• Dueling Methodologies

    Is the United States lagging other economically advanced nations in the deployment of broadband infrastructure? That’s the ineluctable conclusion of a study published by the Organization for Economic Cooperation and Development and cited by the blogger Groveton in a recent Bacon’s Rebellion column, “The Commonwealth is Flat.”

    In a Wall Street Journal op-ed piece today, Robert M. McDowell, a commissioner on the Federal Communications Commission, argues that the OECD methodology is “seriously flawed.”

    First, says McDowell, the OECD measures broadband connections per capita, not per household. Per capita metrics favor nations with smaller family units, like those in Europe, and punishes nations with larger households, like the United States. It doesn’t matter if you have one, two or six people living in a household — if the household is served by broadband, everyone in that household has access to it.

    Secondly, contends McDowell, the OECD does not include Wi-Fi hot spots unless they are used in a so-called “fixed wireless” setting. One third of all wireless hot spots in the world are located in the U.S. As an increasing number of computer users access the Internet through laptop wireless connections in hot spots, U.S. access to broadband may be significantly undercounted under the OECD methodology.

    As for the Asian countries like Korea and Japan, where broadband penetration is significantly, higher, McDowell argues that their dense, urban populations make them more economical to serve. Compare densely populated New Jersey with Korea, and guess what: New Jersey has a higher penetration rate.

    The United States has more telecommunications competition than most European countries, McDowell says, and the rate of broadband penetration continues to increase rapidly as video applications create market demand for higher bandwidth. Bottom line: We’re really doing OK. Our system works.

    Is McDowell taking a Pollyannish view? Darned if I know. His reasoning does seem to make sense. I just don’t know if his arguments have counter-arguments.


  • Is Gasoline Consumption Really Plateauing?

    In my recent column, “The Next Transportation Crisis,” I quoted Department of Transportation figures to the effect that federal gasoline tax receipts had declined slightly in the first few months of 2007, possibly foreshadowing a long-term slowdown in gasoline consumption.

    Reader Bill O’Keefe, a consultant who closely tracks the oil and gas industry, offers different numbers and a different interpretation. According to the American Petroleum Institute, he says, gasoline deliveries in 2007 set a first half record, averaging 9.2 million barrels per day — 1.5 percent higher than the first half of 2006. Gasoline imports set a record of 1.3 million barrels per day for the second quarter.

    On a month-to-month basis deliveries may not match up with consumption, says O’Keefe, but they do track closely over longer periods of time. Monthly comparisons are tricky because a number of variables, such as weather, can briefly skew the numbers. “For example, if last February was unseasonably warm and this one was colder, there would be less driving and less gas consumed. But that would be weather driven and not an underlying change in demand.”

    Let it never be said that I don’t entertain both sides of the story!


  • “They Would Just Be Poor Forever”

    Kudos to Tim Craig with the Washington Post for finally writing a story about Abuser Fees that should have been written long ago — and confirms every worst fear that I’ve been raising on this blog all along.

    Craig takes a look at the impact of Abuser Fee-like legislation where it has been tried in Michigan and New Jersey. The experience of those states shows that Virginia can expect: (a) an increase in unlicensed motorists, (b) crippling financial hardship on the working poor, and (c) less revenue than anticipated because so many of the fines go uncollected.

    Writes Craig (my italics):

    Numerous lawmakers, judges and social activists in both states have sought to either repeal the fees or make major changes in how they are collected. But once the programs are implemented, they are difficult to get rid of, because state lawmakers are unwilling to give up the revenue they raise, judges and lawmakers said.

    “I think it is a very destructive piece of legislation that is designed primarily for revenue purposes and is disguised as a highway safety measure,” said William C. Buhl, a Circuit Court judge in Van Buren County, Mich. “In my opinion, it increases the dangers on the highways because it creates an enormous, growing pool of unlicensed motorists.” …

    New Jersey issues about 800,000 license suspension notices a year, a quarter of which result when people are unable to pay the surcharges, according to the New Jersey Treasury Department. A 2001 study by the New Jersey Institute for Social Justice found that the suspensions were creating a permanent underclass. …

    Michigan has issued 750,000 suspension notices for failure to pay the fees since they went into effect in October 2003. In December, Buhl and three other Michigan judges told a legislative committee that the state’s unlicensed motorists are increasing in number and are regularly fleeing police. Once caught, they face another round of fees they cannot afford.

    Several judges in Michigan are taking matters into their own hands by lessening the charges for some motorists so that the fees are not triggered. “We are trying our best to get them past this rather than impose another $1,000 fine on them, or they would never drive. They would just be poor forever,” said District Court Judge Roger J. La Rose, who presides in suburban Detroit.

    On the potentially positive side, the number of traffic fatalities in Michigan has declined since the abuser fees went into effect — a significant benefit. But the state police say it’s too early to say whether there is a causal connection.


  • Another Inter-Regional Transfer of Wealth

    Dominion recently announced plans to build a $1.6 billion coal-fired power plant in Wise County, in the heart of Virginia’s coalfields. The power company is billing the 585-megawatt “Virginia City Hybrid Energy Center” as a state-of-the-art clean coal facility. So far controversy has been muted. Some environmental groups have expressed displeasure, but their critique has gained little attention. What has escaped comment so far is the likelihood that the proposed location of the power plant in Southwest Virginia is driven by political considerations, and could well cost Dominion rate payers in eastern Virginia tens of millions of dollars annually in higher electric rates.

    To be sure, the power plant would be an engineering marvel, incorporating a number of expensive refinements to reduce the impact of coal combustion on the environment. According to Dominion, some of those elements include:

    • Carbon capture. “Carbon-capture compatible” design, meaning that technology to capture carbon dioxide could be added to the station when it becomes commercially available. Dominion is sponsoring research at Virginia Tech to see if it is possible to sequester carbon dioxide in coal seams in Southwest Virginia. Carbon capture technology is entitled to extra incentive premiums under Virginia’s regulatory framework.
    • Fluidized bed technology. The use of circulating fluidized bed (CFB) technology, a clean-coal technology for reducing sulfur dioxide and nitrogen oxide. The power station also will use an air filter called a bag house to remove particulates and mercury.
    • Waste coal and biomass. The capability to use a wide range of coals, waste coal, and up to 20 percent biomass. Piles of unused waste coal can lead to acidic leaching that causes environmental problems in Southwest Virginia.
    • Pollution controls. Additional controls to remove even more sulfur dioxide and nitrogen oxide.
    • Water conservation. Air-cooled condensers to reduce water usage at the station by nearly 90 percent when compared to typical coal-powered facilities.
    • Ash recycling. The possible beneficial recycling of combustion by-products for the manufacturing of cement.

    These are all commendable. What’s missing from Dominion’s press release, however, is what all this gee-whiz technology will cost to install. I don’t pretend to be an expert, and I’m willing to stand corrected. But to get a basis for comparison, I refer to a National Energy Technology Laboratory document, “Tracking New Coal-Fired Plants,” dated May 1, 2007. On page four of the PowerPoint presentation, it notes that 151 proposed new plants would generate 90 million gigawatts nationally at a cost of $145 billion. That averages out to a cost of $1.6 billion per gigawatt.

    Coincidentally, $1.6 billion is what the Virginia City Hybrid Energy Center would cost. But instead of generating a full gigawatt of electric power, it would generate only 585 megawatts — or 58.5 percent of the average. The balance, or roughly $650 million, represents an additional cost to Virginia rate payers.

    But that’s not all. States Dominion: “Under a state law encouraging the construction of the station, it would be powered by Virginia coal.” As it happens, Virginia has very high-quality, low-sulfur coal. But after 100 years of mining, Virginia’s remaining coal seams are either very thin or very deep, which means production costs are very high. Bottom line: Virginia electric consumers will pay more for their coal than if Dominion were free to purchase the fuel from any location. Thus, rate payers would pay more in two ways: for the up-front construction and for the fuel.

    (I haven’t even discussed the cost of transmitting the electricity from SW Virginia to the population centers in the eastern part of the state. How’s that going to work? What transmission lines will be used? Will Dominion need to add to its electric transmission capacity?)

    (Update: Dominion spokesman Jim Norvelle clarifies the transmission-line issue: “In our application with the SCC we identified the electrical switchyard at AEP’s Clinch River power station as our preferred intertie location. That is about nine miles away from our site in Virginia City, all of it adjoining an existing transmission line right-of-way belong to Old Dominion Power. The application says that PJM is performing its studies on possible intertie locations now. Of course, we would have to file a separate application with the SCC for the transmission line.”)

    The underlying motive for locating the power plant in Southwest Virginia and for burning Virginia coal is to boost the depressed economy of the Southwest Virginia coalfields. The station would employ up to 800 workers during construction. Once complete, it would have 75 full-time employees and support about 350 mining jobs.

    What is the legislative story behind this facility? I wish I knew. But I would be willing to wager that the origins of the Virginia City Hybrid Energy Center project is intimately bound up with approval of the electric utility re-regulation legislation enacted into law earlier this year. One of the key lawmakers who shepherded electric re-regulation through the legislative process was Del. Terry Kilgore, R-Gate City, whose 1st district encompasses Lee and Scott counties, and parts of Washington and Wise counties. The Dominion power plant would be located in his district — or right on the edge of it. (I can’t find a detailed map of the 1st House of Delegates district. Perhaps someone can help me.) Also not to be overlooked is the influence of Sen. William Wampler, R-Bristol, one of the most powerful members of the state Senate.

    At a time when environmental and conservation groups are clamouring for a shift to conservation, renewable energy and a distributed grid, proponents of Big Grid electricity infrastructure contend that solar power, wind power, biomass-generated energy, cogeneration, etc. are impractical. Renewables just aren’t competitive with coal-fired electricity. Say what? Wind power is not competitive, but a coal-fired plant costing twice the national average would be competitive?

    Bloggers and the news media need to dig deeper, and do it fast — before the State Corporation Commission approves the project. I would approach the story with a working hypothesis: By costing rate payers hundreds of millions of dollars more than a conventional coal plant, the Southwest Virginia facility represents an extravagant, inter-regional transfer of wealth. I also would investigate the politics of the deal: Did Dominion agree to the project to gain the help of Southwest Virginia legislators in getting its re-regulation legislation through the General Assembly?


  • Development that Really Rocks

    There aren’t many developers with “rock star” status in Virginia, but the backers of the “Coal Tower” project in downtown Charlottesville are a genuine exception. The owner of the 10.7-acre, by-right development is the Dave Matthews Band. The band plans 315 residential units, offices, retail and several restaurants, according to the Daily Progress.

    City officials approve:

    The Coal Tower project, as it has been dubbed, fulfills the cityโ€™s goal of clustering high-density, mixed-use development near downtown. The result, city planners and the developer say, will be hundreds more residents who can get to the Downtown Mall for work and recreational purposes without having to use a car.

    โ€œWe said we wanted to put more people into the core of the city and thatโ€™s what this does,โ€ said Jim Tolbert, director of the cityโ€™s Neighborhood Development Services.

    Of course, there’s always someone with a beef. Some neighbors are concerned that the eight- and nine-story buildings will be out of scale, and others fret about local traffic congestion. I haven’t seen the plans so I can’t speak to the specifics. But from a high-altitude perspective, urban infill and redevelopment is the very best kind of development that can take place. It takes advantage of existing infrastructure, pumps up the city tax base and generates less traffic per resident than greenfield development.

    The Dave Matthews Band rocks in more ways than one.


  • Fresh Ideas for River City

    Michael Martz with the Times-Dispatch on the charrette for the downtown Richmond master plan:

    Convert all one-way streets to two-way.

    Create a center for public transit, including trolleys.

    Make the James River the focus of life in a rejuvenated downtown Richmond where people do more than commute between work and the suburbs.

    There were plenty of ideas in the air and scrawled across maps yesterday as more than 175 people took the redesign of the city’s downtown into their own hands. They were encouraged, not blocked, by City Hall.

    The article is a good read. (For the record, I’m not endorsing any of the specific ideas — just the idea of holding a charrette.) My only disappointment: I wish the editors had given the story more space. Martz understands the land use issues better than most newspaper reporters. The newspaper needs to turn him loose.

    For a more authoritative account of the ideas generated by the charrette, John Sarvay’s reporting on Buttermilk & Molasses is must reading. John groups the ideas into major themes, including: the James River, community connectivity, transportation, green development, mixed use, public art, Jackson Ward and Manchester.


  • Raising All the Abuser Fees the State Could Ever Want in a Single Day

    Jon Baliles has an excellent solution for how the state can meet its abuser funding goals and at the same time, teach Richmonders a few basic rules of the road:

    Send police to any stoplight in Virginia (especially Richmond) when a storm comes through and kills power at the intersection (or just cut it off for kicks). You can write tickets and issue fees all day long and raise enough money to pave over the entire state.

    I saw so many idiots blow through inoperable stop lights yesterday (at just three intersections) rather than do what the law requires, which is treat such a light as a four way stop. People would blow through at regular speeds, some would think about stopping but keep going when Joe Moron flew on by, then the cars behind would keep the train rolling.

    Responsible drivers trying to get through waited out the idiots. It was like the last few seconds of a bumper car ride as they tried to nudge through. At Leigh and Boulevard some yo-yo almost T-boned a big Dominion bucket truck at 45 MPH and another intersection there was an accident but didn’t look serious.

    This happens all the time because people don’t know driving laws and regulations. And now our leaders say they are going to build roads based on a law that (in part) depends on us continuing to drive like the big final scene in the The Road Warrior.

    I saw the same sort of behavior on the way home. At the intersection of Cary and Malvern alone the abusive driving fees could have funded the end-to-end paving of Hanover County (by this morning, someone had placed a single stop sign…pointing only at eastbound traffic).

    And it’s ingrained behavior, too. God help you if you were on city streets after Isabel smashed the local power grid in 2003. Crossing an intersection required a leap of faith, nerves of steel and drag racer-like reflexes.

    If abuser fees were in place for just that week, the state could have built an eight lane highway to Mars.


  • Disclosure for Governors: Virginia Rates a “D”

    Virginians supposedly believe in transparent government. We don’t pass restrictive laws on how much money people can donate to political campaigns, or how and when they lobby legislators. But we do require everyone in the political process to report what they’re spending, and what their financial interests are. As the saying goes, sunlight is the best disinfectant.

    However, the Center for Public Integrity is less than impressed with Virginia’s financial disclosure requirements for its governors, rating Virginia a “D”. We have plenty of company — 10 other states scored “D” and 21 scored “F” — but it’s saying something when you’re less transparent than New Jersey, New York and Rhode Island. (See the state rankings here.)

    For specifics on Virginia’s financial disclosure requirements for governors, click here.

    (Hat tip: Jon Baliles.)


  • Best Line of the Day

    Paul Goldman in the Free Lance-Star on the Abuser Fees, which would not be levied on Virginians but not out-of-staters: “Now we have a new traffic offense called DWV: Driving While Virginian.”


  • The Abuser Fee Debate: When All Else Fails, Look at the Facts

    “Being for driver safety is a good thing. We need to study it in a deliberate way before we rush into it.”

    So said Gov. Timothy M. Kaine during a press conference he held with senior members of the General Assembly yesterday in defense of abusive-driving fees enacted into law this year. (Read Jeff Schapiro’s account of the press conference in the Times-Dispatch.)

    Yes, we can all agree that driver safety is a good thing. But where, pray tell, was the “deliberate” study? What empirical basis does Virginia’s political leadership have for stating that highly punitive fines will lead to safer roads?

    It just so happens that the Virginia Crime Commission published a study earlier this year, “Effectiveness of Existing Punishments and Recommendations for Additional Remedies for Driving While Intoxicated,” that examined the effectiveness of increased punishments for driving under the influence of alcohol.

    Del. David B. Albo, R-Fairfax, the leading advocate of the now-infamous Abuser Fees, introduced legislation in the 2004 session that increased penalties for DUI. Measures included (1) increased minimum sentences for second and third convictions, (2) lower blood alcohol levels to trigger mandatory minimum sentences, and (3) other penalties such as suspension of driver’s licenses, confiscation of cars and a presumption against bail under certain circumstances.

    The law went into effect July 1, 2004. The study’s conclusions (my italics):

    The data does show that there were fewer convictions for second and third offense drunk driving charges in 2005, as compared to 2004. Because this data reveals recidivism rates for only a one year period, it is possible that other factors are responsible for the lower numbers. Staff has concluded that it is not possible to definitively state, with methodological rigor, that the more severe punishments are causing recidivism for drunk driving to decline. Whether the lower numbers for DUI convictions will continue, or whether 2004 will come to be seen as an unusual year in which the number of DUI incidents was lower than normal, remains to be determined.

    Additionally, there are many factors that contribute to the total number of DUI incidents occurring during a given year. The number of law enforcement officers assigned to patrol for drunk drivers, the number of DUI checkpoints established throughout the state, and the number of public service announcements on radio and television cautioning people to avoid drunk driving, all may impact DUI rates. The types of counseling and treatment given to people convicted of a first DUI may have even more of an impact on their future behavior than the amount of punishment they receive. Attempting to objectively discern what precise variables are having the most measurable effects on lowering DUI rates is extremely difficult.

    While the initial data for the past year, with the lower DUI figures, is encouraging, it is too soon to draw any firm conclusions as to whether this is due to the changes made to the DUI statutes in 2004. Until data is available for at least four to six years, it is not possible to assess whether those changes are responsible for lowering recidivism rates. Nevertheless, the initial data is promising, and the Crime Commission intends to continue monitoring DUI rates on an annual basis to see if the downward trend continues.

    That’s the only relevant report to the General Assembly that I could find in 2007 or 2006. (Someone might want to go behind me and make sure I didn’t miss something.) Fact: No one studied anything related to Abuser Fees “in a deliberate way” before passing the law. Fact: There is no empirical basis for claiming that the higher fees for traffic offenses will translate into safer roads. There are only hints, based on one year’s of data, that increased penalties might reduce recidivism for DUI, but the study insisted that the data were inconclusive and pointed to other possible causes.

    If Gov. Kaine, House Speaker William J. Howell and other General Assembly leaders insist upon keeping the the fines, they should, at a minimum, do this: Fund mechanisms to measure and analyze the impact of Abuser Fees on drivers’ behavior. Let us not re-open the debate three or four years from now as ignorant of the facts as we are today!


  • Agree to Disagree

    The new “Agree to Disagree” columns from Thad Williamson and some other guy are now online at Richmond.com. Our topic this month is health care reform.

    Did I mention I was a high school senior in Colorado when Gov. Dick Lamm made his famous “duty to die” speech?


  • Fire Chiefs Fire Back

    In two recent articles, I’ve been critical of local fire chiefs for vetoing design starndards — width of streets, turning radii of street corners — preferred by developers hewing to the New Urbanism school of design. New Urbanists like narrow streets with short turning radii, which are geared to pedestrian traffic. Fire chiefs prefer wider streets with wider turning radii that their big rigs can negotiate. (See “Design by Fire Truck” and “Fire Trucks and Bike Lanes“.)

    Now Tom Owens, fire chief for the City of Fairfax and chairman of the Northern Virginia Fire Chiefs Committee, has written, asking me to tell the “other side of the story.” I think he can tell his side of the story better than I, so I will quote him in full:

    I read with great interest your article โ€œDesign by Fire Truckโ€, in which you tied community development plans to the design of todayโ€™s contemporary firefighting apparatus. There is without question a direct correlation between the configuration of neighborhood streets and the need for safe and effective access for fire and emergency medical vehicles; however, I would encourage you to look deeper into the many other aspects related to a fire departmentโ€™s strong stance on unencumbered access to neighborhoods.

    The โ€œbuilt environmentโ€ that fire departments must cope with have changed dramatically over the years. In their legitimate quest to keep housing as affordable as possible, building materials used have become lighter weight, construction techniques have become less substantial, many neighborhoods have homes built with zero lot lines that set the stage for rapid fire spread to neighboring properties, these homes are no longer filled with ordinary wood and paper based furnishingsโ€ฆeverything is high density plastic and foam based materials that burn rapidly and generate intense fire spread. The level of heat output experienced today results in early structural failure due to the lightweight construction mentioned
    above.

    Fire Departments have continuously offered THE solution to the majority of these problems. Residential Fire Sprinkler Systemsโ€ฆ..yetโ€ฆ..this same community of urban planners and developers resists building fire protection into these homes. They fight us in the general assembly when we propose such building code requirements and then complain when we insist on effective access into neighborhoods.

    If you talk to most Fire Chiefs and Fire Marshals, they will tell you that a Fire Department is very willing to make tradeoffs to requirements IF developers will build more fire protection into these homes.

    Owens raises legitimate concerns: the increased flammability of contemporary housing and the danger inherent with putting family dwellings so close together, as New Urbanists are wont to do. I’m delighted to bring those issues to light.

    Following Owens’ logic, though, it sounds like a potential answer presents itself, and it’s not getting the General Assembly to mandate residential fire sprinklers. Let the marketplace decide on a case by case basis. If New Urbanist developers want pedestrian-friendly streetscapes badly enough, and if the local fire chiefs are willing to go along, let them install the residential fire sprinkler systems in exchange for the desired street standards.


  • Loving the One-Car Lifestyle

    Diana Sun has seen the light. She and her husband, Bob Solymossy, used to live in a detached, single-family house with a big garage in the Oakton area of Fairfax County. Never questioning their auto-centric lifestyle, they owned three cars and took long, time-consuming commutes to work. Now they live in an Arlington County condominium and they’ve downsized their automobile fleet to a single car. They’re loving it.

    As communications director for Arlington County, Diana rolled out the red carpet for me yesterday. She introduced me to Paul Ferguson, the chairman of the board of supervisors, as well as several senior planners, and she took me on an extended tour of Arlington’s revitalized neighborhoods. (I’ll have a lot to say about that in the near future.) After the work day, Diana, Bob and I strolled through the Clarendon “urban village” and enjoyed some sidewalk dining. Bursting with enthusiasm for their new way of life, they told me all about it.

    When they first moved to their condo, Diana and Bob couldn’t conceive of life with fewer than two cars, so they paid to buy an extra parking space to supplement the one that came with their unit. But they hadn’t lived long in Arlington before they realized they didn’t need the second parking space — or the second car. Diana walks to work two or three blocks away. They use the Metro rail service on occasion, and they ride their bicycles a lot. On those rare occasions when they do need a second car, they pay $50 a year to sign up with Zipcar, which allows them to rent one of the cars conveniently stationed around Clarendon for $9 an hour.

    The one-car lifestyle saves money. Diana recommends a book, “How to Live Well Without Owning a Car,” that cites the five-year cost of owning a Toyota Corolla as more than $5,000 a year. She spends a fraction of that on mass transit and Zipcar.

    The one-car lifestyle saves time. One of Diana’s jobs in Fairfax County consumed three hours a day in the two-way commute. Now she works minutes away. She marvels at how much more time she and Bob have to doing things they enjoy.

    The one-car lifestyle is good for your health. Walking and riding bicycles makes people more physically fit than sitting in automobiles. Diana and Bob are both in great shape. They have loads of energy for undertaking their long, strenuous vacations to exotic, Third World countries.

    The one-car lifestyle is good for the environment. Fewer cars = less driving = less gasoline consumption = less pollution.

    Indeed, Arlington’s one-car lifestyle is such an improvement over their old, Fairfax County way of life that Diana and Bob have contemplated transitioning to a zero-car lifestyle. Having at least one car does does offer significant conveniences, however, so they haven’t been willing to take that step. Yet. But they’re so enamored with their new way of life, don’t be surprised if you read in the Want Ads one day: “For lease, parking space in Clarendon condominium.”


  • We’re No. 1! We’re No. 1! (But Don’t Look Behind — The Competition is Gaining)

    Forbes Magazine has once again ranked Virginia as the “best state for business,” but the business pub declares that No. 5, Washington — home to Microsoft, Amazon.com, Starbucks and Boeing — is “the big story.” Washington, whose tagline is, “Innovation is in our nature,” moved up seven notches last year.

    As for Virginia, here’s what Forbes writes:

    Not that Virginia did badly–it just didn’t dominate the rankings the way it did last year. The state finished in the top 10 in four of the six main categories we examined. But in 2006, it finished in the top 10 of all of them. Virginia’s top attributes include an incentive environment that is the fourth-best in the country, according to Pollina Corporate Real Estate, a commercial real estate consulting firm, as well as an unemployment rate that’s the third lowest in the nation.

    (See Virginia’s category rankings here.)

    There was no acknowledgment of Virginia’s diminishing lead in Gov. Timothy M. Kaine’s press release or any of the self-congratulatory quotes from leading legislators. Any state that was serious about maintaining its competitive advantage would closely examine the categories where it lost ground and figure out what to do about it. It’s always possible that the Governor and the General Assembly leadership are doing that, quietly and out of the public eye. But judging by the tenor of the press release, they’re just complacent. (Hat tip to Peter Galuszka.)

    On a brighter note, we should acknowledge that Virginia does do some things right. Additional evidence comes from a press release from Attorney General Bob McDonnell’s office, who cites Virginia’s No. 2 ranking in Directorship magazine for its “business liability climate.” Says McDonnell:

    โ€œExpensive and excessive litigation leads to higher costs for consumers, less jobs for our citizens, and slowdowns in economic growth. It discourages investment and has a negative effect on the expansion of the free market. Money that Virginia companies spend fighting lawsuits is money not spent expanding facilities, conducting research, and hiring Virginia workers. This ranking is a bipartisan achievement.”

    Who’s No. 1, you ask? Nebraska.


  • Coming to an Interstate Near You

    The most important change in Virginia’s transportation policy may be occurring right before our eyes, and we don’t even see it. In typical fashion, the Mainstream Media writes about the individual trees but fails to see the forest. The general public is even more myopic.

    But 50 years from now, when some historian chronicles the evolution of Virginia’s transportation policy, the most significant development of the 2000s won’t be the construction of the Springfield Bypass, or the house-cleaning of VDOT finances, or even the Comprehensive Transportation Funding and Reform Act of 2007. It will be the introduction of congestion pricing to Northern Virginia’s major transportation arteries.

    There is a grand strategy, and Secretary of Transportation Pierce Homer is the architect. Look at a map of Northern Virginia. There are four major transportation corridors: the Interstate 495 Beltway, Interstates 95/295, Interstate 66, and the Dulles Toll Road. As Bacon’s Rebellion intern Lyle Solla-Yates writes in “Coming to an Interstate Near You,” variable-pricing HOT lanes are planned for the Beltway and I-95/395. Limited service could begin as early as late next year.

    But that’s not all. Virginia’s HOT lanes will dovetail with Beltway HOT lanes planned in Maryland. Variable pricing also could be coming to the Dulles Toll Road, and Homer confirms that congestion pricing on the I-66 corridor is in the early stages of discussion. In each case (in Virginia at least), the HOT lane projects will be financed and administered by public-private partnerships. The tolls will add new capacity, and in the case of 95/395 will support Bus Rapid Transit.

    Congestion tolls are the future of transportation. They are more than a tool for financing the expansion of transportation capacity: they simultaneously modulate demand. By using the price mechanism to allocate scarce rush-hour roadway capacity, they encourage drivers to seek alternatives — shifting their commuting schedules, changing routes, telecommuting, ride sharing, taking mass transit or pursuing other options.

    Virginia needs to upgrade its transportation network, but the state cannot afford to accommodate every uptick in potential demand. We need a transportation system that addresses both the supply and demand sides of the equation. HOT lanes do that, and Pierce Homer will be remembered as the man who championed them.

    It’s a shame that the public understanding of Virginia’s grand strategy is so limited because important issues are going unexplored. As huge a fan as I am of congestion pricing, I do have concerns: To what extent will HOT lanes open up new frontiers for real estate development? Will they act as an accelerant to “sprawl” (scattered, disconnected, low-density development) or as a retardant? How expensive will it be to upgrade the winding country roads serving that new development, and who will pay for it? I don’t know the answers. Nobody does.