Category Archives: Business and Economy

Atlantic Coast Pipeline Necessity and the FERC

by James C. Sherlock

Peter Galuszka’s piece earlier today in this space made two claims the greens offer endlessly trying to achieve what I call truth by repeated assertion:

  1. The Federal Energy Regulatory Commission (FERC) either did not review or did not review properly (he inferred both) the wisdom and necessity for natural gas pipeline projects in general and the Atlantic Coast Pipeline (ACP) in particular.
  2. That if it had done so, the FERC would have discovered that there is no market for additional natural gas in the markets to which the pipelines would have brought it.

These claims appear from the usual sources every time any discussion of the ACP is had on this blog. They are both false. I hope this is the last time we will need to read about them.

Mr. Galuszka clearly did not understand the facts.

He wrote:

“So Dominion and its partners could make billions of dollars, some of it paid for by electricity ratepayers, for a project whose public need was always in doubt

and Continue reading

What Needs To Be Done After the ACP

By Peter Galuszka

For six long years, Dominion Energy and its partners in the $8 billion Atlantic Coast Pipeline have waged war against Virginians as they have pushed their way forward with the 600-mile-long natural gas project.

Their strong-armed methods have created untold misery and expense  for land-owners, members of lower income minority communities, nature lovers, bird watchers, fishermen, and many others.

When some declined to let the ACP to trespass on their property for survey work, they ended up in lengthy and expensive lawsuits. Others spent hundreds of hours on their own time and dime fighting Virginia regulatory agencies who all but seemed to be in the pocket of the ACP.

And so it goes. For what? So Dominion and its partners could make billions of dollars, some of it paid for by electricity ratepayers, for a project whose public need was always in doubt. On July 5, the ACP threw in the towel.

I put together this commentary in The Washington Post suggesting what might be done to prevent this from happening again: Continue reading

How Fed Policy Is Wrecking the Economy

by James A. Bacon

Of all known government interventions in the U.S. economy, the most insidious and dangerous is regulation of the price of money (interest rates). Years of Federal Reserve Bank monetary stimulus and quantitative easing, promulgated for the purpose of easing or avoiding a recession, is wrecking the U.S. economy in ways that are only dimly understood. In the most important essay you can read this month — perhaps this year — Ruchir Sharma, chief global strategist for Morgan Stanley Investment Management, shines light on the problem in a Wall Street Journal op-ed, “The Rescues Ruining Capitalism.”

The op-ed is must reading for anyone who seeks to understand the direction of the national economy, and is vital even for readers with a Virginia-centric viewpoint because if the U.S. economy falls victim to declining productivity, slower economic growth, and aggravated income inequality, so, too, will Virginia’s. If economic growth stagnates, we must make commensurate adjustments to our budgetary and policy aspirations here in the Old Dominion — which our local political class shows no inclination to do.

Here follows a Reader’s Digest-like condensation of Sharma’s key points, with occasional interpolations. Continue reading

Common Sense and Coronavirus in Virginia

by DJ Rippert

Stepping back. Over the past five months there has been an unending flood of information, guesses, misinformation and politicized ramblings about COVID-19.  Various factions put forth their experts and cherry picked data to support their agendas. It’s time to step back and synthesize all that has been written into a set of common sense observations and preliminary conclusions about COVID-19.

The virus isn’t going anywhere. Even the most aggressive attempts to contain the Coronavirus will not eradicate the virus. The spread can be slowed and the curve can be flattened but the infections continue and the outbreaks resurge. After a catastrophic bout with Coronavirus in the spring Spain thought it had the contagion under control. The country reopened in what the Spanish thought was a sober and controlled way. Today, cases are spiking – particularly in the Catalan region. In the San Francisco Bay area of California strict lockdown protocols were implemented. The tide seemed to have turned. Reopening commenced.  Now, many bay area counties are seeing a spike in Coronavirus. Continue reading

How Employers Must Prevent COVID, Or Else

Virginia Department of Labor and Industry

By Steve Haner

The first thing every employer in Virginia needs to understand about the state’s new COVID-19 temporary workplace standard (here) is it is universal. It applies to every workplace, public and private, for-profit and non-profit, with 10,000 workers or two. The rules are the same, “one size fits all,” without regard to the nature of the industry.

The second thing every employer in Virginia needs to understand about the standard is that it is only temporarily temporary. The goal, and work will begin quickly, is to convert the set of requirements into a permanent regulation, with a permanent burden on employers going forward to protect their employees from a disease circulating widely outside their establishments.  Continue reading

Thank Europe For a Badly Needed Reality Check

By Peter Galuszka

It’s time for a pandemic reality check, especially at Bacon’s Rebellion.

The blog is flooded with post after post about how the coronavirus crisis is exaggerated and how Gov. Ralph Northam “King Ralph” is Public Enemy No. 1 and wields improper power by closing schools, bars, beaches, businesses and so on. I won’t mention names since you know who you are.

Add to backdrop the enforced parochialism at Bacon’s Rebellion, in which we aren’t supposed to think beyond the borders of the Old Dominion, despite the fact that Virginia has enormous ties with other countries and travel and contact are essential.

Among the most damning data about the lack of progress against the virus, led by the unspeakably incompetent leadership of Donald Trump and Virginia’s provincialism, can be found in a small story in today’s Washington Post.

As some readers may know, the European Union has finally loosened its travel rules, particularly for Canada, New Zealand and Japan. But not for the United States. Why? As of June 15, the E.U. had recorded only 15 new cases of COVID 19 infection per 100,000 for the previous two weeks. The U.S. recorded a whopping 145 cases per 100,000 for the same period. Continue reading

Housing Grants Just a COVID Relief Rounding Error

By Steve Haner

Will $50 million be enough? Will that get all the Virginians who have fallen behind due to COVID-19 square on their rent or mortgage payments? Or is that amount, in a relief program now fleshed out by the Northam Administration, merely a start?

There is a hint on the program’s web page, now available. “Financial assistance is a one-time payment with opportunity for renewal based on availability of funding and the household’s need for additional assistance and continued eligibility.” A Senate committee was told last week that Governor Ralph Northam is considering spending hundreds of millions more for the same purpose.

This first $50 million is just the latest way that the billions of federal dollars flowing into Virginia as COVID-19 relief will be used. Within that operation, it is a  rounding error. On June 23, primary day, the Senate Finance and Appropriations Committee met virtually to be briefed, among other things, on how the four waves of federal assistance have been or will be spent.

The usual suspects of the Capitol Hill press corps may not have been there (or to be exact, may not have been monitoring the Zoom conference.) The primary results and the Phase 3 announcement held their attention. A week later the unreported reports are still worth reviewing and links to them follow below.

Secretary of Finance Aubrey Layne, in his presentation, estimated that Virginia has received more than $28 billion in direct aid – $6.5 billion direct to the state and local governments, $14.4 billion to state businesses in the Payroll Protection Program and $7.3 billion pledged to municipal liquidity facility loans to cover revenue losses.  Continue reading

Richmond’s “Numbnuts” Cripple Busch Gardens

by Kerry Dougherty

Five more days until Virginia finally enters Phase 3 of the slo-mo reopening of the commonwealth.

But if you were planning to take the kids to Busch Gardens or Kings Dominion to celebrate, forget it.

Thanks to ridiculously small crowd limits, both sprawling theme parks said they can’t comply with Virginia’s rules. The management of the parks want to know why they are lumped in the same category as bowling alleys and skating rinks.
Under the governor’s rules “entertainment venues” can open at 50% capacity, but with no more than 1,000 visitors.

On a good summer day Busch Gardens draws upwards of 24,000 guests. Holding the 383-acre park to 1,000 visitors would be economic suicide for one of the biggest tourist attractions in Virginia.

So Busch Gardens will remain shuttered. And the economy of the so-called Historic Triangle of Williamsburg, Yorktown and Jamestown will continue to circle the drain.

“Our parks are largely outdoor facilities spread across hundreds of acres but we continue to be lumped in with unrelated models like bowling alleys and skating rinks,” said Kevin Lembke, president of Busch Gardens. Continue reading

COVID Workplace Rules Endorsed, But Not Final

The Northam Administration’s Safety and Health Codes Board agreed yesterday that COVID-19 in the state’s workplaces demands an emergency state response, but the nature and exact wording of that regulation remains undecided.  If adopted, formal regulations come with the potential for heavy penalties for employers cited for failures.

Earlier versions of the key documents have already been revised by state staff, so should be reviewed again by concerned parties. The draft rules (here) and a related 200-page briefing package (here) were first made available June 12 and then revised June 23, right before Wednesday’s meeting. Further changes are likely.

A window for on-line written comments closed June 22, but more than three thousand were received, with the business community reaction overwhelmingly negative. To review the written comments already filed visit the meeting information page (here) and scroll down to a long list of documents. The massive set of online comments are on this related page on Virginia’s Regulatory Town Hall website.

The vote to proceed with something came after a contentious virtual emergency meeting where only members of the board and staff were able to speak. Three of the board’s members opposed the emergency declaration and three abstained, perhaps reflecting the broad and strong opposition the draft proposal generated from Virginia’s busines community. It will meet again to dive into the actual text soon.  Continue reading

COVID Regs Unclear, Unneeded, Contradictory

By Steve Haner

More than two dozen Virginia business associations have asked that the state’s Safety and Health Codes Board reject proposed workplace regulations to prevent COVID-19, stating they are unclear, contradictory, and not needed in light of other existing worker protections.

Some of the largest statewide associations, such as the Virginia Manufacturers Association, National Federation of Independent Business, and Virginia Retail Federation are on the list. So are some regional chambers of commerce and the Thomas Jefferson Institute for Public Policy. You can read their 13-page submission here. The conclusion reads:

“It is unreasonable to apply “one size fits all” COVID-19 regulations to all employers and employees.  Codifying guidance is not a reasonable replacement for regulation. It is confusing why after three months, the Regulations are being pursued through an emergency procedure, especially after OSHA (Occupational Safety and Health Administration) rejected the AFL-CIO’s petition for an emergency temporary standard for COVID-19 and the US Court of Appeals for the District of Columbia Circuit denied their petition for a writ of mandamus to compel OSHA to issue an Emergency Temporary Standard for Infectious Diseases.”

The draft rules (here) and a related 200-page briefing package (here) have only been available since June 12. The public comment period closes tonight, and the board is set to meet Wednesday, in a format where the public can only watch. More details are provided in a Bacon’s Rebellion post from this weekend.

Continue reading

Sweeping COVID Workplace Regulation Proposed

By Steve Haner

The Northam Administration’s Safety and Health Codes Board will hold an emergency meeting Wednesday –- in a virtual process allowing no public interactions – to impose sweeping new regulatory mandates related to COVID-19 on Virginia workplaces.

They could take effect immediately upon Governor Ralph Northam’s signature, and will not disappear if an end is declared to the current emergencies or the threat of the disease dissipates.

The draft rules (here) and a related 200-page briefing package (here) have only been available since June 12. The window for on-line written comments closes Monday evening. The affected businesses have had some advance warning because union and employee activists have been pushing similar proposals in other states and at the federal level, often without success.

The stated goal is to prevent spread of disease in work spaces, and screening, sanitation, face coverings and social distancing are directed in detail. The focus on workplace safety follows COVID-19 outbreaks in food processing and health care settings. These proposals, however, will reach into every Virginia retail, office or manufacturing space.

To review the comments already filed (776 as of Saturday morning), or to add your own, visit the related page on Virginia’s Regulatory Town Hall website. The deadline for filing is Monday night at 11:59 p.m. The chances that the comments will be assessed and studied before the votes take place on Wednesday are slim and it appears, so far, much of the debate is focused on mask mandates. That is a minor part of this quite broad proposal.  Continue reading

COVID Restrictions Slam Black Businesses the Hardest

Stephanie Hart, owner of Brown Sugar Bakery in Chicago. Restaurant Business describes her travails in “Recent Crises Add to Life-or-Death Struggles for Black-owned Restaurants.”

by James A. Bacon

If Governor Ralph Northam needs further justification for reversing his emergency shutdown measures, perhaps he should consider this recently published paper by Robert Fairlie with the University of California-Santa Cruz.

Analyzing the impact of COVID-19 social distancing restrictions on small business, Fairlie found that they disproportionately hit minority enterprises. The number of active business owners in the U.S. plummeted 22% between February to April 2020. “African-American businesses were hit especially hard experiencing a 41 percent drop. Latinx business owners fell by 32 percent, and Asian business owners dropped by 26 percent,” Fairlie writes. Immigrant and female businesses were similarly affected.

Using the logic of disparate impact, in which any adverse differential between whites and blacks is deemed to be evidence of discrimination or structural bias, the emergency decrees enacted by Northam and other activist governors can only be described as racist.

Northam may not have promulgated the decrees with racist intent, but motives really aren’t the issue. What matters are outcomes. Continue reading

Who Pays The Unpaid Bills? Watch Out.

By Steve Haner

This was published this morning in The Roanoke Times and then distributed by the Thomas Jefferson Institute for Public Policy.

There may be a second wave of COVID-19 disease coming, but the secondary effects of various pandemic economic decisions may hit us sooner. Rent and utility bills customers can delay paying because of the crisis will eventually come due.But for whom?

The Legal Aid Justice Center looked at U.S. Census survey data that indicated many Virginians have fallen behind on their rent and did not expect to pay their next bill. It predicted an “eviction catastrophe” as eviction and foreclosure bans end, and lenders and landlords rush into newly reopened courts for judgments.

“The Governor should use emergency powers to immediately enact a moratorium on evictions or should allow localities to enact their own until the General Assembly can address tenants’ mounting debt. The General Assembly should create relief for tenants who are significantly behind in rent payments through a waiver or rent cancellation plan,” the advocacy group asserted.

Governor Ralph Northam took up the call, and the Virginia Supreme Court has agreed to hold off eviction proceedings a few more weeks, until June 28.   Continue reading

The ACP Wins One But The War Drags On

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

Libertarians Need Not Apply

By Peter Galuszka

The Virginia Republican Party had a big shock Saturday.

Far-right candidate Bob Good snatched the party’s nomination in the fifth congressional district from incumbent Denver Riggleman, who was backed by President Donald Trump and Jerry Falwell Jr., the head of Liberty University.

The remarkable twist could presage an arch-conservative backlash against Trump’s populism in the run up to elections this November.

University of Virginia political analyst Larry Sabato tweeted early Sunday morning that “the Virginia GOP has gone so far to the right that a congressman backed by (Trump and Falwell) isn’t conservative enough to renominate.”

The 5th District includes the cities of Lynchburg and Charlottesville and covers broad swaths of highly socially conservative rural areas. Riggleman’s problem was that he had Libertarian tendencies and had officiated at a gay wedding. Continue reading