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OFF PAGE ONE
East Oregonian
Brown will ‘encourage’
investigation of tax credits
By PETER WONG
Capital Bureau
SALEM — Gov. Kate Brown
says she will encourage a state in-
vestigation into potential fraudulent
use of almost $12 million in energy
tax credits in connection with the in-
stallation of solar panels at Oregon
State University and Oregon Insti-
tute of Technology.
According to an account in The
Oregonian, $11.8 million in the
questioned business energy tax
credits was about half the $23.5 mil-
lion cost of the solar installations,
which are owned by limited liabil-
ity companies set up by SolarCity
of San Mateo, Calif. The developer
took over in 2012 for Renewable
Energy Development Corp., a Utah
business that went bankrupt in De-
cember 2011.
The documents used to qualify
an extension for completion of the
projects — and the tax credits —
purport to show that the arrays were
under construction before a deadline
of April 15, 2011.
Tax credits are subtracted direct-
ly from what a business owes in cor-
porate taxes.
Any investigation would be con-
ducted by the Oregon Department
of Justice, whose spokeswoman,
Kristina Edmunson, said Wednes-
day: “We are reviewing the matter.”
Attorney General Ellen Rosen-
blum, who leads the agency, does
not usually discuss publicly wheth-
er an investigation is in progress
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underway a few days before John
Kitzhaber announced his resignation
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dling allegations against him and
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The attorney general is a sepa-
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The matter came up during a
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plan, director of the Oregon Depart-
ment of Energy, with the governor’s
staff.
Kristen Grainger, Gov. Brown’s
chief spokeswoman, said in a state-
ment:
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ZLWKWKH*RYHUQRU¶V2I¿FH'HSDUW-
ment of Energy staff shared this sit-
uation and their plan to talk with the
Department of Justice about pursu-
ing an investigation, which the Gov-
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ate to do and encouraged them to go
ahead.”
Rachel Wray, a spokeswoman
for the Department of Energy, con-
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the Department of Justice last week
about an investigation into the cred-
its.
— The Capital Bureau is a
collaboration between EO Media
Group and Pamplin Media Group.
Storm could be last big one, some want more
PHILADELPHIA (AP) — A
storm stretching from northern Tex-
as to southern New England threat-
ened to bring icy rains, sleet, and
snow overnight Wednesday but also
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snowfall for the East Coast this win-
ter.
Governors in Alabama, Missis-
sippi, West Virginia and New Jer-
sey declared states of emergency in
advance of the storm, and Congress
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snow emergency declaration in
Washington. Mississippi counties
were advised to open shelters pow-
ered by generators to give residents
an option beyond cold, dark homes
in the event of power outages.
West Virginia, Kentucky and
southeastern Ohio were expected to
get hit the hardest overnight Wednes-
day and into Thursday with 8 to 10
inches, while Baltimore and Wash-
ington were looking at 6 to 8 inches
of snow, said National Weather Ser-
vice forecaster Bruce Terry.
Philadelphia, where a snow
emergency was in effect Wednesday,
could get 6 inches and New York
could see more than 4.
Temperatures plummeted as the
storm pushed east: The mercury fell
from 71 degrees to 52 degrees in
Monticello, Arkansas, and from 74
to 48 in Greenville, Mississippi —
both within an hour. By Wednesday
afternoon, readings were in the mid-
20s across Arkansas.
Boston is a little more than 2
inches shy of its all-time snowfall
record, and meteorologists predicted
1 to 2 inches would fall by storm’s
end Thursday evening.
Schools from Texas to West Vir-
ginia closed early Wednesday and
Penn State University canceled
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time in eight years. About 1,200
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in and out of Dallas-Fort Worth.
Residents of Kentucky and West
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ed roads and mudslides. And by
Wednesday night, a sheet of ice
coated the roads in Memphis, Ten-
nessee, making driving especially
hazardous. In Arkansas, high school
basketball playoff games were post-
poned until Thursday.
Light at the end of the
tunnel?
Mike Halpert, deputy director
of the National Weather Service’s
Climate Prediction Center, said the
storm “might be winter’s last hur-
rah.” Likewise, AccuWeather senior
meteorologist Alex Sosnowski said
the storm could be winter’s “ca-
boose.”
After the storm and possibly some
cold days into the weekend, the next
couple of weeks should be consider-
ably warmer than normal for a large
chunk of the country, Halpert said.
The Climate Prediction Center pre-
dicted, however, colder-than-normal
temperatures for New England.
fans. Tourism provided a $9.6 billion
boost for Oregon in 2013 and Uma-
tilla County received about $134
million of that. After the Pendleton
Round-Up in September, the State
Athletic Association 2A Champion-
ship Basketball Tournament is likely
Pendleton’s second biggest event.
“Easily,” said Pendleton Conven-
tion Center Director Pat Kennedy.
“This is a big-league event for Pend-
leton.”
Kennedy didn’t know the eco-
nomic impact, but Pat Beard, of the
Pendleton Chamber of Commerce,
quoted numbers from Dean Runyan
Associates, who did a study for
Travel Oregon about the average ex-
penditures by out-of-town visitors.
“Everyone that comes here
spends a minimum of $185 per
day,” Beard said of hotel guests.
Visitors to the basketball tour-
nament, Round-Up, Cattle Barons
or other events generally spend that
money on lodging, shopping and
meals.
“With the teams come the root-
ers — moms, dads, grandparents,”
Beard said of the tourney. “Boosters
watch their games, then they leave
and go downtown to shop.”
The hotels and motels also get a
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“This has always been the second
biggest event for Pendleton,” said
Red Lion Director of Sales Cheryl
Montgomery.
Montgomery said Red Lion will
provide lodging for half of the 16
teams and is the host hotel for the
OSAA. The teams arrive Wednes-
day and Thursday. Most of the
hotel’s 170 rooms were booked
through the weekend, save a few
singles.
At the convention center, Kenne-
Some Bostonians were clamor-
ing for a little more snow so they can
break a record.
So far this winter, the city has re-
ceived 105.5 inches of snow — more
than 8 1/2 feet, the National Weath-
er Service said. The record is 107.6
inches recorded during the 1995-96
season. Records date to 1872.
Having endured weeks of misery,
residents like Erin O’Brien insist
they deserve bragging rights. Other-
wise what was the point of repeated-
ly digging out?
“I want the record. We earned the
record,” said O’Brien, a professor of
political science at the University of
Massachusetts-Boston.
Others don’t care about the re-
cord. Amy Ouellette, a marketing
associate in Salem, north of Boston,
just wants spring and sun to come
and melt it all away.
dy savored his last moments of sol-
itude before gearing up to dispense
hometown hospitality to the visitors.
“It’s quiet now,” he said. “The
large crowds will hit on Friday and
Saturday. There’ll be 3,000 people
in here on Saturday night.”
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utive director for OSAA, said last
year’s overall attendance totaled
13,744, with 15,612 in 2013 and
12,727 in 2012.
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an ideal spot for 2A tournament
play, which features schools with
enrollment between 100 and 200.
“This venue has been fantastic
for us for a number of years,” he said
about the hospitality and the facility.
“It’s the perfect size for 2A. We can
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———
Contact Kathy Aney at kaney@
eastoregonian.com or call 541-966-
0810.
DISASTER: Will take part in a joint training exercise in June
Continued from 1A
Geological Survey has warned the
megaquake is a matter of when, not
if.
The last quake was Jan.
26,
1700
and
geologists
determined it was a magnitude 9.0.
The next quake could equal that.
Umatilla County Commission-
er George Murdock said the “sister
community partnership” is a way
to help a county in need. A disaster
can make victims of the very people
who serve as emergency responders,
he said. Under the partnership, Uma-
tilla County would send its public
works director and perhaps another
key public works employee to Tilla-
mook County for up to 14 days to
help deal with the initial situation.
The counties will also take part
in a joint training exercise in June,
according to Murdock.
Murdock said Tillamook County
took an interest in Umatilla County
because of the eastern county’s stra-
tegic plan. Umatilla County laid that
out in a slick, magazine-size booklet
that Murdock said was inexpensive
to produce, and Tillamook County
commissioners and managers want-
BMCC: Wording on ballot
is clearer yet more detailed
would be a good steward of their
tax dollars.”
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Also different this time is the
pus security and technology and wording on the ballot, which is
three workforce development clearer yet more detailed about
programs — the Agricultural what the public will get in return
Center (renovation) in Pendle- for their support. Helping get the
ton, a precision irrigated agricul- message out is a contingent of
ture program in Hermiston and students, alumni and other sup-
a Workforce Training & Early porters.
Learning Center in Boardman.
Preus said the listening ses-
About $1 million of the bond sions made clear that the pub-
proceeds would buy equipment lic wants affordable education,
for existing nursing, dental and training for local family wage
diesel programs.
jobs and a high-quality transfer
BMCC President Camille program.
Preus is ready to make the case
Bond proceeds would also
for the bond. The two-foot-by- help upgrade deteriorating heat-
WZRIRRW FDOHQGDU LQ KHU RI¿FH ing and cooling systems and re-
is jammed with appearances place natural gas lines.
written in red marker. Preus and
“We have an aging infrastruc-
Vice-President of Public Re- ture,” said Steve Platt, supervisor
lations Casey White-Zollman of buildings and grounds. “Most
will travel hundreds of miles in everything is original from the
Umatilla and Morrow Counties mid-to-upper (19)60s.”
to speaking engagements before
Platt said the college has
Election Day.
slowly been chipping away at
Their message is one of con- the to-do list, working with the
triteness and clarity. Some voters Energy Trust of Oregon to raise
had reproached the college for HQHUJ\ HI¿FLHQF\ DQG UHGXFH
not spending enough time talking utility bills. Passage of the bond
to the community and of being would allow the school to put the
RYHUFRQ¿GHQW LI QRW DUURJDQW projects on the fast track.
before the last election. This go-
“Taxpayers have supported
round, things are different.
and invested in BMCC for the
“We have been attentive to last 51 years,” White-Zollman
the feedback we got,” Preus said. said. “We are trying to protect
“The citizens have told us what’s that investment.”
important to them.”
———
“We asked for brutal honesty,
Contact Kathy Aney at
we received it and we took it to kaney@eastoregonian.com or
heart,” White-Zollman said. “We call 541-966-0810.
Continued from 1A
2 more inches, please!
PENDLETON: Last year’s overall attendance totaled 13,744
Continued from 1A
Thursday, March 5, 2015
ed to understand how that happened.
Murdock said he met with them
Monday to discuss that, but they
also were keen on forming the deep-
er partnership.
Murdock said the next step is to
broaden the mutual-aid relationship
beyond emergency management
and public works. He said any num-
ber of areas, from public health to
ODZHQIRUFHPHQWFRXOGEHQH¿WIURP
the arrangement.
———
Contact Phil Wright at pwright@
eastoregonian.com or 541-966-
0833.
FUEL: Senate passed the bill
last month with a vote of 17-13
make gas more expensive and
prove costly for their constitu-
us to move closer to both those ents who have long commutes.
goals,” said Vega Pederson, the The Oregon Department of En-
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vironmental Quality has project-
Lawmakers spent approxi- ed the fuel standard could raise
PDWHO\ ¿YH KRXUV :HGQHVGD\ gas prices by 4 to 19 cents per
debating the bill, as Republicans gallon by the end of the 10-year
tried various maneuvers to side- implementation period.
track it. House Republican Lead-
The Oregon Environmen-
er Rep. Mike McLane, R-Powell tal Quality Commission voted
Butte, attempted unsuccessfully in January to adopt regulations
WR JHW WKH +RXVH WR LQGH¿QLWHO\ based on the 2009 bill that will
postpone a vote on the bill un- require fuel importers and pro-
til investigations of former Gov. ducers to reduce the carbon con-
-RKQ .LW]KDEHU DQG ¿UVW ODG\ tent of transportation fuels by
Cylvia Hayes are complete.
10 percent over the next decade,
The U.S. Department of Jus- starting in January 2016.
tice launched a criminal investi-
Fuel importers and produc-
gation of the couple, after news ers have at least two options to
reports showed Hayes’ green meet the standard: blend more
energy consulting business over- low-carbon ethanol and biodies-
lapped her role as an unpaid en- el into transportation fuels, or
ergy and environmental policy by purchase carbon credits. The
adviser to the governor.
Oregon Department of Environ-
³:HQHHGWRNQRZZKRLQÀX- mental Quality plans to set up a
HQFHG ZKR DQG ZDV WKDW LQÀX- system for entities such as elec-
ence improper or illegal,” Mc- tric vehicle charging stations to
Lane said. “Why does this vote generate carbon credits.
need to be postponed? Because
The DEQ expects the fuel
we have a criminal investigation standard will reduce greenhouse
ongoing in Oregon.”
gas emissions in Oregon by a
McLane also questioned total of 7.3 million tons over the
why Democrats were pressing next decade. In 2010, the latest
ahead with the low-carbon fuel year for which DEQ has data,
standard, after the federal and vehicles in Oregon emitted 22.6
state investigations of Hayes million tons of carbon dioxide.
and Kitzhaber prompted House That means the average emis-
Speaker Tina Kotek, D-Port- sions decrease anticipated from
land, and Sen. President Peter the low-carbon fuels program
Courtney, D-Salem, to ask the would have translated to a 3 per-
governor to resign.
cent reduction in 2010.
“If it was drastic enough to
The state Senate passed
have (Kitzhaber) resign, should SB 324 last month on a nearly
party line vote of 17-13. Sen.
we not pause?” McLane said.
That argument did not sway Betsy Johnson, D-Scappoose,
most House Democrats who was the lone Democrat to vote
have a 35-25 majority in the “no.” Republicans in the Sen-
House, although four mem- ate had asked Democrats to put
bers of the caucus crossed over WKH ELOO RQ KROG LQGH¿QLWHO\ RU
to join Republicans in voting refer it to voters, and they also
attempted to tie it to Kitzhaber
against the bill.
The Democrats who vot- and Hayes. Kitzhaber resigned
ed “no” were Rep. Jeff Barker, Feb. 18. Hayes was a paid con-
D-Aloha, Rep. Caddy McKe- sultant for groups that worked
own, D-Coos Bay, Rep. Debo- to organize support for the fuel
rah Boone of Cannon Beach and standard, and a federal subpoe-
Rep. Brad Witt, D-Clatskanie. na the U.S. Justice Department
Witt said many bills unite Dem- served on the state last month or-
dered agencies to provide a long
ocrats and Republicans.
“A notable few are so discor- list of records related to Hayes’
dant that they give rise to the two consulting, including any that
Oregons, one urban and one ru- deal with the low-carbon fuel
ral,” Witt said. “Senate Bill 324 standard.
— The Capital Bureau is a
is one such divisive bill.”
Witt and other lawmakers collaboration between EO Me-
from rural areas said they were dia Group and Pamplin Media
concerned the fuel standard will Group.
Continued from 1A
W hile o ther new spa pers give yo u less, The Ea st O rego nia n
GIVES YOU
M ORE
O u r n ew
C APITAL B UREAU
covers the sta te for you
Fro m left: Peter W o n g, Hill a r y Bo rr u n d , M a teu sz Per k o w sk i