HELENA – A lawmaker’s deal to get stimulus money for a family business drew some criticism from colleagues even as that firm testified Thursday on the results of its study to develop biomass energy.
A legislative interim committee received the study update from Porter Bench Energy a day after it was learned that state Rep. Llew Jones of Conrad used his seat on appropriations to carve $475,000 out of last year’s stimulus spending bill for the grant — while simultaneously organizing a company that got most of it shortly later.
Another lawmaker — fellow Republican Chas Vincent of Libby — works for a family business that Porter Bench hired as a subcontractor on the grant. Vincent chaired the committee Thursday that took testimony, and opened proceedings by briefly announcing the potential conflict.
Jones and Vincent say nothing is wrong with the deal. The stimulus money was awarded in a competitive grant, was not misused and will produce a valuable report on the feasibility of making electricity out of wood products.
Criticism of the arrangement was mixed outside the hearing — and tempered by lawmakers who said it is difficult to draw clear lines in a citizen Legislature where members run businesses and have other jobs.
Even Gov. Brian Schweitzer — who has lambasted use of stimulus money on tennis courts and in other areas — reserved harsh criticism.
“This doesn’t look good,” Schweitzer said. “What I can say is that in this business of politics you have to hold yourself to a higher standard. You hold yourself to a standard that is not just above a conflict of interest, but that which is also above even an appearance of a conflict of interest.”
Schweitzer said he only learned of Jones’ involvement as a result of inquiries from a reporter a day earlier. But the governor said even had he known prior to his Department of Commerce scoring applicants and awarding the grant, he is not sure he would have intervened to stop money from going to businesses tied to the two Republicans.
“It would have been complicated. It would have been complicated by this partisan stuff,” said Schweitzer, a Democrat. “It’s tough to say what I would have done, because I would have been between a rock and a hard spot.”
The arrangement was not brought up during Porter Bench’s testimony Thursday. A consultant for Porter Bench said their stimulus-funded study found there is enough wood supply currently available to support a $180 million plant developing a sizable amount of electricity.
No lawmakers asked about the ties to Jones — but outside the hearing some were more direct.
“On the face, it doesn’t pass the smell test,” said Sen. Bruce Tutvedt, R-Kalispell. “We need to demand better oversight of ourselves.”
Tutvedt said Jones will face a skeptical Republican caucus next session, and could have a hard time getting another seat on a committee in charge of spending. Jones is so far running unopposed for a Senate seat and will likely be moving to the upper chamber.
But Tutvedt and others said writing a new law to prevent similar situations in the future could be hard.
Montana lawmakers meet for 90 days every other year. The rest of the time they work in jobs or run businesses that are inevitably affected positively or negatively by legislation.
They point out that teachers vote on spending bills that send money to school districts and can influence salaries, trial lawyers vote on bills that affect the legal system they work in, those in the energy industries vote on bills that affect development — along with a laundry list of other potential conflicts.
“There are going to be conflicts when we come here,” said labor leader and state Sen. Jim Keane, D-Butte. “There is no way around it.”