Category Archives: Energy

One Very Sad Day In Court

maureen_and_bob(1)By Peter Galuszka

One literally could have heard a pin drop in U.S. District Court in Richmond today.

William Burck, lawyer for  Maureen McDonnell, said in his opening argument in a trial that Virginia’s Former First Lady who has been indicted no 14 corruption charges along with her former governor husband was “collateral damage” in a deeply troubled marriage. She had developed a “crush” on the businessman who had given her and her husband more than $150,000 in loans, gifts and cash.

“Their marriage had broken down,” Burck said. “They were barely on speaking terms,” Burck said. Ms. McDonnell was angry and frustrated that her husband had been working 16-hour days in public service for 20 plus years and had little to show for it. They had five children. Big debt. Bob wasn’t paying attention to her.

As John L. Brownlee, McDonnell’s lawyer, said, McDonnell’s hard public service work “took a toll on his family and a terrible toll on his wife. He was not nearly as successful as a husband. He tried to keep from the public the most painful aspects of his marriage. He never humiliated her. He never scorned her.”

In pops Jonnie R. Williams Sr., a smooth-talking entrepreneur pushing a new anti-aging cream made in part from tobacco plants (although his firm, Star Scientific, had lost a couple hundred million over the previous decade.) Brownlee described the star witness for the prosecution as a “master manipulator.”

“This marriage broke apart and an outsider, another man, would invade and poison their marriage,” Brownlee said.

At one point, Maureen was said to have “hated” Bob who wrote a lengthy email to her trying to reconcile. In fact, Brownlee said, the Governor will read the email when he goes on the jury stand during the trial that is expected to last at least five weeks. When McDonnell sent the email, however, “that evening, Maureen was distracted by other interests.”

One could get snarky about this seemingly over-the-top soap opera. But no one in the courtroom seemed to be smirking. It is strange enough to be at a trial like this in a place like Virginia that considers itself above the petty corruption that plagues other states. It is even stranger to hear such excruciatingly personal and painful things about the state’s top former executive and his wife.

It could be that a “throw Maureen under the bus” strategy may work to get both of them off. After all, she wasn’t a public official and could do what she wanted as far as gifts. The prosecution’s opening statement drew a rather detailed and concise outline of just what and when the McDonnells solicited Williams’ largesse, right down to the “thank you” emails when money arrived in the bank to Maureen’s cell phone snap shot of Bob wearing slick, wraparound sunglasses while driving Williams’ Ferrari.

Giving the McDonnell’s the benefit of the doubt, I have to say I’ve heard this kind of story before among long-married couples suffering through middle age as their children are ready to fly away. Their stories may not be dramatic but I’ve got to admit that Bob McDonnell never seemed to exhibit such grabby behavior before.

This raises another tough question. What should “public service” be and how much should it take from one’s private life. More importantly, why can’t it support men and women who pursue it? Should it be only for the rich?

McDonnell slogged through relatively low-paying jobs like the General Assembly, Attorney General and Governor. He had five kids and a wife who seemed very freaked out by being First Lady – a role she apparently never wanted. She came from a Northern Virginia civil service family that didn’t exactly have a grand disposable income.

Consider two other Virginia governors –former and current. Mark Warner, now U.S. Senator, is rich from his telecommunications investments made years ago. At one point he was said to be worth a couple hundred million dollars. Gov. Terry McAuliffe, another former businessman, is likewise wealthy but probably not as rich as Warner.

Should these people be in office because they are rich? Should public service be available only to those with great portfolios? What would Thomas Jefferson say?

How Not to Shift From Coal

coal-plantBy Peter Galuszka

Coal is rightly the scourge of environmentalists. Economic pressure is on to shift to cleaner natural gas made plentiful by controversial hydraulic fracking. Political pressure is on to replace fossil fuels with renewables such as wind, solar and other methods.

In Virginia, Dominion, the state’s largest utility, relies for 46 percent of its generating capacity on coal and is moving in fits and starts to natural gas. It doesn’t get much from renewables. How much and how fast should it shift?

Yet out of Colorado comes a cautionary tale. According to The Washington Post, a family in the impoverished city of Pueblo is at odds running power. They only use a window air conditioner part of the time. They avoid using their oven in the summer. It uses electricity they not longer can afford because it overheats the house in summer.

For the family of Sharon Garcia, the problem is Black Hills Energy, which recently bought the local power company – Aquila, which got some of its power from a coal plant that was first built in 1897 with peaking extra power from Xcel, another utility.

Then, in 2008, Black Hills bought out Aquila and everything changed. Xcel decided it could make more money selling power at retail rates in Denver and not at wholesale rates to the utility serving Pueblo. In the midst of these events, a state law prompted Black Hills to shut down older coal plants for cleaner natural gas.

The state approved rate increases so Black Hills could build new infrastructure to handle natural gas and and rates when up significantly.

The problem is likely to be further complicated if the utilities move on the renewables, which, in the short term, are more expensive than either coal or gas.

This is not to say that companies should stick with coal forever, or natural gas. Renewables should still be the goal. But during the transition, green activists, many of them affluent, need to realize who pays the price. What’s a few dozen extra dollars for some is a tragedy for others.

Boomer….Wha?

a-bomb peace signBy Peter Galuszka

Remember the federal deficit that lurked behind the corner? Where did it go?

Al Kamen of The Washington Post asks that question in a column today. He writes:

“Not long ago, the federal deficit was projected to destroy the country, our country’s future and just about everything else. The politicians and the news media regularly fretted about what to do. Budget battles shut down the entire government for a couple of weeks.”

He continues: “So, what happened? The simple answer, of course, is that the deficit is way down and, for now, is no longer a big problem.”

The Congressional Budget Office estimated last week that the deficit for f/y 2014 is $492 billion or 2.8 percent of GDP. That puts us back in the early years of the George W. Bush administration.

Hmm. Kinda of makes you wonder where all this out-of-control spending is coming from that the Tea Party types talk about so much.

It is off the media radar screen. The Post has a graphic showing that the words or mention of the “national debt,” federal debt” or “federal deficit,” reached a high around the first half of 2010. The conservative Washington Times the most at 18; The Post with 13; and the New York Times with 10. Now it’s around three.

This isn’t to say that federal spending doesn’t merit watching. But where is Jim Bacon when you need him?

RAM, Coal and Massive Hypocrisy

The Pikesville RAM clinic in 2011. Photo by Scott Elmquist

The Pikesville RAM clinic in 2011. Photo by Scott Elmquist

By Peter Galuszka

Sure it’s a photo op but more power to him.

Gov. Terry McAuliffe is freshly arrived from the cocktail and canape circuit in Europe on a trade mission and is quickly heading out to the rugged and impoverished coal country of Wise County.

There, he, Attorney General Mark Herring and Health and Human Resources Secretary William A. Hazel will participate in a free clinic to help the mountain poor get free health care. The political opportunity is simple: Many of the 1,000 or more who will be attending the Remote Area Medical clinic are exactly the kind of people getting screwed over by the General Assembly’s failure to expand Medicaid to 400,000 low income Virginians.

RAM makes its Wise run every summer and people line up often in the wee morning hours to get a free medical and dental checkup. For many, it’s the only health care they get all year unless it’s an emergency. Another problem: Distances are great in the remote mountains and hospitals can be an hour away.

Mind you, this is Coal Country, the supposedly rich area upon which Barack Obama is waging war and harming local people by not going along with coal executives’ demands on environmental disasters such as mountaintop removal, keeping deep mine safety standards light and avoiding carbon dioxide rules.

The big question, of course,  is why if the land is so rich in fossil fuel, are the people so poor and in need of free medical care? It’s been this way for 150 years. And now, coal’s demise got underway in Southwest Virginia in 1991 when employment peaked at about 11,000. It is now at 4,000 or less. It’s getting worse, not better.

In June 2011, by coincidence, I happened along a RAM free clinic in Pikesville, Ky., not that far from Wise when I was researching my book, “Thunder on the Mountain: Death at Massey and the Dirty Secrets Behind Big Coal.” My photographer Scott Elmquist and I spotted the clinic at a high school. There must have been hundreds of people there –  some of whom told me they had been waiting since 1:30 a.m. It was about 8:30 a.m.

Attending them were 120 medical and dental personnel from the U.S. Public Health Service. They were dressed in U.S. Navy black, grey and blue colored fatigues. The University of Louisville had sent in about 80 dental chairs.

Poverty in Pike County had been running about 27 percent, despite the much-touted riches of coal. Pike is Kentucky’s biggest coal producer.

One man I spoke with said he had a job as a security guard, but he doesn’t qualify for regular Medicaid and can’t afford a commercial plan. In other words, had I interviewed him more recently and had he been a Virginian, he would have been lost through the cracks of Medicaid expansion. Alas, he’s in luck. In 2013, Kentucky opted for a “marketplace” expansion system where federal funds would be used to help lower income buy health plans through private carriers.

Lucky the man isn’t from here. The marketplace plan is exactly the kind that McAuliffe has proposed and exactly the one that stubborn Republicans such as Bill Howell in the General Assembly are throttling. The feds would pick up the bill for expanding Medicaid to 400,000 needy Virginians, at least initially.

Yet another irony. Expanded medical benefits are available just across an invisible border in two states whose coalfield residents somehow never got the great benefits of King Coal.

More Defense Cuts Plague Virginia

Special deliveryBy Peter Galuszka

Virginia continues to see painful military spending cuts in the aftermath of the years’- long U.S. intervention in Iraq and Afghanistan.

Among the latest news is that the Army may cut 3,600 jobs at Ft. Lee, ironically the site of a recent and large expansion, by 2020. That could result in a decline of 9,000 residents near Petersburg which is close to  the base.

Plus, the Air Force plans on cutting 742 positions at its Air Combat Command headquarters at Langley Air Force Base in Hampton although some of the positions are already vacant and won’t be filled.

These are just some of the changes that are affecting Virginia, which is the No. 2 defense industry state after California. Many of the cuts involve active duty personnel whose vacancies are not being filled or are being asked to take early retirement.

Defense industry jobs are likewise taking cuts. A report by the National Association of Manufacturers states that in 2014, California will lose the most military-related jobs (148,400) followed by Virginia (114,900) and then Texas (109,000). Maryland will lose 40,200 jobs, the report says.

Many of the jobs are in heavy manufacturing, such as aerospace and ship building, and search and navigational services, but general business and other services will also be affected.

The news is especially hard on Petersburg and nearby Ft. Lee which just a few years ago enjoyed a major boost after a Base and Realignment and Closure round consolidated many multi-service logistics and supply functions. The influx of thousands of soldiers, contractors and their families boosted the city and surrounding areas.

Hampton, the location of Langley Air Force Base, doesn’t seem to be in store for such heavy impacts since the cuts involve some jobs already being lost to attrition. Other bases and areas hurt by the Air Force cuts include Washington, D.C.; San Antonio; Texas; Dayton, Ohio; and Belleville, Illinois.

Newport News Shipbuilding, now owned by Huntington Ingalls Industries, could lose a deal to build one submarine and might delay another to build as Ford class nuclear attack carrier, if automatic defense budget cuts return in 2016. Another potential hit: refueling the nuclear-powered carrier George Washington but may mothball the ship if the budget cuts kick in. About 24,000 people work at Newport News Shipbuilding, making it the largest private employer in the state.

Besides the Washington area, Hampton Roads is greatly dependent upon defense spending. Some 47 percent of the regional economy depends on it. Anticipating more defense cuts, former Gov. Robert F. McDonnell formed a commission to come up with ideas before he left office this year. One of them is to be pro-active and recommend cuts of its liking before the federal government acts.

One of its recommendations cuts both ways on environmental issues. It recommends against offshore oil and gas drilling in watery areas where the military trains, thus making them available over the long term. It likewise recommends against wind turbines in the same areas.

These are interesting, but very difficult choices.

How Charlotte Stays Economically Competitive

Buildings participating in the Envision Charlotte energy-conservation initiative.

Envision Charlotte, a public-private partnership in Charlotte, N.C., has set the goal of reducing energy consumption in the city center by 20%. The initiative has achieved 8.4% savings so far, saving businesses in the central business district an estimated $10 million or more, Envision Charlotte and Duke Energy announced last week.

“We have cracked the code in understanding and measuring how energy is used and wasted within these buildings, and we are implementing programs today that are making a real difference in helping these businesses save money,” said Amy Aussikier, executive director of Envision Charlotte. The program encompasses more than 60 downtown buildings.

Not only does the program save businesses money, local officials see it as a competitive economic advantage for Charlotte. “Envision Charlotte is an economic development differentiator for Uptown Charlotte, where about 40% of the region’s office space is located,” said Charlotte Mayor Dan Clodfelter. “Lowering energy costs and showing a true commitment to sustainability makes us attractive to millennials, knowledge workers and companies that value cost savings.”

Bacon’s bottom line: This is a classic example of how “economic development” has evolved way past the traditional reliance upon industrial and corporate recruitment. Charlotte’s leaders are thinking about how to help make their existing businesses leaner and greener while driving down costs. They are thinking about what it takes to attract forward-thinking enterprises and knowledge workers. Charlotte isn’t the only city doing this — San Diego is pursuing a similar initiative. Why isn’t this happening anywhere in Virginia?

Actually, the opportunity exists to leapfrog Charlotte and do even better. Energy conservation for individual buildings is great, but it only scratches the surface of what’s possible. Cities should be exploring ideas like eco-districts that not only bolster the energy-efficiency of individual buildings but entire neighborhoods through shared energy generation, recycling of heat, installation of green roofs and the fostering of more compact development.

– JAB

Finally, Some Sense on Climate Change

mowbray archBy Peter Galuszka

Pulling the state’s head out of the sand, Gov. Terry McAuliffe has reversed his predecessor’s policy on addressing climate change.

He has reestablished a 35-member panel to see what the state can do to deal with what many scientists believe is an impending crisis. McAuliffe revived the panel first created by Democratic Gov. Tim Kaine and then left to wither away by former Republican Gov. Robert McDonnell.

Ironically, the new panel includes Michael Mann, a former University of Virginia climatologist who was the target of bitter and petty attacks by former arch-conservative Atty. Gen. Kenneth Cuccinelli over his view that mankind was responsible for carbon dioxide-driven greenhouse gases that are helping warm up the earth, melt polar ice caps and potentially flood huge sections of coastal cities such as Norfolk.

It’s about time that Virginia rejoined the 21st Century. McDonnell took the state backwards on environmental issues by gutting commissions such as this one and creating others that were devoid of ecological viewpoints and stacked with members of the fossil fuel industry and utility executives.

McAuliffe’s new commission has utility people like Dominion Virginia Power President Robert M. Blue and Bernice McIntyre of Washington Gas Light Company. But it is also well stocked with green types such as the Sierra Club, the Chesapeake Bay Foundation and the Southern Environmental Law Center whose views were pretty much in the wilderness during the McDonnell term.

It is finally time for the state to realize that climate change is real. Study after study shows that the state is vulnerable – from agricultural impacts brought on by different weather patterns to rising water in coastal areas. One area worth study is doing more to speed the switch to renewable energy sources like solar and wind.

McDonnell had pushed a policy that would make Virginia “the Energy Capital of the East Coast,” but the effort excluded renewables in favor of offshore oil and gas companies, nuclear power and coal.

Curiously, McAuliffe also favors such endeavors as offshore petroleum development. That raises questions in the face of massive fracking onshore for natural gas and the revolution it has sparked. Perhaps the new commission can provide some guidance.

It is refreshing that Virginia is finally emerging from the intellectual horse blinders that kept the debate stuck in Benghazi-style debates over emails at a British university or trying, unsuccessfully, as Cuccinelli did, to harass scientists globally over a ridiculous claim that Michael Mann had defrauded Virginia taxpayers by asserting what most climatologists do – that climate change is real and mankind is a reason for it.

Finally. . .

Denying Truth on the Outer Banks

Sun Realty

Sun Realty

By Peter Galuszka

North Carolina’s Outer Banks have always been a touchstone for me – in as much as anyone can associate permanence with sandy islands being perpetually tossed  around by tremendous wind and water forces.

The Banks and I go back to 1954 and Hurricane Hazel when I was an infant. They mark many parts of my life. So, I read with great interest The Washington Post story by Lori Montgomery about how real estate officials in Dare County and other coastal parts of North Carolina are trying to alter clear-cut scientific projections about how deeply the islands will be under water by 2100.

State officials say that the ocean should rise 39 inches by the end of the century. This would mean that 8,500 structures worth $1.4 billion would be useless. Naturally, this has upset the real estate industry which is pushing for a new projection of an 8-inch rise 30 years from now. Think of it like a photo in a rental brochure. You don’t choose shots of dark and stormy days. The skies must be blue.

Ditto science. The insanity is that so many still don’t believe what is going on with climate change and carbon dioxide pollution. Over the past several years, Virginians, many of whom vacation on the Outer Banks, endured and paid for former Atty. Gen. Kenneth Cuccinelli’s legal attacks against a former University of Virginia climatologist who linked global warming to human activity. The assaults went nowhere.

Instead of addressing such profoundly transitory events, too many in the region say it isn’t so or pick away at what is really happening as we speak. And as Mother Jones magazine points out, it isn’t because weather change deniers, usually conservatives, don’t understand science.

The Outer Banks are an extreme example because of their incredible fragility. Anyone with even a cursory understanding of the islands knows that they are completely under the thumb because they are where two major ocean currents meet.

The only reason Hatteras has developed at all is the Bonner Bridge, an ill-conceived, 51-year-old span over Oregon Inlet so decrepit that it is often closed for repairs. Replacing it has been constantly delayed by the lack of funding and the threat of lawsuits. The federal government has been complicit for decades by spending at least hundreds of millions on sand replenishment programs or offering flood insurance coverage.

About 15 miles south of the bridge is Rodanthe, a flyspeck village just south of Pea Island National Wildlife Refuse. It is at the point of the Banks that sticks out farthest into the Atlantic and is under the strongest attack by ocean currents and storms. Route 12, the only way to evacuate by car when a hurricane comes, is on a narrow spit of constantly shifting sand trapped between the ocean and Pamlico Sound.

I’ve been going to Rodanthe for years. Starting in the 1980s, friends and I would pool our money and  rent one of the big beach houses. We have been constantly amazed how the distance between the structures and the surf is disappearing. One favorite spot was “Serendipity,” a skinny, tall beach house that we rented perhaps twice and featured fantastic views from the top-floor bar.

It was dressed up as a bed and breakfast in the movie ”Nights At Rodanthe,” a 2008 weeper starring Richard Gere and Diane Lane. The film was panned and the house was equally threatened. In fact, the next year, the owner had the whole thing placed on a truck and moved nearly a mile down the coast where there’s a little more sand.

More hurricanes followed, cutting a new inlet a few miles into Pea Island and its watery bird impoundments. The oceanfront houses we used to rent are in trouble. The ones across Route 12 now have dramatic new views.  A small, new bridge spans the inlet.

One can argue that building on the Banks is madness, global warming or not. There’s a lot of truth to this. But rising ocean water is truly going to accelerate the changes no matter how hard politicians or North Carolina’s real estate industry say it isn’t so.

Coming up: Car-Lite Burbs

David Grannis

David Grannis

A California developer is teaming with Daimler AG to bring buses, shuttles and ride sharing to an Orange County community — with no government subsidies.

by James A. Bacon

Rancho Mission Viejo south of Los Angeles is developing a 23,000-acre planned development with all the amenities one would expect from an affluent California community: parks, hiking/biking trails, yoga and fitness studios, community gardens and a hacienda-style clubhouse. But the biggest selling proposition may be the potential to slash living expenses by thousands of dollars yearly by living a car-lite lifestyle.

Working in partnership with Daimler AG’s Business Innovation group, Rancho Mission Viejo will introduce to its Ladera Ranch community in July a service that provides residents access to scooters, cars, circulator buses, destination shuttles, Car2Share carpooling and other bundled transportation services, all accessible through a smartphone app. Those services will be provided as well to the neighboring Sendero project, with an expected 14,000 new residents and workers in five million square feet of commercial space, now under development.

David Grannis, a partner with pointC Partners, who is leading the initiative for the developer, says the goal is to cut the cost of mobility in half from the $14,000 or more it takes to own and operate an automobile today in south Orange County, California. Households in the target demographic typically own two or three cars. “I’m not telling you to get out of your car,” he told attendees of the 2014 LOCUS conference in Washington, D.C., earlier this month. “I’m telling you to get out of your third car.”

If successful, the transportation-as-a-subscriber-service initiative could transform the economics of automobile transportation. Daimler, parent company of Mercedes Benz, could evolve from a company that primarily manufactures and sells automobiles into a company that provides mobility services. Other auto companies that are exploring similar strategies could follow suit. The new business model could slash the cost of mobility for Americans, improving their standard of living, while shifting people out of single-occupancy automobiles into buses, vans and other shared-ridership modes, thus burning less gasoline and releasing less greenhouse gas.

Experience has shown that moral suasion — it’s good for the environment — doesn’t work very well, Grannis says. When Rancho Mission Viejo offered the option of environmentally beneficial solar roofs or granite counter tops, 97% of buyers selected the granite counter tops — until the recession came along and people appreciated the fact that photovoltaic roofs could reduce their energy bills. He sees the mobility service the same way. A handful of people will go for it because it’s the right thing to do; the rest will embrace it because it saves them thousands of dollars per year. “It’s economics, all economics.”

The Ladera community in Rancho Mission Viejo

The Ladera community in Rancho Mission Viejo

Rancho Mission Viejo’s multimillion-dollar experiment, says Grannis, responds to confluence of environmental, regulatory and demographic trends.

On the regulatory front, California has mandated massive cuts in greenhouse gas emissions, which will require major shifts in transportation habits and development patterns. It is all but illegal to continue building the kind of low-density suburban communities associated with heavy automobile use and high GHG emissions. At present, 80% of Ladera Ranch residents drive alone to work, most of them to destinations outside the community. None of them bicycle or ride transit to work. To meet regulatory goals, the developer has to find a way to reduce the solo commute.

Another trend is demographic. Rancho Mission Viejo is focused mainly on Baby Boomers and Millennials. Boomers are selling the houses they lived in when raising families. As they age and find it more difficult to drive, Boomers are concerned about losing their mobility. They also see walkability as a fitness imperative. They want communities where they can get around on foot. Buses, vans, bikes and scooters complement walkable neighborhoods very nicely. Meanwhile, Millennials are less enamored with car ownership than previous generations. If they can find a less expensive mode of transportation, they will gladly take it.

People still want to live in well-designed communities such as Rancho Mission Viejo where they enjoy access to good schools, open space and lots of healthy activities, says Grannis. Automobile ownership is superfluous. What matters is mobility and access. And that’s what the venture with Daimler will provide them.

Transportation-as-a-service represents the next great evolution of the automobile industry. Grannis equates the innovation in importance to Henry Ford’s assembly line that introduced cheap cars and to the financing revolutions that made it easier for people to buy and lease cars. The next big step will be to eliminate much of the cost and risk associated with auto ownership.

A necessary prerequisite for making transportation-as-a-service work is to design walkable communities. Rancho Mission Viejo is planning compact residential neighborhoods with sidewalks and commercial districts with complete streets.  The next step is pitching the service to a population not accustomed to it by making it as easy as consulting your smart phone to reserve a ride, and by providing incentives, offering rewards and making it fun. Continue reading

McAuliffe: Time for Some Real Ethics Reform

mcauliffePeter Galuszka

One can hardly blame Gov. Terry McAuliffe for ditching the General Assembly’s absurdly weak ethics panel along with deep-sixing the line items in the budget that restrict him from expanding Medicaid.

Obviously, the nice-guy, bipartisan approach he had advocated simply isn’t possible with the likes of Tommy Norment and Bill Howell in the legislature. So, it’s hard ball time.

After a year-long trauma of the tawdry gift accepting of former Gov. and Mrs. Robert F. McDonnell and their upcoming corruption trial, it is high time the state got serious about ethics reform. But true to form and the traditional senses of entitlement and privilege, the General Assembly has created a ridiculously weak entity called the Virginia Conflicts of Interest and Ethics Advisory Council.

This wrist-slapper would collect and review financial filings of donations to legislators and help “educate” those poor dears about those mistakes they might surely make even though they obviously didn’t intend to.

As for real teeth, it has gums. It doesn’t cover “intangibles” like trips to the Masters, deep-sea fishing, African boar-hunting, feasts at high-end steak houses and so on. Dominion, Altria and anyone else can shower on such goodies. Jonnie R. Williams could still fly Bob and Maureen anywhere in his private jet. Subpoena power? Forget it!

Well, McAuliffe has defunded this effort and wants real ethics legislation by next assembly.

Meanwhile, Virginia’s cozy politicians are “shocked, shocked, mind you” that the feds are taking a harder look at them. Many can’t get over the fact that McDonnell was actually indicted. They can’t believe he really faces trial in six weeks. Five former Attorneys General harrumphed their way to federal court saying that this is certainly not corruption. A federal judge effectively showed them the door.

Now we have a new federal case. Veteran State Sen. Philip Puckett, a key Democrat, decided to take a powder just before the General Assembly vote on the $96 billion, two-year budget and the Medicaid expansion matter. His bizarre departure just before the vote tilted matters the way of conservative, anti-expansion Republicans.

It was said at the time that Puckett might be considered for a six-figure job at the Virginia Tobacco Indemnification and Community Revitalization Commission, which would be a step up from the $18,000 he makes as a senator. In the mix, his daughter could get appointed as a state judge.

The outcry was so strong that Puckett withdrew from the tobacco commission job possibility. But there’s a federal probe in Abingdon and Puckett has hired Thomas J. Bondurant Jr., a former federal prosecutor. Likewise lawyering up is tobacco commission head Terry G. Kilgore, who will be represented by Thomas Cullen, another former federal prosecutor. This sounds just like GiftGate.

Now the tobacco commission has always been a fun place since it doles out hundreds of millions from the state’s settlement with Big Tobacco back in the 1990s. Many of the 46 states who got the money used it to prevent smoking but Virginia also created a gigantic slush fund supposedly to advance products in the Southside and Southwest tobacco belts that grow bright leaf and burley.

Their first act was to hand out checks worth thousands to anyone who held a tobacco quota in a now-defunct tobacco program. You could use this to invest in your community, buy new golf clubs or vacation in the Maldives. Your choice. (We Virginians like free choice, it’s the Jefferson thing).

A few problems set in. Turns out that former director of the commission, John W. Forbes II, was dipping in the well to the tune of $4 million and also set up a suspect “literacy fund” worth $5 million. He is serving a 10-year prison sentence after his trial in 2010.

Since then, there’s been more suspect stuff going on. Last fall, for instance, the commission gave a $240,000 grant to Virginia Intermont College, a tiny and troubled liberal arts school in Bristol. The college has received lots of money form the commission over the years.

Well, the grant was supposed to help Intermont turn the corner financially as it tried to merge with another institution. The latest is that the merger failed and Intermont is kaput and the city wants it to pay its bills. And where did that $240,000 go?

Not to worry, folks. We’re dealing with Virginia gentlemen here and we are all honorable. Or maybe not. As State Sen. Creigh Deeds says: “We ought to be troubled. We ought to all tremble. I’ve read some pretty nasty speculation. We ought to fear people talking like that. … When you’re elected to office, your public actions ought to be beyond reproach.”