Gov. Scott had stake in pipeline firm whose $3 billion venture he and his appointees backed


By Dan Christensen, 

Florida's existing and proposed pipeline routes. Gov. Scott invested hundreds of thousands of dollars in companies that own all three. Illustration: NextEra Energy

Florida’s existing and proposed pipeline routes. Gov. Scott invested hundreds of thousands of dollars in companies that own all three. Illustration: NextEra Energy

Upon his election, Gov. Rick Scott’s transition team included a Florida Power & Light executive who pitched his company’s plan to build a major natural gas pipeline in North Florida to fuel a new generation of gas-fired power plants in places like Port Everglades.

“The proposed project will need state regulatory and governmental agencies to understand and support this project,” said the proposal submitted by FPL vice president Sam Forrest.

Gov. Scott understood. In May and June 2013, he signed into law two bills (HB 999 and HB 1083) designed to speed up permitting for what came to be known as the Sabal Trail Transmission – a controversial, 474-mile natural gas pipeline that’s to run from Alabama and Georgia to a hub in Central Florida, south of Orlando.

Five months later, the Florida Public Service Commission, whose five members were appointed by Gov. Scott, unanimously approved construction of Sabal Trail as the state’s third major natural gas pipeline. More approvals are needed from the Federal Energy Regulatory Commission (FERC) and the Florida Department of Environmental Protection, which the governor oversees.

What wasn’t publicly known in 2013, however, was that Gov. Scott owned a stake in Spectra Energy, the Houston company chosen by Florida Power & Light that July to build and operate the $3 billion pipeline. Sabal Trail Transmission LLC is a joint venture of Spectra Energy and FPL’s parent, NextEra Energy.’s review of financial records made public last month by Gov. Scott show that as of Dec. 31 his portfolio included several million dollars invested in the securities of more than two-dozen entities that produce and/or transport natural gas – including some, like Spectra, with substantial Florida operations.

His stake in Spectra Energy was reported as being worth $53,000 that day.

Florida’s ethics laws generally prohibit public officials like the governor from owning stock in businesses subject to their regulation, or that do business with state agencies. A similar prohibition exists on owning shares in companies that would “create a continuing or frequently recurring conflict” between an official’s private interests and the “full and faithful discharge” of his public duties.


Scott’s investments in companies that do business in Florida raise fresh concerns about the operation of Florida’s so-called “qualified blind trust” statute – a law that allows public officials to veil their investment activity while affording them immunity from prohibited conflicts of interest.

Gov. Rick Scott

Gov. Rick Scott

Scott acquired his Spectra shares via his blind trust. Exactly when that occurred is not known, and Greg Blair, a spokesman for the governor’s re-election campaign, said in an email that Scott has “no knowledge of the investment because his decision to invest was made by a trustee of the blind trust.”

Blind trusts are supposed to eliminate conflicts of interest by “blinding” public officials and the public to the nature of their holdings. The law’s requirement that officials hand over control of an investment portfolio to a disinterested manager was intended to accomplish that.

But as reported in March, the governor’s blind trust was ineffective in keeping the governor’s assets secret. And Alan Bazaar, a trusted former employee of the governor’s private investment firm Richard L. Scott Investments, managed it.

“The legislature makes it easy for officials to get away with conflicts of interest through loopholes in the ethics code,” said Dan Krassner, executive director of Integrity Florida, the nonpartisan research institute and government watchdog group. “Corruption has been institutionalized in Florida with flawed policies like blind trusts and political appointees issuing advisory opinions on what’s ethical.”

The governor, the senate president and the house speaker appoint the members of Florida’s Commission on Ethics.

The governor’s financial interest in Sabal Trail’s builder, Spectra, is also fueling criticism from opponents of the controversial natural gas pipeline project.

“That’s very interesting,” said Susan Glickman, Florida Director of the Southern Alliance for Clean Energy. “It’s totally inappropriate that we have policymakers making important decisions where they have a financial stake in the outcome.”


Beth Gordon is a lawyer and former South Florida resident who now lives with her family on a 32-acre horse farm in Levy County where Spectra wants to route Sabal Trail. She helped found Spectrabusters, a citizens’ group that’s fighting Sabal Trail.

“I’m outraged and disheartened by this news. I feel blindsided,” said Gordon, who like Scott is a Republican. “The governor’s interest is in getting these companies the permits they need and he’s not interested in the environment.”

The governor’s financial disclosure form, essentially a snapshot of his extensive holdings as of Dec. 31, shows that Scott also owns a $55,000 stake in another Spectra asset, DCP Midstream Partners. DCM is a natural gas limited partnership 50 percent owned by Spectra Energy.

Scott disclosed his portfolio last month after he closed his original blind trust, then immediately opened a new one and placed all of his assets back into it.

He did it “to ensure that there would not be the possibility of any conflict of interest,” spokesman Greg Blair said via email. “As a result, Gov. Scott has no knowledge of the current contents of the blind trust.”

The trustee of the new blind trust, however, continues to be New York’s Hollow Brook Wealth Management and its chief executive and longtime Scott crony Alan Baazar.

Neither the governor nor anyone on his staff would be interviewed about his investments. Last month’s disclosure form marks the first time the governor has made public a list of his securities investments since he formed the blind trust in April 2011.

The maneuver served to insulate Gov. Scott from criticism about financial transparency amid his re-election campaign against former Gov. Charlie Crist. But it also revealed Scott’s large personal bet on natural gas and firms like Spectra and Energy Transfer Equity LP.


Energy Transfer is a publicly traded master limited partnership whose subsidiaries include a joint venture that owns Florida Gas Transmission. FGT is the state’s largest natural gas pipeline, transporting it from Texas through the Florida peninsula south to Miami-Dade.

Florida Gas Transmission is also a major state vendor. According to Transparency Florida, the state website where government spending information is posted, FGT was paid $28.4 million by the Department of Transportation for various construction services in 2013-2014.

Scott valued his units of Energy Transfer as being worth $311,000 as of the end of last year. He likewise reported additional investments in a pair of entities owned by Energy Transfer, Regency Energy Partners LP and PVR Partners LP, totaling $400,000.

Scott’s investments in Spectra and Williams, an energy infrastructure company, also gave him a financial interest in Florida’s other major natural gas pipeline, Gulfstream, which runs from Alabama to Tampa Bay beneath the Gulf of Mexico. Those companies and their limited partnerships jointly own and operate Palmetto-based Gulfstream Natural Gas System LLC.

Scott’s disclosure form reported that in addition to his Spectra holdings he owned Williams shares worth $104,000 and a $71,000 ownership interest in a master limited partnership owned by Williams, Access Midstream Partners.

In addition to the bills Scott signed to streamline permitting for natural gas pipelines, he likewise benefitted the industry last year by approving another law (HB 579) that provides $30 million over five years to fund rebates to commercial fleet operators who buy, convert or lease vehicles that run on natural gas. The program, administered by Agriculture and Consumer Services boss Adam Putnam, offers applicants a maximum annual rebate of $250,000.

The Public Service Commission later approved several individual natural gas vehicle programs. PSC Commission Chairman Ronald A. Brise said the moves helped make “natural gas pricing more competitive with conventional motor fuels.”

The law also exempts natural gas fuel from state fuel, sales and use taxes for five years.

“They’re doing everything they can to build the market,” said Glickman.

Florida’s natural gas market is huge and growing. Nearly 68 percent of Florida’s electric generation, and more than 72 percent of FPL’s total energy, was fueled by natural gas in 2012, according to the Public Service Commission. Pipelines bring virtually all of that gas to Florida.


The Sabal Trail underground pipeline is to run through 13 Florida counties. Documents state that it is intended to provide Florida Power & Light with a dedicated supply of natural gas for power generation needs and other purposes starting in May 2017.

Much of that new supply is to come from natural gas fracked from shale. It would flow to Florida from Sabal Trail’s connection to Williams’ Transco pipeline in Alabama.

Sabal Trail is to terminate at a new central Florida hub where it would connect to the state’s two other main natural gas pipelines, Florida Gas Transmission and Gulfstream. Another part of the new pipeline project that does not involve Spectra is the construction of a 126-mile, $550 million pipeline to run from Sabal Trail’s termination point in Osceola County to an FPL plant in Indiantown in Martin County.

“The primary factors driving this increased need are the three modernization projects currently in progress at FPL’s Cape Canaveral, Riviera Beach and Port Everglades natural gas plants to upgrade older, 1960’s-era steam combustion turbine generating units to modern, and more efficient combined cycle technology,” said the Public Service Commission’s October 2013 memorandum endorsing the pipeline projects.

Sabal Trail, however, has drawn significant opposition from both environmentalists who fear pollution and residents who consider the 36-inch steel pipeline a hazard and don’t want it anywhere near them.

In April, the Environmental Protection Agency (EPA) sent a 17-page letter to FERC that questioned the need for Sabal Trail and suggested alternatives, like improved energy conservation measures, that would allow FPL to otherwise meet the power needs of its customers.

“U.S. electricity sales appear to have peaked in 2007,” the letter says.

FPL isn’t the only utility looking to generate electricity using natural gas imported via Sabal Trail.

Later this year, the Public Service Commission will consider plans by Duke Energy Florida to build a new, combined-cycle natural gas plant near Crystal River in Citrus County that would be a major customer of the new pipeline.

According to a Duke Energy press release, the project also requires certification under Florida’s Power Plant Siting Act. Certifications are issued by Florida’s siting board, which consists of the governor and Cabinet.

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  1. Nancy Argenziano says:

    The fact that the FLPSC is attached at the hip of the large utilities and to the Republican state leaders should come as no surprise to anyone. The numerous articles that have been written about the unethical behavior of many Commissioners, the legislative attempts to get rid of fair commissioners, including myself, the large utility deep involvement in the nominating process as well as the smear tactics they use to discredit honest commissioners that dare to do the job fairly and according to the statutes (law), is very telling. The PSC commissioners are paid handsomely to do as they are directed by the legislature and the utilities and they take the heat with the promise that they will get re-appointed to the high paying position. People of Fl better wake up and realize that the Republican leadership has and will continue to favor those utilities over your best interest and fairness. Until you vote them out, and get balance back in the state, and take the PSC away from the legislature, you will get screwed time and time again.

  2. Douglas Willias says:

    I always wondered why the Governor put so much of his own money into a campaign for a job that does not pay that much. I knew it would be about money and here you go. It will be all worth it to him now.

  3. Dave Hartley says:

    Why is any of this a surprise? The only surprise would be if any repercussions resulted. Very difficult to not be totally cynical about the slop bucket of Florida politics.

  4. Janis Lentz says:

    The only question is, who is going to file a formal ethics complaint against Rick Scott with the FL Commission on Ethics? Nancy A. is correct, she tried to do her job ethically on the PSC, and her thanks was she was gotten rid of. Just as he dismissed and replaced with his “yes” men, the staffs at the various water management districts. This is truly a ZOMBIE state government, a total sham and no, the citizens of Florida don’t have to just sit back and take this! This state government is truly a cesspool of corruption. Our only hope is to depose this charlatan by convincing registered Republicans to vote for Elizabeth Cuevos-Neunder on Aug. 26th!

  5. Janis Lentz says:

    And this pipeline is in no way a “done deal.” In an 18 page letter, the DoE notified FPL that they had NOT demonstrated a need for this pipeline nor had they demonstrated that FERC’s approval of it would be in the best interests of the public. Regardless of Rick Scott’s manipulations for personal gain, no approval will be forthcoming by FERC until this is done. And the fact remains–this pipeline is not needed. More evidence of the fact that Scott is the most corrupt governor in the checkered history of this state!

  6. George May says:

    Richard L. Scott, Pamula Bondi, Charles Crist were automatically by Operation of Law Removed from the Election Ballot by their not paying George May his Condemnation Money for the Taking of his Land, Oil, Gas, Limestone, Minerals, Contracts for Development without payment, sponsoring, funding Hamas, the Muslim Brotherhood, Iran, Terrorists, taking Bribes, Pay Off, Kick Backs from Donald Trump, who funds sponsors terrorist Arab bank, bank of China convicted of terrorism by George May filing his Sworn Affidavit of English Common Law Treason, Treason for Richard L. Scott, Pamula Bondi, Charles Crist Treason against the State of Florida, the United States of America, Grand Theft, Public Corruption, funding terrorist with Florida money, rigging the Florida Election by paying off, bribing the Election Commission, and by Federal statutes 5 U.S.C. 3331. 3333, 7311, the Act of Congress the Second Confiscation Act, CXCV, the Executive Order by Abraham Lincoln of November 13, 1862, Federal statutes 18 U,S.C. 1918, 2381, 2382, 2383, 2384, 2385, and by George May filing his Inter Alia In Rem Civil Forfeiture Complaint against Richard L. Scott, Pamula Bondi which forfeits their Office, January 27, 2014, My Sworn Affidavit of treason, requests all Law Enforcement Officers, police, Militia, U.S. Citizens, to Arrest, Jail, Prosecute, or Suffer Death to Richard L. Scott, Pamula Bondi, Charles Crist pursuant to the before mentioned herein Laws, Acts of Congress , and your Allegiance to the United States requires you to do the same, for a copy of my Sworn Affidavit Call leave a fax number George May 561-290-4384

  7. George May says:

    If the Big Criminals are running Florida , all others in Jail Should immediately be let out , for their small crimes, all should be able to pay off judges as Richard l. Scott, Donald trump, Pamula Bondi, Charles Crist, Barack Obama II, Hamas, the Muslim Brotherhood, Iran, Arab Bank, Bank of China, to rob Billion of Dollars of Tax Payer Money, land, Property, Oil, Gas, Minerals, the Elections, or the Sheriffs, Police who support their criminal acts against us should enforce the law for the Citizens paying their wages,. All should live in a Mansion, Eat Good Food, have the Best of Health Care, as Criminal Richard L. Scott, Pamula Bondi, Charles Crist, Donald trump, Barack H. Obama II, who are committing Public Corruption, Grand Theft, Patriot Act Violations, giving Aid, Comfort to our enemies who are at this time bombing U.S. Citizens . The Law Automatically Removes these Vultures from Office for their not obeying their Oath, Sworn Oath to uphold the Constitution, not be Criminals by their Evil Acts of English Common Law Treason, Treason, Crimes that they Confess, plead guilty to by their evil acts for their self profit

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