Worcester Business Journal

www.wbjournal.com January 5, 2015 • Worcester Business Journal 21 After eight years in office, Deval Patrick's tenure as governor ends this week. He came into office in 2006, a time of economic highs, and was able to withstand the effects of a devastating national recession and the emergence of the Tea Party to win re-election in 2010. Any political leader that makes it back for a second term in the state's highest office deserves more of the credit, and carries more of the blame for what has happened during his tenure. As he hands the keys to Charlie Baker this week, Patrick leaves the statehouse after having delivered on many economic growth initiatives, while missing on others. Here's where he deserves due credit: LIFE SCIENCES — In 2008, Patrick launched a 10-year, $1 billion program to advance the industry in Massachusetts, focusing especially on technological investment, research funding and aligning educational offerings with the industry's demand for the right skillsets from its workers. This investment has helped establish Boston as the U.S. magnet for life sciences, and has also benefited Central Massachusetts. GATEWAY CITIES — Patrick made investment in the state's older industrial cities — including Worcester, Leominster and Fitchburg — a priority to help position them for the industries of tomorrow. Worcester has been a notable beneficiary, receiving millions of dollars to upgrade parks and infrastructure, as well as to convert "brownfields" sites into active use. DRUMMING UP FOREIGN BUSINESS — The governor racked up quite a few air miles over eight years, talking up the Bay State in Israel, Mexico, China and Panama among his many trade missions. The results are noteworthy. Several Israeli companies have opened offices in Massachusetts, including Argo Medical Technologies of Marlborough. The outreach has also helped the Massachusetts Port Authority add 11 nonstop international flights from Logan International Airport, with Mexico City and Beijing among the new destinations. TRANSPORTATION — With the help of his former lieutenant governor, Tim Murray, Patrick expanded the use of commuter rail on the Worcester-Framingham line, while the Fitchburg line is being extended west to Gardner. Off the rails, the governor gets a "B" for at least recognizing the subpar condition of the state's roads and bridges, an important issue given businesses' need to move goods and enhance access for their employees. While the governor and lawmakers have been at odds over how to spend the money he has proposed, the fact remains that the infrastructure needs upgrades; 19 percent of the state's major roads were in poor shape and 43 percent of its bridges were functionally obsolete, according to a 2013 quadrennial report by the American Society of Civil Engineers. ENERGY — Not all of Patrick's energy policies have made him the darling of business interests, but he can take much of the credit for the massive push to increase the state's use of renewable energy. Massachusetts ranks second behind California in clean energy technology, and first in investment activity and policy, according to industry research firm Clean Edge Inc. The administration cited double-digit growth in the number of clean energy-industry jobs. However, Patrick's record on taxation is mixed. The corporate income tax dropped from 9.5 percent to 8 percent during his tenure, while the sales tax rose from 5 to 6.25 percent in 2009 in part to deal with the revenue hole opened by the Great Recession. The Bay State still ranks in the middle of the pack on business friendliness, with a bottom-five ranking among the states in the costs of doing business. As Patrick prepares to leave the Statehouse this week, he carries with him a reasonably admirable record of accomplishment for Massachusetts' business sector, which is not bad for someone from the wing of a political party that has been traditionally considered unfriendly to business interests. n T he proposed Keystone XL pipeline may not be running through the Northeast, but we have a similar project trying to get on the books. Tennessee Gas Pipeline (TGP) has, in its most recent configuration, proposed a natural gas pipeline route from upstate New York through the Berkshires and across southern New Hampshire, then back into Massachusetts. The proposal has its flaws, but the developer, Kinder Morgan, believes it will help lower electricity costs. Interestingly, the national debate over Keystone is very similar to the debate here over TGP. Both propose to transport a somewhat controversial fuel (tar sands oil for Keystone, fracked gas for TGP) through valuable land, with some of the product potentially going to foreign markets. What's most interesting is that both projects are generating sophisticated debate among an engaged public that has taken the time to learn about regulatory processes and review approval thresholds to participate effectively in grassroots forums, media events, and the regulatory processes. When TGP filed its initial pre-application for the gas pipeline, it was immediately lampooned for its aged data and lack of accuracy. The swift public response signaled a new era in gas pipeline siting and, I suspect, a welcomed one by state and federal regulators and market operators. There was a time when regulators could rely only on information provided by the developer and what their own resource-limited staffs could produce and verify. Now, through electronic filing, group list serves, reliable information on the Internet and intelligence sharing through social media, all types of stakeholders can respond independently and rapidly to developer information and educate regulators as part of a proceeding. In turn, this information can be made readily available to elected officials and policymakers, who can use it to inform and question the regulators and the developer. While responsible development of energy infrastructure is something most of us can agree on, TGP's proposal will be a case study in how not to propose a pipeline today. That's not to say the project is doomed. However, Pandora's box has been opened and the ham-handed nature of TGP's efforts is a narrative that's sticking. TGP got ahead of itself and failed to contemplate the true nature of today's energy and environmental stakeholders. Interestingly, the public is not saying "No pipeline, period!" They're asking questions with embedded answers. For instance, why not simply expand existing narrow-gauge pipelines with larger-diameter pipes, or build alongside existing pipelines? Or, if the gas is used for heating and can't be used to generate electricity, how will it lower power prices and help manufacturers and homeowners? None of this, of course, is to say we don't need new sources of reliable and affordable energy, and we certainly don't want to unduly interfere with products getting to legitimate markets. However, an approach that takes into account community and regional needs and includes stakeholder interest in a meaningful manner should be adopted. n Vincent DeVito is a corporate attorney at Bowditch & Dewey LLP and a former U.S. assistant secretary of energy for policy and international affairs. How a quick flow of information impacted gas pipeline plans BY VINCENT DEVITO Special to the Worcester Business Journal Patrick's business legacy V I E W P O I N T Vincent DeVito E D I T O R I A L S The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Rick Saia, editor, at rsaia@wbjournal.com. Letters can also be faxed to 508-755-8860. P olitical leaders usually campaign with great fervor on economic growth. If they happen to win, economic conditions, which for the most part are beyond their control, can become an albatross that could send them packing the next time voters go to the polls. Timing counts for a lot, both in business and in politics, and many capable leaders have had to pay the price when external conditions headed downward. A s we age, many of us wonder what kind of legacy we'll leave, what kind of difference we will have made in the world or in our communities. The hundreds who stood in line at the wake of Edwin B. "Ted" Coghlin, many for four or more hours, and the overflowing crowd at his funeral are a testament to the power of his legacy in Central Massachusetts. Not only did he shepherd a business that has long been synonymous with Worcester's past and present, he made his mark on the future through his vision for vocational technical education. The now nine-year-old Worcester Technical High School on Skyline Drive — and its national acclaim as a beacon of educational success — is a shining symbol of a vision realized. While his presence will be missed, his legacy may well be visible for as long as or longer than the 79 years that marked his lifetime. n Ted Coghlin: 1935-2014

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