Michael Caputo: WHAT DO YOU NEED TO KNOW, HOW ABOUT GAUGING THE ROCHESTER MAYORAL CAMPAIGN FOLLOWING THE CANDIDATES' FIRST STEPS? WE WILL SIT DOWN WITH JOURNALISTS WHO COVER THE

RACE.

 

Julie Philipp: AND WE BEGIN OUR SERIES ON THE ECONOMICS OF GREEN BY LOOKING AT THE POTENTIAL OF A GREEN PRODUCT,

FUEL CELLS TO BOOST JOBS IN OUR REGION.

 

MC: AND WE’LL ALSO HAVE THE BUSINESS NEWS. STICK AROUND FOR "NEED TO KNOW."

 

(CAPTIONING MADE POSSIBLE BY THE U.S. DEPARTMENT OF EDUCATION).

ROCHESTER'S NEWS MAGAZINE SINCE 1997, THIS IS "NEED TO

KNOW."

 

MC: THANKS FOR JOINING US. I'M MICHAEL CAPUTO. WE WILL GET TO THE START OF OUR SERIES THE ECONOMICS OF GREEN IN A FEW MINUTES BUT FIRST WE LOOK AT THE POLITICAL LANDSCAPE IN OUR REGION. DEMOCRATS GATHERED AT THE BLUE CROSS ARENA LAST WEEKEND TO GIVE THE PARTY'S DESIGNATION TO ONE OF THREE CANDIDATES RUNNING FOR MAYOR ON THE DEMOCRATIC LINE. COUNCILMAN WADE NORWOOD GOT THE NOD OF THE 800 OR SO PARTY ACTIVISTS TO NEARLY 2/3'S OF THE WEIGHTED VOTE. A FEW DAYS LATER, THE DEMOCRATS, AGAIN, LOST A LEADER WHEN CHAIRMAN RICK DOLLINGER ANNOUNCED HE WAS RESIGNING TO RUN FOR A TOWN JUDGESHIP. HE WAS AT THE JOB FOR ONLY THREE MONTHS.

WITH US TO LOOK AT SOME OF THESE RECENT POLITICAL DEVELOPMENTS ARE TWO PEOPLE WHO KEEP THEIR EYES ON THE SCENE – JOE SPECTOR – IS THE POLITICAL REPORTER FOR THE DEMOCRAT & CHRONICLE AND CHRISTIAN DEGEORGE IS COVERING THE MAYORAL CAMPAIGN FOR CITY NEWSPAPER - THANKS FOR BEING HERE. I WANT TO ASK YOU BOTH RIGHT OFF THE BAT, WADE NORWOOD GETS HIS

DESIGNATION SO DO DEMOCRATS AND THE DEMOCRATIC

PARTY CONSIDER HIM A FRONT-RUNNER?

 

Joseph Spector: WELL, TIME WILL TELL. I MEAN, CERTAINLY BY WINNING THE DESIGNATION, THAT ALLOWS HIM TO GO INTO A COMMUNITY AND SAY, LISTEN, MYSELF AND THE OTHER TWO CANDIDATES WENT INTO THE

COMMUNITY, MET WITH THE PARTY'S NOMINATING COMMITTEES, AND

ULTIMATELY, THE PARTY LEADERS SAID YES, I'M THE BEST -- HE'S THE BEST PERSON TO BE THE PARTY'S CANDIDATE FOR MAYOR. NOW BOB DUFFY AND TIM MAINS, THE OTHER TWO CANDIDATES WILL TRY TO

REFUTE THAT. DUFFY WILL SAY THAT THE CONVENTION WASN'T REPRESENTATIVE OF ALL THE PARTY AND HE WILL GO OUT AND TRY TO MAKE HIS CASE USING SOME POLLS THAT HAVE SHOWED HIM IN THE LEAD, AND MAINS WILL SAY, LISTEN, I'M THE, YOU KNOW, HE REFERS TO HIMSELF AS THE INDEPENDENT VOICE, SOMEONE WHO'S OUTSIDE OF THAT PARTY.

 

MC: NOT ONLY REFUTE IT, BUT THEY BASICALLY DOWNPLAYED

IT, DIDN'T THEY -- I'M TALKING ABOUT TIM MAINS AND BOB DUFFY,

THEY DOWNPLAYED THE CONVENTION FOR THE MOST PART.

THEY SHOWED UP BUT DOWNPLAYED IT, DIDN'T THEY?

 

Kristea DeGeorge: IT DEPENDS ON WHO YOU TALK TO.

PEOPLE IN DUFFY'S CAMPAIGN SAY IT WAS A CLEAR INDICATION THAT

HIS BASE OF SUPPORTERS IS REALLY STRONG THERE.

 

MC: RIGHT, 27%, THOUGH, IS NOT 64%. IF WE PLAY THAT GAME, I THINK WADE NORWOOD WOULD PROBABLY BE HAPPY TO PLAY THAT GAME, BUT IN REALISTIC TERMS, ARE WE LOOKING AT A -- HOW ARE THEY VIEWING IT, HOW ARE THE CAMPAIGNS VIEWING IT? ARE THEY LOOKING AT TWO, THREE MAN; ARE THEY WORRIED ABOUT TIM MAINS, WHAT'S THE FEELING AMONG THE CAMPAIGN?

 

KD: MAINS AND DUFFY WILL TELL YOU THEY PUT NO STOCK IN THE

DELEGATE CONVENTION AT ALL AND THAT'S BECAUSE OF THE WEIGHTED

VOTE. THEY KNEW AHEAD OF TIME THAT NORWOOD HAD THE SUPPORTER LINED UP. THEY MADE A SHOWING AND THAT WAS ABOUT IT THEY SAY THE CAMPAIGN IS JUST ABOUT TO START NOW.

 

JS: RIGHT. I DON'T THINK ANYBODY WOULD THINK THAT THIS THING WASN’T HEADED TO A SEPTEMBER PRIMARY AND THE CANDIDATES HAVE BEEN FOCUSED MAINLY ON SEPTEMBER, HOWEVER, ALL THE CANDIDATES DID GO THROUGH THE NOMINATING PROCESS IN ORDER TO GET THEMSELVES TO THE CONVENTION AND ALSO TO TRY TO LINE UP

SUPPORT GOING INTO SEPTEMBER.

 

MC: AND AT THE BACK OF EVERYONE'S MINDS KEVIN MURRAY, RUTH SCOTT AND JOHN HERB, PEOPLE WHO WERE ONE, TWO, AND THREE IN 1993 WHEN WE HAD THE LAST OPEN ELECTION AND OF COURSE NONE OF THEM

BECAME MAYOR. I THINK, JOE, YOU WROTE A LITTLE BIT ABOUT THIS.

IS THIS MAYOR'S RACE, GENERALLY SPEAKING, ACTING AS A WEDGE IN

THIS PARTY?

4

JS: ANYTIME YOU HAVE A PRIMARY AND THE PARTY IS GOING TO BE

DIVIDED AND THE LINE WITH CERTAIN CANDIDATES, YOU ARE GOING TO

HAVE SOME DIVISION THERE. THE DEMOCRATS WILL TRY TO SAY,

HEY, THIS IS WHAT WE'RE ABOUT. WE'RE A PARTY OF VARIOUS IDEAS

AND VARIOUS CANDIDATES AND NOW, AT THE END OF THE DAY, WE'LL ALL COME AROUND AND SUPPORT ONE CANDIDATE. WE'LL SEE HOW THAT PLAYS OUT.

 

MC: WHAT DO YOU THINK? IS THIS THING DRIVING A WEDGE IN

THE PARTY, THIS PARTICULAR RACE?

 

KD: I THINK JOE IS RIGHT. THE DEMOCRATS TEND TO LOG

THEMSELVES AS BEING VERY OPEN TO NEW IDEAS, OPEN TO CHALLENGERS, HAVING AN OPEN PROCESS.

 

MC: AS OPPOSED TO THE REPUBLICANS, RIGHT?

 

KD: ON THE OTHER HAND, YEAH, I DO THINK IT IS DRIVING A WEDGE, NOT A WEDGE THAT'S NEW, BUT THERE ARE DIFFERENT FACTIONS WITHIN

THE PARTY.

 

MC: WHAT DO YOU MEAN NOT A WEDGE THAT'S NEW?

 

KD: THESE ARE THE KINDS OF THINGS THAT YOU SAW LAST YEAR IN THE

PRIMARY BETWEEN CYNTHIA ELLIOTT AND DOMINGO GARCIA.

THERE ARE PEOPLE YOU CAN PROBABLY LINE UP AS BEING -- IN DAVID GANTT’S CAMP AND PEOPLE WHO ARE AGAINST DAVID GANTT, THE PEOPLE AGAINST GANTT ARE COMING DOWN ON DUFFY'S SIDE RIGHT NOW, AND, WE WILL SEE HOW THAT PAN'S OUT.

 

MC: THERE ARE, YOU KNOW, YOU CAN GO UP BACK THROUGH THE YEARS, BILL JOHNSON VERSUS STEPHANIE ALDERSLY WHERE THERES WAS A FIGHT BETWEEN THE MAYOR AND MINORITY LEADER. THERE HAS BEEN A FIGHT BETWEEN DAVID GANTT AND JOE MORRELLLY. THIS IS NOT A UNITED PARTY, IS IT, JOE?

 

JS: WELL, I MEAN THEY HAVE HAD THEIR ISSUES. AND OVER THESE LAST ELECTIONS, YOU HAVE CERTAINLY SEEN THESE THINGS HIT THE PRIMARIES AND THEN SOME BAD FEELINGS STILL AFTERWARDS. YOU ARE SEEING SOME EFFECTS OF THAT NOW.

 

MC: IF YOU DON'T MIND ME ASKING, A STORY THAT YOU HAD THIS WEEK ALSO TALKED ABOUT THE POTENTIAL FOR THE INDEPENDENT PARTY TO BE ENDORSING ONE OF THESE CANDIDATES. WHAT'S THAT GOING TO DO TO THE PARTY UNITY?

 

JS: WELL, I MEAN, I THINK NOT NECESSARILY PARTY UNITY, BUT IT

WILL HAVE AN IMPACT IN NOVEMBER, BECAUSE POTENTIALLY AS I WROTE THIS WEEK, THERE COULD BE A THREE-WAY RACE FOR MAYOR IN THE NOVEMBER ELECTION WITH THE DEMOCRATIC CANDIDATE WHO WINS THE PRIMARY WITH JOHN PARRINELLO, THE LIKELY REPUBLICAN CANDIDATE AND POTENTIALLY A THIRD CANDIDATE PARTY WHOEVER WINS THE INDEPENDENCE PARTY OR WORKING FAMILIES OR SOME OF THESE THIRD PARTY LINES.

 

MC: WHAT HAPPENS IF BOB DUFFY DOESN'T WIN AND DECIDES, WELL,

I'LL KEEP GOING? THAT CAN'T HELP PARTY UNITY, CAN IT?

 

KD: NO, NOT AT ALL. I DON'T THINK THEY WILL SEE THE

WEIGHTED VOTE COME THROUGH THE GUBERNATORIAL ELECTIONS EVERY FOUR YEARS AND I DON'T THINK THEY WILL SEE THE TRUE RESULTS UNTIL THE NEXT GUBERNATORIAL ELECTION.

 

MC: I JUST WANT TO ASK QUICKLY, IF I CAN, ABOUT ISSUES.

KRISTEA, WHAT DO YOU SEE SO FAR AS THE ISSUES IN THIS MAYORAL

CAMPAIGN?

 

KD: WEL, WE HAVE KIND OF SEEN A LACK OF ISSUES TO TELL YOU THE TRUTH. SO FAR, EVERYONE IS TALKING ABOUT JOBS. EVERYONE IS TALKING ABOUT PUBLIC SAFETY. EVERYONE IS TALKING ABOUT

EDUCATION. I THINK WHERE THE CANDIDATES HAVE THE OPPORTUNITY TO DISTINGUISH THEMSELVES IS WITH THE QUALITY OF THEIR IDEAS.

SO FAR, WE JUST HAVEN'T SEEN THAT YET.

 

MC: GO AHEAD.

 

JS: NO, NO QUESTION ABOUT IT, BUT, YOU KNOW, THIS RACE HAS

BEEN A PROCESS HERE. I MEAN, WE'RE STILL FOUR MONTHS FROM THE PRIMARY EVEN AND CERTAINLY OVER THOSE NEXT FEW MONTHS, I THINK VOTERS AND THE MEDIA ARE GOING TO TRY TO FLUSH OUT SOME OF THOSE IDEAS.

 

MC: IN FACT, THE ONLY GUY WHO HAS TALKED ABOUT CLOSING OFFICES AS AN ISSUE AND SCHOOL DRESS CODES. THIS IS A GUY IN THE PRIMARY,

THE REPUBLICAN, AND GETTING INVITED TO EVERY SINGLE FORUM OUT THERE. HE IS THE ONLY ONE THROWING ISSUES OUT THERE. LET'S TALK -- I HAVE ABOUT A MINUTE LEFT AND I NEED TO ASK BOTH OF YOU, RICK DOLLINGER, HE WAS THERE THREE MONTHS AND IS NOW GONE. HE IS RUNNING FOR JUDGESHIP IN BRIGHTON. WHAT DOES THAT SAY ABOUT

THE DEMOCRATIC PARTY?

 

KD: IT CAN BE A GOOD THING T MAY NOT BE A BAD THING. THE PARTY HAS HAD A NUMBER OF LEADERS OVER THE PAST TWO YEARS. AND WE HAVE NOTED THAT THE REAL LEADERSHIP DOESN'T COME FROM THE PARTY CHAIR LIKE IT DOES IN THE REPUBLICANS. IT COMES FROM INDIVIDUAL ELECTED OFFICIALS AND THEIR KIND-OF STAR POWER.

 

MC: RIGHT. WHAT DO YOU THINK?

 

JS: IT SEEMS AS THOUGH IN DOLLINGER'S SITUATION, THIS IS

MORE OF A PERSONAL CHOICE ON HIS -- OBVIOUSLY HE HAS RUN TWICE

BEFORE FOR JUDGESHIPS, COUNTY JUDGESHIPS AND LOST. IT IS SOMETHING HE HAS SAID HE’S ALWAYS WANTED TO PURSUE, TO BE A JUDGE. HIS OPPORTUNITY CAME UP AFTER HE HAD TAKEN THE CHAIRMANSHIP. SO, MOST PEOPLE IN THE PARTY FEEL IT WAS MORE OF A PERSONAL THING WHERE HE WANTED TO PURSUE A JUDGESHIP RATHER THAN A FRACTION WITH THE PARTY.

 

MC: IN YOUR REPORT, DO YOU NOTE ANY FEELING OF ANGER WITH

DEMOCRATS WITH DOLLINGER?

 

JS: I DON'T KNOW IF IT'S ANGER. AGAIN, IT SEEMS THAT PEOPLE RECOGNIZE THAT THIS IS SOMETHING HE HAS ALWAYS WANTED TO PURSUE. HOWEVER,IT DOES LEAVE THEM WITH A VOID HEADING INTO AN IMPORTANT ELECTION YEAR, COMING JUST A FEW MONTHS AFTER MOLLY CLIFFORD LEFT AFTER TWO YEARS AT THE HELM, IT DOES LEAVE THE PARTY IN SOME FLUX UNTIL THEY FIND A NEW CHAIRPERSON AND THAT'S SUPPOSED TO COME IN THE NEXT MONTH AT THE CONVENTION.

 

MC: I WANT TO THANK THE BOTH OF YOU FOR GIVING US A FEW MINUTES AND CATCHING US UP ON POLITICAL ACTIVITIES AFTER A BIG

WEEK. WE NEED TO KNOW YOUR COMMENTS. YOU CAN ADD THEM TO THE LIST IN TWO WAYS. YOU CAN E-MAIL US AT NEED TO KNOW AT WXXI.ORG OR CALL OUR RESPONSE LINE AT 258-0250.

 

Michael Caputo: GREEN, IT'S THE COLOR ASSOCIATED WITH MONEY AND WITH THE ENVIRONMENT. TODAY, "NEED TO KNOW" BEGINS A THREE-PART SERIES ON THE RELATIONSHIP BETWEEN LOCAL BUSINESS AND THE ENVIRONMENT CALLED THE ECONOMICS OF GREEN. JULY PHILLIPP HAS OUR FIRST REPORT.

 

Julie Philipp: IT HAS ALWAYS BEEN^ SOMEWHAT OF AN IRONY THAT THE SAME COLOR ASSOCIATED WITH BUSINESS SMARTS IS ALSO LINKED TO ENVIRONMENTALLY FRIENDLY. MAKING MONEY OFTEN MEANS USING

UP NATURAL RESOURCES, SOMETIMES POLLUTING THE AIR AND WATER AND ADDING TO A CONTINUOUSLY GROWING STREAM OF WASTE THAT WON'T DECAY FOR HUNDREDS OR THOUSANDS OF YEARS. THERE IS GROWING INTEREST IN SOMETHING CALLED “GREEN BUSINESS”, WAYS TO HELP A COMPANY'S BOTTOM LINE WITHOUT HURTING THE PLANET. IN THIS SERIES, WE'LL LOOK AT GREEN BUSINESS PRACTICES, A GREEN PLACE, AND TODAY, A GREEN PRODUCT BEING MADE IN HONEOYE FALLS.

ANDREW BOSCO SAYS HIS WORK IS SOMETIMES HARD TO PUT DOWN WHEN IT'S QUITTING TIME. THERE'S TOO MUCH AT STAKE.

 

Andrew Bosco: WHERE ELSE CAN YOU WORK ON NEW TECHNOLOGY THAT HAS THE CHANCE OF REALLY CHANGING THE WAY THE WORLD OPERATES?

 

JP: THE PLACE HE WORKS DOESN'T LOOK LIKE MUCH FROM THE ROAD.

IT IS LOCATED ON A QUIET STREET RIGHT NEXT TO A LIVESTOCK FEED

STORE.

 

AB: THIS IS A GENERAL MOTORS' FACILITY. WE REALLY TRY TO KEEP A LOW PROFILE FROM A PERSPECTIVE OF JUST TRYING TO FOCUS ON DELIVERING THE TECHNOLOGY.

WE HAVE SECURITY ON SITE 24 HOURS A DAY 7 DAYS A WEEK AND

SECURITY GUARDS IN BOTH BUILDINGS, AND YOU NEED CARD

ACCESS TO GET IN. YOU CAN'T JUST WANDER IN AND OUT ON YOUR OWN.

 

JP: SO, WHAT DOES BOSCO DO? HE WORKS AT GENERAL MOTORS FUEL

CELL ACTIVITIES CENTER, TH ECOMPANY'S CENTRAL RESEARCH AND

DEVELOPMENT FACILITY FOR HYDROGEN FUEL CELL VEHICLES. FOR THE PAST 11 YEARS, BOSCO HAS HELPED THE WORLD'S LARGEST AUTOMAKER MOVE ITS HYDROGEN FUEL CELL PROGRAM FROM THE LABORATORY

TO THE STREETS.

 

AB: IN JANUARY, WE UNVEILED THE NEXT GENERATION OF VEHICLES, THE SEQUAL, WHICH WILL BE POWERED BY TECHNOLOGY THAT WAS DEVELOPED RIGHT HERE IN THESE LABS, AND THEN MOST RECENTLY DELIVERING A PROTOTYPE VEHICLE FOR USE BY THE U.S. MILITARY.

 

WHAT YOU'RE LOOKING AT IS A FUEL CELL RIGHT HERE, AND ACTUALLY,

IT'S JUST THAT SMALL UNIT BETWEEN THOSE TWO BLOCKS RIGHT THERE, AND THAT SHEET, THAT SHEET-- THE BLOCKS ON EITHER SIDE CONTAIN THE LABRYINTH OF CHANNELS THAT DELIVER THE FUEL AND THE AIR FOR THE ELECTROCHEMICALS REACTION, AND THEN THAT LITTLE SHEET IN BETWEEN THERE IS SOMETHING WE CALL A MEMBRANE ELECTRODE ASSEMBLY. WHAT THAT DOES IS THAT THAT IS THE LOCATION WHERE THE CHEMICAL REACTION ACTUALLY HAPPENS, AND WHAT THAT DOES IS IT TAKES THE HYDROGEN AND THE OXYGEN FROM THE AIR, COMBINES THEM TO MAKE ELECTRICITY THE ONLY BYPRODUCT BEING WATER.

SO YOU NEED ABOUT 400 OF THESE TO PUT IN HERE TO HAVE ENOUGH POWER TO POWER AN AUTOMOBILE.

 

JP: RESEARCHERS HAVE YET TO CREATE A HYDROGEN FUEL CELL VEHICLE THAT CAN TRAVEL AS FAR AND AS FAST AS THE VEHICLES WE

DRIVE TODAY WITHOUT RELYING SOLELY ON GASOLINE OR DIESEL, BUT GROWING NUMBER OF SCIENTISTS HERE AND ALT OTHER PRIVATE AND PUBLIC FACILITIES AROUND THE WORLD ARE GETTING VERY CLOSE TO THAT GOAL BY EXPERIMENTING WITH DIFFERENT MATERIALS AND PROCESSES.

 

Dr. Ramesh Shah: EVERYBODY IS ON THE BANDWAGON. RIGHT NOW, WE ARE SEEING PROGRAMMING IN FUEL CELL TECHNOLOGY. \

 

JP: DR. RAMESH SHAH STARTED THE FUEL CELL PROGRAM AT THE ROCHESTER INSITUTE OF TECHNOLOGY A FEW YEARS AGO. HE BEGAN EXPOSING STUDENTS TO WHAT HE CALLS THE FUTURE. HE SAYS HYDROGEN FUEL CELL VEHICLES WILL BE READY FOR THE

MASSES IN A DECADE OR SO, BUT THERE'S A BIG PROBLEM.

 

RS: WE DON'T HAVE THE HYDROGEN INFRASTRUCTURE..

IT MEANS THAT WE NEED THE HYDROGEN FUELING STATIONS TO

FILL YOUR CAR AND FUELING STATIONS.

 

JP: DR. SHAH SAYS SAYS WITHOUT AN EXISTING SYSTEM OF

PIPELINES TO DISTRIBUTE THE HYDROGEN, LIKE NATURAL GAS IS

DISTRIBUTED, HYDROGEN WILL, INSTEAD, HAVE TO BE PRODUCED AT

EACH INDIVIDUAL FUELING STATION. THE COST?

DR. SHAH PUTS IT AT $1 MILLION DOLLARS PER STATION.

BOSCO APPEARS UNDAUNTED.

 

AB: IT REALLY ISN'T AS BAD AS ONE MIGHT THINK, WHEN YOU COMPARE IT TO OTHER ENDEAVORS THAT HAVE TAKEN OVER THINGS LIKE DEVELOPING THE HIGHWAY, INTERSTATE HIGHWAY SYSTEMS OR DEVELOPING THE RAIL SYSTEMS.

 

JP: BOSCO, WHO WORKS ALONGSIDE 20 OR SO OTHER ENGINEERS WHO HAVE COME HERE FROM AROUND THE GLOBE POINTS OUT ROADBLOCKS LIKE THIS ONE HAVE NOT SLOWED DEVELOPMENT EFFORTS. HE SAYS GM ALONE HAS ALREADY POURED MORE THAN $1 BILLION DOLLARS INTO ITS FUEL CELL PROGRAM.

 

Michael Caputo: WITH US IN STUDIO TO TALK MORE ABOUT THE POTENTIAL OF FUEL CELL TECHNOLOGY IS MICHAEL FINNEY, HE IS THE CEO OF GREATER ROCHESTER ENTERPRISE, WHICH WORKS TO MARKET

ROCHESTER AS A PLACE TO BUILD BUSINESS. THANKS FOR BEING HERE.

HOW MUCH OF YOUR AGENCY'S EFFORTS ARE AIMED AT THIS FUEL

CELL TECHNOLOGY -- A LITTLE, A LOT?

 

Michael Finney: WELL, A FAIR AMOUNT. WE HAVE COMMITTED SOME RESOURCES ACTUALLY TO A COMPREHENSIVE REVIEW OF ROCHESTER'S FUEL CELL, AND, REALLY, IT'S SMART ENERGY OR RENEWABLE ENERGY, SO IT'S MORE THAN JUST FUEL CELLS, BUT WE COMMISSIONED PEACE TO REALLY TAKE A LOOK AT OUR ASSETS. THAT CAME BACK VERY, VERY

POSITIVE. SO, WE ARE PROBABLY COMMITTING MAYBE 5-10% OF OUR RESOURCES.

 

MC: ASSETS, YOU MEAN WHAT WHEN YOU SAY THAT?

 

MF: WELL WE TALK ABOUT THE PEOPLE ASSETS, INTELLECT THAT IT TAKES TO DRIVE COMMERCIALIZATION OF FUEL CELLS, THE CORE INFRASTRUCTURE THAT'S NEEDED, THE KIND OF EXISTING COMPANY RESOURCES THAT ARE IN THE COMMUNITY.

 

MC: THESE ARE THE THINGS THAT YOU SELL, I WOULD ASSUME, TO OTHERS? THIS IS WHAT YOU ARE GOING TO SELL?

 

MF: ABSOLUTELY.

 

MC: DO ME A FAVOR AND PRIORITIZE THIS SECTOR, FUEL CELLS WITH

BIOTECH, WITH IMAGING, WITH BOTONICS, IS IT ABOVE THEM? IS IT BELOW THEM? WHAT IS THE EMPHASIS?

 

MF: THERE ARE THREE TECHNOLOGIES THAT THE ROCHESTER REGION REALLY CAN COMPETE ON A WORLDWIDE BASIS FOR. WE HAVEN'T PRIORITIZED ANY OF THEM OVER THE OTHERS. WE THINK IT MAKES SENSE TO PUT SIGNIFICANT RESOURCES INTO ALL THREE. THEN YOU'VE HIT THEM ALL. OPTICS IMAGING AND PHOTONICS IS PROBABLY THE ONE ROCHESTER IS MOST WELL-KNOWN FOR AND MOST WELL POSITIONED

BECAUSE WE HAVE A VERY ESTABLISHED REPUTATION AND WE HAVE MAJOR COMPANY RESOURCES IN THE COMMUNITY ALREADY. BIOTECH AND LIFE SCIENCES IS A BUDDING ACTIVITY IN OUR COMMUNITY. WE'VE GOT MAJOR RESEARCH SPENDING AT OUR UNIVERSITIES. I THINK BETWEEN THE UNIVERSITY OF ROCHESTER AND OTHERS IN THE COMMUNITY, THERE IS PROBABLY $300 MILLION A YEAR OF ANNUAL

RESEARCH SPENDING. THERE ARE INNOVATIONS COMING OUT OF THAT THAT MAKE A LOT OF SENSE BOTH FOR PHARMACEUTICAL DEVICES,

INTEGRATING OPTICS WITH BIOTECH, ALL REAL OPPORTUNITIES FOR

ROCHESTER, AND WE REALLY CAN COMPETE ON A WORLDWIDE BASIS.

THE THIRD IS FUEL CELLS RENEWABLE ENERGY. WE HAVE, I THINK, SOME OF THE BEST RESOURCES IN THE WORLD FOR AN EMERGING INDUSTRY RIGHT HERE IN ROCHESTER.

 

MC: I WOULD THINK AT SOME POINT, THOUGH, YOUR AGENCY HAS TO SAY, WELL, WE'RE MAKING INROADS HERE, LET'S PUSH MORE RESOURCES THERE. YOU'RE NOT PRIORITIZING THESE THREE?

 

MF: IT IS TOO EARLY. THE COMMUNITY IS WELL ESTABLISHED, SO THE NEED TO POUR RESOURCES BEHIND IT IS DIFFERENT THAN THE OTHER TWO. THE OTHER TWO ARE FOCUSED ON STARTUP RESOURCES WHERE OPTICS IMAGING PHOTONICS IS REALLY ABOUT COMMUNICATING THE MESSAGE, GOING AFTER OPPORTUNITIES, ET CETERA. THE OTHER TWO REALLY ARE EMERGING, AND SO THE RESOURCE ALLOCATION IS MUCH LOWER TO THOSE BECAUSE THERE IS NOT NEARLY THE OPPORTUNITY FOR COMMERCIAL ACTIVITY AS THERE IS WITH OPTICS IMAGING PHOTONICS.

 

MC: LET'S TALK ABOUT FUEL CELLS IT SEEMS LIKE FIVE YEARS AGO WE

WERE READING WE WERE A FEW YEARS AWAY WITH THIS. OF COURSE, THERE'S NOTHING ON THE MARKET RIGHT NOW THAT THAT YOU CAN BUY, MAYBE HERE AND THERE SCATTERED ABOUT, BUT NOTHING THAT YOU WOULD SAY IS ON THE MARKET IN TERMS OF A FUEL CELL AUTOMOBILE. SO HOW FAR ARE WE AWAY FROM BEING SOMETHING THAT WILL BE TRANSLATED IN THE MARKET?

 

MF: WELL, THE EXPERTS SAY ANYTHING FROM FIVE YEARS OUT TO AS MANY AS 25 YEARS OUT.

 

MC: WHAT DO YOU BELIEVE?

 

MF: WELL, I'M LISTENING TO GENERAL MOTORS. THEY'RE RIGHT HERE IN OUR BACKYARD. WE TALK TO THEM ON A RECENTLY FREQUENT BASIS, AND THEY'RE SAYING THEY WILL HAVE A PRODUCTION INTENT VEHICLE IN 2010. THEY RECENTLY ANNOUNCED THE SEQUEL. IN FACT, WE FEATURED THE SEQUEL IN ONE OF THE ADS THAT WE'RE RUNNING CENTERED AROUND FUEL CELLS AN RENEWABLE ENERGY TECHNOLOGIES AND IT IS A WONDERFUL PROTOTYPE OF WHAT

COULD POTENTIALLY HAPPEN BY 2010, AND I HAVEN'T HEARD THEM CHANGE THEIR COMMITMENT TO HAVE A PRODUCTION INTENT

VEHICLE. IT IS NOT A PRODUCTION VEHICLE, BUT IT IS INTENT.

WE ALSO SEE ALL KINDS OF STATIONARY AND PORTABLE

APPLICATIONS AS WE ARE OUT TRYING TO GAIN INTELLIGENCE,

SMALL DEVICES LIKE PALM PILOTS AND LAPTOP COMPUTERS AND CELL

PHONES.

MC: RIGHT. AND ISN’T KODAK PARTICIPATING IN SOMETHING THAT YOU CAN TRY TO FIGURE OUT HOW TO USE ELSEWHERE?

 

MF: SO WE CAN UNDERSTAND IT, THERE IS A COMPANY CALLED MEDIS

OUT OF ISRAEL THAT IS WORKING WITH KODAK. IN FACT, THERE WAS ANNOUNCEMENT BY KODAK LAST YEAR ABOUT THAT RELATIONSHIP.

WE HAVE HAD A CHANCE TO TALK WITH THAT COMPANY DURING A TRIP

TO ISRAEL BACK IN NOVEMBER. THEY'RE CERTAINLY OPTIMISTIC

ABOUT THEIR ABILITIES TO COMMERCIALIZE SMALL PORTABLE – OR MINIATURIZE FUEL CELL DEVICES FOR, YOU KNOW, LAPTOP COMPUTERS,

CELL PHONES, ET CETERA.

 

MC: SO AT THIS POINT, WE'LL SAY 2010, BECAUSE GM IS SAYING THAT

AT THIS POINT?

 

MF: WELL, I REALLY THINK THEY ARE ONE OF THE MARKET LEADERS.

THEY HAVE COMMITTED. THE LATEST NUMBERS WE SAW IS ROUGHLY OVER $1 BILLION OVER THE NEXT TEN YEARS. THAT'S A PRETTY MAJOR

COMMITMENT FROM ONE OF OUR WORLD LEADING COMPANIES, AND I THINK THERE IS A PRETTY STRONG INDICATION THAT THEY'RE GOING TO

MAKE IT WORK.

 

MC: DURING OUR INTERVIEW WITH DR. SHAH, HE RAISED A NOTE OF

CAUTION ON WHETHER ROCHESTER IS POISED TO TAKE FUEL CELLS AS ITS INDUSTRY. HE SAYS RIT IS GOING TO BE AN IMPORTANT CENTER FOR RESEARCH BUT WENT ON TO SAY THIS –

 

DR. SHAH: THERE ARE MANY OTHERS AROUND THE GLOBE. IT IS NOT A TECHNOLOGY THAT IS ONLY IN ONE PLACE, LIKE THAT PAST, THAT IS THE

BIGGEST ONE. I DON'T EXPECT THAT IS GOING TO HAPPEN BUT IT IS GOING TO BE IMPORTANT. MAJOR RESEARCH AND DEVELOPMENTS ARE GOING ON RIGHT NOW IN THE U.S, EUROPE AND JAPAN, BUT AT THE SAME TIME

EVERY OTHER COUNTRY, MAJOR COUNTRIES, DEVELOPING COUNTRIES LIKE KOREA, TAIWAN, CHINA, INDIA, EVERYBODY HAS A FUEL CELL PROGRAM. THERE ARE NOT REMAINING BEHIND THE SCENES, IN A SENSE.

THEY ARE NOT GOING TO SPEND BIG MONEY FOR DEVELOPMENT. BUT WHATEVER IS DONE HERE, THEY ARE FOLLOWING UP AND DOING THEIR OWN WAY OF DEVELOPMENT.

 

MC: SO, HERE WE ARE NOW. WE ARE TALKING ABOUT JAPAN AND EUROPE AND SOME DEVELOPING COUNTRIES. IT SOUNDS A LOT TO ME LIKE EVERYTHING ELSE WE'RE WORRIED ABOUT, WHICH IS WE'RE COMPETING

IN A GLOBAL WORLD, SO HOW CAN WE BE POISED TO TAKE ADVANTAGE OF THIS WHEN THERE'S SO MUCH COMPETITION OUT THERE?

 

MF: WELL, I THINK THERE IS A POWERFUL MESSAGE IN THOSE COMMENTS. I'VE HEARD THEM, AND FRANKLY, I BELIEVE IT, ALSO.

FOR EXAMPLE, WE KNOW THAT IN GENERAL MOTORS' CASE, WE ARE ONE

OF FOUR MAJOR FUEL CELL RESEARCH FACILITIES THAT THEY HAVE

WORLDWIDE. THERE IS ONE IN MICHIGAN, ONE IN CALIFORNIA, ONE IN GERMANY AND ONE IN ROCHESTER, SO EVEN COMPETING FOR THEIR BUSINESS IS SOMETHING THAT WE HAVE TO DO WITH THREE OTHER LOCATIONS. THE WORLDWIDE COMPETITION IS ABSOLUTELY AWESOME, AND WE KNOW THAT, BUT THERE IS A MESSAGE THERE, AND THE MESSAGE IS THAT THIS COMMUNITY NEEDS TO TAKE THIS AS ONE OF THE BIG IDEAS, BE SURE TO COMMIT RESOURCES TO IT, DEVELOP A STRATEGY TO MAKE SURE THAT WE'RE CAPTURING THE ATTENTION OF ALL THE FUEL CELL DEVELOPERS WORLDWIDE AND WE'RE DOING EVERYTHING WE CAN TO SUPPORT COMPANIES LIKE DELPHI, GM AND OTHERS WHO ARE RIGHT HERE IN OUR COMMUNITY WITH WONDERFUL CAPABILITY OF GROWING THESE TECHNOLOGIES.

 

MC: BUT WE'RE NOT GOING TO BE THE PLACE THAT GROWS FUEL CELL

TECHNOLOGY BY OURSELF. WE'RE NOT GOING TO BE THE HOME OF FUEL CELL TECHNOLOGY, ARE WE?

 

MF: WELL, I DON'T KNOW THAT ANYONE CAN PREDICT WHERE THE HOME OF FUEL CELL TECHNOLOGY WILL BE, BUT CERTAINLY, WITHIN THE TRANSPORTATION SECTOR, OUR COMMUNITY HAS THE KIND OF

RESOURCES THAT IT TAKES TO BE A MAJOR HUB FOR R&D OVER THE NEXT SEVERAL YEARS AS THE TECHNOLOGY CONTINUES TO MOVE TOWARDS COMMERCIALIZATION, AND HOPEFULLY WHEN IT COMES TO THE ACTUAL MANUFACTURE OF THE DEVICES, MANY OF THE EXISTING COMPANIES IN OUR COMMUNITY WILL HAVE A CHANCE TO PARTICIPATE.

ONE OF THE THINGS WE DIDN'T TALK ABOUT IS THE NEED FOR EXISTING

COMPANIES WHO ARE SUPPLYING ANYTHING TO EVERYBODY TO START

TRANSITIONING TOWARDTHE ABILITY TO SUPPLY SOME OF THESE NEW

PRODUCTS.

 

MC: I JUST HAVE A FEW SECONDS LEFT. DOES THAT MEAN WE WILL HAVE TO COMPETE WITH THE SOUTH AND WEST WHERE TAX BRARES ARE OFTEN INVOLVED? IS THAT PROBABLY GOING TO HAVE HAPPEN AGAIN IF
WE WANT TO GET THE MANUFACTURING HERE?

 

MF: I ALSO THINK THAT IS ONE OF THE NECESSARY TOOLS TO HAVE.

IT PROBABLY IS NOT THE TOOL THAT'S GOING TO DRIVE THE EARLY

R&D INVESTMENT THAT'S HAPPENING RIGHT NOW. IT'S HAVING THE RIGHT KIND OF PEOPLE. IT'S HAVING A TECHNOLOGICAL-BASED COMMUNITY. IT'S HAVING A GREAT QUALITY OF LIFE. THOSE ARE THE REASONS THAT FOLKS AT GM'S HONEOYE FALLS FACILITY GAVE FOR

MAKING THE DECISION TO BE HERE AND TO STAY HERE, AND WE KNOW

THAT WE HAVE JUST WONDERFUL ELECTRICAL RESOURCES, WONDERFUL

TECHNOLOGY BASE AND I THINK THE QUALITY OF LIFE IN ROCHESTER IS

SECOND TO NONE.

 

MC: MR. FINNEY, THANK YOU VERY MUCH FOR BEING WITH US.

LET'S MOVE TO THE WEEK'S WRAP-UP OF BUSINESS NEWS WITH THE

BUSINESS SECTION.

 

Julie Philipp: WITH US IS ELLEN ROSEN, BUSINESS EDITOR FOR "THE

DEMOCRAT AND CHRONICLE." NICE TO SEE YOU. LETS TALK ABOUT THE FINGER LAKES WINE BUSINESS. WE THINK OF IT AS A SCENIC EXCURSION KIND OF QUAINT LITTLE WINERIES BUT THIS IS A FORCE IN THE AGRICULTURE INDUSTRY, ISN'T IT?

 

Ellen Rosen: YES.

IT IS WE ARE TRYING TO DEVELOP

THE COMMUNITY IN TERMS OF

TOURISM IT ATTRACTS, THE AMOUNT

OF JOBS IT CREATES AND THE USE

OF THE LAND.

 

JP: AND A HALF BILLION IN SALES ISN'T ANYTHING TO LAUGH AT.

IT IS ENORMOUS. NOW THERE IS A SUPREME COURT RULING THIS WEEK THAT IS GOING TO GIVE THEM A BOOST. CAN YOU WALK US THROUGH THIS CASE?

 

ER: THIS CASE HAS A VARIETY OF SIDES TO IT, IT DEPENDS ON WHICH WAY YOU’RE LOOKING AT IT. BASICALLY THE SUPREME COURT SAID

THAT THE LAWS OF CERTAIN STATES, AND NEW YORK AND MICHIGAN ARE AMONG THEM, THERE ARE ABOUT 24 STATES BUT MICHIGAN AND NEW YORK HAVE THE TIGHTEST THAT OUTLAW OUT-OF-STATE SHIPMENTS OF WINES ARE NOT CONSTITUTIONAL. THAT MEANS THE STATES HAVE TO GO BACK AND DECIDE WHAT THEY'RE GOING TO DO ABOUT THEIR LAWS. NOW IT BASICALLY DID NOT SAY THEY HAVE

TO ALLOW SHIPMENTS OF WINE IN AND OUT.

 

 

JP: BASICALLY NEW YORK WINERIES CANNOT SHIP DIRECTLY OUT OF

STATE TO ANOTHER –

 

ER: THEY CANNOT SHIP DIRECTLY OUT OF STATE.—

 

JP: THEY HAVE TO GO THROUGH A DISTRIBUTOR.

 

ER: -- IF YOU LIVE IN CHICAGO, YOU CAN'T ORDER FOR FINGER LAKES

WINE. THEY HAVE TO GO THROUGH A DISTRIBUTOR. SOME OF THE SMALLER VENDORS HERE, SMALLER WINE MAKEERS HAD SET UP THEIR OWN DISTRIBUTORSHIPS WITH RELATIVES AND OTHER THINGS IN ORDER TO GET THEIR WINE OUT. THERE THEY'RE EXCITED ABOUT IT, BECAUSE IF THE STATE GOES AHEAD AND MAKES THESE LAWS, THEY ACTUALLY COULD SEE A BIGGER MARKET. SOME ARE UPSET, BECAUSE IT MEANS

THAT CALIFORNIA WINES COULD BE SHIPPED DIRECTLY TO PEOPLE HERE

IN OUR AREA AND OUR AREA CAN START DIRECTLY ORDING OVER THE

INTERNET AND OVER THE PHONE FROM CALIFORNIA AND OTHER WINE MAKING STATES. THE DISTRIBUTORS ARE UPSET BECAUSE THIS IS HOW THEY HAVE BEEN MAKING MONEY IS TO DISTRIBUTE THESE WINES AND SO NOW THEY WOULD LOOSE THEIR PIECE OF THE BUSINESS.

 

JP: DOES THIS AFFECT WINE RETAILERS AT ALL?

 

ER: IT WILL. SOME OF THEM SAY IT WILL HELP. ONE GROUP SAYS IT WILL HELP THEIR BUSINESS AND THEY WILL HAVE BETTER SUPPLY. OTHER PEOPLE WON'T NEED TO COME IN TO THE WINESHOP IF THEY ORDER

DIRECTLY.

 

JP: OK, SO IT GOES TO THE STATE LEGISLATURE. NOW, HOW COME THE STATE LEGISLATURE HASN’T DONE IT AND WHY DID THEY WAIT FOR A SUPREME COURT RULINGS IF THIS IS GOING TO HELP THE WINERIES?

IS IT BECAUSE OF OPPOSITION?

 

ER: IT GOES BACK TO PROHIBITION LAWS AND OPPOSITION IT’S A

LONG-STANDING THING. THE GOVERNOR PATAKI HAS BEEN PUSHING

THIS FOR YEARS. HE WOULD WOE LIKE TO SEE THE LAWS AMENDED

BUT SO FAR, IT HASN'T HAPPENED.

 

JP: OK, AND ONE OF THE CHOICES NOW IS THE LAWMAKERS CAN EITHER BAN ALL DIRECT SALES --

ER: YES. THEY CAN BAN ALL DIRECT SALES AND ALLOW SOME SALES IN, THERE’S A WHOLE HOST THINGS. BASICALLY THEY HAVE TO GO BACK AND REWRITE THE LAWS.

 

JP: NOTHING IS SETTLED?

 

ER: NOTHING’S SETTLED YET, NO.

 

JP: TURNING TO PAETEC, THEY FILED WITH THE S.E.C. IN HOPES OF

GOING PUBLIC. BASICALLY, THEY’VE GOT A CHANCE FOR POTENTIAL

GROWTH IN THE FUTURE IT LOOKS LIKE THEY MAY HAVE GOTTEN A JUMP

START IN AN ANNOUNCEMENT THEY MADE THIS WEEK.

 

ER: THEY MADE ANNOUNCEMENT THIS WEEK THAT THEY ARE OPENING OPERATIONS IN 140 MORE CITIES, ABOUT 152 CITIES THEY WILL BE SERVING NOW. THEY WOULDN'T GIVE US MORE DETAILS BECAUSE THEY ARE IN THIS QUIET PERIOD WHERE THEY ARE WAITING TO SEE IF THE S.E.C. APPROVES THEIR INITIAL PUBLIC OFFERING. THEY ARE NOT SUPPOSED TO BE OUT THERE HYPING THE COMPANY. SO THEY REALLY WOULDN’T SAY MUCH, SO IT IS KIND OF A FUNNY, MIXED MESSAGE THAT

WE GOT.

 

JP: THEY HAD TO HAVE KNOWN ABOUT THIS WHEN THEY FILED ABOUT THIS. IT WAS PROBABLY IN THE PAPER. THIS IS THE THIRD TIME. DOES IT MAKE IT SEEM A LITTLE MORE CERTAIN THAT THEY ARE GOING TO GO PUBLIC?

 

ER: WELL, THEY SAY THEY ARE. THE CEO AND CHAIRMAN AND FOUNDER

HAS SAID AT THIS TIME HE THINKS THINGS ARE GOING TO GO. YOU NEVER KNOW. THEY ARE NOT THROUGH THE INITIAL PROCESS WITH THE S.E.C. SAYING GO AHEAD AND THEN THERE IS A PROCESS OF A ROAD SHOW THAT HAS TO GO AFTER. THEY CAN PULL THE TRIGGER AT ANY TIME AND AS WE’VE SEEN, THEY’VE PULLED IT AT DIFFERENT TIMES.

 

JP: AND REAL QUICK - YOU HAD FACE TIME THIS WEEK WITH DANIEL CARPEN AND ANTONIO PEREZ AT KODAK.

 

ER: YES WE DID AND DAN CARPEN, AS YOU KNOW, WILL BE STEPPING DOWN AS CEO ON JUNE 1ST. THEY ARE REALLY EXCITED. THEY THINK KODAK HAS A LOT OF POTENTIAL. THEY ARE MOVING QUICKLY. THEY ARE PROMISING BIG GROWTH IN DIGITAL. AND WE’LL HAVE A LOT MORE ON THAT IN SUNDAY'S PAPER.

 

JP: THANKS, ELLEN.

IF YOU WANT TO LOOK AT "NEED TO KNOW" PROGRAMS OVER THE PAST

MONTH, THERE IS A WAY TO DO IT. YOU NEED TIME WARNER'S ON

DEMAND SERVICE. JUST GO TO CHANNEL 716 THEN HEAD TO WXXI NEWS, NEED TO KNOW BROADCAST FROM THE PREVIOUS FOUR WEEKS CAN BE WATCHED WHEN YOU WANT TO WATCH THEM.

 

MC: THAT'S OUR REPORT. NEXT WEEK, THE SERIES ON THE ECONOMICS OF GREEN CONTINUES WITH A LOOK AT ECOLOGICALLY SOUND BUSINESS PRACTICES. JOIN US THEN.

 

CAPTIONED BY THE

NATIONAL CAPTIONING INSTITUTE

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