Business
Business Digest
01:00 AM EDT on Friday, May 30, 2008
States challenge EPA over ozone standards
Thirteen states, including Rhode Island, are challenging the U.S. Environmental Protection Agency’s refusal to adopt stronger ozone standards urged by its own scientists. The public interest law firm Earthjustice filed the lawsuit on behalf of the states, two cities and several organizations, including the American Lung Association, Natural Resources Defense Council, Environmental Defense Fund, National Parks Conservation Association and Appalachian Mountain Club over the standards the EPA adopted in March. The standards for ozone pollution — commonly known as smog — are not only far weaker than what was unanimously recommended by EPA science advisers, but also leave public health and the environment at great risk, the groups contend.
“EPA officials ignored the advice of their own scientists when they chose these deficient standards, but they can’t ignore the law,” said Earthjustice attorney David Baron, who filed the lawsuit. “The Clean Air Act requires EPA to adopt standards strong enough to protect our lungs and our environment. We’re fighting to make sure that happens. Stronger standards could save thousands of lives, by some estimates.”
Among the participants in the suit are California, Delaware, Illinois, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, New Mexico, Oregon, the District of Columbia, the City of New York and the Pennsylvania Department of Environmental Protection.
Langevin visits 3 R.I. research companies
Three Rhode Island research and development companies were paid a visit yesterday by U.S. Rep. Jim Langevin. The companies are Federal Electronics, in Cranston, Modular Energy Devices, in Warwick, and Epoxies Etc., in Cranston. “We are lucky to have these Rhode Island companies taking risks to develop new ideas and products, because often their innovations have wide-ranging benefits for the public,” said Langevin in a statement.
Dunkin’ Donuts ads pulled because of scarf
Dunkin’ Donuts has canceled an online advertisement featuring celebrity chef Rachael Ray after complaints that a scarf she wore in the ad offers symbolic support for terrorism. Dunkin’ Donuts said it pulled the ad over the weekend because of what it calls a “misperception” about the scarf that detracted from its original intent to promote the company’s iced coffee. Critics, including conservative commentator Michelle Malkin, complained that the scarf appeared to be traditional garb worn by Arab men. The ad’s critics say such scarves have come to symbolize Muslim extremism and terrorism. Canton, Mass.-based Dunkin’ Donuts says the black-and-white scarf that Ray wore had a paisley design and was selected by a stylist for the advertising shoot. The chain says no symbolism was intended.
Vermont businesses using hybrid trucks
At least two Vermont businesses are joining the move to high-mileage vehicles by using hybrid trucks, both as a way to save money and protect the environment. Cassella Waste Management just purchased its first hybrid collection vehicle and the Central Vermont Public Service Corporation is using what it says is the first hybrid utility truck in New England. Hybrids run on traditional fuel and electricity. CVPS fleet manager Dan Mackey says the new hybrid bucket truck uses 60 percent less fuel and emits nearly 60 percent less carbon dioxide into the atmosphere. The hybrid truck costs $220,000, about 13 percent more than a traditional diesel truck. But Mackey says over the life of the truck it will save about 23 percent over a traditional truck.
Insurer won’t seek higher premiums, for now
Massachusetts’ insurer of last resort won’t immediately seek a steep premium increase, saving money for 150,000 customers. The decision by the FAIR Plan comes after state insurance commissioner Nonnie Burns rejected its request to raise premiums 13.2 percent statewide, including 25 percent on Cape Cod. Burns said the rate-increase request wasn’t backed by timely or accurate data. FAIR Plan president John Golembeski told The Boston Globe that the company decided not to appeal, but declined to discuss specifics. The FAIR plan is a state-created insurer for cases where private insurers decline coverage. Its decision not to appeal will be felt most on the Cape, where the plan covers 40 percent of homeowners.
Mass. Turnpike reports fewer holiday tolls
The number of vehicles passing through tollbooths on the Massachusetts Turnpike over the Memorial Day weekend fell compared with last year, which was bad news for the financially struggling state agency. There were 41,000 fewer transactions over the holiday weekend this year, a 2.2-percent decrease, according to turnpike records. Drivers have been staying off the roads as gas pushes the $4-per-gallon mark. The agency, facing annual $30-million deficits and a Big Dig debt of more than $2 billion, is considering a number of ways to save money, including job cuts and cracking down on toll evaders. Despite the dropoff in holiday weekend transactions, agency spokesman Mac Daniel says the Turnpike recorded about 100 million transactions through April, a 1.46-percent increase from the same period last year.
Gov. Rell vetos hike in minimum wage
Gov. M. Jodi Rell vetoed legislation Tuesday that would have raised Connecticut’s minimum wage, saying it would hurt businesses already facing economic challenges. Rell’s veto leaves the hourly rate at $7.65 for the approximately 65,000 Connecticut residents earning the minimum wage. The last increase went into effect on Jan. 1, 2007, from $7.40. “Seeking an increase in the minimum wage is laudable, but it is a decision that cannot be made absent consideration of its impact on the state’s economy,” Rell wrote in her veto message to Secretary of the State Susan Bysiewicz. The measure, passed largely along party lines in the Democrat-controlled legislature, would have raised the hourly rate to $8 in 2009 and to $8.25 in 2010.
Of those who earn minimum wage, about 47 percent are 24 years old and younger, according to the state Labor Department. Many work part-time in retail, sales, cashier and food-service jobs.
Peter Gioia, an economist for the Connecticut Business and Industry Association, said the timing of a minimum wage increase would have been tough for companies.
“It really is going to be a very difficult year, particularly a very difficult summer,” he said. “You definitely would get a situation where companies would be cutting back hours because of this, or saying they’re not going to hire additional people or letting some people go.”
Two banks sued over security breach
Bank of New York Mellon Corp. and People’s United Bank Inc. were sued over a security breach that Connecticut officials blame for the loss of personal and financial data on 4.5 million people.
The consumer suit was filed yesterday in Connecticut state court on behalf of everyone whose information was in a box of unencrypted backup Bank of New York Mellon tapes that disappeared from a truck en route to storage in February.
The breach affects more than a half-million customers and shareholders of People’s United Bank of Bridgeport, among others, whose Social Security numbers and birth dates may have been compromised, according to Connecticut Gov. M. Jodi Rell. Rell last week directed the Connecticut Department of Consumer Protection to issue subpoenas seeking information on the breach from both banks.
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