Government

Attorneys General ‘demand answers’ from BlackRock

11 August 2023
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By Morgan Sweeney, The Center Square

Virginia Attorney General Jason Miyares is the latest to join a coalition of attorneys general “demanding answers” from global investment firm BlackRock Inc., questioning its ability to manage funds passively.

Montana’s Attorney General Austin Knudsen is one of the AG’s leading the action, even though the Montana still remains invested with BlackRock

Since August 2022, three groups of attorneys general representing 24 states have banded together in actions challenging company practices at BlackRock – the largest asset manager in the world and the first to reach $10 trillion in assets – claiming that it has allowed political persuasions to interfere with the investment of its clients’ funds.

Last August, 19 Republican attorneys general asked the Securities and Exchange Commission to investigate BlackRock’s relationship with China and assess whether the company used its influence to persuade advisees and investees into embracing its espoused environmental, social and governance values, otherwise called “ESG.”

They also expressed concerns that the company’s behavior didn’t align with antitrust law.

In May, 17 Republican attorneys general filed a motion with the Federal Energy Regulatory Commission, accusing the money manager of violating the Federal Power Act and the BlackRock 2022 Order.

The motion cites that the FPA prohibits “public utility holding companies” from purchasing more than $10 million in voting securities in another “utility;” if a company wishes to do so, it must remain a “passive” and “non-controlling investor” – which, the motion claims, BlackRock is not.

This latest action, led by Montana Attorney General Austin Knudsen, involves 15 attorneys general – all Republicans – with Virginia and New Hampshire being the newest states to join efforts. It’s a letter to “BlackRock-linked mutual fund directors,” which echoes the prior accusations of personal and political entanglement with professional matters.

“The overlapping web of personal and business relationships between major mutual fund directors and BlackRock raise red flags about potential conflicts of interest, and call even further into question the misguided investment strategies done in the name of ESG,” Virginia Attorney General Jason Miyares said.

According to a release from Miyares’ office, “six of the nine mutual fund directors [in question] have a relationship with BlackRock as either a BlackRock employee or a board member of a company where BlackRock owns more than 5%.” Such conflicts of interest violate the Investment Company Act of 1940 and “state principles of independence,” according to the latest letter.

Red states have begun divesting from BlackRock.

So far, Florida, Louisiana, Arizona, Texas, Missouri, South Carolina, Arkansas, Utah and West Virginia have all withdrawn their assets — totaling $4.8 billion — from BlackRock, according to Americans for Tax Reform.

Crucial Business Legislation Re-introduced in Both Chambers

9 August 2023
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On July 18, the Main Street Tax Certainty Act was re-introduced in the U.S. House of Representatives. Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX) introduced the legislation in the House and Senator Steve Daines (R-MT) previously introduced it in the U.S. Senate. The legislation would make the crucial Small Business Deduction permanent, which is currently set to expire at the end of 2025, reports the National Federation of Independent Business (NFIB).

“Passing the Main Street Tax Certainty Act would stop an enormous tax increase currently scheduled to strike small businesses at the end of 2025,” said Brad Close, NFIB President. “The 20% Small Business Deduction is set to expire in 2025, and without it, small businesses will have to limit their plans to grow, invest, and hire. By making the deduction permanent, small business owners will have the tax certainty they need to make business decisions about their future. We are encouraged that this important legislation has been introduced in both the House and the Senate and urge Congress to consider it.”

The 20% Small Business Deduction (Section 199A) allows pass-through small businesses the ability to deduct up to 20% of qualified business income and is scheduled to expire at the end of 2025. The Main Street Tax Certainty Act would make this critical tax deduction permanent for small business owners across the country.

“Pennsylvania small business owners thank Rep. Smucker for re-introducing this critical legislation,” said Greg Moreland, NFIB Pennsylvania State Director. “The Small Business Deduction has been a crucial tax deduction for small business owners in the Commonwealth as it has allowed owners to reinvest in their business and employees. We ask Congress to pass the Main Street Tax Certainty Act and make the Small Business Deduction permanent.”

In a recent NFIB member ballot, 91% said they support permanently extending the expiring provisions of the Tax Cuts and Jobs Act such as the 20% Small Business Deduction. Advocacy by NFIB members was instrumental in securing the 20% Small Business Deduction, and NFIB will continue advocating to have the deduction made permanent. NFIB Pennsylvania member David Cranston testified before the U.S. Senate Finance Committee in 2018 to explain to lawmakers how the Small Business Deduction has benefited his small business. In NFIB’s 2019 tax survey, 81% of small business owners believe the Small Business Deduction is important.

According to NFIB’s 2021 tax survey, nearly half of small business owners (48%) reported the uncertainty of these expiring tax provisions is impacting their current or future business plans. Earlier this year, NFIB Pennsylvania member Warren Hudak and Georgia member Alison Couch testified before Congressional committees sharing their small business tax stories. NFIB Vice President of Federal Government Relations Kevin Kuhlman also recently testified before the U.S. House Budget Committee on how Congress can mitigate economic challenges on small businesses by making the Small Business Deduction permanent. This month, NFIB joined a coalition letter with over 160 other associations to encourage Congress to pass the Main Street Tax Certainty Act.

Credit Cards Need Competition

9 August 2023
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The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new video featuring small business owners explaining the impact the Credit Card Competition Act would have on their Main Street businesses if passed into law.

The Credit Card Competition Act seeks to ensure competition in the credit card processing market by allowing small businesses the freedom to choose between multiple credit card networks. Without this legislation, businesses everywhere are subjected to ever-rising interchange fees set by large credit card companies in a closed market free from competition. According to a recent NFIB member ballot, 92% of NFIB member small business owners believe that businesses should have the right to choose between multiple credit card processing networks. This legislation would help preserve their freedom of choice by injecting much-needed competition into the credit card processing market, allowing small business owners to choose the option that is best for their business.

Excerpts include:

“I think one thing people forget about all these costs and fees that they think businesses pay is that it’s the consumers who end up paying these fees. At the end of the day, if we can reduce those fees, we can stabilize costs,” said David Henrich, a small business owner from Minnesota.

“The Credit Card Competition Act, I think, would be very beneficial to our business. We just recently started accepting credit cards, and we have noticed that that ‘swipe fee’ has been very expensive for us,” said Renea Jones, a small business owner from Tennessee.

“I don’t have that free choice to go out and choose who I give my money to. It’s already taken away from me on the third of every month before I have the choice to come back and say, ‘Wait a minute, let’s look at this and negotiate a better rate,’” said Jeff Hastings, a small business owner from North Carolina.

BLM Releases Oil/Gas Leasing Regulations

9 August 2023
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The Bureau of Land Management (BLM) has released a proposed oil and gas rule that would affect how fossil fuels are leased and produced on national public lands. The rule would implement the Inflation Reduction Act’s reforms of the oil and gas leasing system.

BLM claims the proposed rule will cut down on speculative leasing in the onshore program so that rather than producing fuels, those lands can instead be managed for other uses like conservation and recreation. Finally, the rule would reform the bonding rates that oil and gas companies must post in order to ensure public lands are cleaned up when companies abandon wells.

The Center for Western Priorities released the following statement from Policy Director Rachael Hamby:

“Congress overhauled the oil and gas leasing system last year. Now it’s up to the Interior Department to make those reforms stick and prevent them from being undermined by future administrations. Today’s draft rule is a major step in that direction. The recent oil and gas lease sale in Wyoming shows that the industry already has more public land under lease than they know what to do with. The least they can do is give taxpayers a fair return when they lock up more acres and profit off publicly-owned resources.”

“It’s imperative that strong bonding reforms make it through the rulemaking process intact. The Interior Department just announced it will spend hundreds of millions of taxpayer dollars cleaning up oil and gas wells abandoned by irresponsible companies. This can never happen again. Drillers must post bonds sufficient to clean up after themselves the next time an oil boom inevitably goes bust.”

Billings Air Travel Increases

9 August 2023
Dennis Pyburn
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Enplanements at Logan International Field in Billings increased YTD as of June, 11.81 percent, and deplanements 16.29 percent.

For the first six months of 2023, a total of 198,165 passengers flew out of Logan Field, compared to 177,231 for the first six months in 2022. Of the seven carriers United Airlines transported the lion’s share with over 58,000 passengers. Other carriers are Allegiant, American, Cape Air, Delta, Frontier and Horizon.

Air freight has declined in 2023 by about 20 percent.

Mail by air also declined. Mail on dropped by .84 percent and mail off declined 29.29 percent.

Shafer Named Treasurer

26 July 2023
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In a unanimous vote, Yellowstone County Commissioners named Marci Shafer, Billings, as the Treasurer for Yellowstone County, replacing Sherry Long who is retiring. Shafer will assume her new position on August 1.

Shafer was one of five people who applied for the position.

The appointment is the fulfillment of a goal for Shafer. Ten years ago she ran as a Republican candidate to be county treasure but was defeated by Sherry Long in the primary. Shafer in fact worked in the County Treasurer’s office prior to that — 6 years in the motor vehicle department and 7 years in the treasurer’s department.

In the interim, Shafer has remained in public service having worked for the past 7 years in the Department of Revenue’s property assessment department.

Shafer commented that she hopes the transition will go smoothly in order to maintain great public service for the taxpayers and to continue good relationship with the departments in Yellowstone County and with the Department of Revenue.

Shafer is a native of Billings, having left the city to live in Huntley a few years ago. She and her husband, Ole, of 44 years, have two children. During her spare time Shafer enjoys motorcycle trips and riding horses and most outdoor activities. 

Among the other candidates who applied for the position was Henry (Hank) Peters, who currently works in the Treasurer’s office. He was among the three the commissioners interviewed, which besides Shafer, included Katherine (Kate) Becker. The other candidates were: Tamara E. Parnell and Lorena (Rena) Rickard.

Rosendale Comments – BLM Conservation Lease Plan

26 July 2023
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US Congressman Matt Rosendale commented to the Department of Interior and the Bureau of Land Management (BLM) on their proposed Conservation and Landscape Health rule that will lock up swaths of public land for “conservation leases”.

“This rule is just another example of the Biden Administration weaponizing the government to appease radical environmentalists at the expense of the people of Montana,” said Rep. Rosendale. “This expansive rule will limit recreation, timber, grazing, and important energy development on public land. Even more consequential is the impact this will have on cattle ranching, which will require Montana ranchers to compete with coastal corporations for the limited number of available leases.

He sent the letter on June 28 to Secretary of the Interior Deb Haaland and Bureau of Land Management Director Tracy Stone-Manning objecting to the proposed Conservation and Landscape Health Rule claiming the rule will negatively impact the people of Montana.

“The BLM has limited public input on this disastrous rule by only allowing five public forums in urban city centers rather than the communities that would be impacted and did not even provide concerned stakeholders with the opportunity to ask questions to federal employees. I seek to remind Secretary Haaland and the Bureau of their “multiple use” obligations and implore them to look toward the devastating impacts this will have on my state. I urge BLM to immediately withdraw this harmful rule.” said Rep. Rosendale.

The BLM’s Conservation and Landscape Health Rule, proposed in April, will establish conservation leases that will lock away large areas of land that could be used for outdoor recreation, grazing, timber, and energy development.

The rule, said Rep. Rosendale, is in direct violation of the Taylor Grazing Act and the Federal Land Policy and Management Act, which requires a “multiple use” policy on public lands.

Changing the BLM’s multiple use mandate without the proper input from Congress or state and county governments is an unprecedented power grab, he said. It will empower the Bureau to approve acreage limitations that could limit critical vegetation management and harm the people of Montana.

MSU Eastern Extension Studies Camelina, Canola as Sugar Beet Replacement

26 July 2023
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Dr. Chengci Chen, MSU-EARC professor of agronomy and superintendent recently presented, in Sidney, the results of a study of camelina and canola as potential rotational crops for dryland and irrigated production systems. The study is being conducted at Montana State University Eastern Agricultural Research Center’s (EARC).

“Demands for oilseeds has increased in recent years; canola and camelina could be profitable alternatives to sugar beets, especially because the demand for camelina for biofuel production is surging,” said Chen, adding that several companies are seeking millions of acres for camelina production.

Camelina is a new crop to this area and both canola and camelina are suitable in rotation with crops such as wheat and barley and could potentially make a more profitable and resilient crop system. They are suitable for dryland and irrigated farming, though they have a higher yield under irrigation but plant disease is a concern. Research at EARC also aims at selecting cultivars that can produce higher yield with less input, especially nitrogen input. 

Chen’s research will offer vital information including cultivar adaptability and yield potential and agronomic management strategies for these alternative crops including fertility needs, planting time and rate, irrigation management, weed control, harvesting method, and disease management.

“Agriculture is very important to our community. With sugar beets out, and a lot of uncertainty, we want to find alternatives for growers that are profitable,” Chen explained. He went on to add of their research, “We don’t want farmers to fail on a large scale. Our research in small plot-scale allows us to figure out what cultivators can and what can’t grow in this environment and the agronomic strategies for these new crops before farmers take these crops to their farms for large-scale production.”

Dr. Chen welcomes farmers and the general public to attend the field to learn the work the scientists are doing at EARC and see the crop performance. Dr. Chen also wants to thank local businesses for sponsoring the luncheon at the field day.

MMEC Gets $400,000 to Improve Supply Chains

26 July 2023
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As part of a federal effort to build resilient supply chains, the Montana Manufacturing Extension Center at Montana State University has been awarded $400,000 to offer increased services and resources to manufacturers in the state.

The CHIPS and Science Act of 2022 authorized $20 million that’s being distributed through the National Institute of Standards and Technology’s Manufacturing Extension Partnership, a nationwide network of outreach centers like MMEC that receive federal funding to enhance U.S. manufacturing, according to Jenni West, MMEC’s associate director.

The funding has allowed MMEC to hire a full-time supply chain project manager, Jeff Peterson, and will enable MMEC to offer a variety of trainings and services to help Montana manufacturers more easily access parts and materials from domestic suppliers, West said. The effort comes in the wake of supply chain disruptions related to the pandemic that have been challenging for manufacturers in the state, she said.

“This is going to allow us to expand our work with Montana manufacturers to help them build supply chains that are more reliable because they’re based around other manufacturers like them in the U.S.,” West said. The effort could also open new market opportunities for Montana companies as they provide goods that other manufacturers in the U.S. need, she added.

MMEC has an existing supplier scouting program that helps Montana manufacturers locate parts and goods that are difficult to source. It also connects them with opportunities to respond to the supply needs of other manufacturers and federal agencies. Within the new federal effort, called MEP’s National Supply Chain Optimization and Intelligence Network, or SCOIN, that work will be expanded as part of a national framework that helps connect small suppliers to more opportunities in the supply chain, West explained.

“A lot of it will depend on our outreach to Montana manufacturers and the connections and relationships we form,” West said.

MMEC, which is housed in MSU’s Norm Asbjornson College of Engineering, is a statewide manufacturing outreach and assistance center that provides solutions to help Montana manufacturers grow, innovate and enhance their businesses. Since 2002, MMEC’s clients have reported $1.5 billion in new and retained sales, more than 7,000 new and retained jobs, $364 million in new investments and $184 million in cost savings.

Local Planners Set Transportation Plans  – 416 Projects at Cost of $934 million

26 July 2023
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The Long Range Transportation Plan (LRTP) for the Billings MPO (Metropolitan Planning Organization) is going through the final steps of being fully approved by the City of Billings, Yellowstone County, the Planning Board and the PCC (Policy Planning Committee which serves as the local MPO). The LRTP lays out the immediate and long term – –  20 years —  transportation projects that are considered important by the community, and prioritizes them.

The estimated cost of the proposed and recommended projects for the Billings MPO total, from 2024-33, $443,062,726. From 2034-45 they total $491,140,675. The estimated available revenue ($1.251 billion) is greater than the estimated total costs ($934.2 million) to implement the committed and recommended projects for the 2023 LRTP, which means the plan is fiscally responsible.

The Draft 2023 LRTP, which was presented to, and approved by Yellowstone County Commissioners, last week, includes  updates  to current transportation conditions, forecasts future population impact on the transportation system, models future traffic volumes through to 2045, and includes transportation project priorities. It was prepared for the City of Billings by Kittelson & Assoc. and DOWL.

The lion’s share of the 416 projects included in the 20-year Billings MPO plan are for multi-use trails and bicycle trails with 86 multi-use trails  and 124 bicycle trails. The next largest category is 81 roadway projects, which includes widening, reconstruction, space allocation, pavement preservation, signage, bridge rehabilitation, railroad crossings, pavement of gravel roads, etc.;  followed by 56 intersection projects, which includes safety studies, new stop signs new traffic signals, new roundabout, turn lanes, ADA upgrades and interchange layouts. Fifteen Congestion Management projects are included, which involve signal timing signal equipment, signs and warning systems. There are 22 Safe Route to School projects which involve projects identified in the 2022 school plan update; followed by 18 transit projects with include transit facilities, improvement, bus replacements, electric vehicle charging stations, and other upgrades.

Of the 416 projects in the plan, 63 are committed projects which are already included as existing projects in the Montana STIP, the MPO TIP, or the City of Billings CIP. Projects prioritized as “recommended” are those expected to be fully funded by year 2045. Illustrative projects are not expected to be funded by 2045 due to fiscal constraint but could be included in the adopted Long Range Transportation Plan if additional resources become available.

Funding comes from a combination of sources including federal, state and local revenues. The report explains “As transportation technologies continue to evolve, funding sources that were once lucrative, such as gas taxes, may become less relevant. To supplement and eventually replace obsolete funding sources, there are several funding sources that are emerging, including congestion pricing, mileage-based fees, variable parking fees, and electric vehicle charging taxes.”

Charging tolls is an option for heavily used roadways to reduce demand and to raise revenue.

Another future source for more funding is Mileage-Based Fees — also known as “Vehicle Miles Traveled” (VMT) fees. This funding source charges drivers directly for each mile traveled, either through odometer readings at annual vehicle registrations or GPS-based systems. Oregon and California have piloted mileage-based systems since the 2000’s, and other states are considering them.

Variable Parking Fees are similar to congestion pricing, charging fees for vehicular parking based on location, availability, and the time of day.

Electric Vehicle Charging Tax is emerging as a funding source. It levies a tax on electricity delivered to public electric vehicle charging stations. The Montana State Legislature passed a kilowatt hours tax in 2023. The state is researching replacements for the gas tax. At present, the gas tax is the primary source of non-federal funding for roads.

The current annual allocation for the Billings#-Yellowstone County MPO is $65,587,858. The 22-year revenue projection is $1,251,530,000. Using the 22-year revenue projection, the average annual allocation is estimated at $56,880,000. The report stated that the average annual revenue projection is anticipated to increase due to changes in federal funding programs. “However, it is important to note that federal earmarks, which were a previous revenue source, are no longer expected.”

Among some of the significant projects likely to emerge in the nxt few years:

Roadway Projects:

—Downtown 2 Way Conversion of 2 way streets. The one way to two?way conversion moves toward a consistent network of two?way streets within downtown Billings. 2028, $7,400,000

— 21st Street Underpass Improvements. The 21st Street Underpass has a low clearance of only 8.5 feet, limiting the vehicles that can pass through this route. With the congestion of 27th nearby, the City will increase the clearance to standard minimum of 14 feet to provide a route for emergency vehicles or larger commercial vehicles, especially during train crossings on 27th. 2028, $11,850

—90 Incident Management will install variable message signs and road closure gates on Interstate 90 from Billings to Three Forks – will aid in communicating road conditions, accidents, or other important information about the roadway ahead. 2028, $5,600,000

— Wicks Lane – Main to Bitteroot design for the reconstruction of Wicks Lane and construction of sidewalks. Wicks Lane is an arterial that carries a volume of traffic that would be more efficient and safe if the road was reconstructed as a three lane section with multimodal facilities. 2028, $2,200,000

— Billings Bypass – Five Mile Road to US87 Construction of connection from Five Mile Road to US87, 2028, $16,207,400

— Inner Belt Loop Road Construction, 2028, $14,620,400

— 1st Avenue N – 9th to RR Crossing Major Reconstruction, 2028, $15,209,100

—Billings Bypass – Johnson Lane Interchange to RR Overpass Construction of connection from interchange to railroad overpass, 2028,$9,252,800

— Billings Bypass – Railroad Overpass Construction of new bridge over railroad, 2028, $5,301,800

Intersection Projects:

—Billings Bypass – Johnson Lane Interchange Reconstruction of existing interchange, 2028, $45,204,600

— Exposition Drive and 1st Avenue N. Intersection improvements, 2028, $10,221,500

— Zoo Drive Improvements – Safety improvements, 2028, $5,238,300

— Airport Road and Main Street – Billings Intersection improvements, 2028, $10,968,100

— Rimrock & 62nd St W Intersection Improvements – Roundabout, 2028, $7,545,300

— Lockwood Interchange – Billings Reconstruction of existing interchange to a diverging diamond design, 2045, $45,000,000

— West Billings Interchange Construct additional EB and WB mainline lanes through interchange, modify vertical curve, reconstruct bridge segments (Laurel Rd and Mullowney) and restripe WB off-ramp at West Billings Interchange, 2045, $26 million.

Congestion Management

—27th Street RRXing ITS Signage and Advanced Warning System, Implement a signage and advanced warning system on 27th Street to inform transportation users of crossing delays due to incoming and stopped trains, 2033, $671,958

Pedestrian:

—a pedestrian grade separated crossing across Exposition Drive between 1st Avenue North and 6th Avenue North in 2028, $4 million.

— Sidewalk on Old Hardin Rd between Becraft Ln and Dickie Rd, 2033, $1.9 million

— Highway 3 Pedestrian/ Bicycle Underpasses as needed for multi-use trail connection across Zimmerman Trail, and north-south connections across Highway 3 for future development. 2045, $2.2 million

Bicycle Trails:

— Terry Ave/ Howard Ave/ 24th St W. neighborhood bikeway, 2028, $240,000

— 1st Avenue N. Bicycle Lane from N 13th St. to N. 36th St, 2033, $111,229

— Minnesota/ 1st Ave S Bicycle Lane from N 13th St to State Ave., 2033, $198,127

— Montana Ave. Bicycle Lane from N 18th St to Division St., 2033, $115,574

— Jellison Rd Bicycle Lane from Blue Creek Rd to Aldona Rd, 2033, $68,649

Trail Projects:

—Skyline Trail Multi Use Path, 2028, $4,121,400

—Stagecoach Trail is an 8?foot wide shared use pathway approximately 5,300 lineal feet that will run on the east side of Zimmerman Trail from Rimrock Road to Highway 3. This trail is an essential part of the Marathon Loop and will provide a connection from the top of the Rimrocks to the valley. 2028, $3,500,000

—6th Ave N Multiuse Trail will add a trail on 6th Ave North from Exposition Drive to N 13th. 2028, $500,000

— 25th Street Pedestrian Bridge over the Railroad Tracks at 25th Street between Montana and Minnesota Avenues. 2028, $1,250,000

— Coburn Rd Multi-use Trail from Old Hardin Rd to South extent of Coburn Rd; spot improvement at Old Hardin Rd and at Rosebud Lane, 2045, $3,816,648

Transit Projects

—Metroplex expansion/ interior remodel, 2028, $1,600,000

— MET Transit Rollingstock/ Buses Replacement Vehicles, 2028, $4,045,600

— Fixed Route Redesign to provide a better rider experience across the service area without requiring more funding. The redesigned network would achieve this by revising parts of the current route network so that buses spend more time on corridors with high demand, by reducing or eliminating loops, and by providing improved connectivity between transit-oriented land uses