It is one thing to distribute heating oil at a discount through local non-profit charities, it is another to give a local government, a discount on fuel that is used on a for profit program.
An agreement between a foreign government owned company and a local government is an agreement between 2 governments, the company is just a front for one of the governments. It could be argued in court that the foreign government was trying to influence the local populace or politicians, and the below cost fuel was a bribe, since the fuel could be used to make a profit. That is why treaties between local US governments and foreign nations are illegal. If Chicago gave up all of it's busses to a private non-profit organization, not connected with any government, there should be no legal problems, with the non-profit organization accepting the fuel, and using it to run the busses - using the bus fairs to pay for the fuel and running and maintance of the busses. Greg H. ----- Original Message ----- From: "Hakan Falk" <[EMAIL PROTECTED]> To: <Biofuel@sustainablelists.org> Sent: Thursday, January 05, 2006 10:13 Subject: Re: [Biofuel] Chicago Turns Down Discounted Venezuelan Oil This is a delivery agreement with a US company Citgo owned by Venezuela and a US city, regarding deliveries of discounted energy. I fail to see what might be illegal. Hakan At 16:17 05/01/2006, you wrote: >IIRC, it's not legal for individual states or cities to make treaties with >foreign nations, as such an agreement might be considered. > > >Greg H. > > >----- Original Message ----- >From: "Keith Addison" <[EMAIL PROTECTED]> >To: <biofuel@sustainablelists.org> >Sent: Wednesday, January 04, 2006 23:56 >Subject: [Biofuel] Chicago Turns Down Discounted Venezuelan Oil > > >http://newstandardnews.net/content/index.cfm/items/2710 > >Chicago Turns Down Discounted Venezuelan Oil > >by Jessica Pupovac (bio) > >As Chicago's poorest face an increase to already-high public transit >fees, the city is ignoring an offer of discounted diesel fuel to >benefit low-income people. >Chicago, Dec 28, 2005 - The Chicago Transit Authority is refusing an >opportunity to alleviate commuting costs for hundreds of thousands in >the Windy City's low-income neighborhoods. Instead of accepting >deeply discounted fuel from the Venezuela-owned Citgo Petroleum >Corporation, the city is instead raising fares to solve budget >shortfalls. > >In an October meeting with representatives from the Chicago Transit >Authority (CTA), the city's Department of Energy and other city >officials, Citgo unveiled a plan to provide the Chicago with low-cost >diesel fuel. The company's stipulation, at the bidding of Venezuelan >President Hugo Chavez, was that the CTA, in turn, pass those savings >on to poor residents in the form free or discounted fare cards. > >But two months later, despite claims of a looming budget crisis, the >CTA president "has no intent or plan to accept the offer," according >to CTA spokesperson Ibis Antongiorgi. She gave no explanation. > >According to Venezuela's consul general in Chicago, Martin Sanchez, >the CTA has yet to inform his office of its decision to decline the >discount offer. > >In place of the proposed discount, which the CTA apparently does not >want Chicagoans to even know about, budget shortfalls will be >addressed by fare hikes. Chicagoans who are unaware of the Venezuela >offer will be hit with an increase of 25 cents per ride next month, >and discounted route-to-route transfers will be eliminated for >passengers paying cash. > >"This is going to hurt the poor and the minority people, like me," >said Dorothy Chew, resident of Humboldt Park, where one-third of >residents live below the federally recognized poverty level - >currently just $16,000 for a family of three. Chew relies on the CTA >to get to work and to Chicago Commons, where she attends classes >daily in preparation for taking her GED. Since she rarely has money >to invest in a fare card, she will be forced to pay for transfers the >majority of the time. > >Chew's classmate, Linda Cox, works a minimum-wage job and has been a >Public Aid recipient for 15 years. She also relies heavily on public >transportation. > >"I only earn $560 a month and of that, over $200 a month goes to my >bus fare," Cox told The NewStandard. "I have a 15-year-old and a >17-year-old who also need to get to school. If they change the prices >and take away transfers, there are going to be a lot of days missed. >I already see no money at the end of the month." > >The offer of discount fuel is not just confined to Chicago. Over the >Thanksgiving holiday, the first of Venezuela's "oil-for-the-poor" >programs in the US was launched. Citgo struck a deal with three >nonprofit organizations in the Bronx to deliver 5 million gallons of >heating oil at 45 percent below the market price. The deal will >amount to a savings of $4 million for the 8,000 low-income households >slated to benefit from the plan. > >"This is going to hurt the poor and the minority people, like me." -- >Dorothy Chew Citgo has made a similar arrangement with Citizens >Energy Corp. in Boston for the sale and distribution of 12 million >gallons, saving low-income and elderly residents there a total of $10 >million. The company's website says that it expects to expand the >program to other boroughs in New York City and that it is exploring >the possibility of offering discounted fuel to residents in Maine, >Rhode Island, Connecticut and Pennsylvania. > >However, in all of Illinois, only about 12,000 households use heating oil. > >So instead of fuel for heat, Citgo representatives offered the CTA a >40-50 percent discount on diesel fuel for buses to benefit Chicagoans >most in need of relief from soaring oil and gas prices this winter. > >"We didn't know how else to reach enough people," said Consul Sanchez. > >Another difference between the Chicago offer and the programs enacted >in the Northeast is that Citgo proposed to work with a government >agency, rather than nonprofit organizations. The CTA relies on the US >federal government - which is in a constant war of words with >Venezuelan President Chavez - for much of its funding. In fact, just >weeks after Citgo made its offer to the CTA, Congress signed the >Federal Transportation Appropriations bill, allocating $89 million in >infrastructure project funds the CTA had been seeking for years. > >Representatives from the US State Department and city officials, >including Aldermen involved in the negotiations and the Chicago >Mayor's Office, refused to respond to queries about whether >international politics played any part in the CTA's rejection of >Citgo's offer. > >Some critics of President Chavez say his offer of cheap fuel to >low-income communities in the US is a political ploy to win the >support of the American people. Larry Birns, executive director of >the progressive think tank, Council on Hemispheric Affairs, said >Chavez is trying to counter Bush administration criticisms with >"petro-diplomacy." Birns, who criticizes both US policy toward >Venezuela and Chavez's confrontational style, told TNS, "There is a >certain amount of humor involved in needling the Bush administration >for neglecting its own while attempting to stand tall in Latin >America." > >However, as Mark Weisbrot of the Center for Economic and Policy >Research - another progressive think tank - pointed out, the >Venezuelan government has been providing cheap fuel to several >countries in Latin America. Weisbrot is a staunch supporter of the >Chavez administration. > >"It is part of [Venezuela's] policy to compensate for the impact of >the high oil prices on poor people," he said. "They don't have any >grudge against the American people; it's just the Bush administration >that they don't like." > >Consul Sanchez echoed this sentiment. "Any corporation that makes a >big profit in a community owes that community something in return," >he said. With one of Citgo's three light-oil refineries located in >nearby Lemont, 30 minutes outside the city, Sanchez said, Venezuela >has "a special relationship with people and community organizations >in Chicago." > >There remains no sign, however, that the government of Chicago will >take Citgo and Venezuela up on the unilateral offer. > >© 2005 The NewStandard. > >_______________________________________________ >Biofuel mailing list >Biofuel@sustainablelists.org >http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org > >Biofuel at Journey to Forever: >http://journeytoforever.org/biofuel.html > >Search the combined Biofuel and Biofuels-biz list archives (50,000 >messages): >http://www.mail-archive.com/biofuel@sustainablelists.org/ > > > >_______________________________________________ >Biofuel mailing list >Biofuel@sustainablelists.org >http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org > >Biofuel at Journey to Forever: >http://journeytoforever.org/biofuel.html > >Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): >http://www.mail-archive.com/biofuel@sustainablelists.org/ _______________________________________________ Biofuel mailing list Biofuel@sustainablelists.org http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): http://www.mail-archive.com/biofuel@sustainablelists.org/ _______________________________________________ Biofuel mailing list Biofuel@sustainablelists.org http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): http://www.mail-archive.com/biofuel@sustainablelists.org/
