Monthly Archives: October 2012

Celanese: The “War on Coal” Versus Reality

By Peter Galuszka

The “War on Coal” has marched on Giles County and the propaganda is flying. Yet the problem is a bit more complicated.

The latest skirmish involves a Celanese Acetate plant that makes products for cigarette filters and other items. The largest employer in the mountainous county, Celanese opened its chemical works on Christmas Day 1939 for the plant which now employs about 550 company workers and 400 contractors.

The problem lies with its boilers. Seven are fired by coal and six more boilers and furnaces use natural gas. The coal-fired ones in particular are old and polluting. State and local government are putting up $2 million to help Celanese convert the coal-fired ones to gas-fired and keep the plant from moving overseas. Celanese itself is investing $150 million in the conversion.

The core issues involves the new federal Mercury and Air Toxics Standards (MATS) proposed by the U.S. Environmental Protection Agency last year.  This new regulations establish standards where none existed for emissions of such air toxics as mercury, arsenic, chromium, nickel and acid gases. Another rule, the Maximum Achievable Control Technology (MACT), would force emissions to be cut from industrial boilers.

Without expensive controls, coal-fired boilers are notorious for emitting such poisons that the EPA says helps kill 11,000 people prematurely each year. They are far more polluting than natural gas-fired boilers which burn more cleanly.

Another issue is that coal-fired boilers contribute more to carbon dioxide, now declared a pollutant than can lead to climate change. A study by the Massachusetts Institute of Technology shows that natural gas boilers emit roughly half of the CO2 that coal-fired ones do. Like it or not, the U.S. is under the gun to join most of the industrialized world in reducing CO2 emissions, whether or not one thinks they are man-made.

For the sake of perspective consider that back in 1939 when the Celanese plant was built, coal was in much wider use. Railroad locomotives burned it, as did neat little bungalow homes, big electric utilities, and long-forgotten blast furnaces and factories. It was the fuel of choice, especially in Giles County which is right next to some of the world’s best coalfields and connecting rail lines.

Air pollution has been a problem at the Celanese plant for years.  Earlier this year, the state Department of Environmental Quality cited Celanese Acetate for the third time in four years for failing to properly monitor emissions from its boilers that can emit such toxic pollutants as nitrous oxide, mercury, carbon dioxide, sulfur and others. The 2012 citations brought a fine of $13,122.20.

In 2008, the EPA forced Celanese to pay a fine for $60,000 for not installing a device to measure nitrogen oxide.

When the MACT rules were proposed last year, Celanese officials were deeply worried. Plant manager Todd Elliott said so in testimony on Sept. 8, 2011 before a subcommittee of the Committee on Energy and Commerce of the U.S. House of Representatives.

Elliott testified that Celanese is in a global market place and if costs become too much in one location, “we must look at other options.” The new MACT rules will force Celanese to comply with new emissions within three years. Given their consistent problems with air pollution — they are among the top polluters in the state — that would be a problem.

Elliott said: “Our engineering studies concluded that we will need to add emissions controls to our existing coal-fired boilers or convert those boilers to natural gas. Either alternative would require a very significant capital investment and time investment and would necessitate an extended plant outage while changes are implemented.”

Another problem is that the firm must wait until a natural gas line is available before it would consider converting to gas. Installing gas boilers might take a year. Sticking with coal, he said, was problematic because they can’t find sources of coal that are both low in mercury and hydrochloric acids.

Judging from such testimony, Celanese was most likely in a position to apply considerable pressure on the state to do something to help them — or they’d move. If they did, they’d take 1,000 jobs with them.

So, it came down to two choices — retrofitting coal with new emissions controls or new gas boilers. Neither is cheap. They went with natural gas because it is cleaner, has less of a carbon footprint, and at the moment, is relatively cheap as fuel. Retrofitting its seven coal-fired boilers was not really an option, cost-wise.

What’s more, a search failed to turn up any evidence that industrial facilities such as chemical or paper plants are installing new coal-fired boilers. Such boilers for use in electrical generation are a different story — some 145 are planned in China. They have the heat output to spin major megawatts regardless of the pollution issues. For smaller plants, they just don’t seem to make sense.

So, if you buy the “War on Coal” argument, consider how many other chemical processing factories are seriously considering switching to coal-fired boilers these days. My guess is that such uses went away in the 1950s or 1960s. If you find some, please post them on this blog. To be sure, coal is in a cyclical downturn but it is doubtful that coal supplied Celanese with anywhere near as much as they would for a 1,500 megawatt power plant. Besides, natural gas is a viable energy industry in Virginia. It really isn’t a choice of coal or Virginia loses — it’s one of the best logical and cost option.

As for whether Celanese put the muscle on Gov. Robert F. McDonnell, that’s another issue and a valid one worth exploration.

As for MATS, you have to ask yourself if we’ve gone far enough in protecting the health and environment of Virginians and everyone else. I’m sure some will say this is all too much. But those very same types of people said the reforms that President Richard M. Nixon sought and won in the late 1960s and early 1970s were too much, too.

As for me, I remember the before and the after.

Celanese Cypher: Why Did the State Contribute $2 Million?


by James A. Bacon

Celanese Corporation has announced that it will invest $150 million at its Giles County chemical plant to replace coal-fired boilers with natural gas-fired boilers. The project, in conjunction with unspecified “other efforts” at the site, will create 22 full-time Celanese positions and employ 200 construction workers.

Noting that Virginia competed against “global options” for the Giles County investment, a press release issued by the Governor’s Office stated that Governor Bob McDonnell approved a $500,000 grant from the Governor’s Opportunity Fund and a $1.5 million performance-based grant from the Virginia Investment Partnership program.

This story raises at least two sets of questions.

First, why did Celanese decide to replace its coal-fired boilers? Is it simply because natural gas is the cheaper option, or do edicts from the Environmental Protection Agency make it prohibitively expensive to stick with coal? Does this decision advance the narrative that Obama administration regulations are killing the coal industry… or refute it? The press release offers few clues.

“Natural gas is a cleaner energy source, thus reducing the company’s carbon footprint,” said Jim Cheng, Secretary of Commerce and Trade. “Celanese is excited about the opportunity this project represents, particularly in the areas of improved reliability and favorable progress against our environmental and sustainability goals,” said Lou Purvis, vice president and general manager of Celanese Acetate. Both quotes imply, but do not state outright, that environmental factors were a paramount consideration. Yet no one cites EPA regulations as a deal driver.

On the other hand, McDonnell said this: “Converting the Giles County facility to natural gas demonstrates that the company is really investing in the future of the operation. This tremendous investment will allow the plant to improve its energy production capability, while positioning Celanese for profitable growth and job creation in the years ahead.” That suggests, without explicitly saying so, that energy cost savings were the driving force. If so, that undermines the blame-Obama-for-killing-coal narrative.

The second set of questions relates to the $2 million in state subsidies. If natural gas is cheaper and cleaner than coal, and Celanese is making the switch in order to drive down costs and/or reduce its environmental footprint, why the necessity for state support? It’s hard to believe that the state’s $2 million contribution was decisive in tilting the $150 million investment to Giles County.

And what’s this about competing against “global options”? What global options? How many other Celanese plants around the world produce cellulose acetate tow, a raw material for cigarette filters and ink reservoirs for fiber-tip pens? Furthermore, how many other Celanese plants around the world are in a position to benefit from the super-low price of natural gas in the eastern United States made possible by the fracking revolution?

Certainly not the acetate factory in Derby, England, which Celanese had scheduled for shut down — talk about a coincidence — today. Reports the Derby Times: “Announcing the closure plans in 2010, its American owners, Celanese Corporation, cited high energy costs and a shift in demand to the Far East as the reasons behind the decision.”

I have a sneaking suspicion that the McDonnell administration just got hustled out of $2 million to support an investment that Celanese would have made anyway. Perhaps I’m wrong. But there is nothing in the press release to suggest that the project was truly up for grabs and that state support is warranted. I will update readers if I find out otherwise.

Moral Hazard and the Federalization of the Disaster Business

According to a graphic displayed on the “Morning Joe” show on MSNBC this morning,  Hurricane Sandy will be the second most expensive hurricane in United States history, after Katrina. The usual suspects will use information like this to argue that a bigger, stronger federal government is needed (a) to respond to natural disasters, and (b) to combat climate change. But the horrendous expense of the hurricane clean-up is better seen as an indictment against an all-intrusive Uncle Sam.

Writing in New Geography, Matthew Stevenson has this to say about the “federalization of the disaster business”:

Previously storm damage and the costs of clean up were the responsibilities of states and municipalities, who in the first place made the decisions to allow homeowners to build houses and businesses on barrier islands, sand dunes, and low-lying waterfront property.

For much of the twentieth century, insurance companies refused to write flood or hurricane policies for stilted houses perched precariously on Cape Hatteras or wherever, which angered wealthy political donors, who equate their life successes with owning beachfront property.

Enter the federal government into the realm of disaster indemnification, when Congress passed the National Flood Insurance Program in 1968, to mandate that vulnerable home owners in potential flood zones purchase adequate insurance that private companies were refusing to cover. Think of it as Obamacare for beachfront homes.

Although the legislation was designed to cover the undue risks of shore properties, it also gave the political parties a mechanism that would allow (for all those waterfront contributors) a building boom on hurricane-exposed barrier islands. …

Not only was the federal government complicit in allowing places like Myrtle Beach to become housing projects (the poet Robert Watson called it “white Harlem by the sea”), it also assumed that its job performance could be measured by the number of blankets and water bottles that reached those crazy enough to “ride out” a major storm in their seaside mobile homes.

As Stevenson observes, the local political forces — property owners, the construction lobby and the rest — are powerful enough as it is. Once state and local governments are relieved by the federal government of a significant burden of responding to and indemnifying against disasters, local authorities have even less reason to push back against those who would develop vulnerable coastlines.

If you believe that anthropogenic climate change is contributing to the increase in ferocity and frequency of hurricanes (I’ll sidestep for now the issue of whether that’s true), the last thing you should want is a bigger, stronger FEMA. You should do everything in your power to halt subsidies of lunatic development in vulnerable, flood-prone areas.

— JAB

Sandy, Nukes, the Internet and Climate Change

By Peter Galuszka

Super-storm Sandy raises more issues about nuclear power, the internet and also about global warming.

As the storm struck the New Jersey coast and flooded New York City, three nuclear rectors were shut down because of problems with high water levels and electricity. Another reactor went on standby “alert” because its water intake levels were abnormally high.

The reactors were Salem Unit 1 owned by utility PSEG on the Delaware River in New Jersey and Nine Mile Point 1  and Indian Point in New York. Another reactor, Oyster Creek in New Jersey, went on alert because of high water.

This raises questions about how nuclear power stations can respond to natural events. Dominion’s North Anna units “tripped” and shut down after a rare earthquake a year ago in August. The station was down for three months. Also, according to the Union of Concerned Scientists, the Nuclear Regulatory Commission surveyed all U.S. reactors after an earthquake and tidal wave swamped the Fukushima power station in Japan in March 2011, causing the worst nuclear disaster since Chernobyl in 1986. The NRC found that hardly any of the U.S. reactors were built to withstand what was the maximum flood level on the site at the time they were built.

That, unfortunately, is making things different.  Climate change caused by man-made pollution is melting icecaps and raising ocean levels. It is also creating warmer ocean waters and breeding more powerful storms. The combination spells danger for aging nuclear reactors.

Hurricane Sandy was an extremely late season storm and was fed on 70 degree ocean water that seems to have been farther north than usual for late October. The strong possibility is that this is part of the climate change package since most hurricanes along the U.S. East Coast tend to die off after early October although the hurricane season technically runs until Nov. 30.

Downed reactors is just another technology problem. Flooding and power outages in New York affected the World Wide Web and some sites, such as Huffington Post, went blank for hours. In Richmond, for instance, independent radio WRIR could not stream its broadcasts because of the New York problems.

These problems are real and cannot be explained away in their usual way by climate change doubters. We really don’t have the time anymore to indulge their fantasies.

Idea Jam: Bicycles and Community Health

The Richmond metropolitan region has one of the highest obesity rates in the country — 29.4% of the population compared to 26.1% nationally, according to the 2012 Gallup-Healthways Well Being Index. The resulting health care treatment costs the region $520 million a year. Cutting obesity in half would save the regional economy roughly $254 million a year.

One way to reduce the obesity rate is to get people to exercise more. And one way to do that is to design communities that encourage people to walk and ride bicycles – not just for recreational exercise but in the daily course of their lives. It’s just common sense. But there are major institutional barriers to making our communities more bicycle friendly: auto-centric transportation policies in county governments, the indifference of the business community and the skepticism of key members of the General Assembly.

There is a widespread perception that investing in bicycle infrastructure is a waste of money, diverting valuable funds from roads and highways. But such a view is based on a very narrow accounting of the benefits of cycling: It entirely overlooks the health benefits.

Help us make the pro-bicycling case to the political, business and civic leaders of Virginia and the Richmond region. We invite you to attend an idea jam on bicycles and community health. Come armed with data, anecdotes and arguments. Get primed for a free-flowing discussion to develop pro-bicycle talking points. Highlights of the discussion will appear in Bacon’s Rebellion, the only blog dedicated to building more prosperous, livable and sustainable communities in Virginia.

Discussion leaders:

  • Champe Burnley, president of the Virginia Bicycling Federation and co-chairman of the Mayor’s Bicycling, Pedestrian and Trails Commission in Richmond.
  • Tom Bowden, chairman of Bike Virginia
  • Jim Bacon, publisher of Bacon’s Rebellion

For details about when and where, view our flier.

More Internet Sociology on Dropout Rates

by James A. Bacon

In a blog post yesterday, I observed that, while blacks are more prone to drop out from high school than whites statewide, in some 30 rural Virginia localities, blacks showed a lower dropout rate. In Nottoway County, the drop-out gap between blacks and whites was 14 percentage points for the class of 2012 — in favor of blacks. In next-door Lunenburg, the gap was almost 20 points. I speculated that perhaps the breakdown of white, working class culture highlighted by Charles Murray in “Coming Apart” might have played a role.

An interesting conversation ensued in the comments section. Don Rippert hypothesized that perhaps the difference could be attributed to different levels of religiosity between blacks and whites. If blacks attended church more frequently, perhaps they were more likely to hew to traditional values and, consequently, suffer lower rates of social dysfunction such as divorce, teen pregnancy and other problems that would induce students to drop out of school.

Among the data points he presented in support of his conjecture is the fact that there are 59 churches serving the 5,000 households in Lunenberg County, an average of 84 households per church. That compares to, say, suburban Henrico County, where 140 churches serve 108,000 households, an average of 772 households per church. Furthermore, he cited Carsey Institute data showing the religiosity of America’s “black belt,” where blacks and whites are roughly equal in numbers, are significantly higher than for Appalachia, which is overwhelmingly white.

Rippert’s data is suggestive but it’s too impressionistic to persuade anyone who doesn’t want to be convinced that Nottoway/Lunenburg blacks are more religious than their white neighbors. What we can do, however, is test the idea that dropout rates are correlated with metrics of socially dysfunctional behaviors — out-of-wedlock births and teen pregnancies — that might be influenced by religious views.

Statewide, 28% of all white births in 2009 were non-marital while 67% of all black births were. Here is the breakdown by locality. And here are the numbers for Nottoway and Lunenburg:


The rates were elevated for both races, but the rate for blacks was two to three times higher than for whites. If out-of-wedlock births has any bearing out dropout rates in Lunenburg and Nottoway, I can’t see it.

How about teenage births then? It’s teen births that disrupt a girl’s prospects for completing high school, not a non-marital birth later in life. Statewide, the rate of live births is 11.8 per 1,000 females among whites and 22.4% among blacks. Here are the numbers for Nottoway and Lunenburg:


Nope, that’s not the answer either. Blacks have a higher rate of teen pregnancy.

Whatever accounts for dropouts in Lunenburg and Nottoway, it’s not affecting girls as much as boys. In Lunenburg, 15.8% of girls dropped out compared to 25.4% of boys. The gap is 3.1 percentage points in Nottoway. Perhaps we need to be comparing juvenile male arrest rates, but I can’t find that data.

On the other hand, maybe there are non-sociological factors at work. Maybe there are  dynamic principals and school administrators who inspire black high school students to achieve. Maybe the two counties have dropout prevention programs aimed at black students that I’m not aware of.

Or maybe I’m just chasing a will ‘o the wisp. Perhaps, because the graduating classes of both school systems are small, we’re dealing with small numbers, which make for high rates of variability from year to year. Perhaps the drop-out rates for the classes of 2012 are a fluke and I need to find better things to do with my time.

Sandy’s Subliminal Messages

 By Peter Galuszka

You have to love the Richmond Times-Dispatch. They never miss an opportunity to showcase their beloved Republican Gov. Robert F. McDonnell. As Hurricane Sandy approached, our intrepid governor was pictured everywhere: giving a statement about a state of emergency; looking very leader-like in a command center; appearing concerned as in this TD photo.

I have of course, been reading the Times-Disgrace for many years and once worked for them and have never gotten over their worship of a “governor” especially one from the G.O.P. This seems unique to Richmond. When I worked in other places, I knew who the mayors of Chicago, Cleveland and New York were but the governor just didn’t seem to matter. In Moscow, you sure as vodka knew who Mayor Yuri Luzhkov was, but as to who headed the Moscow oblast, “Kto znaet?

But there’s another reason for Governor worship. The TD is the mouthpiece of the Mainstream Republicans in Virginia and backs Mitt Romney, so they must be sending us subliminal messages that natural catastrophes such as Hurricane Sandy are better off being handled by state governments. Or maybe even better yet, they could be run privatize entities hired by state governments to make the budget look better. Now that’s a concept Baconauts everywhere can sink their teeth into.

However, it does have some problems.

The storm is a major event for New York City and other densely-packed Northeastern areas that could bring $45 billion in damages. Power for millions is shut off. The stock market has been closed. Subways are flooding.

This sounds like a job for Captain America or Superman. But Mitt Romney?

His campaign staff is quickly backing away from the idea he pushed in a 2011 debate that FEMA, created by President Jimmy Carter to handle disasters at the federal level, should be chopped back and the money given to states. Here’s what he said back in 2011 asked about such a transfer:

“Absolutely. Every time you have an occasion to take something from the federal government and send it back to the states, that’s the right direction. And if you can go even further, and send it back to the private sector, that’s even better. Instead of thinking, in the federal budget, what we should cut, we should ask the opposite question, what should we keep?”

Of course, As Governor of Massachusetts, Romney repeatedly asked for FEMA help for such problems as snow removal and so on. So we have Romney asking for FEMA’s help, trashing FEMA and now backing away from trashing FEMA.

Closer to home we have House Majority Leader Eric Cantor who wanted to deny FEMA assistance to people in Joplin, Mo., who suffered devastating tornadoes. The Young Gun’s idea was that before you send in federal bulldozers or bags of ice you have to decide first where to a cut a like amount from the federal government. Given Cantor’s masterful performance on setting the debt ceiling in the summer of 2011, we’d still be looking for cuts and the people of Joplin would still be looking for bags of ice or firewood.

Another issue that has come up: weather satellites. While it seems forecasters were correct in warning of Sandy’s potential wallop, NOAA, which collects weather intelligence, was hampered because we haven’t launched enough satellites to replace those now obsolete or fiery ash after falling in to the atmosphere after their tours were over.

I am sure that some Space Goo-Goos on this blog will find this one big intergalactic free market opportunity for Virginia’s nascent Space Port on the Eastern Shore, but it is hard to see how private enterprise would fund all of this.

As the New York Times says in an editorial this morning, where’s the logic in taking public functions from the cash-poor federal government and transferring them to equally cash-poor states? It’s a budget cutters’ sleight of hand. You’re not cutting, you are transferring.

Gov. Bob knows all about that. But hey, who cares? If he puts his Whiz Bang Transportation Secretary Sean Connaughton in charge, we’d not only have safe residents during the storm but when the dust clears we’d have new highways and freshly-privatized port facilities, too. Magic.

Graduation Rates and White Social Pathology

by James A. Bacon

Over the weekend, I heard a story that a teacher from Wilkes County, N.C. in the foothills of the Blue Ridge Mountains, told about discipline problems he had encountered at school. My friend kept us spellbound as he described how a trouble maker, whose mother had taught him “not to take nothin’ off nobody,” engaged in a series of physical confrontations with students and teachers. Our initial reaction was, wow, what a jerk. But as my friend delved deeper into the tale, we gained a little sympathy. The kid’s parents were separated and his mother turned tricks in the back seat of the car. One day, not long after the incidents at school, the father returned to the house. He shot the boy in the stomach, shot the mother in the head, killing her, and then put the gun under his chin, and killed himself.

The story brought to mind Charles Murray’s book, “Coming Apart,” about the social and moral disintegration of the white working class in America. There has always been a violent streak to Southern white working-class culture, of course, so a single tragic anecdote means little in itself. But having blogged recently about Virginia’s dropout rate (which is actually improving) and the fact that Virginia’s immigrant population has achieved greater success (whether measured by education, unemployment or income) than native Virginians, I wondered if Murray’s thesis accurately described what is happening here.

I found myself perusing Virginia Department of Education statistics on public high school graduation rates for the class of 2012. The broad patterns are familiar to everyone. Women graduate on time at a higher rate than men: 90.6% compared to 85.5%. Whites graduate at a higher rate (90.8%) than blacks (82.7%) and Hispanics (80.9%) but at a lower rate than Asians (94.7%).

What was interesting and counter-intuitive, however, was what emerged from taking a jurisdiction-by-jurisdiction look at graduation rates. While the statewide pattern of women graduating at higher rates than men held true for the vast majority of localities, the pattern of of whites graduating at a higher rate than blacks was far less likely to do so.

Statewide, there is a 5.1 percentage point differential between the graduation rates of women and men. Women graduated at higher rates in every Virginia city and county save 15, and in nearly every one of those the difference was minimal. By contrast, there was an 8.1 percentage point differential in the graduation rate between whites and blacks statewide — yet blacks showed a higher graduation rate than whites in 31 jurisdictions.

In some jurisdictions with higher black graduation rates, the differences were miniscule. In others, blacks represented a tiny minority in a predominantly white student body, comprising only 11 individuals, for instance, in Grayson County, where all 11 (100%) graduated compared to only 84.6% of their white classmates. Perhaps those can be dismissed as meaningless statistical anomalies.

But what do we make of Caroline County with black and white student bodies of roughly equal size, where the black-white graduation gap was 9.0 percentage points — in favor of blacks? Or Cumberland County where the graduation gap was 10.3 percentage points in favor of blacks? Or Nottoway County where the gap was 14 percentage points? Or Lunenburg County where the gap was 19.6 percentage points? All statistical flukes? I doubt it.

Across Virginia’s suburban and inner-city jurisdictions the pattern of higher white graduation rates prevail almost uniformly. The exceptions to the rule occur primarily in Virginia’s rural counties where, the stereotype holds, racial prejudice and discrimination are the strongest. These numbers would seem to demolish that widely held view. As a fallback position, one might argue that rural counties are equal in their poverty. How, then, does one explain a Nottoway or Lunenburg County? How does one explain such superior outcomes for blacks?

To answer that question brings us full circle. I would love to think that it means rural blacks are prospering. Given the general state of the economy, however, I find that difficult to believe. Alternatively, one must ask, do these numbers reflect a breakdown of white, working class families and value structure? It would be dangerous to draw hard-and-fast conclusions from one year’s worth of graduation data. Any serious inquiry would require examining standardized test scores, unemployment rates, incomes, teenage pregnancy rates, rates of substance abuse and rates of incarceration and tracking trends over time. But such an effort might yield fascinating conclusions.

Tourism and the Creative Class

Monticello: Old style tourism destination

by James A. Bacon

A draft plan written by PriceWaterhouseCoopers LLP makes a valuable contribution to thinking realistically and creatively about Virginia tourism. The “Virginia State Tourism Plan” comes tantalizingly close to integrating the development of tourism initiatives with economic development in the Knowledge Economy… but never quite completes the loop.

Virginians have long touted the beauty of their beaches and mountains, but as PriceWaterhouseCoopers diplomatically observes, “Virginia is somewhat challenged in differentiating its experiences for nature and outdoor recreation from neighboring states with similar offerings, some of which may be well known, competitively marketed, and offered in a concentrated area.”

Virginians also pride themselves for the wealth of their historical heritage. However, the study notes tersely, history has a limited draw. “These experiences may be perceived as more passive and not necessarily exciting to potential visitors.” The historical city of Charleston, S.C., by contrast, has won recognition as one of America’s Great Adventure Towns by National Geographic.

Folk festival: new style tourism attraction

The study makes the case for a very different kind of tourism — one not based upon giant, Disney-like destinations, which the state doesn’t have in any case, but rooted in the state’s artistic roots and modern culture.

Virginia … possesses a growing creative economy built on musical and artistic roots and combined with modern culture. From the mountain, folk, and bluegrass music to the world class art museums, galleries, and theatres, there are many opportunities to experience the cultural arts. Additionally, the 25 designated Main Street communities and other towns and cities throughout rural and urban areas, offer genuine downtown charm and unique shops, galleries, restaurants, events, and festivals that help define the artistic culture present throughout the Commonwealth.

The beauty of this focus, although PriceWaterhouseCoopers doesn’t come right out and say so, is that these types of destinations are not only potentially attractive to visitors from New York or Canada but to Virginians. Tourism can support a rich mosaic of events, venues and experiences that enhance Virginians’ quality of life — thus making the Old Dominion more competitive in recruiting and retaining the educated, affluent and innovative individuals who comprise the wealth-creating creative class.

What kind of attractions does PriceWaterhouseCoopers have in mind? The study mentions the following: town/city centers, nature & outdoor recreation, facilities for participant and spectator sports, culinary visitor experiences, and music & arts, among others

For example, Virginia has emerged as a significant wine destination, ranked as one of the top ten wine destinations worldwide in 2012 by Wine Enthusiast Magazine. With more than 200 wineries, 50 breweries and distilleries and a notable wine-to-table movement, Virginia can position itself as a serious destination for high-income foodies. If Virginia became a true foody heaven, it could  draw visitors not only from outside the state — as Lousiana has done marketing its Cajun culinary tradition — it could enrich the everyday experience of Virginians in a way, say, that Disney World cannot for Floridians.

Similarly, Virginia offers an abundance of waterfront along its rivers, lakes and coastlines. While taking care to protect the environment, the state and its communities should increase access to recreation activities such as fishing, boating, rafting, paddling, hiking, and shoreline biking — as well as events and festivals. By way of comparison, the study offers Governor’s Island in New York, a 172-acre island located a half mile from Manhattan and accessible by a free ferry that hosts cultural events, food festivals, concerts and performances. Such recreational assets would appeal not only to out-of-state visitors but to Virginians themselves.

A region’s competitive advantage in the Knowledge Economy comes from its ability to recruit and retain the creative class. Building assets around activities that educated, creative people like to pursue — dining, hiking, kayaking, biking, listening to music, engaging in amateur athletics — builds the base for a tourism industry and growth of the creative class.

If the state tourism plan explicitly made that connection, I believe, it would greatly strengthen the case for investing in tourism.

New Criticisms of the U.S. 460 Connector

U.S. 460 near Disputanta

by James A. Bacon

The state of Virginia is putting $400 million more of its own cash — $1.18 billion in all — into the U.S. 460 Connector under a recently announced deal financing than it would have under a public-private partnership contemplated two years ago, writes Peter Samuel, proprietor of Toll Road News in a recent analysis of the deal.

All for what? To upgrade a stretch of highway between Suffolk and Petersburg that averages traffic flows of between 20,000 and 30,000 vehicles per day at present and, when hoped-for port traffic materializes, will support only $216 million in debt, or 15% of the capital cost..

Samuel concedes that the U.S. 460 project will have some benefits. It will reduce the pressure on highly congested Interstate 64 and the Hampton Roads Bridge-Tunnel, expedite southwest-bound port traffic using Interstate 85, and provide an alternate hurricane evacuation route.

But he notes that “for political reasons,” tolls are being set well below revenue maximizing levels, only $.06 per mile for cars and $.21 per mile for trucks. Tolls, he suggests, could generate less than $10,000 daily when the highway opens in 2018. Politics, he adds, also are evident in a promise to freeze toll rates if revenues exceed the base-case forecast by 10% to 20% over a three year period — “the inverse of business logic.”

Bacon’s bottom line: In 2010, Cintra 460, one of three business consortia bidding on the project, submitted a conceptual proposal that called for $782 million in state subsidies, $400 million less than the McDonnell administration approved this fall. As Samuel rightly characterizes it, the decision to increase the subsidy and buy down toll rates was a political one.

The McDonnell administration has justified the $1.4 billion project mainly on economic development grounds based upon (1) an expectation that Virginia ports will gain significant market share when the Panama Canal widening project is complete, and (2) a belief that Virginia economic developers can parlay the increased freight traffic into major industrial development along the U.S. 460 corridor. Neither assumption has been subjected to rigorous analysis. Moreover, no one appears to have asked, what else could the state do with $1 billion to to stimulate economic development around Virginia? Does the U.S. 460 Connector truly offer the highest risk-adjusted Return on Investment?

Remarkably, there has been zero griping from other regions about the extraordinary beneficence displayed by the McDonnell administration toward Southeast Virginia. Even more extraordinary is the fact that there has been next-to-zero push back against the administration’s planned expenditure of up to $400 billion to buy down tolls way below their revenue-optimizing level.

Virginia is projected to run out of state funding for new road construction by 2017 or 2018, barring action by the General Assembly to identify new sources of revenue. Aside from federal funds, the $3 billion raised by the McDonnell administration by borrowing money is all there is to play with. The administration’s original plan was to leverage those resources through toll-driven public-private partnerships. Now it has chosen to commit one-third of its borrowed funds to a project that will generate only $.20 in private investment per dollar of public investment.

Meanwhile, there are plenty of other places where Virginians would like to see a greater state commitment to buy down tolls. Just ask Northern Virginia riders on the Dulles Toll Road and Norfolk commuters using the Downtown and MidTown Tunnels.

I am baffled how the administration has managed to push this project through with so little controversy. I attribute the silence to a confluence of factors. This economically depressed corridor desperately seeks industrial investment, which means there is no concerted opposition. The General Assembly gave the administration carte blanche to invest the transportation debt, and the Commonwealth Transportation Board is a rubber-stamp organization where no hard questions are asked. Finally, the Suffolk-Petersburg corridor falls outside the coverage areas of the Virginian-Pilot, Daily Press and Times-Dispatch, so the news media are not giving the project the scrutiny it deserves.

The Grass Isn’t Always Greener

Rick Grossberg has converted half his front yard from lawn to landscaping.

The de-lawning movement is slowly taking hold in the Richmond region. Converting grass into flower beds and vegetable gardens creates more attractive yards, cuts the expense of lawn maintenance and helps clean the Bay.

by James A. Bacon

About 20 years ago, Rick and Judy Grossberg moved into what he calls a “standard suburban house” on Westham Parkway in Henrico County. It had a big yard with a u-shaped driveway, some trees and a huge expanse of grass. Dissatisfied with both house and yard, he has worked a remarkable transformation over the years, adding new wings, building a back deck and converting much of the lawn into flower beds, hedges, mulch islands and an herb and spice garden in the back.

Dispensing with the driveway, Grossberg designed a small parking area close to the street and he added a series of steps and small landings leading up the slope to a shrubbery-lined retaining wall. The idea, he explains, was to create transitions from a public space on the street to a semi-public space midway up the steps, and then to a private space at a front stoop mostly screened from the neighbors .

From lawn to farm

In the back, Grossberg fenced in a quarter of the yard and erected garden beds where his wife grows rosemary, thyme, parsley, oregano, hot peppers and other herbs and spices they use in cooking. While both spouses are serious “foodies,” he concedes that Judy does most of the gardening. She plans the crops and handles the planting and weeding. His role, he smiles, is limited mainly to plucking herbs when they’re needed in the kitchen.

It would be an oversimplification to say that his plan was motivated by a desire to eliminate as much turf as possible. But a smaller lawn, which consumes only 60% of the expanse that it once did, was a tremendous fringe benefit, Grossberg says. He doesn’t have much use for grass lawns. They’re visually uninteresting, they require excessive maintenance, and they’re an environmental blight. Says he: “I’d get rid of all of it, if I could.”

There aren’t many people like the Grossbergs in the suburban wonder world of Henrico County’s West End, a locale where most homeowners still strive to maintain the greenest, best manicured lawn in the subdivision. The lawn, the origins of which can be traced to 17th-century English and Scottish noblemen, has become such a dominant fixture in North American suburbia that most people cannot imagine a yard without one. Indeed, the aesthetic standard of the well-tended lawn is so deeply embedded in municipal codes and homeowner-association covenants that it is effectively illegal to let the grass go to seed.

But the Grossbergs are not entirely alone. Lurking on the fringes of respectable society, a “de-lawning” movement is gathering strength. Patch by patch, homeowners are converting barren swaths of fescue and ryegrass into flower beds and vegetable gardens. Increasingly, Virginians are OK with the idea that their front lawn will never look like a putting green. Many are managing their lawns to reduce fertilizer run-off into the Chesapeake Bay. And a handful advocate a back-to-nature approach of reinventing lawns as meadows populated by prairie grasses that never need cutting or fertilizing.

Reasons to hate lawns

There are ample reasons to loath lawns. First and foremost for the typical suburban dweller with a half-acre of grass to mow, grass requires constant maintenance in order to keep it looking good.

Lawns also need to be trimmed, fertilized and aerated. Chemicals must be applied to eliminate pests ranging in Virginia from slime mold and gray leaf spot to white grubs and caterpillars. When rain is plentiful, mushrooms and other fungi proliferate. When rainfall is deficient, the grass turns brown — unless you can afford an irrigation system, another major expense. Keeping a lawn in tip-top shape requires loads of work — unless you outsource it to landscapers, in which case it requires more money.

Making matters worse for Virginians, says Pattie Bland, coordinator of the Master Gardener program in Hanover County, “You’re fighting against nature. You’re introducing a species that’s not well suited to local climatic conditions.” Virginia, she explains, is situated in a transitional zone between northern, cool-season grasses and southern warm-season grasses, with the result that neither type thrives here.

Lawns are odious for environmental reasons as well. Short-cropped grasses may not be as bad as concrete and asphalt but they don’t do as much as flower beds and rain gardens to absorb rain and slow water run-off. Also, fertilizer washes into creeks and streams, ultimately ending up in the Chesapeake Bay and its major tributaries where it feeds fish-killing algae blooms.

Moreover, turf grass is an ecological desert. Unlike natural prairie grasses and wild flowers, which typically grow three or more feet tall, grass lawns don’t provide a habitat for much more than grubs and worms. Lawns do nothing to support bumble bees, butterflies and other pollinators. They provide no cover to ground-nesting birds or other wildlife. Read more.

Virginia Immigrants: More Prosperous than the Natives

With more than 900,000 foreign-born residents living here in 2010, Virginia had the ninth largest immigrant population in the United States, reports the Commonwealth Institute in a new report, “Critical Assets: The State of Immigrants in Virginia’s Economy.” Forty percent of Virginia immigrants hold a bachelor’s degree or higher. They are more likely to participate in the workforce than native-born Americans. Their poverty rate is lower and their rate of business ownership is higher. Three quarters have the ability to speak “well” or “very well” in English.

It’s an interesting study, jam-packed with statistics. Of particular interest is the breakdown of foreign-born populations by political jurisdiction and the change in that population between 2000 and 2010. There you will find obscure factoids such as that rural Highland County had the lowest percentage of immigrants in the commonwealth in 2010, amounting to only 0.2% of the population, while Fairfax County had the highest percentage, with 28.8%.

My only complaint is that the Commonwealth Institute made no effort to distinguish between immigrants who are here legally and those who aren’t. Judged by education, income, employment, poverty and business-ownership metrics, I would wager that legal immigrants fare very well in Virginia and are major net contributors to society, while those that are here illegally tend to be less educated and less of an economic asset. Such a conclusion, if it proved to be accurate, would not meaningfully change the debate about undocumented immigrants but it might make Virginians more receptive to the idea of allowing more legal immigrants into the country.

— JAB

Another Dismaying Governance Ranking for Virginia

The 3rd congressional district. Virginia's "majority minority" district is contiguous only if you count the James River as part of the district.

Add another abuse to the list of Virginia’s governance flaws: The Old Dominion ranks 5th among the 50 states for the most gerrymandered congressional districts.

In a new study, “Redrawing the Map on Redistricting: 2012 Addendum,” Azavea, a Philadelphia-based GIS company, is careful to say that the metrics it applies to the nation’s 435 congressional districts do not constitute proof of gerrymandering. Some states may have geographical issues that make it difficult to create contiguous communities — think Hawaii — and others have to contend with the Voting Rights Act, which requires states to protect minority representation.

Otherwise, Azavea’s four statistical measures of a district’s geographical compactness arguably provide a good indicator of the extent to which legislators are drawing boundaries to maximize partisan political gain.

Although none of Virginia’s congressional districts make the list of least compact districts in the country, the state’s overall score ranks it as the No. 5 worst offender in the country. While Azavea did not take note of it, Virginia stands at the epicenter of a Mid-Atlantic gerrymandering hot zone: Maryland, the worst offender in the country, is north of us. North Carolina, the second worst offender, lies to the south. And West Virginia, ranking No. 4, is situated to the west. Is there something in the water?

Maryland's 3rd. At least Virginia doesn't have any congressional districts that look like Jackson Pollock paintings!

The boundaries of nearly half of the nation’s 435 congressional districts, 235 in all, are drawn by state legislators, as opposed to by courts, legislative commissions or independent, non-partisan commissions. Not surprisingly, boundaries drawn by state legislatures are the least compact. Virginia falls into this category.

Azavea also analyzed the 235 districts subject to partisan control. On average districts drawn under total Democratic Party control are less compact than districts drawn by the GOP. “While districts drawn by Republicans in this decennial redistricting process may be somewhat more compact than those drawn by Democrats,” the study cautions, “it is also clear that both parties appeared to take advantage of their situation and draw districts more favorable to their party’s election.”

— JAB

The Tea Party Fades Into History

By Peter Galuszka

Whatever happened to the Tea Party movement?

The other day I found my laminated plastic media credential for the Virginia Tea Party PATRIOTS CONVENTION that happened about this time two years ago at Richmond’s convention center.

I was overcome with nostalgia. It was such a fun group: Patrick Henry re-enactors, Jamie Radtke, gun nuts with Glock pistols, Libertarians, Corey A. Stewart in a lonely booth bashing immigrants and even our very own Very Rev. James A. Bacon Jr. preaching about runaway federal spending.

Back then, they packed a wallop. The succeeded in getting enough hard right politicians elected that they took the House of Representatives, the Virginia House of Delegates and almost took the U.S. and state Senates.

But now, in the word of Washington Post columnist E.J. Dionne, the right’s neoconservative wing is facing a total rout. Abandoning them,  Mitt Romney is praising Barack Obama’s foreign policy initiatives. Romney doesn’t “want another Iraq.” Paul Ryan’s Ayn Randism is nowhere in evidence. Where’s the “Power of Selfishness?” Whatever happened to Main Street Republican Eric Cantor trying to run the lead the Tea Party parade? Now Obama is back talking about a “Grand Bargain” on debt that might have been possible had Young Gun Eric not gotten in the way with his oversized ego.

According to Dionne: “The biggest sign that tea party thinking is dead is Romney’s straight-out deception about his past position on the rescue of the auto industry.” Tea Baggers conjured up “Obama the Socialist” on this one. Turns out the bailout worked. So much for free-market fundamentalism.

Dionne notes that this is all related to the fact that the election comes down to undecided voters in swing states, like Ohio and Virginia. Despite what you may read on this blog, most voters don’t want the rich to get special tax breaks and don’t want their Medicare and Social Security cut or replaced with some hoary scheme to prop up Big Insurance with a voucher system.

It could be that Romney will scurry back to the straight-no-chaser version of conservatism if he wins. But having read more about what he did in Massachusetts, I really don’t know where is is or was. He used to sound like Obama before Obama became Obama.

But if you want a thermometer check, all you have to do is read Bacon’s Rebellion. Remember all those dire, clarion calls about deficit spending? How big, bad and awful, the federal (but not state) government is? Now we get recycled press releases from the Governor’s office about how universities can help recruit corporations.

The Tea Party exists, I guess. But their Websites haven’t changed since early 2010. Too bad they took ownership of that cool rattlesnake flag. I really liked it but if I a license plate with one for me car, people will get the wrong idea.

The Latest in Bicycle Design: Munchkin-Hauling Electric Bikes

If anyone is still skeptical that bicycling will continue to gain transportation market share, consider the new bicycle designs that appeal to every conceivable demographic. The latest case in point: Japan’s Bridgestone, known for its automobile tires, has sold 300,000 of the bicycles (displayed at right) that cater to moms with tots.

The electric bike, with a 37-mile range, is designed for a parent to haul two kids around town. The baby seats are designed to protect the rug rats in the case of accidents, and the front seat can be converted into a basket. A low center of gravity and a wide stand prevent the bike from tipping over. The price point: between $875 to $1,775, depending upon the model. (For details, see the post on the Atlantic Cities blog.)

Bicycle stores in Richmond sell bikes made for recreational use — racing, mountain biking or for kids. But the Europeans and Japanese have been incredibly creative in manufacturing bicycles for practical, utility travel. It’s just a matter of time before that revolution in bicycle design comes to the United States. Municipalities that prepare for that change by investing in bicycle-friendly infrastructure will be regarded as more attractive places to live than their bike-hostile peers.

— JAB