The Taxpayers Protection Alliance (TPA) hopes everyone in Florida affected by the hurricane is safe and can recover and rebuild quickly. Hurricanes cause personal and financial destruction. Helping Florida recover will require money and it will require common sense such as getting rid of The Jones Act ([link removed]) and Davis-Bacon ([link removed]) requirements.

Profile in Courage – Fred Franzia

After a long, hard day at the office (or on Zoom), it’s nice to sit down and pour a glass of well-deserved wine. That feeling is even better with wine that can be purchased at vending machine prices. The low cost “Two Buck Chuck” wines changed the world and led to a consumer revolution in affordable wine. And, along every step of the way, Two-Buck Chuck pioneer Fred Franzia had to put up with meddlesome regulators and cynics who tried to stomp the brand and thought that wine was for the wealthy. Franzia has sadly passed away, but his legacy of creating an affordable, beloved product lives on. For giving consumers a respite from the rough and tumble while keeping government on its toes, Fred Franzia is a Profile in Courage. Fred and his family certainly aren’t new to the winemaking business. The Franzia clan has been growing vines and bottling wines for nearly 100 years, with business taking off at the end of prohibition in 1933. Interestingly, though, Fred’s brother and uncle sold the
original family business to Coca Cola, and now, any “Franzia” branding is unrelated to Fred’s more contemporary winemaking ventures. Fred wasn’t happy about the deal with Coca Cola, and he and a few family members started their own operations shortly after. Formed in 1974, Bronco rose to prominence by buying and selling bulk wine and chasing after brands for distribution.

As noted by Wall Street Journal contributor Julia Flynn, “Franzia's first big hit as a distributor was the Glen Ellen brand, produced by Benziger Family Winery, which was sold by California supermarkets for less than $5 a bottle. By the late 1980s, Glen Ellen dominated its category.” Fred’s early successes in bringing cheap wine to the public, however, were disrupted by a string of setbacks. Bronco lost out on distribution contracts with Glen Ellen and Robert Mondavi Corp., and then became the target of a federal investigation into wine misbranding. A 1993 indictment charged that Franzia was passing off crushed non-zinfandel grapes as zinfandel grapes so that Bronco could charge more for their wines. This was a curious charge, given that Bronco was making its name by selling inexpensive wines (mostly at $5 a pop) in contrast to the snootier competition. Franzia maintained that the investigation was instigated by jealous rivals and pled guilty to protect coworkers who were also being
targeted by the feds. Fortunately, this legal snafu did not prevent the wine entrepreneur from bringing cheap brands to thirsty consumers. In 1995, Franzia snapped up the Charles Shaw wine brand at the bottom barrel price of $25,000 and used the brand (along with his trademark bulk buying of cheap wine) to bring $2 wine to the masses. A distribution partnership with Trader Joe’s brought Two-Buck Chuck across the country, and Franzia was all too delighted to stick it to his higher-priced competitors. In a 2009 interview with The New Yorker, Franzia balked at the pretensions of his industry rivals: “You tell me why someone’s bottle is worth eighty dollars and mine’s worth two dollars. Do you get forty times the pleasure from it?”

Franzia’s vitriol might’ve been less sharp if competing brands were merely using marketing and promos to wrestle away his consumers. Instead, his competitors lobbied to pass a California law (in 2000) that required wines labeled with the word “Napa” to have at least 75 percent of their fruit originate from the Napa Valley. That way, wealthier Napa growers could make competing brands look less savory even if rivals had products that contained Napa grapes and were bottled in the region. Franzia tried to fight this arbitrary law in court but lost. Fortunately, he discovered that some of his brands were grandfathered into an exemption from the law and was still able to market his wines as he saw fit. Even after his repeated regulatory tussles, Franzia never strayed from his quest to provide the public with wine that wouldn’t break the bank. And for creating a consumer revolution even when the going got rough, Fred Franzia is a Profile in Courage.


Powering Through Red Tape

Over the last half century, the technological revolution has driven America’s demand for all forms of energy. Subsequently, it has also highlighted the environmental impacts of expanding traditional energy sources with a push for cleaner and more renewable ways to power society. Congress passed the National Environmental Policy Act of 1969 (NEPA), establishing a framework for federal agency actions regarding environmental impacts. However, the NEPA process, which began with noble intentions, has become one of the largest barriers to energy progress. In June 2020, the Council on Environmental Quality (CEQ) published a report on NEPA-mandated Environmental Impact Statements (EIS) from 2010 – 2018. It found that during that period, the average EIS took 4.5 years to complete. While exact data is unavailable, estimates suggest that EISs cost the government more than $1 billion annually. Beyond the cost of preparing the statement and accompanying assessments, governments from local to federal and
private citizens are expected to bear the cost of project delays because of the NEPA process.

Clearly, the biggest obstacles to a cleaner environment are the laws enacted to promote it and the cumbersome regulatory processes tasked with enforcement. Red tape originally aimed at environmental standards now stymies innovation and execution of projects that would take the country into a cleaner future. Reforming permitting is not a step backwards, but rather a push forwards. As Congress comes to the table on permitting reform, it is equally important to ensure that consumers are the priority. A major shift in governing mentality has seen federal policy used to prop up politically favorable industries. This inherently goes against the spirit of a republican democracy. The reality is that states have differing needs and different pathways to cleaner energy. For example, West Virginia still uses coal to generate 89.7 percent of its electricity. By comparison, Rhode Island generates 87.9 percent from natural gas, Washington generates 83 percent from hydroelectric, Iowa generates 54.1
percent from solar and New Hampshire generates 55.3 percent from nuclear (Per Choose Energy). No state uses solar to generate more than half their electricity, with California being the highest user at 38.5 percent.

Moreover, the statistics behind energy diversity show why this should not be a partisan issue. Nine out of ten coal-reliant states lean Republican, whereas six out of ten natural gas-reliant states favor Democrats. States across the partisan spectrum have likewise seen success using cleaner energy. Scaling back federal regulatory overburden will make it easier for states who currently prioritize traditional sources to invest in clean energy projects and will ultimately benefit consumers. Congress must revisit the laws it enacted half a century ago, which have seen little evolution over that time, to allow states and private innovation to propel us into an energy-efficient, energy-independent future. The largest barrier to climate action is the same red tape enacted to promote it. Without reform, any future investment of taxpayer dollars without regulatory reform will only continue to entrench the issue rather than work towards sustainable solutions.

BLOGS:


** Monday: Despite Frosty Demand, USPS Can Sleigh Holiday Expectations ([link removed])

Tuesday: Congress Should Pass Bill Funding Government through January, Not Add on Unrelated Items ([link removed])
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** Wednesday: Token Antitrust Reform Package Will Cost Pretty Penny ([link removed])
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Thursday: TPA Sends Letter to Congress Opposing FY23 Budget Balk ([link removed])

Friday: Profile in Courage: Fred Franzia ([link removed])
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MEDIA:

September 23, 2022: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “Johns Hopkins study says Baltimore City schools are falling apart, students are suffering.”

September 24, 2022: The Jewish Voice quoted TPA in their story, “Study shows COVID-19 relief fraud likely ‘biggest’ in U.S. history.”

September 25, 2022: Inside Sources ran TPA’s op-ed, “Despite Frosty Demand, USPS Can Sleigh Holiday Expectations.”

September 26, 2022: WBFF Fox45 (Baltimore, Md.) interviewed me about student loan forgiveness.

September 27, 2022: The Center Square ran TPA’s op-ed, “Congress should pass bill funding government through January, not add on unrelated items.”

September 28, 2022: Townhall.com ([link removed]) ran TPA’s op-ed, “The FDA’s Harm Reduction Hypocrisy.”

September 28, 2022; The Center Square ran TPA’s op-ed, “At long last, Postal Service axes Reseller program.”

September 29, 2022: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “'It's a waste of money:' Baltimore officials travel expenses adding up for taxpayers.”

September 29, 2022: WBFF Fox45 (Baltimore, Md.) interviewed me about hurricane disaster relief.

September 29, 2022: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about inflation and the continuing resolution.

Have a great weekend!
Best,
David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 1120
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])


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