Thread: Highway bill is worth billions to Soros, Pickens, Douglas

Highway bill is worth billions to Soros, Pickens, Douglas

March 13, 2012


George Soros, T. Boone Pickens, Kevin G. Douglas and companies under their control stand to reap the rewards of billions of taxpayer dollars in subsidies contained in a Democratic-sponsored measure set for a vote this week.

The legislation, authored by Sen. Robert Menendez (D-N.J.), would amend the much-ballyhooed highway bill to include the New Alternative Transportation to Give Americans Solutions act, or NATGAS act. The act would provide subsidies for individuals, corporations and public entities that purchase natural gas vehicles or build natural gas distribution facilities.

The act would subsidize three different enterprises controlled by Soros, Pickens and Douglas, who consistently rank among the most generous political donors, according to Federal Election Commission Records.

Moreover, HUMAN EVENTS has learned that one of these companies, Fuel Systems Solutions based in Santa Ana, Calif., has and continues to conduct business, through its foreign subsidiaries, with customers in Iran, according to the company’s U.S. Securities and Exchange Commission filings. The company acknowledges in those filings that tougher international economic sanctions levied in light of that nation’s civilian nuclear program may adversely affect its Iranian-based revenues in 2012, as such measures have in the past.


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Highway bill is worth billions to companies owned by Soros, Pickens, Douglas - HUMAN EVENTS



Highway bill is worth billions to companies owned by Soros, Pickens, Douglas - HUMAN EVENTS

Highway bill amendment defeated that would have sent billions to Soros, Pickens, Douglas companies
by S. E. Robinson and Audrey Hudson
03/13/2012
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The Senate Tuesday killed legislation to spend billions of taxpayer dollars to encourage companies to use natural-gas powered vehicles. The legislation also would have benefited wealthy backers of the Democratic measure, including George Soros, T. Boone Pickens, and Kevin G. Douglas.

The amendment to the highway bill required 60 votes to pass but was defeated 51 yeas to 47 nays.

First reported by HUMAN EVENTS, the measure sponsored by Sen. Robert Menendez (D-N.J.) and Sen. Richard Burr (R- N.C.) would distribute billions in subsidies to these key entities and others for the purchase of natural gas vehicles and to build fueling stations. It would be funded through a new tax on consumers that charged 2.5 cents per gallon of natural gas beginning in 2014, with another increase to 12.5 cents in 2021.

“Gas prices are skyrocketing and meanwhile natural gas is $1.50 cheaper than gas, and we have 100-plus years of supply we can draw from,” Menendez said. “The only thing in our way is so few natural gas vehicles and gas stations on the road.” Menendez and Burr said their measure would give the natural gas market a needed jump-start by the federal government. “This gives it a five-hour energy drink,” Burr said. “This is essential if you want natural gas prices to stay down.”

With only a few minutes of debate allowed before the vote, no Senators on either side of the aisle spoke out against the New Alternative Transportation to Give Americans Solutions (NATGAS) Act.

Earlier in the day, Menendez said their measure would displace 20 billion gallons of petroleum. “Is this just another handout to energy companies? The answer to that question is a resounding no,” Menendez said.

The amendment was opposed by an unusual alliance of free market organizations and environmental groups who urged Senators in a letter Tuesday to vote against the measure.

“By providing billions in tax subsidies, the NATGAS Act interferes in the marketplace to favor natural gas over other transportation and energy technologies that may be more cost-effective or sustainable,” said the letter from Taxpayers for Common Sense, Competitive Enterprise Institute, Heartland Institute, Greenpeace and Friends of the Earth, among others.

The NATGAS Act provides significant subsidies for natural gas at all levels of production -- from manufacturing and infrastructure to consumer tax credits -- carrying an estimated $5 billion price tag, the organizations said.

“While a consumer fee would be used as an offset over the long-term, the fee does not even begin (to) phase in until 2014, sticking taxpayers with the immediate fiscal impacts,” the organizations said.

The office of Rep. John Sullivan (R-Okla.) declined to comment on whether he will withdraw support for the House version of NATGAS, which he introduced April 6, 2011.

Among the bill's big beneficiaries would have been George Soros, T. Boone Pickens, Kevin G. Douglas as companies under their control stood to reap the rewards of billions of taxpayer dollars in subsidies contained in the Democratic-sponsored measure.

The act would have subsidized three different enterprises controlled by Soros, Pickens and Douglas, who consistently rank among the most generous political donors, according to Federal Election Commission Records.

Moreover, HUMAN EVENTS has learned that one of these companies, Fuel Systems Solutions based in Santa Ana, Calif., has and continues to conduct business, through its foreign subsidiaries, with customers in Iran, according to the company’s U.S. Securities and Exchange Commission filings. The company acknowledges in those filings that tougher international economic sanctions levied in light of that nation’s civilian nuclear program may adversely affect its Iranian-based revenues in 2012, as such measures have in the past.

Douglas is a key shareholder in Fuel Systems, and he is the largest individual investor in Westport Innovations, a Vancouver, British Columbia, Canada-based supplier of natural gas engine systems and retrofit kits. Westport’s investors also include Soros Fund Management, an investment vehicle of the Soros family. Westport’s board previously included T. Boone Pickens, who currently owns Clean Energy Fuels Corporation, a Houston-based supplier of natural gas.

Fuel Systems, Westport and Clean Energy Fuels constitute what Robert Brown, a stock analyst with Craig-Hallum Capital in Minneapolis who specializes in the energy sector, referred to as “the big three” of the natural gas-powered automation arena in North America. The companies are all relatively small in terms of revenues and considered speculative as stock investments, but the NATGAS act would allow them to profit from their research, design and development.

Clean Energy Fuels supplies liquefied natural gas (LNG) and compressed natural gas (CNG), and specializes in the development of natural gas distribution platforms. Westport and Fuel Systems offer engine and fueling systems for vehicles that run on CNG, an alternative to gasoline, and LNG, an alternative to diesel.

Brown said that all three companies would profit handsomely on passage of the NATGAS act and that all three will be harmed should Congress scuttle the Menendez Amendment.

Pickens, Soros, Douglas fund NATGAS act proponents

The three investors and their affiliates are on record as financially supporting proponents of the NATGAS act, according to FEC reports. Douglas and his wife Michelle have contributed more than $130,000 to President Barack Obama, Democrats and Democratic super PACs since 2009, according to FEC records, including to Nat Gas act supporter Rep. Michael Capuano (D-Mass.).

Soros’ history of Democratic financial support is well known, such as $1.5 million to MoveOn.org from 2003 and 2004. In 2011, Soros gave $175,000 to the House Majority PAC and the Majority PAC, two super PACs whose donations have come mostly from American labor unions, according to FEC records. He has also given broadly to Democratic committees since 2009.

Pickens, his wife Madeleine and senior employees of Clean Energy Fuels have contributed more than $150,000 to politicians and committees that support the NATGAS act, according to FEC reports. Pickens and his wife gave $60,800 to House Representatives, including the act’s sponsor, Rep. John Sullivan (R-Okla.)

To Senate Majority Leader Harry Reid (D-Nev.) or related committees, the couple has given $20,800. To the Democratic Parties of New Mexico, Colorado and Nevada, all key states for the natural gas industry, the couple has given $30,000.

Clean Energy Fuels employees have given a combined $19,750 to congressional representatives who support the NATGAS act, and $10,500 to the Democratic Congressional Campaign Committee, according to a HUMAN EVENTS review of FEC reports. Clean Energy Fuels employees have also given $7,800 to Sen. Reid and $4,400 to Sen. Menendez.

Fuel Systems in Iran

Details regarding Fuel Systems’ business in Iran are available in the company’s Form 10-K filed March 8, 2012 for the year ended Dec. 31, 2011. The company’s investor relations spokesperson declined to comment on the companies operations in Iran and phone calls to the company’s corporate office were not returned as of Tuesday morning.

The SEC document, filed March 8, 2012 for the year ending Dec. 31, 2011, contains the following:

Some of our foreign subsidiaries have done, and may continue to do, business in countries subject to U.S. sanctions and embargoes, including Iran.

Some of our foreign subsidiaries sell fuel delivery systems, related parts and accessories to customers in Iran, a country currently subject to sanctions and embargoes imposed by the U.S. government, the European Union (“EU”), the United Nations, and other countries. In addition to Iran, there are other countries that are also subject to sanctions. These sanctions are complex. We believe we have procedures in place to conduct U.S. and foreign operations without violating U.S., EU, or other sanctions. However, if we fail to comply with U.S. sanctions, EU sanctions or other sanctions in our foreign operations, we could be subject to material fines and penalties and incur damage to our reputation, which may lead to a reduction in the market price of our common stock.

In addition, our foreign subsidiaries’ sales to Iran could reduce demand for our common stock among certain of our investors for political reasons.

Recent Iranian sanction laws and regulations have adversely affected our revenues and may cause us other adverse consequences.

In June 2010, the United Nations Security Council by Resolution voted to impose a new and expanded round of sanctions against Iran. In July 2010, the European Union implemented the UN Resolution. On July 1, 2010, President Obama signed into law the new Comprehensive Iran Sanctions and Accountability and Divestment Act of 2010 (the “CISADA”). In November 2011, President Obama signed Executive Order 13590 imposing broad sanctions similar to those included within the CISADA and which expressly apply to any individual or entity (whether or not a U.S. person). In January 2012, the EU expanded its sanctions against Iran. The expanded round of laws and regulations imposing sanctions on Iran has not significantly impacted our revenues derived from this country. We can offer no assurance that any further expansion of Iranian sanctions will not further adversely affect our revenues and cause us other adverse consequences.

S. E. Robinson is the Executive Director of Students for Solvency PAC and a writer for Human Events. A graduate of Bowdoin College and a native Mainer, he lives in Washington and works at Regnery Publishing.

Audrey Hudson, an award-winning investigative journalist, is a Congressional Correspondent for HUMAN EVENTS. A native of Kentucky, Mrs. Hudson has worked inside the Beltway for nearly two decades -- on Capitol Hill as a Senate and House spokeswoman, and most recently at The Washington Times covering Congress, Homeland Security, and the Supreme Court. Follow Audrey on Twitter and Facebook.

Highway bill is worth billions to companies owned by Soros, Pickens, Douglas - HUMAN EVENTS

Senate approves $109B highway bill, raising pressure on Boehner, House
By Keith Laing - 03/14/12 12:58 PM ET

The Senate on Wednesday approved a $109 billion transportation bill that would fund road and transit projects for the next two years.

The bipartisan 74-22 vote puts pressure on Speaker John Boehner (R-Ohio) and the House to either pass a transportation bill of their own or take up the Senate-approved version of the measure ahead of a March 31 deadline for the expiration of current highway funding.

Boehner’s favored transportation bill is a five-year, $260 billion measure that would pay for infrastructure projects with revenue from new domestic oil-and-gas drilling. His party has been divided on the measure, and Boehner has suggested he could move to the Senate bill if he can’t win over his conference.

But it’s not clear that the Senate bill would win support from Boehner’s conference either.

In the Senate, lawmakers on both sides of the aisle hailed the highway bill as bipartisan and a victory for the country.

“This is a jobs bill; 2.8 million jobs hang in the balance,” Environment and Public Works Committee Chairwoman Barbara Boxer (D-Calif.) said in the minutes leading up to the final vote.


Committee ranking member James Inhofe (R-Okla.) added: “I’ve always said conservatives should be big spenders in two areas: national defense and infrastructure. We have to look at the future so we don’t have to go through this again.”

The vote Wednesday culminated five weeks of debate about amendments to the transportation bill that had threatened to halt the measure’s quick progress toward passage in the upper chamber. An agreement was reached between Democratic and Republican leaders to prevent gridlock on the transportation bill from being permanent.

“We’ve had some scuffles along the way, but that’s what the Senate is all about,” Majority Leader Harry Reid (D-Nev.) said of the amendment process on the transportation bill.

“Sometimes the rules of the Senate demand scuffle,” Reid said in the final minutes before the final vote on the transportation measure. “We now have a bill that will pass.”

Reid called Wednesday morning for Boehner to act quickly on the bill, and the wide margin of the final Senate vote to approve the legislation might increase pressure on the House to act quickly on the transportation bill when it comes over from the upper chamber.

“[Boehner] indicated that he likely would take up the Senate bill,” Reid said. “I hope that in fact is the case.”

There were many differences between the two chambers’ respective original versions of the transportation measure. The House bill that has since been pulled from consideration would have spent $260 billion over the next five years on transportation projects, while the Senate bill spends $109 billion over the next two years. The House’s original bill also included provisions to tie infrastructure spending to increased domestic oil drilling and included cuts to public transportation funding that were unpopular with Democrats — and some Republicans — in both chambers of Congress.

The Senate’s measure funds transportation projects from traditional sources such as the federal gas tax, which the legislation reauthorizes the collection of, as well as closing of tax loopholes backers said would generate about $10 billion.

The House now has two-and-a-half weeks to act before the current legislation authorizing transportation funding expires.


Senate approves $109B highway bill, raising pressure on Boehner, House - The Hill's Transportation Report




— Pete Kasperowicz contributed to this report.


Again who do they work for???

Senate approves $109 billion transportation bill


By Ashley Halsey III, Wednesday, March 14, 9:50 AM

The U.S. Senate on Wednesday approved a two-year blueprint for transportation that gives states greater spending flexibility, allows the federal government to set minimum safety standards for subway systems and buys time to find a solution for a funding system teetering on the verge of bankruptcy.

The bipartisan bill was approved 17 days before current transportation funding and authority to collect the federal gas tax that support it are due to expire. After efforts to move a House transportation bill stalled last week, the Senate bill may hold the only chance that legislation reaches the White House before the deadline. It won broad support, passing on a vote of 74-22.


“On March 31, if we don’t act on this transportation bill, everything will come to a screeching halt,” said Sen. Barbara Boxer (D-Calif.). “We are very close to the day when everything will stop.”

The Senate bill boils down the number of federal transportation programs from about 90 to fewer than 30, gives states money for projects that ease congestion and air pollution, increases highway safety funding, cuts red tape that delays projects and expands a federal program that provides loans and loan guarantees that encourage private investment.

It also mandates for the first time that federal safety standards be set for transit systems, regulation that has been pressed for by Sen. Barbara A. Mikulski (D-Md.) since the 2009 Metrorail crash in which nine people died.

“We have federal safety standards for planes, trains and automobiles. We need them for transit systems like Washington’s Metro,” Mikulski said. “I will keep pushing forward on reforming Metro until it’s safe for the people who work on it and the people who ride on it.”

Maryland’s other senator, Benjamin L. Cardin (D), played a central role in protecting funding for popular bike and pedestrian programs. Joining with Sen. Thad Cochran (R-Miss.), Cardin crafted a successful amendment that created a competitive grant program for those projects, with the winners to be selected on the city and local level.

Though the massive bill reshapes federal transportation programs and priorities, it does not resolve the most pressing federal transportation issue: how to meet the financial demands of replacing systems nationwide that are reaching the end of their life span.

The $109 billion Senate bill bridges a funding gap by raising almost $10 billion with several moves that critics have denounced as gimmicks. One would transfer $3.7 billion from a trust fund established to pay for damage caused by underground storage tank leaks. An additional almost $2.8 billion would be raised by ending a tax credit for paper makers, and hundreds of millions more are projected to roll in by pursuing delinquent taxpayers.

“Recent declines in gas tax collections and Congress’s desire to spend more than what will be collected has led them to poach additional sources of revenue,” said Ryan Alexander, president of the nonprofit group Taxpayers for Common Sense. “The Senate bill uses budget gimmicks.”


The funding maneuvers by the Senate allow continued spending slightly above current levels without addressing the central issue that has delayed new long-term transportation funding since the last legislation expired more than two years ago.

The Highway Trust Fund’s primary source of revenue, the 18.4-cent-per-gallon federal gasoline tax, has not kept pace with transportation needs. Without an infusion of new cash, it has been projected to run out of money as early as next year.


Neither Congress nor the White House has shown appetite for increasing the tax or embracing the foremost alternative, a tolling system that would charge drivers for miles traveled.

The differences over tolling more highways were made apparent Wednesday by competing amendments, one that would have banned new tolls on existing interstates and another that would have given states ability to expand such tolling. To speed passage of the bill, their sponsors agreed that neither should come to a vote.

“If we want to pass another transportation bill when this one expires in two years, we must address the structural flaws in the highway trust fund,” said Sen. Thomas R. Carper (D-Del.), who sponsored the amendment to permit more tolling. “I hope our respective amendments represent the beginning of an honest and important conversation about our nation’s long-term transportation needs and how we pay for them.”

The House is away this week, but last Wednesday House Speaker John Boehner (R-Ohio) failed in a closed-door meeting to persuade House Republicans to rally around a five-year House bill.

The following day, Boehner didn’t rule out simply waiting to act on the two-year Senate bill.

“As I told the members yesterday, the current plan is to see what the Senate can produce and to bring their bill up,” Boehner said Thursday. “And in the meantime, we are going to continue to have conversations with members about a longer-term approach, which frankly most of our members want. But at this point in time, the plan is to bring up the Senate bill or something like it.”

The alternative to final congressional approval would be a short-term extension that keeps funding at current levels. That would be a setback for state governments, eager to have a new funding authorization that allows them to set their longer-term project plans.

Senate approves $109 billion transportation bill - The Washington Post