Tag Archives: Jan Brewer

Arizona Commerce Authority

Cardon Named CEO, President Of State’s New Commerce Authority

Don Cardon today was officially named CEO and President of the newly formed Arizona Commerce Authority by Gov. Jan Brewer at the ACA board meeting at the Arizona Capitol.

Brewer named Cardon Director of the Arizona Department of Commerce in May 2009. On June 29, 2010, Brewer issued an Executive Order establishing the ACA and transitioning out the Department of Commerce. Cardon was on the committee to select the new head of the ACA. The committee looked no further than its backyard.

The 35-member, private sector ACA will work to align diverse assets and opportunities within the state to compete economically in both domestic and international markets to create high-quality jobs for the Arizona residents.

Cardon’s experience as an economic developer is vast. He worked in a rural Washington state community attracting international companies engaged in high-tech manufacturing, electronics and energy; he is a former entrepreneur, serving as President and CEO of Cardon Development Group, creating low-income housing tax credit projects throughout Arizona.

Cardon also helped initiate the formation of Phoenix Future, assembling business, political and financial leaders to create CityScape, a mixed-use development in downtown Phoenix. Cardon is experienced in financial planning, zoning activities, marketing and partnership development.

Vote Signs

Arizona’s 2010 Midterm Election Results

Midterm election results – In the 2010 midterm elections, Republicans won many seats on both national and local levels, and there’s now a Republican majority in the United States House of Representatives. Here’s how Arizonans voted at the polls yesterday

More election coverage from AZNow.Biz includes our political columnist, Tom Milton, analyzing the 2010 midterm election results in his weekly column and an infographic of Arizona’s past voting statistics.

For a full list of election results, including those elected to the Arizona House of Representatives, the Arizona Senate, city propositions, court appointees and other results, please visit the Arizona Secretary of State’s Web site or your county recorder’s Web site for local results.

Midterm Election Results:

Last updated 11/13/2010 at 9:40 am

Governor

REP – Jan Brewer – 54.28%
DEM – Terry Goddard – 42.43%
LBT – Barry J. Hess – 2.24%
GRN – Larry Gist – 0.93%

United States Senate

REP – John McCain – 58.69%
DEM – Rodney Glassman – 34.55%
LBT – David F. Nolan – 4.67%
GRN – Jerry Joslyn – 4.44%

United States Representative District 1

REP – Paul Gosar – 49.65%
DEM – Ann Kirkpatrick – 43.68%
LBT – Nicole Patti – 6.54%

United States Representative District 2

REP – Trent Franks – 64.82%
DEM – John Thrasher – 31.03%
LBT – Powell Gammill – 4.05%

United States Representative District 3

REP – Ben Quayle – 52.15%
DEM – Jon Hulburd – 41.08%
LBT – Michael Shoen – 5.03%
GRN – Leonard Clark – 1.58%

United States Representative District 4

DEM – Ed Pastor – 66.84%
REP – Janet Contreras – 27.48%
LBT – Joe Cobb – 2.95%
GRN – Rebecca Dewitt – 2.57%

United States Representative District 5

REP – David Schweikert – 51.94%
DEM – Harry Mitchell – 43.18%
LBT – Nick Coons – 4.77%

United States Representative District 6

REP – Jeff Flake – 66.32%
DEM – Rebecca Schneider – 29.07%
LBT – Darell Tapp – 3.09%
GRN – Richard Grayson – 1.36%

United States Representative District 7

DEM – Raul M. Grijalva – 50.16%
REP – Ruth McClung – 44.16%
INO – Harley Meyer – 2.83%
LBT – George Keane – 2.71%

United States Representative District 8

DEM – Gabrielle Giffords – 48.69%
REP – Jesse Kelly – 47.23%
LBT – Steven Stoltz – 3.93%

Secretary of State

REP – Ken Bennett – 58.12%
DEM – Chris Deschene – 41.72%

Attorney General

REP – Tom Horne – 51.77%
DEM – Felecia Rotellini – 48.00%

State Treasurer

REP – Doug Ducey – 51.80%
DEM – Andrei Cherny – 41.33%
LBT – Thane Eichenauer – 3.99%
GRN – Thomas Meadows – 2.78%

Superintendent of Public Instruction

REP – John Huppenthal – 55.24%
DEM – Penny Kotterman – 44.60%

State Mine Inspector

REP – Joe Hart – 57.02%
DEM – Manuel Cruz – 42.78%

Corporation Commissioner

REP – Brenda Burns – 29.06%
REP – Gary Pierce – 28.09%
DEM – David Bradley – 18.99%
DEM – Jorge Luis Garcia – 17.52%
LBT – Rick Fowlkes – 3.23%
GRN – Benjamin Pearcy – 1.59%
GRN – Theodore Gomez – 1.44%

Continue:

Propositions ~ State Senators ~ State Representatives

Arizona Commerce Authority - AZRE Magazine November/December 2010

Arizona Commerce Authority: Team Effort in Arizona CRE

If there’s one person who can help give Arizona the home-field advantage when it comes to attracting new businesses, new jobs and making the state more competitive in the global market, it’s Jerry Colangelo, the vice chairman of the Arizona Commerce Authority.

Perhaps that’s why Gov. Jan Brewer picked the Valley businessman as vice chairman of the newly formed Arizona Commerce Authority, a private sector board that will replace the Arizona Department of Commerce. The 35-member board includes a diverse group of business and educational leaders from across the state.

No matter what you’re in, it takes teams and people to win,” Colangelo said. “It’s true in every walk of life. Look at the disconnect that has existed in our state for such a long time, with the Legislature, with the business community, the lack of a game plan. Everyone has to be on the same page. And so the good news is this: There’s only one way to go. There is plenty of space here for us to be very, very successful.”

There definitely is room to grow when it comes to business attraction in Arizona.
According to Department of Commerce statistics, 47 companies located or expanded in Arizona in 2007, bringing a capital investment of $1.6B, almost 10,000 new jobs and an annual payroll of $483M. Then the recession hit and in just two years those figures took a nose dive: 24 companies located or expanded in Arizona with a capital investment of $255M, 2,649 jobs and a $124.6M payroll.

“When I became governor, I promised to get Arizona back on track by creating quality jobs, attracting high-growth industries, and advancing our competitive position in the global economy,” Brewer said. “With this board, I have now delivered a model to advance Arizona.”

Arizona Commerce Authority: Addressing the Industry’s Needs

How that model will advance Arizona is a question those in commercial real estate are asking. To its credit, the Arizona Commerce Authority includes several board members with direct business ties to the industry.

They are: Drew Brown, chairman of the board, DMB Associates; Peter Herder, chairman of the board and CEO, Herder Commercial Development; Mike Ingram, CEO and president, El Dorado Holdings; Doug Pruitt, chairman and CEO, Sundt Construction; and Mo Stein, principal and senior vice president, HKS Architects.

How do those in the industry envision an entity such as the Arizona Commerce Authority boosting a sagging commercial real estate market in Arizona?

“I look for the Arizona Commerce Authority to create a business model for all aspects of development in the state,” Stein said. “The authority will allow leverage of both public and private strengths that go beyond individual projects to opportunities that impact large segments of our communities and industries throughout the state.”

Mike Haenel, executive vice president, Industrial Division at Cassidy Turley BRE Commercial, noted: “I would like the Arizona Commerce Authority to communicate to the State Legislature exactly what it would take to relocate a company to Arizona. Thanks to a sophisticated local commercial real estate development industry, we have well-located and functional real estate available. Given the current economic conditions, pricing is extremely attractive, which translates into a perfect time to rent and or buy real estate in Arizona. The Arizona Commerce Authority needs to figure out what our state government should do to be competitive in attracting and retaining companies.”

Jim Gibson, senior associate in real estate at Squire, Sanders & Dempsey adds: “There has always been a long-standing partnership between economic development and the commercial real estate industry. Because of its role attracting new businesses to the state, I suspect that the Arizona Commerce Authority will be a tremendous resource for lead generation to brokers, developers and others in the industry. In addition, because of the Arizona Commerce Authority’s make-up of leaders in the private sector, it seems well-positioned by having both the business savvy to understand the wants and needs of companies looking to expand or relocate to Arizona, as well as having established relationships in the real estate industry to help each company assemble the right team depending on its particular real estate needs.”

Brewer made sure the new Arizona Commerce Authority is a statewide endeavor. While most board members are from the Metro Phoenix area, there also are four board members from Tucson, two from Flagstaff, and one each from Prescott and Yuma.

By creating a more competitive landscape and making economic development a higher priority, commercial real estate opportunities and transactions will result,” said Joe Snell, president and CEO of Tucson Regional Economic Opportunities (TREO). “The ability for the authority to assist groups like TREO in attracting and expanding primary jobs will result in significantly more commercial opportunities downstream.”

Listening to the Industry’s Concerns

While those involved are excited over the prospects of what the Arizona Commerce Authority may be able to achieve, there also is guarded optimism. Mark Singerman, regional director of Rockefeller Group Development Corp., said that just to stay even with what most other states offer, Arizona needs to become more competitive in attracting businesses to relocate here. He cites SB 1403, a bill giving special tax breaks and incentives to the solar energy industry.

Within several months of that incentive for renewable energy companies becoming law, there were at least a dozen solar companies looking to locate here,” Singerman said. “This type of incentive program needs to be expanded to all desirable industries.”

Up until 2006, Singerman said, Arizona became complacent about attracting residents and businesses. By virtue of being in close proximity to high-cost California, the state enjoyed steady growth with little effort.

“We now have to up our game to stay even with other states,” Singerman said. “If we have competitive economic incentive programs similar to what other states offer, our total package will be hard to beat when companies do their comparisons. But we are not there yet.”

Added Tim Lawless, president of NAIOP-AZ, adds: “While strategically targeting specific industry sectors like aerospace in the hopes of further diversifying our state’s economy is laudable, it is very unclear what the Arizona Commerce Authority can or will do to assist the vast number of firms that are already in the state, especially with their very limited budget. We need to keep in mind that we have more than 350,000 firms in our state and we need policies that will create an environment for them to survive and add jobs.

This can only happen should the Commerce Authority advocate for broad-based tax reform, rather than exclusively relying on esoteric tax breaks that create winners and losers,” Lawless continued. “Cake and ice cream tax breaks for industries like solar are fine, but only after a more substantial and well-balanced economic development diet is put on the table for all firms.”

For the Arizona Commerce Authority to make the state more competitive in business attraction, Lawless said Arizona needs to lower overall commercial property tax burdens, which are among the highest in the U.S.; create a significant deal-closing fund (non-tax benefit related) to land large employers that leverage the highest paying jobs; and lower corporate income tax rates that would put the state in a better position to compete with other Western states.

Arizona’s political climate could be another stumbling block in attracting new businesses, said Marty Alvarez Sr., CEO of Sun Eagle Corp.

“Part of the problem is the perception throughout the country that Arizona is a racist state with no upside for their companies to move here,” Alvarez said. “The Hispanic business community needs to be part of the marketing effort to dissuade the thought that our state is in political turmoil. This is the time to bring national and international firms to Arizona.
The collaboration led by the ACA needs political, social and business direction from the Hispanic business community in order to create a positive atmosphere for incoming companies,” he added. “The idea and implementation of the ACA is not only good but is a necessary solution for the future economic well being of our state. The leaders chosen to enact this organization and jumpstart the dialogue must be a public-private partnership.”

AZRE Magazine November/December 2010

Photo from Wikimedia Commons.

Newly Formed Arizona Commerce Authority Convenes Its Inaugural Board Meeting

Vowing that “today the rubber hits the road,” Gov. Jan Brewer and Jerry Colangelo assembled and introduced 35 state leaders representing diverse backgrounds for the inaugural board meeting of the Arizona Commerce Authority.

The private-sector board will work to align diverse assets and opportunities within the state to compete economically in both domestic and international markets to create high-quality jobs for the Arizona residents.

“For the first time in our state’s history, we convene the Governor, the Speaker of the House and the Senate President, and more than 35 of our nation’s most acknowledged leaders within both the private sector and academia – all with one express purpose: to advance the global competitiveness of our state the economic prosperity we seek for each person, each family and, perhaps more importantly, each child – it’s about a vision for a strong, vibrant economic future for this great state,” Gov. Brewer said.

“When I became Governor, I promised to get Arizona back on track by creating quality jobs, attracting high-growth industries, and advancing our competitive position in the global economy. We are doing just that. With this board, I have now delivered a model to advance Arizona.”

Presentations to the board outlined the impacts of the global economic crisis on the state, the forecasts if Arizona does not address diversification and growth in base industries, the state’s overall global competitiveness, and a focused approach to four core areas on which the ACA will focus and develop a planned approach to advance the state.

The authority will focus on improving the state’s infrastructure and climate to retain, attract and grow high-tech and innovative companies. That focus will be on aerospace and defense, science and technology, solar and renewable energy, small business and entrepreneurship.

“During one of the most challenging economic conditions in our nation’s history, Arizona is competing for something that is even greater than Olympic Gold; we are fighting for the health and future of our families and this state,” said Colangelo, co-chair of the board. “Today, with the expertise and leadership of each board member, we begin to compete aggressively for what really matters.”

Don Cardon, current director of the Department of Commerce, will serve on a selection committee to recruit a president and CEO of the ACA. Other committee members are Gov. Brewer’s chief of staff Eileen Klein; Mo Stein, senior vice president of HKS; Jerry Fuentes, president, AT&T Arizona/New Mexico; and Michael Kennedy, co-founder and partner, Gallagher & Kennedy.

Other notable board members include Kirk Adams, speaker, Arizona House of Representatives; Benito Almanza, state president, Bank of America; Michael Bidwill, president, Arizona Cardinals; Dr. Michael Crow, president, Arizona State University; Linda Hunt, president, St. Joseph’s Hospital and Medical Center; Anne Mariucci, chairman, Arizona Board of Regents; Doug Pruitt, chairman and CEO, Sundt Construction; and Roy Vallee, chairman of the board and CEO, Avnet.

Gov. Jan Brewer showed poorly in debate

Don’t Expect A Second Gubernatorial Debate

The candidates for governor will have one debate this year and it was last night. Who won? Well, any answer to that is subjective. Most news agencies (and friends on Facebook) are reporting that Gov. Jan Brewer showed poorly. She seemed uncomfortable right from the start, and I even discussed with one friend whether she was properly prepared or not.

So, if it is so obvious that she did badly, what does that mean for the race? I believe it means nothing.

In the past few months, Brewer has been elevated to the national level. Her support for SB 1070 has made her a regular subject on most cable news channels and their websites. She has become a national figure on the immigration issue and in direct conversation with President Obama.

So back to last night’s debate. Wait! First let’s talk debate strategies. Campaign 101 says that when you have a strong candidate who is well ahead in the polls (Rasmussen Polling has Brewer up 19%) don’t debate your opponent. You give them attention and credibility that they may struggle to get on their own. Because Brewer is a Clean Elections Candidate (publicly financed), she is required to attend at least one debate.

OK, now let’s go back to last night. She didn’t look good. With 60+ days to go before Election Day and a large lead, I would say this was like taking the medicine quickly and getting it over. Within 30 days this debate will be mostly forgotten as early balloting begins. I believe that Brewer and her staff are probably pretty happy that the debate was early and that it’s done. Now her campaign will become about her dialoguing when she wants and how she wants while the Democratic candidate, Terry Goddard, will continue to chase her around and demand more debates. He will most likely never get them.

If you are an outraged Democrat who finds this to be unfair, remember, this was the same strategy former Gov. Janet Napolitano used against Len Munsil in the last Arizona’s governor’s race (She actually gave him a second debate in Tucson that wasn’t broadcast statewide).

Brewer may have lost the debate last night, but the war is still pretty much in her control.

You can see the debate in its entirety at www.azpbs.org.

Town of Superior

The Town of Superior Awaits Copper Mine Ruling

The residents of the Town of Superior are collectively holding their breaths as they wait for SB 409, the Southeast Arizona Land Exchange and Conservation Act, to pass. Supported by Senators John McCain and John Kyl, as well as Gov.  Jan Brewer, SB 409 will essentially trade the Oak Flat Campground for various areas around the state, such as the riparian area of the San Pedro River and the Appleton Ranch. In exchange, the Oak Flat Campground will become part of the Resolution Copper Mine.

The Resolution Copper Mine Company, made up of London-based Rio Tinto Group and the Australian-based Broken Hill Properties, purchased the abandoned Magma Mine and is looking to acquire the Oak Flat Campground. Why? Because beneath it is possibly the largest vein of copper ever discovered.

The economic impact to the state is estimated at $46 billion over the mine’s 60-year life span. This would put Superior back on the map and employ many of its residents. The Resolution Copper Mine Company is proposing a block-style mining technique.

However, in 1955, President Eisenhower mandated that the Oak Flat Campground cannot be developed when he signed Public Land Order 1229.

Oak Flat Campground and the surrounding area is a recreational dream, and a sacred land to several Native American tribes. Devil’s Canyon lies to the immediate east. It is a canyon that is a mecca for rock climbers, canyoneers, hikers and bird watchers. The mining will significantly impact the water source for the creek. Apache Leap lies to the west, overlooking Superior, and is sacred to the Apache and several other tribes. Apache Leap is named after an uncomfirmed story of a skirmish between troops and Indians at what is now called Apache Leap Mountain. The legend states that Apache warriors were trapped on the large rock ledge by cavalry troops from Camp Pinal. Instead of surrendering, about 75 of the warriors opted to leap off the cliff to their deaths.

Superior’s history is one of coal mining. The first mines in the area were developed in the late 1800s. The town itself was founded in 1896, and incorporated in 1904. The town reportedly was named after the superior quality of coal found in the area. West of Superior is the Boyce Thompson Arboretum

Superior Facts:

  • Population in July 2009: 3,525
  • Population change since 2000: +8.3%
  • Males: 1,757  (49.8%)
  • Females: 1,768  (50.2%)
  • Median resident age:  39.2 years
  • Arizona median age:  34.2 years
  • Zip codes: 85273
  • Estimated median household income in 2008: $37,392 (it was $27,069 in 2000)
  • Superior:  $37,392
  • Arizona:  $50,958
  • Estimated per capita income in 2008: $16,810
  • Estimated median house or condo value in 2008: $100,261 (it was $45,400 in 2000)
  • Superior:  $100,261
  • Arizona:  $229,200
  • Mean prices in 2008
  • All housing units: $109,693
  • Detached houses: $102,383
  • Townhouses or other attached units: $103,822
  • Mobile homes: $34,951
  • Occupied boats, RVs, vans, etc.: $85,000
  • Movies: 1962 movie, “How the West Was Won,” and 1997 movie, “U-Turn”
  • Read more about the town of Superior
Greenbuild

Greenbuild 2009 Arrives In Phoenix

The time has come! Greenbuild 2009 has officially begun. For those unfamiliar with Greenbuild here’s some background information listed on the Web site for the event.

“Greenbuild is the world’s largest conference and expo dedicated to green building. Thousands of building professionals from all over the world come together at Greenbuild for three days of outstanding educational sessions, renowned speakers, green building tours, special seminars, and networking events.
Greenbuild 2009 is heading to the American Southwest, a region with unique environmental and social challenges and opportunities, and the imperative is clear: Green building can and must come home to all people, boosting the quality of life on main streets across the country and around the world. Join us at Greenbuild 2009 in Phoenix, Nov. 11-13, 2009 and engage in the conversation we must have to bring green to everyone, and bring everyone to green.”

Gov. Jan Brewer and Mayor Phil Gordon have proclaimed the week of Nov. 9-13 as U.S. Greenbuilding Council (USGBC) and Greenbuild International Week.  In separate statements, the governor and mayor cited the work of the Arizona Chapter of the U.S. Greenbuilding Council (USGBC) in hosting the conference and expo as well as the mission of the USBGC which is to alter the built environment.

Greenbuild is bringing 25,000 people from 90 countries to Arizona to attend this exciting conference and expo. The expo will showcase more than 1,000 vendors while the conference will offer 125 educational sessions on various green topics taught by local and national industry leaders. Sometimes referred to as the “Super Bowl of building green” Greenbuild is bringing some famous faces to town. Former vice president Al Gore is this year’s opening keynote speaker and singer Sheryl Crow is set to perform at Chase Field as part of the Greenbuild Opening Keynote & Celebration.

In recognition of this significant event hitting the Valley, the Arizona Greenbuild Host Committee and the Arizona Chapter of the USGBC have organized outdoor activities, off site education programs and 18 tours that showcase the best of the sustainable built environment in Arizona.

Several events will also be going on in the Valley throughout the week. From Tempe to Flagstaff, the entire state will be bringing sustainability into the spotlight with fun festivals and events for the public.

www.greenbuildexpo.org

www.tempe.gov/events/greenstreet
www.greenstreetscottsdale.com
www.rooseveltrow.org/greenstreets.html
www.usgbcaz.org

AZ Companies to Watch

Celebrating Second-Stage Entrepreneurial Companies

Presented by the Arizona Small Business Association in conjunction with the Edward Lowe Foundation

Gov. Jan Brewer

The businesses of the 2009 class of Comerica Bank Arizona Companies to Watch represent the determined, innovative spirit necessary to advance our great state. I am especially pleased to extend my congratulations and gratitude to this year’s recipients.

This prestigious recognition celebrates second-stage companies that employ from 10 to 100 people and generate between $750,000 and $100 million in gross annual revenue. These businesses are beyond the startup phase, possessing the capacity for significant growth, generating jobs and innovating new products and services. They make extraordinary contributions to our economy and to our communities.

The focus I have both as governor and as an Arizonan is where our state will be in the coming decade with regard to economic opportunities for our children and families — this is very real to me. Cultivating and sustaining stable jobs must be our highest priority. We must continue to take care of Arizona companies so they stay and grow jobs in our state.

Arizona, the nation and the world have been impacted by slowing economic conditions. It presents significant challenges — but also opportunity. Many of the companies we recognize today are seeing positive results. These companies are vital contributors to Arizona’s economic health and are critical to the well-being of the Arizona business community.

Arizona is a unique landscape ripe with opportunities for businesses. Please join me in honoring the 2009 Comerica Bank Arizona Companies to Watch recipients. We celebrate your current achievements and look forward to your future successes.

With appreciation,
Janice K. Brewer
Governor, State of Arizona

Edward Lowe Foundation

When Ed and I founded the Edward Lowe Foundation in 1985, we wanted to encourage entrepreneurship and a vibrant U.S. economy. In recent years, the foundation has concentrated its efforts on two key audiences: 1) Second-stage companies powered by entrepreneurs that have moved beyond the startup phase and are focused on growth issues rather than survival; and 2) entrepreneur support organizations (ESOs) that assist second-stage businesses and are the catalysts for growing their economies from the inside out by helping existing companies in the community.
To serve these audiences, we have developed a variety of tools and initiatives. In many ways, Companies to Watch creates a pipeline for these programs by identifying outstanding second-stage companies.

Celebration and recognition — Companies to Watch generates greater visibility in the marketplace, drawing attention to second-stage companies as a whole and to individual businesses. Honorees tell us that the program has boosted confidence levels for them with existing customers and suppliers. It has led to new opportunities for many firms. And for second-stage CEOs who spend so much time cheering on the troops, the award is a rare pat on their backs.

Life beyond the awards ceremony — Honorees have taken advantage of other Edward Lowe Foundation programs, such as our PeerSpectives roundtables and leader retreats at Big Rock Valley in Michigan. In fact, we’ve created a retreat format especially for Companies to Watch that gives newly named and past honorees a chance to meet and learn from each other.

Finding peers — This kind of networking is important because second-stage companies typically fly under the radar screen. By their very nature, second-stage entrepreneurs are fixated on their businesses, pressed for time and skeptical of joining groups. This makes it hard for them to find peers to share best practices.

It also make it difficult for ESOs to reach out to second-stagers. And even though many ESOs originally focused on startups, more organizations — such as the Arizona Small Business Association — are starting to target second-stage companies because of their immediate, sustainable impact on the economy. Through its application and nomination process, Companies to Watch helps ESOs discover new clients to serve, better assess their needs and tailor resources especially for these growing businesses.

What’s more, Companies to Watch creates a ready-made pool for researchers and policymakers to study second-stage entrepreneurs and track their impact. This is especially true in Arizona, which now counts four classes of honorees.

By helping second-stage entrepreneurs on their growth journey, and by helping ESOs expand their reach and capacity, the foundation hopes to be a catalyst for innovation and change. For even though Ed supported entrepreneurship broadly, he always believed that it was the second stage that was the greatest source of job creation. He would be delighted with the foundation’s focus on this important group, because the success of second-stage companies benefits not only the local communities i, n which they do business, but our entire nation.

Darlene Lowe
Chairman,
Edward Lowe Foundation

ASBA

The Arizona Small Business Association (asba) is honored to present the 2009 Comerica Bank Arizona Companies to Watch awards program. The program celebrates second-stage entrepreneurs and is done in association with the Edward Lowe Foundation. A special thank you to all our sponsors, including the event title sponsor, Comerica Bank.

Congratulations to this year’s remarkable honorees. This award is given to high-performing, second-stage businesses that boost economic growth and generate jobs in Arizona. It highlights the significant impact of second-stage companies on the state’s economy.

Over a four-year period ending in 2008, this year’s recipients have generated nearly $630 million in revenue and added 460 employees, a 148-percent increase in revenue and an 83-percent increase in jobs. That translates into 36 percent annual revenue growth and 23 percent annual growth in employees since 2005. If 2009 projections hold, these companies will have generated $849 million in revenue and added 559 employees in five years.

This has been a tough year for many businesses. There are many attributes that contribute to a company’s success. Perhaps the most important reason for small businesses’ survival is flexibility. When course correction needs to be made, small companies can pivot quickly. This ability to rapidly adapt and deploy new strategies often affords them a competitive edge over their larger corporate counterparts.

On behalf of all the members, staff and board of directors at asba, we extend our enthusiastic congratulations. We admire your courage, creativity and resiliency in these challenging times. Thank you for making Arizona a more vibrant place to work and live.

All the best,
Donna Davis
Chief Executive Officer
Arizona Small Business Association

Earth and climate change

Arizona Businesses Brace For Greenhouse Gas Regulations Under Western Climate Initiative

As the Arizona Legislature convenes, a Democratic governor heads to Washington, and a Republican governor takes the reins, state businesses find themselves deeply concerned about what will happen to Arizona’s environmental policy and the consequences associated with these unprecedented and troubled economic times.

Many legislators want Secretary of State Jan Brewer, who soon will take over the governor’s office, to rescind executive orders entered by outgoing Gov. Janet Napolitano. Rumors also abound about efforts to eliminate the Department of Environmental Quality (ADEQ). Meanwhile, the regulated community is left wondering what will be next for such large-scale regulatory efforts as the Western Climate Initiative (WCI), which was largely championed by Napolitano and ADEQ Director Steve Owens.

The WCI is a collaboration among seven U.S. governors and four Canadian premiers that Napolitano and others created to reduce greenhouse gases in the region using a market-based, cap-and-trade system. The member jurisdictions include: Arizona, California, New Mexico, Montana, Oregon, Utah, and Washington, as well as the Canadian provinces of British Columbia, Manitoba, Ontario and Quebec. Together, these seven states and four provinces represent more than 20 percent of the U.S. economy and 70 percent of Canada’s. Thirteen other U.S. and Mexican states and Canadian provinces have joined as observers.

Arizona entered the WCI in February 2007, following reports indicating that Arizona’s greenhouse gas (GHG) emissions were increasing. There were also predictions that by 2020, the state’s GHG emissions would increase by nearly 150 percent over the 1990 levels if Arizona neglected to reduce them. Arizona has played a vital role in the WCI since its beginning, with Owens serving as co-chair during the time the initial policy was developed. The first major accomplishment occurred with Owens at the helm, when the WCI released its design recommendations for the Regional Cap-and-Trade Program in late September.

Political changes and the design itself indicate that the WCI likely will affect Arizona regardless of whether the state stays in or exits the WCI. For example, as applied to electricity, the regulations will apply to the first jurisdictional deliverer (FJD). For sources within WCI jurisdictions, the FJD is the generator. For power generated outside the WCI jurisdictions (including federal and tribal lands) for consumption within a WCI partner jurisdiction, the FJD is the first entity that delivers that electricity, over which the consuming WCI partner jurisdiction has regulatory authority. Thus, if Arizona remains in the WCI, regulations will apply to generators of electricity; if Arizona leaves the WCI, any business or entity that seeks to deliver electricity to any jurisdiction that is a member will be subject to the regulations. In addition to electricity generators and suppliers, the WCI will regulate other sources of emissions such as industrial, residential and commercial sources, as well as industrial fuel combustion at facilities and transportation fuel combustion.

Details still must be developed, but the initial emission threshold triggering regulatory compliance is estimated to be 25,000 metric tons of carbon dioxide equivalents annually. The design was tailored to specifically allow the scope of the cap-and-trade program to expand over time to add new sources to the system, raise or lower the cap as necessary, and to integrate it into other programs.

This may be critical sooner rather than later, as many expect a federal program from President Barack Obama’s administration. Certainly with 20 percent of the U.S. economy regulated under WCI, in a region with critical energy supplies and high levels of emissions, the WCI is poised to become amodel. Additionally, calling this the Western Climate Initiative is a misnomer since Manitoba, Ontario and Quebec are included, extending the WCI boundaries to the Atlantic. In fact, the WCI covers the largest geographical area of any regional initiative. Moreover, with Napolitano in the Obama cabinet, Owens is predicted to land a federal regulatory role, and the WCI publicly states that it plans to promote and influence federal GHG emission reduction programs consistent with its design principles.

For now, Brewer is taking a cautious approach, noting that she currently plans to remain involved to get information and see what can be done in Arizona, but that given the economy, she is not yet ready to take a position on the planned cap-and-trade program. If Arizona remains in the WCI, mandatory reporting will begin with measurement and monitoring this time next year. The start date for cap-and-trade is Jan. 1, 2012. Regardless of whether Arizona is in or out of the WCI, a new regulatory regime now appears imminent and the only real questions moving forward seem to be how to influence outstanding issues and prepare for compliance and increased costs.