• Is Dominion Facing Fines Over Green Energy Goals?

    By Steve Haner

    Director Glenn Davis, Virginia Department of Energy

    The enforcement mechanism for the Virginia Clean Economy Act is a cash fine imposed on the electric utility if it fails to utilize the mandated percentage of wind, solar or battery power.ย The statute calls it a โ€œdeficiency paymentโ€ and has set the penalty at $45 per megawatt-hour.ย 

    The first of such penalty payments may be imminent.ย In debate Monday on a bill to eliminate the penalty, the statement was made that Dominion Energy Virginia has warned it may have to pay $450 million in a fine at the end of 2025.ย The report came from Glenn Davis, director of the Virginia Department of Energy, who said Dominion may fall short by 10 million megawatt hours.

    Under the language of the 2020 statute, the utility is allowed to just pass the cost along directly to its ratepayers. And just like its cousin, the Regional Greenhouse Gas Initiative Carbon tax, the cash collected by the state is directed to be spent on various specific projects such as energy efficiency programs and job training in historically disadvantaged areas. ย ย 

    The discussion took place in front of the Senate Commerce and Labor Committee, which of course promptly killed the bill on a party-line vote.ย Thatโ€™s the thing about the Assemblyโ€™s odd-year short session โ€“ it starts like a rocket and important bills are heard from the first day.ย 

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  • Stupidity on Steroids

    EV charging stations as a microcosm of the ineptitude of America’s governing class.

    Abandoned EV charging station. Image credit: ChatGPT

    by James A. Bacon

    The Federal Highway Administration (FHWA) has granted Virginia $10.8 million to build out its EV charging infrastructure. The goal is to deploy 392 charging ports at “urban and rural tourism destinations across Virginia,” with more than half to be installed in “disadvantaged communities to ensure accessibility for all.”

    The grant, dubbed E-Vacation, is part of a larger $635 million program to expand the EV-charging infrastructure nationally. One of the biggest reservations people have about buying electric vehicles is the uncertainty of being able to find locations where they can recharge their cars. The federal program is designed to address it. The program has been mired in federal bureaucracy and red tape, but the funds are finally trickling down to the state level.

    Now deployment will get mired in state bureaucracy and red tape.

    The Virginia Department of Energy website describes an existing Electric Vehicle Charging Assistance Program (EVCAP), which could be a template for the Electrified Virginia Accessible Charging and Tourism Infrastructure Network getting the $10.8 million grant.

    Let’s walk through the requirements of the EVCAP program.

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  • Choosing Politics over Educational Progress

    By Derrick Max,

    Sen. Ghazala Hashmi (D-Chesterfield) Photo credit: VPM

    Senator Ghazala Hashmi, chair of the Virginia Senate Education and Health Committee, is introducing a bill that has no chance of becoming law — apparently trying to carry water on behalf of the Virginia Education Association (VEA) in hopes of gaining support for her campaign for Lieutenant Governor. Hashmiโ€™s bill would require a โ€œdelayโ€ in the implementation of the Youngkin administrationโ€™s new popular school accountability system to allow time to makeย  significant and unneeded revisions to the new system. Surely, Sen. Hashmi and her fellow Democrats know that if Sen. Hashmiโ€™s delay legislation passes, the Governor will veto it.ย ย 

    The new accountability framework, which was just approved by President Joe Bidenโ€™s U.S. Department of Education, takes full effect next fall.ย  While the Youngkin administration may be willing to make a deal with Democrats on minor revisions that do not involve a delay in hopes of gaining broad bipartisan support, they are not likely to negotiate on anything approaching what Sen. Hashmi has proposed.ย ย 

    Democrats in the legislature really have 2 choices:ย ย 

    (A) Do not pass a messaging bill unpopular with the general electorate and get a bipartisan deal that incorporates some of their requested substantive revisions; or ย 

    (B) Pass a partisan messaging bill to be vetoed and that is unpopular with the general electorate but pleases the VEA and get little-to-no substantive revisions.

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  • Rent Control Bill Would Hurt Housing Stock

    by Hans Bader

    Raising rent to keep up with inflation isnโ€™t what most people would consider โ€œrent gouging,โ€ even when the landlord has to increase rent by more than 3%. For example, Washington, D.C.โ€™s rent control board allowed most landlords to raise rents in recent years at annual rates such as 8.9% and 6.2%.

    But a recently-introduced bill in Virginiaโ€™s legislature, SB 1136, would allow local governments to adopt โ€œanti-rent gougingโ€ ordinances. These ordinances would define raising rent by more than 3% as illegal โ€œrent gouging.โ€ Indeed, even a 1% or 2% increase could be deemed rent gouging, because SB 1136 would require the local government to set an โ€œannual residential anti-rent gouging allowance that is no more than three percent,โ€ but which could be less than 3%, such as 1%.

    Virginia does not currently let local governments impose rent control or rent regulations. Virginia’s Dillon Rule requires an enabling statute before local governments can adopt a rent-control ordinance.

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  • No Psychic Needed To Predict Tax Issue Gridlock

    By Steve Haner

    The largest item among Governor Glenn Youngkinโ€™s many proposed changes to the Virginia state budget is his idea to set aside $1.1 billion from last yearโ€™s surplus revenue to cover three years of future car tax rebates. You donโ€™t need to call the California Psychics who run ads on Richmondโ€™s conservative radio station to predict what will to happen to that.

    When the Democrats who control the money committees in both the House and the Senate report their list of budget amendments in a few weeks, most or all that dedicated fund to support those rebates is likely to be diverted to their spending priorities. The rebates are also in doubt.

    The Republican governor, facing his final of four General Assembly sessions, has been among the most fortunate of governors on financial matters. This is the fourth of four fat years, with no painful lean year during his term.ย 

    The General Fund revenue of $31.4 billion now predicted for Fiscal Year 2026 (starting next July) is $5 billion (19%) more than the revenue projection four years earlier, for Fiscal Year 2022. Almost another $5 billion in cash is locked up in reserves, $2 billion more than was being held as protection against a downturn at the start of Youngkinโ€™s term.ย ย 

    Despite that, the budget and tax policy debate coming in the 2025 General Assembly is far more focused on spending than on tax cuts. Youngkin put most of the stateโ€™s General Fund surplus and revenue growth โ€“ $4.4 billion dollars โ€“ on the spending side of his ledger.ย ย 

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  • The Hits Just Keep on Coming

    Water main break on Harrison Street. Image credit: WRIC

    by James A. Bacon

    Ordinarily, one would categorize a busted-water main story as routine news and forget about it the next day. But in the wake of the breakdown of the City of Richmond’s water treatment plant, which cut off water supplies for the better part of a week, the natural reaction is, what’s next? How deep does the rot run?

    City crews responded to the break Saturday and repaired the break by early Sunday morning, according to WRIC News. Meanwhile, city officials have warned that water-main breaks will most likely increase as water service is restored to residences after last week’s breakdown and temperatures drop below freezing.

    Read this detailed WRIC dive into the 2022 Environmental Protection Agency report on problems with water treatment plant. Even if you don’t read the whole thing, scan it for the photos. If the treatment plant, the centerpiece of the city water system, is in this bad a condition, just imagine what the outlying pipes, pumps and other facilities are like.

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  • Dry January Takes on a Whole New Meaning

    Image credit: Bing Image Creator

    by Jon Baliles

    The start of every New Year often comes with people making resolutions to do more exercise, choose better eating habits, and make changes to improve oneโ€™s life. One of the newer traditions in recent years has been Dry January, which started in England but has spread worldwide and challenges people to spend the first 31 days of the year alcohol free to improve their health, lose weight and let their bodies rest and recharge.

    But this year, Dry January has taken on a new meaning for Richmonders after the self-inflicted failure of the cityโ€™s water plant and ensuing five days of chaos that is now, hopefully, behind us. If you made the Dry January pledge here but found yourself instead with a 12-pack of brews this week because there was no water from the tap or at the store, then donโ€™t feel too bad. Just redefine it as โ€œSemi-arid January,โ€ declare victory, and get back on track now the water is flowing and clean again.

    I jest, of course, (but only a little) because what happened this week in Richmond is a serious matter that underscores what we have seen for more than a decade โ€” massive negligence of essential infrastructure investment in critical city functions. I wonโ€™t repeat much of what happened because local media has done a fantastic job of covering it. The Richmonder, CBS6, WRIC, VPM News the Times-Dispatch in particular have been covering and digging and showing what was happening across the region and that water is finally flowing again.

    This crisis is also solid proof to the corporations and media overlords who have slashed and burned local media in recent decades that local coverage of local news is vitally important to peopleโ€™s lives and well-being. There is a very real demand for local news. Itโ€™s also proof what can happen when local media is not there or able to cover local government that allows local politicians to get away with spending money on things they want instead of things that the people need โ€” you know, like water to drink, live, prevent illness, take medicine, for cleaning, and putting out fires.

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  • Jeanine’s Memes

    From The Bull Elephant


  • An Expensive Failure to Follow the Law

    by Dick Hall-Sizemore

    Lewis Puryear, lead plaintiff in class action law suit seeking compensation for being held in prison beyond release date

    The refusal of the Youngkin administration to follow the law and Virginia Supreme Court decisions will cost the taxpayers $1.6 million.

    As reported by the Washington Post, the state has agreed in a court settlement to pay, in addition to $420,000 in attorneysโ€™ fees, $1.2 million to former inmates who were held in prison beyond their legal release date. Involved in the settlement were 53 former inmates, 21 of whom were held for at least six months beyond their proper release date and at least seven who remained incarcerated for more than a year longer than they were supposed to be held.

    The settlement arises from a major change in law enacted by the 2020 General Assembly and the efforts of Attorney General Jason Miyares to impose the administrationโ€™s interpretation of the law on its implementation.

    I have set out a detailed description of this dispute here. Therefore, I will provide only a brief summary. In 2020, the General Assembly greatly expanded the number of sentence credits an inmate could earn toward reducing his time behind bars. The legislation did exclude inmates convicted of specific violent acts, set out by statute in the legislation, from benefiting from the enhanced sentence credits.

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  • Richmond’s Water-Gate Fiasco Will Be Investigated

    by James A. Bacon

    Richmond Mayor Danny Avula committed himself yesterday to an “independent” investigation into the failure of Richmond’s water treatment facility, while Governor Glenn Youngkin said yesterday that the state would conduct its own inquiry.

    “We are absolutely outsourcing this. Weโ€™re going to bring in a third party to do that investigation,โ€ Avula said at a Friday morning news conference.

    It wasn’t clear from press reports, however, exactly what would be investigated. The Richmonder framed the mayor’s promise in the context of answering questions about the timeline of events leading up to the water stoppages and steps taken to prevent the situation from spiraling out of control.

    A statement from the Governor yesterday afternoon implied that the state’s probe will be fairly broad in scope.

    “The commonwealth will start a detailed after action assessment and investigation immediately coordinated through the Virginia Department of Health Office of Drinking Water,” Youngkin said in a statement. “I know that the city of Richmond has announced they would do an independent assessment at the city level, but we need to do this work, because there are lots of issues, from operations to maintenance to infrastructure. We need to understand exactly what happened and what we need to do in order to make sure it doesn’t happen again.”

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  • Bacon Meme of the Week


  • Boil-Water Advisory

    Image credit: ChatGPT

    There’s an irony in the fact that the City of Richmond has extended its boil-water advisory until Saturday, even as city officials, generically speaking, find themselves in increasingly… hot water. That’s no comment on Mayor Danny Avula who just arrived on the job, but I’m betting that some city administrators and councilpersons are feeling the heat. –JAB


  • Mayor Avula, Appoint an Independent Commission to Fix Richmond’s Infrastructure

    by Paul Goldman

    Once again, Richmond city government is facing a crisis of competence. The current water treatment plant fiasco is symbolic of this long history. You canโ€™t run a city by moving from crisis to crisis. Thatโ€™s why I believe Mayor Danny Avula should create an independent committee to review the cityโ€™s well-documented infrastructure mess and finally propose a solution,

    He should choose people whose knowledge of government finances is beyond question. And they should be individuals unafraid to step on whoever’s toes may need stepping on.ย 

    Iโ€™m hoping the new mayor will see the wisdom in this proposal. When facing similar type financial situations, former governors Wilder and Warner asked for my advice. They took it. This advice helped them win accolades for Virginia as the best-managed state. Iโ€™m convinced what Iโ€™m proposing for Avula will put Richmond on the road to being one of the best managed cities.

    The first thing RVA needs to do should be clear to any honest person: The 16-year era of the race-baiting politics of former Mayors Dwight Jones and Levar Stoney needs to come to an end. They and their cronies have used race to enrich too many, for far too long, with contracts they donโ€™t deserve, jobs they canโ€™t perform, patronage positions the city doesnโ€™t need, and projects like the proposed Casino given to friends of the Mayor on a racial basis to folks who donโ€™t actually respect the integrity of Black citizens.

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  • Hernandez Proposes Florida-Here-We-Come Bill

    Image credit: ChatGPT

    by Hans Bader

    Delegate Phil Hernandez, D-Norfolk, has introduced legislation to raise state income taxes on people making over $1 million per year. Their marginal tax rate would rise from 5.75% to 10%, under HB 2333. This tax increase wonโ€™t become law this year, but it might become law under a future Democratic governor.

    Virginia already has higher income taxes than most of its neighbors, unlike a decade ago. Back in 2015, Virginia had lower income tax rates than West Virginia, North Carolina, and Kentucky. Back then, the top marginal tax rate was 6.5% in West Virginia, 6% in Kentucky, and 5.8% in North Carolina, compared to 5.75% in Virginia. And the lowest tax rate (for low-income households) was 5.8% in North Carolina, 3% in West Virginia, and 2% in Kentucky, compared to 2% in Virginia (most taxpayers pay the top marginal tax rate in each state).

    But in the decade since, most of Virginiaโ€™s neighbors have cut tax rates, while Virginia has not. Kentucky now has a maximum tax rate of 4%, North Carolina now has a maximum tax rate of 4.25%, West Virginia now has a maximum tax rate of 4.82%, while Virginia still has a maximum tax rate of 5.75%. Tennessee has no state income tax. As a result, Virginia is now one of the ten-highest taxed states.

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  • Water-Gate Needs an Independent Investigation

    by James A. Bacon

    Evidence continues to emerge of warning signs that the City of Richmond’s water-treatment and distribution system suffered from a failure to properly maintain, repair and upgrade its physical plant. WTVR-CBS reported yesterday that a 2022 Environmental Protection Agency alerted the city to corroded pipes and bacterial contamination. Today the Richmond Times-Dispatch cites a planning department document in which a utility-department engineering manager requested replacements for three outdated water pumps at the Byrd Park Pumping Station for which repair parts were no longer available.

    The Water-Gate fiasco presents Richmond’s new mayor Danny Avula with a challenge and opportunity. His immediate priority is to restore supplies of drinkable water to the city and neighboring counties, a task he has undertaken with energy and earnestness.

    The obvious follow-up is to determine exactly what went wrong and ensure that it never happens again. But the work doesn’t stop there. Any inquiry into the causes of Water-Gate must examine the managerial and budgetary contributors to the breakdown.

    Why were the warning signs ignored? Was it managerial incompetence in the department of public works? Was it managerial incompetence in the upper echelons of the city administration? Were maintenance projects delayed due to chronic underfunding? Was City Hall distracted by the bright shiny object of “equity”?

    These questions are not easily answered. I join Paul Goldman, aide to former Governor L. Douglas Wilder and periodic candidate for city office, in calling for an independent investigation. The need for such an inquiry should be uncontroversial. What’s crucial is how the scope of the project is defined. Will the broader questions be addressed or will they be ruled out from the get-go?

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