ALternative Fuels
Versus
The State of Arizona
Arizona Bio Fuels Research always has and still is committed to Research
and Development Projects that are Eco-Friendly and "Good For Our Environment". Arizona has and always will be a Petroleum Industry Friendly State. After all a major source of campaign funding comes from the Petroleum Industry. Is it not fair that the petroleum industry and other special interests should be first in line at the public trough for money and favorable legislation. The general public is only a secondary beneficiary, and after all, it is the people them selves who must bear the burden and expense of the actions of their governments take. Since less that 30% of Arizona voters actually vote, the voters pose little or no political threat to the Legislators and the executive branch, so the voters essentially have no say Arizona has a notorious record when it comes to legislation. Many times that legislation is detrimental to the General Public as a whole, and benefits a select group within the classification of General Public. These groups could best be classified as special interests or industrial interests, some would even go as far as saying big Business , but this is an unfair classification. Lets just say, those who are the wealthiest and those who contribute the most financially to the Executives at the State, County and Local level almost always will get the most favorable legislative results |
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Case in Point: The Propane Vehicle Bill of 2001 Here is an interesting article to read. And it really sums the whole fiasco up really well. It also down spins the actual incentive. Oh well, you can not have everything, at least some of the word got out. When the state legislature passed the 2001 Alternative Fueled Vehicle incentive , little did then Governor Hull realize or foresee that this single piece of legislature would end her political career. In the Propane and Alternative energy bill , The original draft (written by three of the larger car dealerships own political action group) was sponsored by a few well respected State Legislators, the Draft Bill essentially called for a public handout of up to 125% of the cost of conversion of a gasoline powered motor vehicle to a Liquified Petroleum (Propane ) or Compressed Natural Gas (CNG) powered vehicle. This fiasco was further amplified in the Final Version of the bill where the key words 125% of the Cost of Conversion were exchanged for up to 125% of over all cost of the converted vehicle, after conversion. This was clarified to mean: Cost of Vehicle (including taxes and registration, etc) plus,the Cost of Conversion, plus, the additional multiplier of X.25. This resulted in the State bleeding millions in public funds. What started out as an Alternative Fuels incentive,– turned out to be a financial Gold Mine for three of the States largest car dealers. They were selling $40K Vehicles for over $70K, and the State of Arizona was financing it. Sweet deal, especially if You were a Car Dealer. What were the state legislators thinking ? Obviously, no one in the State Legislature thinks that any document should be read before signing, especially since so many people stood over them telling them what the document said. Never mind that these individual’s were car dealers. Really, would you buy a car before reading the sales contract? Really? But reading is obviously not a desired skill for a State Legislator (or Governor for that matter) in Arizona And so the Arizona E-85 saga begins E-85 is also a casualty of mismanagement and legislative bungling. E-85 is and always has been a Federally Approved and EPA Approved motor fuel, just not in Arizona. Since E-85 essentially turns the dirtiest of gasoline into Clean Energy fuel, it seems as though it would be an ideal clean burn fuel. But just because it reduces pollution is not a reason for some legislative bodies to embrace it. It seems as though E-85 has a dark side. it reduces Petroleum Fuel Revenues, because it only contains 15% of the petroleum based fuels. Reduced Petroleum fuel revenues means that State and Local legislators will get less campaign money from the Oil Company Lobbyists. This is really terrible! Especially if you happen to be one of those State and Local legislators or Executives Essentially Then Governor Janet Napolitano saw fit to sign a piece of legislation into law that essentially killed all chances of independent E-85 producers. This was AZ-HB2590, signed into law April 5th, 2006. The Arizona legislation instead put the E-85 Wholesale supply directly into the hands of the Big Oil companies themselves. Arizona requires that all E-85 Fuel blends be dispensed from the Petroleum Wholesaler’s racks if the fuel is to be utilized within the Metropolitan Phoenix CARB Emissions control district. The legislation also allowed for a formulation change in the AZBOB fuel formula. This nifty little update in formulation added a catalyst to all fuels dispensed that essentially inhibits the addition of any fuel oxidizers and additives after it is dispensed from the Fuel Racks. Kinder-Morgan (owner of the Pipeline and Operator of the Fuel Dispensing facilities on West Van Buren), have long contended that they do not plant to and are therefore are not going to increase the racks capacity, or its ability to accommodate the additional E-85 Blends. Therefore, the public will have to contend and deal with the E-10 blends currently being dispensed. Can you blame them, accommodate a change that would result in an 85% revenue loss, ARE YOU SERIOUS? MAKE LESS MONEY?!?! Essentially, the state of Arizona has decided that the oil companies should have the say in where and who should be allowed to buy E-85 fuel. Interesting concept too… It seems as though the National Renewable Energy Labs (NREL) and Congress decided in 2005 to sever their E-85 initiatives that they had been heaping upon the Oil Companies. These initiatives (which account for over $500M in government incentive payments) were intended to encourage the Oil Companies to make E-85 more widely available to the public. So essentially the U.S. Government was paying the Foxes (the Oil Companies) to make E-85 Fuels (the chickens) available to the public (other Foxes). Since this would mean they would realize an 85% drop in oil/petroleum sales when E-85 became wide spread they were not really open to the facts, essentially they were being paid to down size their profits (something the Oil companies never intended to do, but the Congressional handout was accepted none the less. If you were an Oil Company, what would you do? Correct, just put out a lot of Public Affairs releases touting how the public is rejecting E-85 as an inferior fuel. So in 2005 the Congress decided and agreed with The National renewable Energy labs (NREL) to provide grant funding for E-85 Infrastructure development and placement in the FY2005 Federal budget. They also targeted those funds to independent petroleum distributors and organizations that were truly motivated to get the job done correctly. Arizona Bio fuels Research was at the forefront in obtaining E-85 Locations (18 in all) for the Phoenix Metropolitan Area. The E-85 grant proposal was to provide the funding to accommodate the installation of E-85 compliant pumps and support infrastructure. Included was funding for the E-85 Fuel delivery system (a Phoenix based Fuel Truck Fleet operator was enlisted to allocate tankers and trucks to get the fuel to the gas stations). The Maricopa Ethanol Plant was allocated as the major source of the Ethanol for blending into E-85 Fuels. Land was acquired and agreements signed which would effectively put an E-85 production and distribution network in-place. The recruitment and signing up of the eighteen Gas stations was to be a paramount achievement for Arizona Bio Fuels Research. Enter the Petroleum Industry’s response. So called officials (including a few from AZDEQ) started showing up at proposed ethanol stations with so-called EPA paperwork to remove all tanks and Fuels dispensing equipment. Essentially they were dismantling the stations and AZDEQ was there to see that the stations were permanently earmarked to never again dispense any and all fuels . Owners were cautioned that E-85 fuels were not legal motor fuels and on a few occasions were threatened with EPA sanctions under the so called Watershed pollution act (never found out what that was, if there ever was one). In all 14 of the 18 locations were dismantled. The owner’s dropped the E-85 initiative like a hot potato, who can blame them: after all who would want to fight with the Federal Government and State. Arizona Bio Fuels Research was branded an out law organization, influences in Washington pressured the NREL and Federal agencies to Look into the questionable dealings of this obvious Rogue agency. But we are still here, all of the accusations were found un true. However, Fighting with the petroleum agency was the demise of all federal funding for research and development. Essentially, the oil companies have congress (including a few key Arizona public servants like Kyle and McCain) to help and assist them to attain their political goals. With individuals who can wield such powerful influences in their pockets, it is no wonder the American economy is in a shambles .The rest is just history and spoiled milk. Nothing will ever become of it and the harm is done. History will be written by the victors. The elimination of an E-85 fuel threat is after all best for the public. The petroleum industry is secured and their continued dominance is assured. Enter the State of Arizona (Where the Governor’s and State Legislators make decisions based upon who pays them the most, essentially they are and always have been for hire). In the early 1990’s the State legislature essentially passed legislation restricting the sale of inferior motor fuels in Arizona. Particular emphasis was the restriction of E-85 Fuels and its retail sales to the general public in the Phoenix Metropolitan area. Pay particular attention to the phrase sales to the general public. E-85 Fuels may be considered an Inferior Motor Fuel by the Legislators and Executive Branches of the State of Arizona. But E-85 has been a US Government Recognized and Certified Motor Fuel since the mid 1980’s. So much so that in the early 1990’s the U.S. Government dictated that any and all Federal and State Agencies must buy and Utilize the fuels when and where they become available. In fact they must prove that they are utilizing the fuel and prove that they are using at least 20% or more in their fleets by 1996, the figure becomes 40% by 2000 and must exceed 60% by 2004 So how did the State of Arizona and the County of Maricopa comply with Federal Alternative energy fuel compliance issues. After all, Iis it legal for the State, County and Cities to buy an inferior and illegal motor fuel? Apparently, the short answer is YES. In fact the state legislation did not particularly exclude E-85 sales to the State, County or City Governments. It only excluded sales to the general public. If the State excluded State, County, and City Government Fleet Operators from obtaining the Fuels, then they would have subjected those very valuable institutions to Federal sanctions and Penalties for not Complying with a Federal Requirement. Interesting point: The State Banns the Sale of a Fuel Certified and Sanctioned by the Federal Government? Better yet, a Fuel distributor (owned by the Family of one of Arizona's Senior State Legislators) is allowed to deliver said illegal Fuel to the State, County, and Municipal fleet refueling stations. So E-85 Fuel pumps have been in the State, County and City Vehicle Yard Fuel pumps since the late 1980s. The fuel pumps are provided and the E-85 fuel is supplied by a Prescott, Arizona Petroleum Company, a company owned by the family of one of Arizona’s Top legislators. This goes a long way towards explaining the statement in the legislation that restricts the retail sales and distribution to the General Public. Tuscon has always had E-85 Pumps and Stations (since the late 1980’s), so have several other Arizona communities. But, They aren’t in the Phoenix Metropolitan Air Control District, where probably 95% of the fuel profits in Arizona are realized. Here is a link to E-85 Prices.com that shows a listing of the E-85 Gas Stations in Arizona. The loss of funding to Arizona Bio Fuels Research was devastating. So in 2008, the state of Arizona lost the E-85 Fuels Industry initiative ($9.5M-2YR)), The Jatropha Industry Development Initiative ($545M-10YR)), the Tri-Level Greenhouse Development Initiatives ($965M- 20YR) and The Aquaponics Integration Industry Initiative ($4.5M-5YR). I guess this is all small potatoes to a State Governor and the State legislature. But just why has the economy shifted so far into a downward spiral. That is for somebody better than me to figure out. Other initiatives that died with the Arizona Bio Fuels Research Grant funding were: 1 - A $2.4M grant to commercialize an Electric Vehicle (EV) Design that would provide a commercial EV with a range in excess of 250-miles per charge, and carry up to 5-Passengers (with a combined weight of 950 lbs) at up to 90MPH down the highway. 2 - An infrastructure development grant proposal to fund a $9.4M EV production plant in the southwest valley. A plant that would have initially employ over 300 un-skilled and train another 740 Skilled EV Production workers. The land in the west Valley, Wikkieup, AZ, Tonopah, AZ, and Casa Grande/Eloy have all been sold or ownerships transferred. For the better I guess. At least I managed to pay some of my unimagineable debt from this Alternative Fuels Fiasco. Who needs an Alternative Fuel Industry anyway, especially when the potential is to put a billion petroleum workers out of work. Never mind that for every oil industry job lost 2.5 Alternative energy jobs will be created. No one needs work anyway, right? Are not the Government officials telling us the economy is improving? But how do they define improvement? The average American worker has taken a 25% to 55% pay cut - but the Legislators who are running this so called economic recovery fiasco are getting an average of 25% more in slary than they did two years ago. In Arizona, the Governor campaigned vigorously and even gained the endorsement of the States Teachers Union, The Policemans Union and the Firemens Union to raise state sales taxes to save teachers, Policemen, and Firemen. No one told the public that the positions were vaccant and un-filled positions. No one bothered to point out that the only real threat was to Executive Pay raises (which were put on hold pending discovery or realization of additional revenue to fund the raises). So the voters voted for the sales tax increase. Once the additional sales taxes were in place, the Teracher, Police and Firemens positions were eliminated and additional teachers, firemen, and policemen were let go (to help balance the budget). What happened to the sales tax increase to keep the teachers, policemen, and firemen? It went to the State Pay for Executive and Legislative members. After all, we have to pay for quality government. They are not looking for jobs, and they do not have to worry about their jobs, they are the State of Arizona. We are just workers who pay taxes. They are the ones who decide where the money goes. If we guess wrong, we do without, if they guess wrong, we still do without. While we do without, they still get paid from the additional revenue that we are obligated to give them. So refresh my memory. Who Does the State Legislative and Executive Branch actually work for? Yes, you are right, they work for the special interest groups who fund their campaigns. So I have stated my opinions and provided some source documentation. But YOU Have to make up your own mind. My decisions are based upon observations. History repeats itself. And you cannot raise taxes and increase jobs, just like you cannot place unreasonable burdens upon industry and realize a booming economy. If there is one thing my late father taught me (He owned and operated a factory with over 3,700 industrious employees), you cannot make it by your self. The workers have to do their jobs, and management has to pay attention to their jobs. Otherwise the organization is a train wreck in the making. The train is not safe if the Engineer and Conductors are sleeping. Heaven help the passengers on this train. You decide,
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