BUSINESS Saturday, October 26, 2019 East Oregonian Facebook launches a news section By BARBARA ORTUTAY AND TALI ARBEL AP Technology Writers MENLO PARK, Calif. — Over the course of its 15-year history, Facebook has var- iously ignored news orga- nizations while eating their advertising revenue, courted them for video projects it subsequently abandoned, and then largely cut their stories out of its newsfeeds. Now it plans to pay them for news headlines — report- edly millions of dollars in some cases. Enter the “News Tab,” a new section in the Facebook mobile app that will display headlines — and nothing else — from the Wall Street Jour- nal, the Washington Post, BuzzFeed News, Business Insider, NBC, USA Today and the Los Angeles Times, among others. Local sto- ries from several of the larg- est U.S. cities will also make the grade; headlines from smaller towns are on their way, Facebook says. Tapping on those head- lines will take you directly to publisher websites or apps, if you have any installed. Which is more or less what publishers have been request- ing from Facebook for years. It’s potentially a big step for a platform that has long struggled with both stamp- ing out misinformation and making nice with struggling purveyors of news. Though media watchers remain skep- tical that Facebook is really committed to helping sustain the news industry. Facebook declined to say who is getting paid and how much, saying only that it will be paying “a range of pub- lishers for access to all of their content.” Just last year, CEO Mark Zuckerberg said he wasn’t sure it “makes sense” to pay news outlets for their material. But now, as Zucker- berg told The Associ- ated Press in an interview, “there’s an opportunity to FACEBOOK CLARIFIES POLITICAL AD POLICY AP Photo/Thibault Camus A Facebook logo is displayed during a start-up companies gathering at Paris’ Station F, in Paris. set up new long term, stable fi nancial relationships with publishers.” News executives have long been unhappy about the extent to which digi- tal giants like Facebook make use of their stories — mostly by displaying head- lines and short summaries when users post news links. A bipartisan bill introduced in Congress this year would grant an antitrust exemption to news companies, letting them band together to nego- tiate payments from the big tech platforms. “It’s a good direction that they’re willing for the fi rst time to value and pay for news content,” said David Chavern, head of the News Media Alliance, a publisher trade group. “The trouble is that most publishers aren’t included.” Zuckerberg said Face- book aims to set up partner- ships with a “wide range” of publishers. “We think that this is an opportunity to build some- thing quite meaningful here,” he said. “We’re going to have journalists curating this, we are really focused on provenance and branding and where the stories come from.” In a statement, the Los Angeles Times said it expects the Facebook effort will help expand its readership and digital subscribers. Facebook killed its pre- vious effort to curate news, the ill-fated Trending topics, in 2018. Conservatives com- plained about political bias, leading Facebook to fi re its human editors and automate the section until it began recycling false stories, after which the social giant shut it down entirely. But what happens when the sprawling social net- work plays news editor? An approach that sends people news based on what they’ve liked before could over time elevate stories with greater “emotional resonance” over news that “allows public dis- course to take place,” said Edward Wasserman, dean of the graduate journalism program at the University of California-Berkeley. “It deepens my concern that they’ll be applying Face- book logic to news judg- ment,” he added. The social network has come under criticism for its news judgment recently. In September, it removed a fact-check from Science Feedback that called out an anti-abortion activist’s video for claiming that abortion is never medically necessary. Republican senators had complained about the fact check. Facebook says a small team of “seasoned” journal- ists it employs will choose the headlines for the “Today’s Story” section of the tab, designed to “catch you up” on the day’s news. The rest of the news section will be WASHINGTON — Face- book reiterated its policy of not removing mislead- ing or bogus political ads Thursday, clarifying its own policies after CEO Mark Zuckerberg off ered Congress confusing and sometimes incomplete testimony on the subject. On Wednesday, in re- sponse to questions from House Financial Services Chairwoman Maxine Waters, Zuckerberg seemed to suggest Face- book did use third-party fact-checkers to verify political ads. He contra- dicted himself moments later, saying the compa- ny did not want to get involved in verifying the truth of political claims. Facebook on Thurs- day sought to set the record straight, noting that while it will not fact check political ads from candidates, it does evaluate the accuracy of political ads from polit- ical advocacy groups or political action commit- tees. — Associated Press populated with stories algo- rithmically based on users’ interests. That sounds similar to the approach taken by Apple News, a free iPhone app. But Apple’s effort to contract with news organizations has been slow to take off. Apple News Plus, a $10-a-month paid version, remains pri- marily a hub for magazines; other news publishers have largely sat it out. Apple’s service report- edly offered publishers only half the revenue it pulled in from subscriptions, divided according to how popular publishers were with readers. Business Oregon director resigns, heads for private sector Chris Harder has led Business Oregon since March 2016 By CLAIRE WITHYCOMBE Oregon Capital Bureau SALEM — The head of Oregon’s economic devel- opment agency will be stepping down at the end of the year, the agency said Thursday. Chris Harder has led Business Oregon, oversee- ing a two-year budget of about $800 million, since March 2016. The agency provides Oregon businesses with grants, loans and tax incen- tives to boost employment and attract employers, and helps communities update infrastructure like ports and water facilities. Harder is taking a job in private business in Portland but isn’t disclosing details yet, said Nathan Buehler, a spokesman for the agency. In a resignation let- ter dated Oct. 18, Harder thanked Brown for “the opportunity to serve” as director. Harder is the second agency director to leave since Brown’s re-election a year ago. Matt Garrett, the longtime head of the Oregon Department of Transporta- tion, retired in June. “I am particularly grate- ful for your support of the agency and commitment to our mission to promote a globally competitive, diverse, and inclusive econ- omy,” Harder wrote. Brown said in a state- ment that under Harder’s leadership, the agency “has developed a solid founda- tion for its work to sup- port the economic develop- ment needs of com- mu nities throughout the state.” “ I ’ m looking Harder forward to seeing the work of our team at Busi- ness Oregon continue with its focus on rural areas and its efforts to make sure that prosperity is shared by all,” Brown said. Harder is leaving after setting ambitious goals for the agency through 2022. Last year, Business Ore- gon adopted a fi ve-year stra- tegic plan, focused on push- ing technical innovation, economic stability in rural areas, growing small and middle-market companies, and creating more economic opportunities for people of color, immigrants and tribal communities. “We are committed to working with our custom- ers, public and private part- ners, and local and regional communities across Ore- gon to continue to make our state economy one of the most competitive and suc- cessful anywhere,” accord- ing to a report on the plan issued by Harder and Kanth Gopalpur, chair of the Ore- gon Business Development Commission. The strategic plan also calls for the agency to look internally to make sure it is “inclusive, transparent and fi scally healthy.” In April 2018, allega- tions emerged of a hostile work environment at the agency for older employees and women. Several months later, independent investi- gators reported they found no “evidence of a wide- spread toxic work environ- ment or a pattern of dis- crimination against females or older employees.” Natural gas rates to increase Cascade Natural Gas receives approval for 8.5% increase By JADE MCDOWELL East Oregonian UMATILLA COUNTY — The Oregon Public Util- ity Commission has approved a rate increase for the state’s three regulated utilities, including Cascade Natural Gas, starting Nov. 1. According to a news release by the commis- sion, the cost of natural gas being supplied to the utilities “spiked” over the last year due to a pipeline explosion that affected the regional supply. In the past 10 years, the com- mission stated, Oregon resi- dents have seen a decrease in their rates, other than in 2013 and 2014. PUC chair Megan Decker said in a statement that they appreciated those who testi- fi ed to remind the committee that rate increases impact cus- tomers negatively. “We recognize that exist- ing low-income programs are inadequate at meeting the needs of all customers to help address adjustments in rates, but we’ll continue to fi nd ways to close that gap,” she said. Cascade Natural Gas, which serves Hermiston and Pendleton, received approval for an overall increase of 8.5%, raising $5.3 million. Residential customers using 62 therms per month will see an increase from $46.69 to $50.58. Commercial customers using 264 therms per month will see an increase of 11.5%, from $156.73 to $174.69. Industrial customers using 1,742 therms per month will see their bill increase from $983.63 to $1,119.13. Avista Natural Gas, which covers parts of Eastern Ore- gon and Southern Oregon, received approval for an over- all increase of 10% in Novem- ber, plus a 2.5% increase in January to cover non-gas costs. When both increases are in place, typical residential customers using 46 therms per month will see their bill increase from $48.11 to $55.41 at a 15.2% increase. Commercial customers using 197 therms per month will see an increase from $174.15 to $194.66. Indus- trial customers using 3,990 therms per month will see an increase from $1,640.57 to $1,910.06. On the west side of the state, NW Natural received approval for a 2.4% increase. Good Shepherd Health Care System’s SECOND ANNUAL Community Meeting BRIEFLY New homes sales fell in September WASHINGTON — U.S. new home sales fell slightly in September with all regions of the country except the Midwest show- ing declines. The Commerce Depart- ment reported Thursday that sales of new homes fell 0.7% last month following a big 6.2% surge in sales in August. Homes were sold at a seasonally adjusted annual rate of 701,000, 15.5% higher than a year ago. Many economists had expected sales to keep ris- ing in September, refl ect- ing declining mort- gage rates and ultra-low unemployment. The median price of a new home fell 7.9% last month to $299,400, down from an August price of $325,200. The only region to post a sales gain was the Mid- west, where sales rose 6.3%. Sales in the West fell 3.8% and were down 2.8% in the Northeast and a slight 0.2% in the South. Developer awarded grant for new windows PENDLETON — Devel- oper Nate Brusselback was recently awarded a $10,000 grant from the Energy Trust of Oregon for upgrades at his South Hills Apartment Complex, 248 S.W. 28th Drive. The grant will help pay for the replacement of the complex’s aging alumi- num windows with ener- gy-effi cient vinyl-frame windows in an effort to help save residents money on their energy bills. While the grant is helpful in breaking up the cost of upgrades, Brusselback says that it amounts to a small percentage of the $150,000 he expects to spend updat- ing the units. According to Brusselback, the incentives will cover approximately one-third of the purchase price of the new windows, however, Energy Trust will not cover labor, trim, reframing or any other addi- tional project costs. Despite the cost of the upgrades, Brusselback maintains that they pro- vide a win-win situation for himself and the building’s residents. “It makes the units nicer for the tenants, and it gets me a little bit more bang for my buck when it comes to renting them out,” said Brusselback. As residents move out, Brusselback’s team goes through and upgrades each unit’s windows in addition to any necessary mainte- nance before renting the unit to an new tenant. Built in the 1970s, the South Hills Apartment Complex is made up of 80 one- and two-bedroom units and is one of four apartment complexes that Brusselback owns in Pendleton. — Associated Press and East Oregonian staff A7 With special guest speaker, Marcus Engel, author of five best-selling books, honorary doctorate awardee from the Philadelphia College of Osteopathic Medicine, and adjunct professor at the University of Notre Dame. Good Shepherd Health Care System cordially invites you to our 2nd Annual Community Meeting and Health Fair. Join us for an evening of fun, food, raffle prizes, and, most importantly, learn about the positive impact GSHCS is having on the communities we serve with President & CEO Dennis E. Burke. Flu Shots available from 5:00 to 6:00 p.m. Limited Supply, First-Come, First-Served Wednesday, October 30, 2019 5:00 p.m. – 8:00 p.m. Hermiston High School Commons & Auditorium 600 S 1st St Hermiston, OR, 97838 RSVP 541.667.3509 Or register on Eventbrite at https://gshcsannualcommunity meeting.eventbrite.com