Category Archives: Infrastructure

Swapping Easements

This Dominion map submitted to the VOF shows the location of conservation easements in the Augusta-Bath-Highland area (parcels outlined in red), and the location of the Hayfield Farm where Dominion would create an easement and turn over to the VOF. (Click for larger image.)

This Dominion map submitted to the VOF shows the location of conservation easements in the Augusta-Bath-Highland area (parcels outlined in red), and the location of the Hayfield Farm where Dominion would create an easement and turn over to the VOF. (Click for larger image.)

by James A. Bacon

Dominion Transmission, managing partner of the proposed Atlantic Coast Pipeline, has proposed to donate two parcels totaling nearly 1,200 acres to offset the intrusion of its proposed 600-mile pipeline onto lands protected by conservation easements.

In a proposal made to the Virginia Outdoor Foundation (VOF), which holds the conservation easements, Dominion would donate the land and easements for a 1,100-acre parcel and and 85-acre parcel to offset the conversion of 68 acres of protected open space on ten different easement-protected parcels in Bath, Highland and Nelson Counties. The donations would create a “mitigation ratio” of 16 to 1 in one case and 20 to in the other, according to Robert Hare, senior business development manager with Dominion.

Dominion presented its proposals Thursday to VOF’s Energy & Infrastructure Committee. The Mountain Valley Pipeline, which proposes to build an interstate transmission line through Virginia, also described a plan to offset an easement in Montgomery County that it wants to route its pipeline through. The ACP proposals are expected to be reviewed by the full VOF board next month.

The stakes are potentially momentous for the governance of conservation easements in Virginia. In its entire 50-year history, VOF has received only 14 “conversion-diversion” requests to alter easements, which landowners grant in order to protect scenic, environmental, cultural or historical resources on their property in perpetuity. Most conversions involved slivers of land needed for public purposes such as widening a road, adding a turning lane for a school or extending water-sewer lines. In every case, the requests were supported by the local governments involved. The pipeline cases are very different. They are proposed by for-profit utilities, they would be far more intrusive, and they are all opposed by the respective local governments.

Conservation easements are protected by state law, and they are hard to bust using eminent domain under state law. But Dominion’s interstate pipeline is regulated by the Federal Energy Regulatory Commission (FERC). In the event of a conflict, it is unknown whether federal or state law would prevail because no case has been tested in the courts.

VOF board members find themselves between a rock and a hard place, said Tom Slater, chairman of the energy and infrastructure committee. A Richmond attorney, he spends weekends tending to 110 Angus cows on a Loudoun County farm that his family has owned since the 1840s. Board members are passionate about conservation and sympathetic to landowners who entrusted their easements to the VOF, he said. “We want to enforce state law.” At the same time, he added, they are cognizant that state law could be “pre-empted” by federal law.

Under FERC guidelines, pipeline companies must go through an exhaustive process of working with state agencies to avoid or mitigate intrusions upon historical, cultural and environmental resources. Virginia is unique in having an entity like the Virginia Outdoors Foundation, which holds 3,835 easements totaling more than 750,000 acres. While VOF’s mission is to conserve viewsheds, wildlife habitat and other resources, it is also enjoined by state law to work with railroads, utilities, the Virginia Department of Transportation and other entities citing a public-need justification for infringing on the easements.

Dominion has made literally hundreds of adjustments to its proposed route. The resulting zigs and zags around residential areas and land with historical, cultural or environmental value have increased the pipeline length from an estimated 550 miles to 600 miles.

An early version of the route had managed to avoid 23 VOF easements, Hare told the VOF committee. However, when the U.S. Forest Service wrote a letter to FERC in January stating that the pipeline would be “incompatible” with the protection of rare salamanders and other species in Virginia and West Virginia national forests, Dominion had to re-route 95 miles of the line. With severely constrained options, the new route ran through 10 VOF-protected parcels.

The Mountain Valley Pipeline (MVP) hasn’t faced the same routing challenges as ACP, but it still found itself unable to avoid one easement. The company has asked the VOF if it could mitigate the impact of crossing that parcel, as well as allowing a temporary construction-access road, by purchasing land elsewhere and turning over the easement to VOF. In the meantime, MVP is working on a work-around that may allow it to withdraw its request, said Lindsey Hesch, senior environmental specialist.

Dominion and MVP have shown “good faith” in trying to route their pipelines around conservation easements, said Slater, the committee chair. “But these land swaps are a first — on a scale way beyond anything we’ve experienced before.” Continue reading

Justifiable Jitters or Unwarranted Worry?

Leslie Hartz, the Dominion executive in charge of pipeline construction shows the width of steel to be used in smaller-diameter sections of pipe.

Leslie Hartz, the Dominion executive in charge of pipeline construction, shows the width of steel to be used in smaller-diameter sections of pipe.

Virginians living in the path of the proposed Atlantic Coast Pipeline fret about the threat of explosions. Dominion Transmission says their fears are overblown.

by James A. Bacon

Irene Leech, a consumer studies professor at Virginia Tech, grew up on a farm in Buckingham County where her family has raised beef for more than a hundred years. The family has preserved many of the original structures, including the old ice house, granary and smokehouse. Her husband, she says, devotes half his time to help keep the farm going. “Our plan is to retire to the farmhouse. Our goal is to pass on a sustainable business to the next generation.”

But Dominion Transmission, managing partner of the proposed Atlantic Coast Pipeline, has thrown her for a loop. The company wants to route a high-pressure transmission pipeline through the farm. While Leech acknowledges that the odds of gas leaking and igniting anywhere near her are remote, if the gas does explode, the farmhouse and outbuildings are within the danger zone.

“From my perspective, they put my life at risk, all our property, all our heritage,” says Leech. “I know the odds of something happening are very, very small. But I had a brother killed in a farm accident. My grandmother died in an accident. My husband was working for the Pentagon on 9/11. I was at Virginia Tech during the mass shooting. Things happen. We’ll have to live with the risk for the rest of time.”

Leech is just one of thousands of residents along the route of the proposed Atlantic Coast Pipeline (ACP) who worry about the safety risks. Like many others, she remains unpersuaded by Dominion assurances that the ACP will incorporate the latest, greatest technology, best practices, and specifications that exceed federal safety standards. Running pipe on the steep slopes and through sinkhole-ridden karst geology of the mountainous Nelson and Augusta counties poses issues that pipelines don’t encounter in less rugged terrain.

“The possibility of an explosion is the really frightening thing,” she says. “You can come up with statistics that make it seem very remote. The problem is, if it occurs, it’s really deadly.”

Dominion responds that it is pushing the envelope of industry best practices to ensure the safe operation of the pipeline, which, if approved by the Federal Energy Regulatory Commission (FERC), would run from West Virginia through Virginia to North Carolina. “We’re a safety first company,” says Dominion Transmission spokesman Aaron Ruby. That’s not a P.R. slogan, he insists. An emphasis on safety permeates the organizational culture and informs everything the company does.

Dominion makes every reasonable effort to accommodate landowners like Leech, says Ruby. The company has offered to re-route the pipeline from an 800-foot distance from her farmhouse to 1,900 feet, he says, “but she has refused to let us survey her property to see if the alternative is suitable.”

In the meantime, the company is designing safety into pipeline construction and operations at every step, says Leslie Hartz, vice president of pipeline construction. The quality-control process entails a rigorous inspection protocol for fabricating the pipe in the mill, and then X-ray and hydrostatic testing of pipes and welding in the field. When up and running, ACP will use robots to inspect the pipe interior and will deploy aerial patrols and sensors to monitor the exterior. If conditions deviate from narrowly defined parameters, operators will not hesitate to shut down the pipeline.

Pipelines co-exist with people all around the country, and hardly anyone thinks about it, says Ruby. As an example in Virginia, he cites Lake Monticello, a bedroom community in the Charlottesville metropolitan region with a 2010 population of almost 10,000. “Lake Monticello …. developed over many decades alongside four large-diameter natural gas pipelines!”

The Big Picture

Interstate gas pipelines are the safest mode of energy transportation, says Catherine Landry, a spokesperson for the Interstate Natural Gas Alliance of America (INGAA). “Last year 99.999997% of gas moved without incident.” That compares very favorably to moving propane or petroleum by truck or rail. Continue reading

Virginia in No Rush to Address Impending Metro Meltdown

metroby James A. Bacon

The McAuliffe administration seems to be in no hurry to bail out the ailing Washington Metropolitan Area Transit Authority (WMATA) commuter rail system crippled by declining ridership and an $18  billion capital spending shorttfall over the next ten years. Bolstering state support for the transit authority, which has been plagued for decades by union featherbedding and short-sighted, politically driven decision-making, would divert billions from other projects around Virginia.

At a recent discussion of Virginia’s rail and transportation budget Tuesday, Virginia Transportation Secretary Aubrey Layne said there are no immediate plans to send more money to Metro, although there could be discussions with the General Assembly in the future.

“At some point, based on the estimates that I have seen as to what the capital needs are going to be, there’s obviously going to be that discussion for additional revenues,” Layne said, as quoted by the Washington Post. “That is not contemplated in these budgets.”

Bacon’s bottom line: This discussion is unavoidable, and the sooner it starts, the better. The Washington Metro is mission-critical transportation infrastructure for Northern Virginia and the rest of the Washington region. It cannot be allowed to fail. Failure to address the system’s maintenance needs will result in more accidents, more delays, more malfunctioning escalators and other conditions that drive away ridership, which in turn will cut into operating revenues.

At the same time, Virginia taxpayers are understandably reluctant to pour billions of dollars down a rat-hole, diverting funding from their own much-needed transportation projects, without some assurances that the commuter rail system can be made to run efficiently. Among major concessions that I would push for are higher fares, revisions to union contracts, prioritization of maintenance funding over expansions of the system, and an overhaul of the governance system.

Working out an agreement that satisfies constituencies in Virginia, Maryland and D.C. will be incredibly difficult, given the different ideological and geographic interests involved — not to mention the inevitable turnovers in political leadership. Negotiations could take years. Metro doesn’t have years. Discussions need to start immediately. McAuliffe could show leadership by convening a high-level confab to bring together major stakeholders from across the Washington region and surfacing the major issues that must be resolved.

Tech’s “Smart Infrastructure” Initiative Progresses

Virginia Tech's Goodwin Hall: traditional hokie stone on the outside, braniac smart building on the inside

Virginia Tech’s Goodwin Hall: traditional hokie stone on the outside, braniac smart building on the inside

by James A. Bacon

Virginia Tech has been re-thinking for a several years now how to invigorate traditional engineering disciplines by integrating civil engineering and computer engineering to create “smart infrastructure.” The $100 million initiative received a $5 million boost yesterday from the Hitt family, owners of Falls Church-based Hitt Contraction, a company that typically recruits eight to ten Virginia Tech graduates every year, according to the Washington Business Journal.

The Tech initiative is incredibly timely. In arguably the biggest revolution since the invention of structural steel that made possible the construction of new classes of bridges and skyscrapers in the 1930s, the so-called Internet of Things (IoT) is introducing radical change to the construction industry. The IoT is a catch phrase for the integration of ubiquitous sensors into buildings and structures that generate data that can be used to improve performance.

An in-house Virginia Tech article made note last year of Virginia Tech’s “Smart Infrastructure Laboratory,” which includes smart building technology that, among other things, can guide occupants to safety during disasters, and its Structural Systems and Lifecycle Reliability Team, which works at the intersection of engineering materials and systems to advance structural safety, resiliency and durability.

Virginia Tech’s Goodwin Hall … is known as the world’s most-instrumented building for measurement of vibrations. Measuring motion and vibration inside and outside the walls, 212 accelerometers can detect even the slightest movement. The sensors feed data into data acquisition boxes via 65,000 feet of cable interconnecting the entire system. Data can be used to save energy costs, guide maintenance crews, or deploy first responders in an emergency.

The Structural Systems and Lifecycle Reliability Team has a measurement and visualization system that can generate 3-D representations of any object or environment over time. These models can identify gradual changes such as a gusset plate buckling in a bridge or cracks in a building after an earthquake. The system has been used to measure deformations in a steel plate wall and in the field to identify cracks in a concrete bridge over the James River.

Virginia Tech will start work in January on “Hitt Hall” for smart construction and another unnamed building for intelligent design. Meanwhile, Tech is expanding and linking its smart road partnership with the Virginia Department of Transportation (VDOT), its smart city partnership with Arlington County, and a 300-acre “smart neighborhood” to serve as a proving ground for new technologies.

Bacon’s bottom line: The Internet of Things is revolutionizing the built environment — everything from buildings to roads and bridges, from waste water systems to electric grids. The cost of sensors is plummeting, and so is the cost of transmitting data to the Cloud. The idea of “smart” bridges and “smart” buildings is not hype — it’s real. It’s here. And leading construction companies like Hitt are building teams that can pull all the pieces together. Tech is wisely making the program multidisciplinary, opening it up to engineers, business majors and students in other study areas, reports the WBJ, “as the lines between technology, infrastructure and business continue to blur.”

I can’t believe that Virginia Tech is the only university exploiting this opportunity — I don’t track what other institutions are doing — but at the very least it deserves kudos for being an early mover. Hopefully, Virginia-based companies like Hitt Construction will tap graduates with the new skill sets to gain a competitive economic advantage in the marketplace.

Meanwhile, Virginia political and government leaders would do well to acquaint themselves with the state-of-the-art work at Virginia Tech and start thinking creatively how to apply the Internet of Things to Virginia’s own infrastructure. The potential maintenance savings from the application of smart technologies to government-owned buildings, utilities and transportation infrastructure is immense. The potential to optimize transportation systems, conserve energy and reduce man’s impact on the environment is transformative. VDOT and Arlington County are ahead of the curve. Everyone else needs to get with the program.

Surry-Skiffes Transmission Line Inches Closer to Approval

The proposed 500 kv line would connect with the transmission infrastructure at the Surry Power Station, as seen in this photo of the Surry switchyard.

The proposed 500 kv line would connect with the transmission infrastructure at the Surry Power Station, as seen in this photo of the Surry switchyard.

The U.S. Army Corps of Engineers has not yet granted Dominion Virginia Power a permit to build a transmission line across a historic stretch of the James River, but it has rejected the argument advanced by foes who argued that electricity demand in the Virginia Peninsula could be met by other means.

“Additional analysis further demonstrates that there is a need for this project from both Dominion’s and the general public’s perspective,” Col. Jason E. Kelly wrote in a letter to the Advisory Council on Historic Preservation last week, reports the Daily Press. Kelly said the Corps review “found nothing to indicate that Dominion’s information regarding the practicability of the alternatives is flawed or incorrect.”

Preservationists and conservationists are distressed by the prospect of high-voltage transmission towers interrupting vistas of “Virginia’s founding river” from Jamestown and other locations in the state’s historic triangle.

Foes argue that there are alternatives to the proposed Surry-Skiffes Creek transmission line — they just cost more than Dominion wants to pay. The power company could install scrubbers at the coal-fired Yorktown Power Station, which Dominion is retiring to meet clean air goals, or convert the units to natural gas. They also say that demand-response tariffs and other energy-conservation measures could dampen demand, while a lower-capacity transmission line could run underneath the river at significantly less expense.

While the Corps appears to side with Dominion on this particular issue, it has not seemed to be in any hurry to issue a permit. Dominion claimed that it needed to commence construction of the transmission line last September to avoid rolling blackouts required to protect the integrity of the electric grid. Such incidents, Dominion has said, could occur dozens of times a year, depending largely upon weather conditions.

— JAB

SCC Approves Greensville Gas Plant

The Greensville power station will use technology similar to that used in Dominion's combined-cycle natural gas plant in Brunswick County, pictured here.

The Greensville power station will use technology similar to that used in Dominion’s combined-cycle natural gas plant in Brunswick County, pictured here.

by James A. Bacon

The State Corporation Commission (SCC) approved yesterday Dominion Virginia Power’s filing to build a $1.3 billion natural gas-powered power station in Greensville County. The power station will generate 1,588 megawatts of electricity, upping Dominion’s reliance on natural gas to 39% of its energy mix by 2020.

Construction, expected to begin later this year, is expected to be complete by 2019. The project will create roughly 1,0o0 construction jobs and 45 full-time positions, and it will generate $8 million a year in property taxes for Greensville County.

In approving the project, the SCC rejected the arguments of environmental groups that Dominion had failed to properly consider third-party alternatives for obtaining the electricity or alternatives such as energy efficiency, solar energy, a combined gas/solar hybrid facility or a portfolio approach. “The company’s choice of a natural gas facility appears prudent given the current natural gas market and forecasted gas prices,” stated the SCC in its final order.

Dominion said that customers will save $2.1 billion over the life of the power station through fuel savings compared to the project cost of purchasing electricity in the open market. Said Paul Koonce, CEO of Dominion Generation group: “This project will ultimately bring low cost, reliable energy to our customers … in addition to providing a major economic impact and good paying jobs for Southside Virginia.”

The Virginia Chapter of the Sierra Club, which opposed the filing, has not published a response on its website.

Bacon’s bottom line: To my mind, the most interesting question regarding the $1.3 billion investment is whether Dominion should be committing itself to a fixed, multi-decadal investment in an era in which the cost of solar energy continues to decline. Natural gas prices are incredibly low right now, and probably will continue to be for several years, but there are reasonable grounds for wondering if prices could rise sharply, as they have in the past, as a slew of proposed gas pipelines and gas liquefaction facilities start connecting the Marcellus and Utica gasfields to new markets, including those overseas.

Dominion is building a combined-cycle gas plant, which uses waste heat from the gas turbine to power a steam turbine, producing up to 50% more electricity from the same amount of fuel. With low gas prices, the economics are hard to beat at present. Assuming the Greensville plant runs most of the time, as it is designed to do, it will produce electricity far more cheaply than an industrial-scale solar facility, which generates no electricity when the sun goes down, and suffers diminished output in cloudy conditions.

The SCC found that Dominion had taken “serious and credible efforts to assess the cost and availability of third-party alternatives.” The company had issued an RFP and evaluated 5,000 megawatts of fully dispatchable, baseload or intermediate generation resources.

“We find that the Company’s RFP to be adequate for purposes of this proceeding,” states the SCC ruling. “Moreover, the Project was also compared to multiple unsolicited offers for solar, wind, landfill gas, and coal resources that were received outside of the RFP.”

Turning Sea Level Rise into a Competitive Economic Advantage

Routine flooding -- not just for Mississippi River towns anymore.

Recurrent flooding in Hampton Roads

by James A. Bacon

To hear Henry R. “Speaker” Pollard describe all the economic risks associated with rising sea levels in Hampton Roads — soaring insurance rates, higher financing costs, declining property values, disruption to business — one might be forgiven for wondering why any business would ever want to consider investing there. “It’s easy to get caught up in a gloom-and- doom perspective,” he says.

But Pollard draws a counter-intuitive conclusion: If business and government respond by moving up the learning curve on how to manage the risk, rising sea levels could provide a positive stimulus to the low-lying, flood-prone region. Speaking to an audience at the 2016 Resilient Virginia Conference, he said, “In the end Hampton Roads can achieve a competitive economic advantage compared to other coastal communities.”

Pollard’s optimism was echoed by other speakers at the conference, who described how Norfolk and Virginia Beach, among others, are grappling with the challenge of coping with sea levels that could rise two feet by 2100, if the historic rate prevails, or as much as eight feet, if more pessimistic global warming scenarios pan out.

Christine Morris, chief resilience officer for Norfolk, says her goal is to “marry the city to innovation.” By leading the way in devising positive responses to flooding and inundation, Norfolk can become a test bed for new technologies, solutions and urban designs. She foresees the city brokering knowledge, incubating new businesses and attracting companies that want to get in on the ground floor.

Rising sea levels pose several problems for Hampton Roads, some obvious and some less obvious, said Pollard, who is an environmental attorney with Williams Mullen. Inhabitants endure frequent road blockages during hard flooding, and the frequency of disruptions has increased markedly from decade to decade. Shoreline property owners are combating erosion, storm damage and sky-high insurance rates. Manufacturers worry about the ability of employees to make it to work during extreme-weather events and the ability to ship goods out of the region on a timely basis.

Less visible to the public, municipal and industrial water treatment facilities could find it more difficult to discharge treated wastewater when storm waters run high, said Pollard. Also the flooding of industrial property could flush out surface contamination and spread toxic pollutants. The retreat of wetlands could cause the loss of nursing grounds for fisheries.

Conceptually, there are three broad approaches to dealing with sea level rise: protect assets with hard infrastructure like walls and jetties; buffer the impact of storm surges with green infrastructure such as wetlands and oyster reefs; or retreat from the rising tide by limiting development and infrastructure.

“There is still a lot of uncertainty. We need to accept that — you never have perfect data,” said Pollard. Accordingly, there is no way to know which sea level scenario will occur. A slower pace of sea-level rise gives the region decades to prepare; a rapid rate calls out for more dramatic action.

Either way, he said, “there are opportunities out there.” He expects private lenders and insurers to play a major role in evaluating the risk. Companies devising successful approaches in Hampton Roads can apply their expertise in coastal communities around the world. He expects to see new real estate development strategies such as the re-purposing of industrial brownfields, and new financing strategies like public-private partnerships. Green infrastructure could give rise to new technologies, products and business opportunities.

Speaking from a planning perspective, Morris said she expects to see an evolution in the urban form to encourage denser development on the one hand and more “green and blue” — flood plains used for parks, ballfields and open space that suffer little loss in value when flooded. A key goal of Norfolk’s Coastal Resilience Strategy, she said, is to design “the coastal community of the future.”

Brian Batten, an engineering consultant to Virginia Beach, advocated matching capital investments to expected sea level rise over comparable time horizons — 1 1/2 feet of sea level rise over 20 to 40 years, and 3 feet over 50 to 80 years. Moody’s, the bond rating firm, is asking local governments how they are dealing with sea level rise. Sound planning can lead to superior bond ratings, he said, noting that Virginia Beach, which is thinking about these issues, had its AAA bond rating confirmed recently.

“If we do it well,” Pollard said, “we could come out better.”