beds, for those who
are suffering from mental illness, severe mental illness. So I just wanted to point
that out.
I have to mention parks. The Friends of Jerusalem Mill, that they
are getting some services to help them. And so I just wanted to point those items
out in particular. And then of course, there is a construction project at Smallwood
State Park, which I’ve had the opportunity to visit there as well in Charles County.
I, there are some others that I’ll talk about. But I will ask if there any additional
questions. It doesn’t sound like anyone has any questions.
COMPTROLLER FRANCHOT: No. I just want to say year in and
year out, I always have a question for something on DGS. And nothing. So --
LIEUTENANT GOVERNOR RUTHERFORD: Uh-oh. You’re
breaking your record here, you’re setting new precedent.
TREASURER KOPP: I do have what I think is a really brief
question, but Item 25, the fund managers for small, minority, and women-owned
businesses.
LIEUTENANT GOVERNOR RUTHERFORD: Right.
TREASURER KOPP: Just what is happening with that? Madam
Secretary?
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MS. SCHULZ: Hello, how are you, Madam Treasurer? Thank you
for asking that question. So this is our annual review. For the record, I’m Kelly
Schulz, Secretary of the Department of Commerce. And I have my team on as well.
But this is an annual designation, or it has been in the past an annual designation.
But the funding for these fund managers has been diverted over the course of the
last four fiscal years to the education fund. So this year we are actually able to put
some of those VLT funds, as we have known them in the past as part of the original
State gaming bill that had passed, that it would go to economic development and
businesses within each of those regions. So we do have eight fund managers in
those regions that their goal is to get funding out to their localities within the general
surroundings of the casinos, but also to expand. There is a certain percentage. And
so that was all based on statutory requirements. So this year is the first year since
2016 that we are able to statutorily put funding into the appropriations and refund
those accounts.
TREASURER KOPP: Good. Well, I’m sure they will use it well.
MS. SCHULZ: They always have. They always have. We’re very
proud of our fund managers, that’s for sure.
TREASURER KOPP: Thank you.
LIEUTENANT GOVERNOR RUTHERFORD: And it’s needed.
Thank you, Madam Secretary. Mr. Secretary, real brief, I see that the surplus item
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for the Schaefer House buildings that had previously been used by Juvenile
Services, and I think even before that Public Safety used those facilities. We had
talked about possibly using those buildings there for transitional housing for those
who are suffering from substance use disorder that are coming out of, you know,
treatment facilities but they need a place to go rather than just going back to their
old communities and possibly the stimuli associated with that. In response to the
State Senator there, one of the local Delegates, and the Councilman, we decided to
just surplus it to see if there is a market opportunity for it. They are hoping that
they can get a boutique hotel or something of that nature there. We’ll see what the
market has. But I do stress again, as I mentioned to them, and they are aware of
this, that we do need the transitional housing. It’s not, you know, a halfway house,
it’s not a rehab center, it’s not, you know, it has been used for Corrections and it
has been used as a residential facility in the past. But we do need, you know, those
types of facilities for people who are coming out of, you know, the treatment
facilities. And I have spoken to many people at treatment facilities and they say
the biggest issue is where do they go from there. Because they feel going back into
their old environments right away is a difficult situation and it means, it makes it a
little easier to regress. So, we’ll be watching to see what comes of this in terms of,
you know, surplusing this particular property. They are, you know, beautiful
buildings, I just have to say. I guess they were built back in the thirties. So --
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MR. CHURCHILL: They are beautiful buildings and it is in an area
that is being revitalized. It’s a beautiful site. And I think that they should garner a
fair amount of attention. Of course, the State is looking to receive fair market value.
And so when we bring that back to the Board with any recommendations
concerning an offer, you know, we will look forward to seeing the potential of that
site.
LIEUTENANT GOVERNOR RUTHERFORD: Yes. Okay.
TREASURER KOPP: And Mr. Secretary, I hope that overall there
will not be a net decrease in the name Schaefer.
(Laughter.)
LIEUTENANT GOVERNOR RUTHERFORD: Very good. Yes.
MR. CHURCHILL: Point taken.
LIEUTENANT GOVERNOR RUTHERFORD: There’s Schaefer
Tower. We have the International Terminal at BWI, at least. And I’m quite sure
there are more Schaefer things around. So hopefully, we, you know, the future
generations will know of the great Governor and Mayor and Comptroller William
Donald Schaefer.
TREASURER KOPP: This is sort of --
COMPTROLLER FRANCHOT: Maybe we’ll sneak in a Nancy
Kopp statue somewhere.
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TREASURER KOPP: Right.
COMPTROLLER FRANCHOT: Yeah. Don’t you think?
LIEUTENANT GOVERNOR RUTHERFORD: In front of the
Treasury Building, right?
TREASURER KOPP: I was going to say, this is where we started
off. You want to make sure future generations --
LIEUTENANT GOVERNOR RUTHERFORD: yeah. Yeah. We
ought to remind people, you know. I mean, I make a point of using old terms around
my kids and staff so that they understand. I thought for a moment that the
Comptroller was wearing what modern day people call jeans. My dad used to
always call them dungarees. So I use that term from time to time and people look
at me. What? So --
TREASURER KOPP: That’s what I’m wearing but you can’t see.
(Laughter.)
LIEUTENANT GOVERNOR RUTHERFORD: Okay. All right.
Well, are there any more questions on the DGS, Department of General Services
Agenda?
COMPTROLLER FRANCHOT: Move approval.
TREASURER KOPP: Second.
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LIEUTENANT GOVERNOR RUTHERFORD: All right. Thank
you for this marathon session at the Board of Public Works.
TREASURER KOPP: It’s been a pleasure.
LIEUTENANT GOVERNOR RUTHERFORD: Okay. And the
stand up doesn’t quite work.
(Laughter.)
LIEUTENANT GOVERNOR RUTHERFORD: Thank you all.
COMPTROLLER FRANCHOT: A failed, well-intentioned but
failed experiment.
LIEUTENANT GOVERNOR RUTHERFORD: Well --
TREASURER KOPP: Try it another way.
LIEUTENANT GOVERNOR RUTHERFORD: You’ve got to have
experiments. Okay. All right. Thank you. Take care.
(Whereupon, at 2:35 p.m., the meeting was concluded.)
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