by James A. Bacon
Yesterday, channeling the spirit of Nassim Nicholas Taleb, I asked what a young person should do if he or she wanted to make the world a better place. Broadly speaking, there are three approaches. One is activism in which people who, informed by a desire to improve the lives of those less fortunate than themselves, lobby for reformist government policies and create philanthropic programs to address perceived needs. Another is militancy. Convinced that the entire system is corrupt, militants waste little time ameliorating the condition of individuals but seek to overthrow the established order. A third approach is capitalism, in which entrepreneurs find creative ways to meet previously unmet needs.
We need more entrepreneurs.
If Virginia has an affordable housing crisis, we can’t solve the problem in the long run by passing eviction laws or enacting more government-subsidized housing programs. We need entrepreneurs who can find innovative ways to create lower-cost housing. If lower-income Virginians are afflicted by payday lenders charging high fees and interest rates, we can’t address the credit needs of the poor by legislating payday lenders out of existence. We need entrepreneurs who find innovative, low-cost ways to extend small amounts of credit. Continue reading
By Peter Galuszka
Back in the winter of 2015, Craig Vanderhoef, a former Navy captain, got a disturbing surprise in his mailbox at his retirement home near Afton in Nelson County. A letter from Dominion Resources noted that it wanted to survey his land for a new 600-mile-long natural gas pipeline.
On two occasions, he wrote the utility telling them no. Then he got another surprise. A sheriff’s deputy knocked on his door to serve him with papers notifying him that Dominion was suing him to get access to his property.
In short order, about 240 Virginia landowners were on notice that they too might be sued for Dominion’s proposed Atlantic Coast Pipeline. The county sheriff was notified that he, too, was being sued, although it was an error.
Thus, the stage was set for one of the nastiest environmental and property rights battles in Old Dominion history.
It centered around the Atlantic Coast Pipeline that would run from Harrison County, W.Va. across the rugged Appalachians, down through some of the most peacefully bucolic land in the Virginia., to Union Hill, a mostly African-American community in Buckingham county and on into North Carolina, running through the Tar Heel state’s mostly African-American concentration along its northeastern border with Virginia. Continue reading
Posted in Agriculture & forestry, Energy, Environment, Federal, Government Oversight, Housing, Individual rights, Infrastructure, Land use & development, Money in politics, Politics, Poverty & income gap, Property rights, Public corruption
By Peter Galuszka
The $8.5 billion Atlantic Coast Pipeline has won a significant legal victory but the war is far from over.
The U.S. Supreme Court, in a 7-2 decision, has ruled in favor of project operated by Dominion Energy and Duke Energy saying that its 42-inch pipeline can cross under the Appalachian Trail in the George Washington National Forest.
The Court ruled that the pipeline can pass 600 feet underneath the trail and that the U.S. Forest Service has the right to allow a right of way. The Richmond-based 4th Circuit Court of Appeals had previously ruled that the Forest Service had no such authority.
Dissenting, Justices Sonia Sotomayor and Elena Kagan wrote that the U.S. Minerals Leasing Act does give the federal government the right to regulate federal land, including trails. Justice Clarence Thomas, who wrote the majority ruling, said that plans to bury the pipeline under the Appalachian Trail represent an easement which is not the same as “land.”
The project still faces eight other permitting issues involving the Forest Service, the U.S. Fish & Wildlife Service, the National Park Service and the U.S. Army Corps of Engineers. Continue reading
Posted in Agriculture & forestry, Business and Economy, Economic development, Energy, Environment, Federal, Infrastructure, Labor & workforce, Land use & development, News, Planning, Politics, Property rights, Regulation
Tagged Peter Galuszka
By Peter Galuszka
Veteran photographer Karen Kasmauski, who grew up in Norfolk, has a brilliant online project that shows the human and environmental impacts of the Atlantic Coast Pipeline.
She is a senior fellow with the International League of Conservation Photographers, a non-profit group that funded her project that centers mostly in rural Nelson and Buckingham Counties that would be dissected by the natural gas pipeline.
She combines spectacular aerial photos with deep close ups of people.
One of her subjects is Ella Rose, a retiree who lives in a small house in Union Hill. She was living a quiet happy life in her natural setting until she got a letter from Dominion Energy stating that they would be routing the ACP about 150-feet from her house.
Union Hill is a touchpoint for pipeline controversy since it is largely African-American community that ACP officials have selected for a compressor station. It is one of similar localities that seem to be targeted with other loud and disruptive equipment along the pipeline route. Continue reading
Posted in Agriculture & forestry, Consumer protection, Courts and law, Disaster planning, Economic development, Energy, Environment, Infrastructure, Land use & development, Regulation, Science & Technology
Tagged Peter Galuszka
By DJ Rippert
Reefer madness. Virginia is notably lagging most other states in marijuana reform. Across America recreational marijuana is legal for adults in 11 states and legal for medical use in 33 states. Twenty-five states have decriminalized the possession of small amounts of marijuana. In Virginia marijuana is illegal, criminalized and unavailable for medical use. Yet change is blowing like smoke in the wind. As of today, there are six decriminalization bills pending in the General Assembly along with three bills for expungement of prior convictions, two legalization bills, and four bills to implement a medical marijuana regime in Virginia. Depending on which bills pass … Virginia could be looking at a near-term marijuana environment much different than its prohibitionist past. However, there are some combinations of events that could lead The Old Dominion into unintended (and negative) consequences.
Roach trap. One likely outcome from the 2020 General Assembly session is that possession of small amounts of marijuana will be decriminalized while efforts to legalize the recreational and medical use of marijuana will fail. This could put Virginia in a very sub-optimal position if neighboring states legalize marijuana. Virginia is a small state bordered by five other states and the District of Columbia. A very high percentage of Virginians live within an easy drive of neighboring jurisdictions. If Virginia decriminalizes while neighboring states legalize, the result will be effective untaxed legalization in much of Virginia. A surge of Virginians will drive over various borders to bring back marijuana purchased legally elsewhere. Marijuana use would increase in Virginia while none of the financial benefits of legalization (via taxes) would accrue to Virginia. But how likely is it that neighboring states will legalize recreational marijuana in 2020? Continue reading
Posted in Agriculture & forestry, Business and Economy, Commentary, Courts and law, Crime , corrections and law enforcement, General Assembly, Regulation
Tagged DJ Rippert, Don Rippert, marijuana, Marijuana reform, other states
by James A. Bacon
Newark, N.J.-based AeroFarms will invest $42 million to build its largest, most sophisticated indoor vertical farm to date in a joint Danville-Pittsylvania County industrial park. The project will create 92 new jobs.
Virginia competed with North Carolina for the project. Subsidies include a $200,000 grant from the Commonwealth’s Opportunity Fund, a $200,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, $190,000 from the Tobacco Regional Opportunity Fund, and an unquantified tax benefit from locating in a Virginia Enterprise Zone.
Aerofarm’s business model is incredibly cool. The company uses proprietary aeroponic growing technology to “produce highly flavorful leafy greens at at rate 390 times more productive than field-grown plants,” states a press release from the Governor’s Office. The farming techniques use a fraction of the water and fertilizer of traditional agriculture. Continue reading
Photo credit: Snopes
By Don Rippert
Ready, fire, aim. In Virginia, it seems likely that the Democratic Party’s control of the General Assembly and Governorship will result in decriminalizing possession of small amounts of marijuana. This legislation will likely be passed in the 2020 session and go into law next summer. But what are the details of decriminalization? What specific policy decisions should our lawmakers consider when drafting the decriminalization legislation? Failing to consider these issues in advance of the legislative session could usher in a repeat of the shambolic attempt to legalize casino gambling in Virginia
By Don Rippert
Cannabis certitude. The seemingly inexorable march toward legalized marijuana in the United States continues unabated. A poll of 9,900 American adults conducted by the Pew Research Center from September 3 – 15, 2019 found that 67% of the respondents thought cannabis should be legalized. That’s five percentage points higher than Pew’s last poll on the subject conducted in 2018. Many state legislatures are acting on behalf of their constituents. Legal weed sales began last Sunday in Michigan and will commence on New Year’s Day in Illinois. At the federal level the House Judiciary Committee approved a bill legalizing marijuana at the federal level. As of today 33 states have legalized medical marijuana and 11 states have approved the sale of recreational marijuana to adults. Six more states seem very likely to make decisions on legalizing recreational marijuana in 2020 – Arizona, Arkansas, Florida, Missouri, New Jersey and South Dakota. As legal marijuana becomes big business pundits are predicting the future of legal weed. Arcview Market Research and BDS Analytics believe that medical marijuana will be legalized in every state by 2024 and recreational marijuana will be legal in 20 states by that date. Virginia is not among the 20.
Weed in the
Old Ancient Pre-historic Dominion. Virginia is one of 15 states where marijuana is fully illegal. (Note: I do not count CBD oil sales as partial legalization). The first step on the long road to legalization is usually decriminalization. In 2018 Virginia’s General Assembly considered a bill to decriminalize possession of small amounts of marijuana. It was killed along a purely party line vote in the Senate Courts of Justice Committee. In 2019 another decriminalization bill was considered. Virginia’s Republican leadership in the General Assembly couldn’t muster the minimal courage to take the 2019 bill to the full committee and killed it in sub-committee. Later that year the Republicans got their heads handed to them in the General Assembly election. What a surprise. Now Democrats hold a trifecta in Virginia with control of the House, Senate and Governorship. Once again, Sen. Adam Ebbin (D-Alexandria) is the patron for proposed legislation to decriminalize possession of small amounts of marijuana. However, this year unlike the past, Ebbin’s party is in control.
Posted in Agriculture & forestry, Business and Economy, Commentary, Courts and law, Crime , corrections and law enforcement, General Assembly, Politics, Regulation
Tagged DJ Rippert, Don Rippert, marijuana
NIMBYs against hemp. Farmers across Southside Virginia have turned to growing hemp (the THC-free version used in industrial applications) as a replacement crop for tobacco. But at least one Dinwiddie County neighborhood has risen in revolt. A hemp farm near the Lake Jordan neighborhood emits an offensive odor. The smell is so bad that it’s getting into peoples’ houses and permeating their clothing, reports the Progress-Index. “We’re worried that they’re going to continue planting around, which would basically mean [that] people will have to leave or just tolerate unbelievable skunk-like odors,” said Jarrod Reisweber, a director of the homeowners association. Daniel Lee, vice chairman of the Board of Supervisors held out the hope that, if solutions could be found to control the odor of hog farms, a remedy could be found for hemp as well.
Amazon offers $20 million toward affordable housing. Amazon is offering $20 million to the Arlington County Affordable Housing Investment Fund in exchange for permission to build a bigger headquarters complex than county zoning allows. The sum would amount to the greatest single infusion of money into the fund, reports the Washington Post. Amazon wants to increase the size of its proposed 22-story office towers from 1.56 million square feet to about 2.15 million square feet, reduce the number of parking spaces, and increase penthouse height. If we assume an average of $50 per square foot for office space in Arlington, Amazon’s concessions are worth about $30 million. That’s gross value. Once construction costs are excluded, Amazon would net significantly less. By that comparison, the $20 million offer seems pretty generous.
Virginia Schools turn to solar. An increasing number of public and private schools in Virginia are utilizing solar power. The number of schools with solar has nearly tripled since 2014 — from 20 to 86, reports the Richmond Times-Dispatch. A niche industry has evolved in which entrepreneurs package solar Public Purchase Agreements (PPAs) in which schools put no cash down and start generating positive cash flow from the first year. Pete Gretz with the Middlesex County school system says that ground-mounted solar saved just under $50,000 at its elementary school site. “There’s no drawback to this,” he said. “It’s completely a win-win.” Continue reading
By Don Rippert
Fish tale. Omega Protein, a Canadian owned company, has willfully exceeded its menhaden catch limit in the Chesapeake Bay. You can read the details here. The catch limit is controversial since menhaden is the only marine fish regulated directly by the Virginia General Assembly. All other saltwater fish in Virginia are regulated by the Virginia Marine Resources Commission. Every other Atlantic state lets their state fishery regulator and the Atlantic States Marine Fisheries Commission (ASMFC) set rules for menhaden in their waters. The US Congress chartered ASMFC in 1942. So, ASMFC sets catch limits for Virginia waters – one for the Atlantic and another for the Chesapeake Bay. In Virginia those limits are then incorporated into proposed legislation for the General Assembly. The most recent AMFC-set limits were put into a bill that was never voted on by the General Assembly. This left Omega Protein with two catch limits – the limit last passed by the General Assembly (based on ASMFC guidance) and the most current lower ASMFC limit. Once Omega Protein admitted it had exceeded the most current ASMFC limit Virginia was reported to the US Department of Commerce as being “out of compliance.” Last week Gov Ralph Northam sent a letter to the Secretary of Commerce requesting the feds to put a moratorium on menhaden fishing in the Virginia waters of the Chesapeake Bay. It seems that Northam is sending the General Assembly a message — clean up your act or I’ll ask the Feds to clean it up for you. But will the new Democratic majority in the General Assembly listen to Northam or Omega Protein?
By DJ Rippert
Chow time. Agriculture is Virginia’s largest private industry. No other private industry is even close. The Virginia Department of Agriculture and Consumer Services (VDACS) claims that agriculture has an economic impact of $70 billion annually and provides more than 334,000 jobs in the Commonwealth. Virginia’s top agricultural products and their cash receipts are:
- Broilers (chicken) – $935M
- Cattle and calves – $413M
- Greenhouse / nursery – $306M
- Dairy products, milk – $306
- Turkeys – $236M
Of Virginia’s five top agricultural products four are under possible attack from a revolution in food technology – meatless meat. McKinsey & Company just issued the latest version of The Next Normal: Perspectives on the future of industries journal. The title? The future of food: Meatless. Some of the commentary in that journal ought to have Virginians wondering about the future of the state’s largest private industry.