Category Archives: Politics

Time For a Fossil Fuel Reality Check

Murray

Murray

By Peter Galuszka

Let’s pause for a moment, catch our breath and realize what is really going on in the world of fossil fuel and climate change.

We’ve heard tons of loosely-based opinion from climate change deniers and drum beaters for the “War on Coal” crowd.

Here are two recent news items:

Coal baron Robert Murray is closing a $1.4 billion deal for Illinois Basin coal. The outspoken, labor-busting  boss who figured prominently in the “War on Coal” campaign during the Mitt Romney presidential run has been picking up reserves in the robust Illinois Basin and in the distressed Appalachians.

His deal for 50 percent of Foresight Energy follows another he did in 2013 worth $3.5 billion to buy five Appalachian mines from Consol.

What does this mean? It shows that coal overall does have a future, especially in the high-sulfur Illinois Basin which has been rediscovered since utilities such as the Tennessee Valley Authority have been forced to use better scrubbing equipment. Illinois Basin can be twenty bucks a ton cheaper than Appalachian product. He also sees some future left in high coast Appalachian coal.

Stop a moment and consider: new environmental regs promote the use of cheaper coal. Now that coal may not be in the Central Appalachian area of southwest Virginia and West Virginia. But the magic of the market is favoring Illinois Basin product which is simply easier and cheaper to mine as is Powder River Basin coal in Wyoming and Montana.

A big problem with some of the commentators on this blog is that they fail to grasp that the U.S. coal industry is a lot bigger than little ole Virginny’s mines that started to play out decades ago. In their world view, their demise is the fault of the bad old federal government, not sharp barons like Murray who is a major contributor to (ahem) the Republican Party. Their brains seem trapped in a geographical warp zone where they cannot imagine things beyond the borders of the Old Dominion.

And while we are on the GOP, let’s consider George Schultz’s oped Sunday in The Washington Post. For those of you who may forget, he was Secretary of State under Ronald Reagan, the mystical president some of you love and miss dearly.

Schultz’s message is that human based climate change is here. So, stop denying it, get over it and get on with a carbon tax that worked to protect the ozone layer years ago. Yes, they actually worked that out back in Ronnie’s day and a tax and marker system to reduce fluorocarbons actually worked.

Not to add insult to injury, but consider what Schultz wrote: “For example, we can now produce electricity from the wind and sun at close to the same price we pay for electricity from other sources…”

Hmm. Sounds like a wild-eyed, irresponsible greenie. Someone tell Jim Bacon and Dominion Virginia Power.

Film Rips Climate Change Deniers

merchants-of-doubt-posterBy Peter Galuszka

A just-released documentary “Merchants of Doubt” seems tailor-made for the readers of Bacons Rebellion.

The film by Robert Kenner explores the profession of doubting climate change in which the energy industry quietly hires “scientists” to debunk the idea that carbon dioxide emissions are creating global warming that could have catastrophic consequences.

The strategy of confronting scientific evidence that is damaging to a particular industry has been around since at least the 1960s when the chemical industry tried to dismiss the idea that the insecticide DDT widely used to control mosquitoes could be deadly to wildlife for decades.

Big Tobacco took the concept to entirely new levels when scientific studies in the 1960s linked tobacco smoking to addictive nicotine, cancer and other bad things. Cigarette makers hauled out their own supposedly independent but payrolled “scientists” to raise doubt about the claims before congressional committees and to the general public.

The tobacco industry snowballed their phony science into yet another sphere. There had been complaints that people were being killed when they fell asleep on furniture while holding smoldering cigarettes.

The cigarette makers could have put in fire retardants in the smokes but they thought it would be too costly. So, they set up a scenario where furniture makers would load up sofas and chairs with fire retardants, which, unfortunately, proved carcinogenic or otherwise harmful. Then, of course, the chemical industry found its own “scientists” to claim the flame retardants they put in furniture were safe.

According to review so the film which I haven’t seen (it was just released March 6), Big Energy is using the very same tactics with help from the Koch Brothers and their network of paid think tanks (such as the “Heartland Institute”) to debunk the link between carbon and climate change. You may see some of those ideas popping up on this blog from time to time.

Kenner has won awards for such documentaries as “Food, Inc.” His latest film is based on a 2011 book with the same title by Naomi Oreskes and Erik M. Conway. According to a review in The Washington Post, “What’s disheartening about “Merchants of Death” is that the strategy still works so effectively in a hyper-partisan, intellectually lazy, spin-addicted 24-7 news cycle.”

Can anyone guess which news channel fits the bill?

Why Clean Energy Will Be Cheaper

Dominion's Cove Point

Dominion’s Cove Point

By Peter Galuszka

The Sturm und Drang to which utility executives, coal companies and politicians have subjected Virginians as they oppose President Barack Obama’s Clean Power Plan to reduce carbon emissions has always been a deliberate distraction from what’s really happening.

According to them and their confederates at the State Corporation Commission and the state Department of Environmental Quality, the clean air act which seeks to reduce carbon dioxide emissions by a certain date is a foolhardy, ill-intended bureaucratic effort to put coal out of business and slap ratepayers with bigger bills.

I had a moment of clarity when I read this morning’s Local Opinions page in The Washington Post  and a saw an article by Jon B. Wellinghoff. He is the immediate past chairman of the Federal Energy Regulatory Commission so he likely knows a little about energy.

His argument is that basic economics go against the electricity and coal industries’ arguments that reducing carbon will be too expensive. He cites a study by PJM, the large electricity grid of which Virginia is a part. “PJM announced this week that Virginia’s energy costs would be lower under the CPP than without it,?” he writes.

Why so? Wellinghoff says that utilities like Dominion are riding a nice low price natural gas bubble. Gas in the U.S. is going for $3 per million British Thermal Units. How long it will last is the crucial question.

Natural gas costs three times as much in Asia and Europe and (knock, knock) guess which companies are scrambling to get a new set of terminals so they can export it? Electric utilities like Dominion, that’s who.

Dominion is pressing ahead to convert its Cove Point liquefied natural gas plant on the Chesapeake Bay kin Maryland so that it can export gas to Japan and India. Dominion is also pushing a controversial $5 billion pipeline from West Virginia gas fracklands to the southeast. A spur of it would run to port areas in Hampton Roads but if you suggest that maybe Dominion plans to export gas from it, the public relations people get a mite testy.

Wellinghoff doesn’t specifically identify Dominion’s plans but he says there are 14 gas expert terminals underway.

For Virginia ratepayers, that means that a cheap, local commodity will become an expensive, global commodity. The United States will export a commodity and import price volatility.

Who will make money by exporting gas and messing up domestic prices?Dominion, that’s who.

It’s import to remember that the low price gas bubble will pop someday. Therefore, the state needs to stop whining about going to renewables and start applying them. Utilities need to make it easier for homes and business to deploy solar panels and sell extra juice back tot he grid. The U.S. uses 40 percent of the power it generates because of inefficient grids. Virginia is No. 35 in terms of state energy efficiency. Where are efforts to improve this?

Virginia’s disappearing coal industry has been complaining for years that government regulation is driving it out of business. The truth is that coal seams are becoming too uneconomic to mine. Gas is eating its lunch. I went to a Platt’s coal conference a couple of years ago In Florida where I learned that gas would have to jump to something like $8 per million BTU to make Virginia coal profitable again.

That might happen is gas prices rise as Wellinghoff predicts. But he is right that the cadre of utilities are barking up the wrong tree.

Another Russian Reformer Murdered

nemtsov killedBy Peter Galuszka

It was a personal shocker to read of the murder in Moscow of Russian reformer Boris Nemtsov, the latest in a long string of killings related to the tragic fight for change in that country.

Nemtsov was gunned down Friday in a drive-by shooting as he walked across Moskvoretsky Bridge a short distance from the Kremlin and Red Square.

The outspoken 55-year-old former nuclear physicist turned government official was a key figure in the far more hopeful years of the early 1990s when bright young people tried (in vain) to move Russia beyond the kleptocracy of the Communist era.

Nemtsov pushed capitalist reforms by trying to root out corruption. He simplified establishing businesses by taking the registration process out of the hands of crooked bureaucrats. He advocated transparency in bidding contracts. More recently, he revealed billions of dollars in payoffs at the Russian Winter Olympics last year at Sochi.

Naturally, Nemtsov ran afoul of Vladimir Putin, the former KGB officer who beat out Nemtsov as Boris Yeltsin’s successor. Putin is the spearhead of the old power elite that has seized control over the past 15 years, rolled back democratic reforms, unleashed a torrent of inside business deals, and pushed the worst military conflict in the region (Crimea and Ukraine) since the Cold War.

Nemtsov was due to lead a Moscow protest rally against Putin’s bloody Ukrainian adventurism that has killed 5,800 people. He was to stand in for Alexei Navalny another reformer who has been imprisoned for handing out leaflets at a subway station.

As he was taking a walk on an unusually warm winter evening, a car drove up. Six shots were fired. Nemtsov was killed by four bullets.

He is the fifth person – either Russian or foreign – that I have dealt with personally who has been murdered. I reported from Moscow for BusinessWeek in the 1980s and 1990s.

Here are a few examples: American businessman Paul Tatum involved in a dispute with a Chechen partner was slain by 11 bullets to the head and neck at a subway station that I used to frequent. Paul Klebnikov, an American editor of Russian-language Forbes magazine, was shot near his apartment. Russian investigative journalist Yuri Shchekochikin, a friend who got me an assignment to write for Literaturnaya Gazetta, died in an apparent poisoning.

I had interviewed Nemtsov back when he was pushing far-reaching and radical change in the the city of Nizhniy Novgorod, formerly known as Gorky, east of Moscow.

He is the highest-profile reformer to be killed during the regime of Putin who says it was a contract killing and that he will oversee the investigation “personally.”

Closely Watched Trains?

wva oil trainBy Peter Galuszka

The small town of Pembroke in southwest Virginia is used to seeing endlessly long unit trains of coal cars rumbling past. But last week, it got an unexpected surprise – trains of similar length hauling crude oil from North Dakota’s Bakken fields started going by.

According to Reuters, Pembroke is one of many Virginia towns that are being affected by CSX’s derailment and explosion of oil tank cars filled with Bakken oil a few miles east of Montgomery, W.Va.  on Feb. 16. The massive blast sent fireballs hundreds of feet in the air and forced the evacuation of nearby residents including a college. It also stopped all rail traffic on a major, east-west CSX line for days.

A similar derailment involving a CSX oil train happened last April in Lynchburg on the same rail mainline. Several tank cars caught fire down causing a fire and a spill into the James River.

So, after the West Virginia incident, CSX got in touch with rival Norfolk Southern to see if it could reroute oil trains on some of its lines.

This brings up another issue – who should be informed when new railroad trains hauling potentially explosive or otherwise hazardous cargoes suddenly show up in your backyard? Do they have to tell you so you can get the flashlight, thermos and sleeping bag ready for your immediate evacuation if necessary?

CSX says it has informed appropriate public safety officials of such route changes, but is loath to let the general public in where it is sending unusual trains. Security and proprietary information, you understand.

CSX needs to keep its tank cars rolling to big oil terminal in Yorktown near the Chesapeake Bay. That site had been an Amoco refinery for years but the refinery shut down and was switched to an oil water terminal now owned by Houston-based Plains All-American.

The facility receives Bakken shale oil cars and loads the crude on barges that are then pushed or towed to East Coast refineries, notably in the Philadelphia area. Presumably, if petroleum exports from the U.S. start again, the Yorktown site would be excellent embarkation point.

So, instead of having tank cars with Bakken crude trundling from Charleston, W.Va. through the New River Gorge and on to Lynchburg, they will go on more southerly NS lines through places like Pembroke and Roanoke. Then they will be switched at Petersburg to CSX lines and go north to Richmond and east to Yorktown.

It looks like Richmond could potentially get it either way. On the usual route, oil trains pass by downtown on an elevated bridge which would be quite a mess if a derailment happened there. According to the Forest Ethics Website, all of downtown Richmond to about one half of a mile on either side would have to be evacuated if a major derailment with fires and explosions came.

With the temporary rerouting, Richmond would still be in serious jeopardy in case of a derailment. If I’m reading the map correctly, trains would still pass through the city.

So, you have to ask yourself – why does CSX get away with keeping all this secret? They claim they let “appropriate” public safety officials know, but the Richmond Times Dispatch last year quoted a Richmond fire officer in charge of hazardous situations as saying he had a hard time learning from CSX what a “worse case” scenario would be in the event of a Richmond derailment.

Part of the problem is PR. Bakken shale oil comes from controversial hydraulic fracturing. The uptick in production has turned America’s energy picture on its head. It has also made for big jumps in oil rail traffic. Another problem is that Bakken oil tends to be more explosive than other types.

According to the Association of American Railroads, oil shipments by rail jumped by 9,500 carloads in 2008 to 500,000 shipments last year. Accidents are way up. In 2013, tank cars carrying Bakken crude somehow got loose in Lac-Megantic, Quebec. They rolled through the small town, derailed and exploded. The blast killed 47 and wiped out half of downtown.

According to a recent probe by the Associated Press, a federal study predicts that oil shipments will rise to 900,000 shipments this year. The study predicts that trains hauling petroleum will derail 10 times a year over the next two decades. They could possibly cause $4 billion in damages and kill hundreds of people, the AP reports.

What to do? Build pipelines, I guess, but that’s been highly controversial as well as the experience with Dominion Transportation’s efforts with a $5 billion gas pipeline through the state and the controversy over the Keystone XL show.

Better, newer, safer tank cars? Maybe, but the West Virginia and Lynchburg derailments both involved new “1232” models. The same type also caught fire recently in Timmins, Ontario.

Federal rules require railroads to tell local officials where they are carrying Bakken crude, which is more explosive than other types. Railroads like CSX claim the information is proprietary, according to Reuters. That’s rather pointless. If the goal is to keep “proprietary” information from competitors, Norfolk Southern, CSX’s biggest competitor, already knows about it because it has agreed to let CSX use its rail lines.

And don’t ask some public officials. West Virginia officials have gone along with keeping much of the information secret. Mountain State officials responded to an Freedom of Information Act request by redacting much of the data they finally gave out.

Not only do the railroads need to clean up their act, they should be forced to be more forthcoming about where the next evacuation might be.

The McDonnell Saga Is Far From Over

maureen mcdonnell sentencedBy Peter Galuszka

Former Virginia First Lady Maureen McDonnell has been sentenced to 12 months and a day in federal prison, but the GiftGate saga is far from over.

She will appeal as has her husband, former Gov. Robert F. McDonnell, who was sentenced to two years in prison last month. The now estranged couple was convicted of public corruption felonies, making McDonnell the only Virginia governor, past or present, to be convicted of a crime.

The next step is for the former governor’s appeals to be heard at the U.S. Fourth Circuit Court of Appeals in May. The issue is whether so-called “honest services fraud” for which both were convicted, should be interpreted broadly or narrowly.

During their trial, U.S. District Judge James Spencer took the broad approach, instructing the jury that there did not have to be a very strict “quid pro quo” for them to return a guilty verdict. He reiterated his stand on Friday by overruling a slew of motions from the defense relating to the issue.

The appeals could have far-reaching consequences, as I reported with a colleague on Bloomberg News this week. Charles James, a former federal prosecutor who works at the Williams Mullen law firm in Richmond, says the case “could be the next case to further restrict the use” of the honest-services fraud statute.

If the Robert McDonnell’s appeal is successful, then it would have a big impact on his wife, as well as loosen the interpretation nationally of how far “honest services” should go.

If the government is successful, then expect a crackdown on public official hankie-pankie.

At Friday’s sentencing, eight character witnesses described Ms. McDonnell, 60, as an empathetic, self-sacrificing woman who would do anything for her children and husband.

That image stands in marked contrast to the image defense lawyers for her husband painted during the trial. Incredibly, her own lawyers piled on with the idea that Maureen McDonnell was a naïve but abusive woman who hated being First Lady. She was so frustrated with her husband ignoring her for his political career that she got entangled with Jonnie (the serpent) Williams, who ran Star Scientific, a Henrico company that made and marketed vitamin supplements.

Williams gave the financially strapped McDonnells about $177,000 in gifts, loans and trips while the McDonnells set up meetings with state officials to the products of his money-losing firm. Ironically, the main product was Anatabloc, a skin cream, which has since been ordered off the market the Food and Drug Administration.

At the top of this blog, you see a teaser story that the convictions were corrupted by Williams’ dubious integrity. That’s nonsense, of course. Prosecutors use inside testimony, especially in organized crime and drug cases, all the time.

The bigger issue is whether “honest services” means bribery or whether it is a normal part of setting up appointments by public officials to consider projects that might benefit their city, state or country. This will be the key issue in the appeals.

Meanwhile, the soap opera has been weirdly painful, fascinating and entertaining. It’s also been rather crass. The former governor tries to come off like a Boy Scout yet refused a chance to cop a plea in exchange for Maureen not being indicted at all. She was not a public official, but non-public officials have been convicted in the past of honest services fraud.

Both defense teams made Maureen the scapegoat. She was portrayed as a greedy and unstable hustler who brought her husband down.

Before delivering the sentence to Maureen, who gave a tearful, first-time statement asking for mercy, Spencer made bitingly critical remarks of the defense lawyers. “The ‘Let’s throw Momma under the bus’ defense morphed into the ‘Let’s throw Momma off the train defense,’” he said. Ms. McDonnell seemed to be two very different people and Spencer had trouble figuring it out.

Her lawyers had asked for no prison time and 4,000 hours of community service. Federal guidelines could have given her more than six years but prosecutors asked for only 18 months in prison.

Spencer split the difference, mostly because he gave Mr. McDonnell a light sentence. He was more culpable since he was a public official, not to mention a former state prosecutor and the state attorney general.

He cut Maureen some slack, too. By sentencing her that extra day, he gave her the opportunity to get out in only 10 months for good behavior since that’s the rule under federal prison guidelines.

Why Hide Details of Lethal Injection?

lethal injectionBy Peter Galuszka

It has to be one of the creepiest bills ever considered by the General Assembly.

Senate Bill 1393, sponsored by Sen. Richard Saslaw (D-Fairfax), would drop a veil of secrecy over how Virginia executes prisoners by lethal injection. Its backers, including Gov. Terry McAuliffe, are pushing it against a backdrop of global politics and questions of morality.

Virginia is one of 32 states that allow capital punishment. Since 1982, it has so far killed 110 prisoners, either by lethal injection or in the electric chair.

The preferred method is lethal injection. In the process, a doomed prisoner is strapped in a gurney and is given a series of three shots. One is to anesthetize; another is to paralyze; and the third is to stop his or her heart from beating. In some states, one drug may be used. Usually, there are witnesses to the execution, including members of the news media.

But Saslaw wants to start hiding crucial aspects of the gruesome practice. His bill would make information about lethal drugs. Companies that make or compound them would be exempt under the state Freedom of Information Act.

There are persistent national shortages of drugs used in the death process. According to The New Yorker, the sole American manufacturer of sodium thiopental stopped making the key, killer drug in 2011. Death penalty states looked to European manufacturers, but the European Union, which crusades against capital punishment, forbids European drug companies to export it if it will be used in executions.

Harried U.S. prison officials started shopping around to their counterparts in other states as shortages spread to other drugs. The situation seemed dire enough for Virginia to consider dusting off the electric chair, which it also allows for executions.

For a while, Virginia did have a good supply of killer drugs but by 2014,it ran short or drugs went past their expiration dates. A solution is to use pharmacies to compound drugs for executions but it could expose the firms to lawsuits.

So, as is too often typical in Virginia, Saslaw & Company started pushing the rights of private companies over the public’s right to know. His bill has drawn criticism from the American Civil Liberties Union, the Virginia Coalition for Open Government and the Society of Professional Journalists.

Underscoring the horror of the drug drama is what happened last April in Oklahoma during the execution of convicted murderer and rapist Clayton Lockett. He was injected with the three-drug cocktail, but 10 minutes into the process, he revived as stunned onlookers watched. He died after another half an hour.

There is considerable evidence that lethal injection is not a painless way to go. In fact, the issue may be back before the U.S. Supreme Court again about whether injections are an unconstitutional “cruel and unusual” punishment. Another issue is why facts around execution must be made confidential.

There are larger issues about the ethics of capital punishment. Virginia, after all, follows only Texas when it comes to legally-sanctioned killing. Virginia does not have an unusually high crime rate (ranking No. 34 in violent crimes  per 100,000 population according to 2006 U.S. Census statistics). So why is it so intent on keeping capital punishment and hiding it?

 

In Politics: “Cherchez la femme?”

Fitzhaber and Hayes

Fitzhaber and Hayes

By Peter Galuszka

The two governors couldn’t seem more different.

One is a popular progressive who dressed in an “urban cowboy” style of boots, jeans and down jacket and ran a state as green as a rain forest.

The other favored Joseph A. Banks suits and helmet hair-dos while pushing a “God, Mom and Apple Pie” persona that appealed to Republicans.

Oddly perhaps, especially on Valentine’s Day, women seem to be their downfall. Cherchez la femme?

Until his sudden resignation Friday, John Kitzhaber was into his fourth term as Oregon’s governor and had been highly regarded by liberals nationally for his support of populist ideals and goals involving sustainability. A former emergency physician, he won points for his low key style.

The problem was his fiancée, Cylvia Hayes, who lived with him at the governor’s mansion in Salem and acted as the state’s de facto First Lady. She is under investigation for allegedly using her position to win contracts for “green” energy projects she was pushing. As probes grew, Kitzhaber resigned.

the McDonnells

the McDonnells

Sounds a lot like the case of Robert F. and Maureen McDonnell, the former first family convicted of corruption last September.

In that case, the former First Lady of Virginia (FLOVA in code), was smitten with a fast-talking vitamin producer and salesman and convinced her husband, Bob, to arrange meetings with top state officials to help.

The couple was convicted of a variety of felonies after a six week trial. McDonnell was sentenced to two years in prison and his wife is due to be sentenced Feb. 20.

Coincidentally, both governors were high fliers in their respective camps. Kitzhaber represented a particular kind of progressive Oregon way of thinking that is strongly influential throughout national politics and journalism.

McDonnell’s good looks and projection of patriotism went down so well with Republicans that he was once on the short list of 2016 GOP possibilities.

And, both women involved raise issues of what role First Ladies (officially married or not) have in state government. Are they public figures? How much influence should they really have? Are ethics laws tough enough? Do they apply to spouses? Ms. McDonnell’s lawyers suggested that she was being set up to take the fall for her husband as part of a “throw Maureen under the bus” strategy.

Issues like these are certain to come up when Maureen McDonnell appeals her conviction. Similar questions may evolve in the Hayes case as well if she ever faces criminal charges.

Dominion Resources Is on a Tear

acl pipeline map By Peter Galuszka

Dominion Resources has been on a tear recently.

It’s been muscling through a dubious law in the General Assembly that would allow it to avoid State Corporation Commission rate audits for six years.

And, it has been throwing its weight around in less populated sections of the state. It is suing to force its way on the land of private property owners to survey its $5 billion Atlantic Coast Pipeline project that would take fracked natural gas from the Marcellus Shale formation in West Virginia and Pennsylvania on new routes to the southeast.

Property owners, particularly those in Nelson and Augusta Counties, are fighting in federal court in Harrisonburg.

What’s most interesting about this case is how the Commonwealth of Virginia, which swaddles itself in the ideals of the American Revolution of individual rights , somehow ignores the rights of small property owners when a big utility with deep pockets for political donations is involved. One wonders where all the conservatives are who were huffing and puffing over the Kelo case a few years back

And (bonus question) what do the two situations have in common? Republican State Sen. Frank Wagner of Virginia Beach, that’s who. He introduced the bill for Dominion to sidestep SCC oversight with the excuse that Dominion has deal with the impacts of a yet-to-be-finalized set of new federal carbon emission rules.

In 2004, Wagner also carried water for Dominion and other power companies by getting a law passed that would allow a “public service company” to survey private property without getting permission.

This is the basis of several hundred lawsuits Dominion has filed against small landowners. In the pipeline case, it will be interesting to see whether the natural gas is used for the common good of American customers or will end up being exported to foreign countries. Dominion insists it won’t,  but time will tell.

Another oddity is that Dominion is demanding access to survey a pipeline route when it hasn’t formally applied for  the project with the Federal Energy Energy Commission. Imagine if some private landowners showed up at the front door of Dominion’s downtown Richmond headquarters and demanded access to the building because they were thinking about building a natural gas pipeline? (Somebody call security!)

Here’s an opinion piece I wrote for this morning’s Washington Post.

Best and Worst from the 2015 General Assembly

by James A. Bacon

thumbs_upThe best: crowdfunding. A bill submitted by Del. Scott Taylor, R-Virginia Beach, will make it easier for entrepreneurs to raise money for start-up businesses through crowdfunding. The bill creates an exemption from the state Securities Act applying to the first $2 million raised per year. A business still could not raise more than $10,000 from any single purchaser unless the purchaser is an accredited investor.

States Taylor: “The greatest challenge that start-ups with good ideas face is finding the capital to grow. ‘Crowdfunding’ has grown to a multi-billion dollar industry that lets entrepreneurs make their case to small investors and get their ideas off the ground. This legislation will make it easier for Virginians to invest in promising Virginia start-ups, creating a culture of entrepreneurship and more good-paying jobs.”

The bill passed the House of Delegates on a 99 to 0 vote.

pukeworthyThe worst: Selective COPN rollback: The Certificate of Public Need (COPN) law, which regulates investment in new medical facilities and expensive equipment, protects hospitals from competition — justifiable only as a way to offset hospitals’ significant obligation to provide indigent care. A bill submitted by Bobby Orrock, R-Thornburg, would roll back the law in certain instances.

The bill would provide exemptions for existing general hospitals and psychiatric hospitals when adding non-nursing home beds, exemptions for certain hospitals adding open heart surgery, and exemptions for certain hospitals adding neonatal care facilities.

Less regulation is a good thing, right? Yes, when applied to everyone equally. COPN review adds unnecessary cost and makes hospitals less responsive to market conditions. But less regulation is NOT a good thing when it serves to advantage certain players over others. Please note: The exemptions apply only to existing hospitals — not to anyone trying to enter the market. In effect, it lifts the burden of regulation for established providers while maintaining it for anyone who wants to compete.

Second, the bill provides arbitrary conditions on who qualifies for the exemption. Hospitals adding open heart surgery must have “at least 1,100 adult inpatient or outpatient cardiac catheterizations, including at least 400 therapeutic catheterizations, or discharged at least 800 patients with the principal diagnosis of ischemic heart disease during the 12 months immediately preceding such registration.” What? Is there any medical justification for such a restriction, or has it been inserted into the bill to apply to one particular hospital only? Who is that hospital? People should demand to know.

The bill also exempts “intermediate- or specialty-level neonatal special care services at an existing medical care facility that registers the new service and delivered more than 1,000 infants in the 12 months immediately preceding such registration.” Really? What’s the justification for that exemption? Who’s the beneficiary here? How about a little transparency?

Orrock’s bill was passed unanimously by the House Health, Welfare and Institutions Committee.