Author Archives: Steve Haner

Wind Project Sued Over Claimed Threat to Whales

NOAA Right Whale status graphic, updated this month to report 123 recent deaths and injuries.

By Steve Haner

A coalition of public interest groups has now filed its expected lawsuit seeking to halt construction of Dominion Energy Virginia’s offshore wind facility off Virginia Beach. Its key complaint is the federal permits were issued without a full and fair evaluation of the potential impact of the turbines on the shrinking North Atlantic Right Whale population.

The Heartland Institute, based in Illinois, the Committee for a Constructive Tomorrow, with offices in Washington, D.C. and the National Legal and Policy Center of Falls Church, along with two individuals, are the listed plaintiffs.  The Bureau of Ocean Energy Management (BOEM) and National Marine Fisheries Service (NMFS) and federal office holders are among the named defendants, along with Dominion.

The 61-page complaint to a District of Columbia federal court seeks relief under the Endangered Species Act. It claims the law requires the federal government to study the combined impact of all the planned East Coast wind projects, from New England waters down to North Carolina’s outer banks.  Instead, the federal permitting authorities to date have looked at individual projects without regard to cumulative effects when issuing wildlife impact opinions and permits.

From the article on the CFACT website: Continue reading

Complex Digital Sales Tax Worthy of Veto

By Steve Haner

Pick any member of the General Assembly at random, stop them in the grocery store for a chat, and quiz them about the digital sales tax they approved a week ago Saturday.  It will quickly become clear that most had no idea what they were voting for when they approved it.

What will the tax add to the cost of your Amazon Prime or Netflix? (For most, 6-7%.) Will the tax be collected on both the monthly fee and on anything extra you download (Yes) Will it add to the cost of preparing your tax to file online, your annual lease for Microsoft programs on your laptop or your security system program? (Yes, most digitally-based services will all be taxable to individuals, and many of them will be taxable to businesses. If you are doing something on a computer or phone that costs money, it is likely to become taxable.) 

Even for a business, if some software package its employees use includes a combination of online services, will it owe tax on the entire package? (Yes, unless the vendor is willing to break apart the bill, which many may refuse to do. That is because of the new language about taxing bundled services.)  If an out of state vendor does not add tax to the invoice, taxpayers will be required to calculate and pay it as a use tax, with auditors ready to pounce if they don’t.   

Think of engineering, law, banking, or medicine.  So many of their processes are now controlled by expensive software, most of which is about to be 6-7% more expensive.  At the shipyard in Newport News, paper blueprints and printed job instructions were replaced with tablets and digital design programs years ago.   Continue reading

Jefferson Institute Lists Bills Youngkin Should Veto

By Derrick Max

We have reached sine die of the 2024 General Assembly legislative session. During this session, over a thousand individual bills and a nearly 500-page biennial budget were sent to the Governor. All of this must be reviewed and acted upon by Governor Glenn Youngkin (R) before the April 17 reconvened session.

There may be hundreds of bills on the Governor’s desk worthy of his veto. Additionally, Democrats inserted partisan policy decisions within the budget in such a way that the Governor may need to veto it in its entirety. As Senator Creigh Deeds (D-Charlottesville) noted in his end-of-session constituent letter: “The budget includes items the Governor does not support, and some of those may be difficult for the Governor to veto because they are woven into the fabric of the budget itself. Speculation is rampant that he may opt to veto the budget, which would set us up for another prolonged budget debate.”

Governor Youngkin should not hesitate to use his veto pen liberally, including on the budget. As former Governor Terry McAuliffe (D) said, “The veto is not a decision I take lightly, but it is a necessary tool to prevent harmful legislation from becoming law. I will continue to stand up for the values and priorities of the people of Virginia by exercising this authority judiciously.” Governor McAuliffe had the highest number of vetoes in recent years when he faced Republican majorities in both chambers, vetoing 49 bills in 2017 alone and 120 during his entire term. Continue reading

War on Fossil Fuels Reaches Court of Appeals

By Steve Haner

A climate alarmism publicity stunt masquerading as serious litigation had a hearing in front of the Virginia Court of Appeals on Monday, seeking to revive its rejected petition to shut down the fossil fuel industry in Virginia. Why? Because some of the plaintiffs suffered from heat exhaustion while exercising on summer days, and two of them got Lyme Disease after tick bites.

The suit was last discussed on Bacon’s Rebellion when it was filed in 2022. Later that year a Richmond City Circuit Court judge accepted the state’s motion to dismiss it on summary judgement, citing the doctrine of sovereign immunity. It was an appeal of that dismissal which was before a panel of the appeals judges, covered only by Brad Kutner of Radio IQ.

The appeals court is being asked to reinstate the case, which is seeking aggressive if poorly defined relief. Basically, the original petition seeks to repeal Virginia’s Gas and Oil Act and reverse long-standing policy decisions in favor of developing energy resources. It seeks to prevent the state regulatory agencies from allowing any new fossil fuel infrastructure of any kind, presumably from pipelines to coal mines to gas stations to power plants.

The stages and pleadings of the Virginia case are documented by a website tracking it and a handful of similar cases around the nation, with the same basic arguments and a common set of lawyers. So far, the plaintiffs have seen some initial success only in Montana and Hawaii. Their federal level suit is being actively opposed by the Biden Department of Justice. Continue reading

Correction: SMR Bills Cover Both Utilities

Friday’s report that the General Assembly voted to allow early cost recovery on small modular reactors only for Appalachian Power Company was in error.  The Senate version of the bill approved March 7 was language applicable solely to Dominion Energy Virginia. A substitute that removed Dominion from the bill was rejected.

The error was entirely due to inattention on my part. Frankly, it is a message I need to stop trying to write about live legislation if I am not on the ground at the Capitol or glued to the broadcasts. Two other reports on digital outlets which I had questioned (in the comments) got it right while I got it wrong. For that most of all, I apologize. Continue reading

The Sausage Factory Taxes the Digital Economy

By Steve Haner

The Virginia General Assembly has now jumped into the brave new world of taxing the digital economy, but the sales tax provisions it adopted in the budget conference report Saturday are not the same ones that appeared in earlier budget versions. The cabal of tax raisers in the secret final negotiation got creative.    Continue reading

See, Hear, Speak No Evil on Four Whale Deaths

The Daily Press credits Jennette’s Pier for these two photos it published.

Another whale has turned up dead on a beach, the fourth found on Virginia or North Carolina beaches within one week, several within sight of Dominion Energy Virginia’s offshore turbine project.  This one was identified as a juvenile sperm whale and is the furthest from the project site.

In all the news coverage so far, no intrepid reporter has told their viewers or readers what (if anything) is going on out in the ocean on the construction site. Dominion’s federal license allowing “incidental take” of marine mammals began its five-year effective period in early February. It would be fair to ask the utility if contractors are actively surveying the sea floor with sonar at this time or doing any preliminary pile driving. Continue reading

Is Dominion-Stonepeak Deal a Partnership Flip?

By Steve Haner

Dominion Energy Virginia insists that its decision to sell a half-interest in the Coastal Virginia Offshore Wind project “won’t impact ratepayers.” The problem is, perhaps it should. Perhaps Dominion is creating additional value for its shareholders that instead should benefit ratepayers. Continue reading

EPA Told CVOW Wake Has Air Quality Impacts

One of two dead whales washed onto Virginia Beach so far this month, just onshore from the CVOW project. WAVY reports on it.

By David Wojick

In formal comments, the Committee for a Constructive Tomorrow (CFACT) has asked the U.S. Environmental Protection Agency to assess the adverse impact of the giant Virginia offshore wind project on air and water quality. The issue is far-reaching because all big offshore wind facilities could have these adverse effects. Continue reading

Killing the Digital Goose for Its Golden Egg

Jared Walczak of the Tax Foundation

By Steve Haner

The last time the General Assembly made a similar mistake with the Virginia tax code was 20 years ago. It was 2004, and the complaints that business was not “paying its fair share” came from Republicans in the House. They introduced and quickly pushed through a bill that stripped sales tax exemptions from multiple categories of business. Sound familiar?

Twenty years later the only thing that has changed is that the bad idea is now coming from Senate Democrats. The anti-business rhetoric sounds the same. The sales or use taxes of up to 6-7% they seek to impose on business-to-business digital transactions (goods and services) will reach into every Virginia company, large and small. It will simply be passed along in higher prices. The only winners are their out-of-state competitors who have no such taxes in their states. Continue reading

Bait and Switch: Reform Reverts to Mo’ Money

By Chris Braunlich

Some years back, I ran into a friend, a Virginia Education Association unit chair, outside the General Assembly building, there to lobby on behalf of a state-wide teacher salary increase. Continue reading

A Never Again Trumper’s Take on Haley’s Event

Nikki Haley thanks Virginia campaign chair Susan Allen for her introduction this afternoon.

By Steve Haner

We’ve already voted, but my wife and I were in the Henrico County crowd today to hear Nikki Haley make her case for support in Tuesday’s Virginia GOP primary. Early voting continues through Saturday, but if you wait until Tuesday and come to Henrico’s Maybeury Elementary, I’ll be there asking which ballot you want. Identify yourself as a reader and I may sneak you two….

Remember, it is an open primary. No party registration is required, a fact that clearly irritates former President Donald Trump. He whined about it on WRVA this morning as he was interviewed by adoring host John Reid. But isn’t the point picking a candidate who can win in the general election, not just a party primary? Independents decide elections. Continue reading

Governor May Get Two Different Nuclear Bills

Small modular reactor illustrated

By Steve Haner

A Virginia Senate committee voted Monday to approve a House of Delegates bill designed to finance a small modular nuclear reactor in Southwest Virginia, contradicting its own earlier vote for a much broader bill that had statewide application.

Two different bills on the same topic might now pass the Virginia Senate.  If the House does the same thing with the Senate bill, now alive in front of its Labor and Commerce Committee, Governor Glenn Youngkin (R) could have two very different bills to choose from. Continue reading

A Veto-Proof Local Tax Hike Nearly Approved

Virginia sales tax rates: Light blue, 5.3%, green, 6%, dark blue, 6.3% and yellow 7%. All but the localities in dark blue would be allowed to add another 1% under this pending legislation. Click for larger view.

By Steve Haner

A bill likely to produce $1.6 billion or more in local sales tax increases is moving through the General Assembly with enough bipartisan votes to block any veto from the Governor, but differences remain between the House of Delegates and Senate versions. Continue reading

Democrats Lose Concerns About Taxing the Poor

Econ 101 Quiz. Virginia Democrats are poised to raise the sales tax 1% in most localities, add digital products to the taxed services, and create a new payroll tax. How will those changes impact that chart? Click for larger view.

By Steve Haner

A piece of Republican Governor Glenn Youngkin’s tax package has survived after all, but only the part that increases the sales tax base to collect about $1 billion or so more per year from citizens. Democrats who recently complained that sales tax increases were unfair to the poor are suddenly embracing them. 

On Sunday, both the Virginia Senate and the House of Delegates budget committees approved Youngkin’s budget language to impose the sales tax on a host of digital products and services, adding 6% or more to the prices of downloads, streaming services, and online data storage. The full range of newly taxed transactions is not yet clear. 

The Senate then increased the gain to the treasury by making sure the new taxes will also cover business-to-business transactions, something the governor sought to exempt and something which is just passed along in higher prices.  

The risk of including that tax policy initiative inside Youngkin’s introduced budget bill was obvious from the start, and General Assembly Democrats have now pounced on the opportunity to capture that revenue. The tax increase is now wrapped in with all the state spending for two years, a hard bill to vote against.   Continue reading