Category Archives: Business and Economy

Will Democrats Revisit Virginia Net Zero Laws?

Posted on January 18, 2024 by | 63 comments

Senator David Marsden, D-Fairfax, sees “serious problems” in Virginia’s net zero laws.

By Steve Haner

For the third year in a row, Democrats in the Virginia Senate have shot down an effort to divorce Virginia’s auto dealers from California’s impending mandates on electric vehicle sales. But before the predetermined vote went down, the new chair of the committee made a surprise announcement that he and his colleagues are open to revisiting Virginia’s legal rush to end fossil fuels.

Senator David Marsden, D-Fairfax, said he and Senator Creigh Deeds, D-Charlottesville, have discussed using the period between the 2024 and 2025 General Assembly sessions to convene a conference on the 2020 Virginia Clean Economy Act (VCEA) and the many other statues they passed to suppress coal, oil and natural gas use.  Republicans later shared his musings on X.

What serious problems, Mr. Chairman? Tell us more.

Marsden is the new chair of the Senate Agriculture, Conservation and Natural Resources Committee and Deeds now chairs the Commerce and Labor Committee. The Virginia Mercury noted Marsden’s comments at the tail end of its report on the meeting, but it was the only actual news to break out that afternoon. The Richmond Times-Dispatch failed to mention Marsden’s announcement but had a nice photo of a half-empty Tesla charging lot in California.

Truth would have been better served by a photo of the stranded EV’s waiting for crowded, failing chargers in frigid climes this week. There is a reason consumers have not been rushing to buy EV’s at the expected rates.  Despite the happy talk from mandate proponents, the targets are pie-in-the-sky. The only winner in this whole process is Tesla, getting rich selling carbon credits under the cap-and-trade element of the California regime. Continue reading →

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Posted in Energy, Environment, General Assembly, Regulations and Government Oversight, Utilities

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U.S. Constitution Calling Jason Miyares . . .

Posted on January 15, 2024 by | 79 comments

by Jock Yellott

Affirmative action is unconstitutional, said the U .S. Supreme Court last June.

But we’ll keep doing it until somebody tells us not to, says Virginia’s Department of Transportation. In some quarters, it seems we’re seeing Massive Resistance to the Supreme Court’s ruling.

An especially absurd, and ongoing, affirmative action boondoggle called the Disadvantaged Business Enterprise program magnifies the cost of Virginia roadbuilding … and causes minority lay-offs. Yes: it’s hurting the minorities it is supposed to help.

Recently, a Charlottesville small business won a city contract to build a bike path. But the Virginia Department of Transportation told the City: deny them the contract. Not enough “good faith effort” to go find minority subcontractors, they opined.

Losing the contract means laying off the small business’s employees. Nearly half of whom are minorities. Continue reading →

79 Comments

Posted in Business and Economy, Civil Rights, Individual Liberties

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Thank Coal, Gas for Your Warm House Today

Posted on January 15, 2024 by | 45 comments

PJM generation mix as of 8 a.m. this morning. Coal, natural gas and nuclear are meeting the vast majority of the demand.

By Steve Haner

Good morning, Virginia.  Your lights and heat are on, and you can thank coal and natural gas. Here are the 8 a.m. charts from PJM’s website, which you can check periodically today as the winter weather closes in. Those fuels were providing more than 66% of our electricity, with nuclear providing almost another third. Go to the website for the interactive version. The 9 a.m. chart is little changed.

The data are for the entire PJM region, not just Virginia.

Billions of dollars into the renewable energy transition, various renewable sources were providing less than 6 megawatts throughout the entire system, not even 5% of demand. Solar should increase a bit as the day proceeds, but the projection (on the same website) is that wind will dip toward the middle of the day.

The breakdown of generation from renewable sources, mainly hydro. The solar output should improve but in much of the region winter storm clouds will continue to limit it, and snow may pile up on solar panels.

Remember, this is a holiday and the peak demand projected for the workday tomorrow is higher. But the sun may be back to help at least a bit.

We could be Alberta, Canada. Here is what they are going through. Or Texas. Read those links and know, that is the future the General Assembly and the wind and solar industrial complex that owns it have planned for us.

45 Comments

Posted in Business and Economy, Energy, Environment

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A Modest Suggestion

Posted on January 14, 2024 by | 16 comments

by Dick Hall-Sizemore

Gov. Glenn Youngkin has taken a tough stance toward the Chinese. He has prohibited state agencies from using the TikTok platform. He wants to ban the use of TikTok by Virginia residents under 18. He championed legislation prohibiting the sale of Virginia farmland to Chinese buyers. Finally, he scuttled the location of a major electric car battery factory in Southside Virginia because one of the owners was a Chinese company.

The Governor is correct in his concern about the Chinese government. That country poses a major threat to the United States. But let’s be honest — none of those actions will have any effect at all on the Chinese government.

If the governor wants to go beyond political grandstanding and issuing toothless edicts, he could take the next step: prohibit state agencies from purchasing anything made or assembled in China. The large appetite of American consumers over recent decades for products made in China was undoubtedly a major factor in the growth of its economy and power.

Granted, the loss of the Virginia government agency market may not be much more than a drop in the ocean of the Chinese economy. However, it would be a substantive step by the governor. He could also use his “bully pulpit” to encourage Virginia citizens and businesses to avoid buying and selling products made in China. Constitutionally, that is as far as he could go, but these steps would put some substance behind his calls of concern.

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Posted in Defense and National Security, Governance, Politics, Uncategorized

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As Dominion and APCO $oar, NOVEC Drops Rates

Posted on January 10, 2024 by | 80 comments

Northern Virginia Electric Cooperative’s territory within the greater Northern Virginia region.

By Steve Haner

The major “rural” electric cooperative serving very urban Northern Virginia is drastically lowering its rates as of this month, because the cost it is paying for bulk power purchases has dropped. The contrast with what is happening with Virginia’s two major investor-owned electric companies may be telling Virginia something if anybody wants to listen.

NOVEC, or Northern Virginia Electric Cooperative, will be charging its residential users just under $114 for each 1,000 kilowatt hours of usage, down more than $26. The commercial and industrial users among its 175,000 customers are seeing comparable reductions. Continue reading →

80 Comments

Posted in Business and Economy, Energy, General Assembly, Regulations and Government Oversight, Utilities

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How Not To Do Tax Reform. Again.

Posted on January 8, 2024 by | 34 comments

By Steve Haner

According to the Richmond Times-Dispatch, Governor Glenn Youngkin’s administration had its first formal discussion with Virginia’s local governments about eliminating their car tax collections two days after he announced it publicly.

The General Assembly convenes Wednesday and if there is a plan to replace the $2.8 billion in local government revenue raised by that tax source, it has not surfaced. Voters truly detest the local levy, mainly because it is one of the few taxes everybody pays by check or with a credit card, but at this point it is safe to assume the idea is dead in the water. Continue reading →

34 Comments

Posted in Business and Economy, General Assembly, Taxes

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Rent Control Bill Introduced in Virginia

Posted on January 8, 2024 by | 7 comments

by Hans Bader

A just-introduced Virginia bill, HB 192, would limit rent increases to “one percent over the Consumer Price Index” in places where the rental vacancy rate is “less than 10 percent,” if the “Consumer Price Index … is greater than five percent.” Virginia has a rental vacancy rate of about 4%, well below 10%, so effectively, this would be a statewide rent control law.

The bill does not allow larger rent increases even to pay for things like major capital improvements.

The bill, introduced by Democratic Del. Marty Martinez, is called the “Landlord and Tenant Fairness Act.”  It contains this rent-control provision:

C. If the rental vacancy rate for a locality is less than 10 percent during the previous calendar year and the Consumer Price Index as reported by the Bureau of Labor Statistics of the U.S. Department of Labor is greater than five percent, any rent increase imposed by a landlord shall be no greater than one percent over the Consumer Price Index.

Continue reading →

7 Comments

Posted in Business and Economy, General Assembly, Housing, Regulations and Government Oversight

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Richmond’s Meals Tax Disaster

Posted on January 8, 2024 by | 8 comments

Richmond Mayor Levar Stoney

by Jon Baliles

(These reports were published first by RVA 5×5 and are republished here with permission.)

Starting about 25 years ago, Richmond’s restaurant scene began its ascent into the local consciousness as our region’s favorite (and only) professional sport. Offerings expanded and ventured into new directions and opened peoples eyes and expanded our tastes; it drove creative chefs to new heights, and we appeared in list after list of publications that officially put Richmond on the foodie map.

It was also, ironically, not long after that when restaurants became the “Sherpa” of sorts to help fill the city coffers. In 2003, City Council approved a one cent meals tax increase from five cents to six cents to help fund the renovation of Centerstage downtown. Many restauranteurs opposed the funding of an arts center on the backs of their customers by raising the pass through tax to fund one specific project. That deal later was overhauled and refinanced in 2006, but the one cent increase was not repealed as had been promised and it remained on the books as a permanent source of revenue to fund other city needs.

Then fast forward to early 2018 when Mayor Stoney pushed for a 25% increase in the city’s meals tax from six cents to 7.5 cents. It was a highly contentious debate that rightly riled up many restauranteurs who once again saw it as an unfair burden on their businesses alone that made their patrons’ bills higher with each bite and drink. They argued for another funding solution that was fair and spread across the city and not just on their industry. Continue reading →

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Posted in Business and Economy, Taxes

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Hey Virginia: Hands Off Those Cake Pops

Posted on January 5, 2024 by | 8 comments

Photo courtesy of Kelly Phillips

by Kerry Dougherty

There’s a reason Gov. Glenn Youngkin’s approval rating in the latest Mason-Dixon Poll perches at a lofty 58 percent in this once-blue state, despite Republicans losing control of the legislature in November’s election.

Youngkin gets it.

On X, he wrote:

“We’re going to fix this, Virginia will always be the best place to live, work, and bake cake pops!”

Like everyone else who heard about Kelly Phillips’ cake pop conflict, the governor immediately saw this for what it was: one more example of government overreach, punishing an enterprising Richmond woman with a small business for no good reason or public benefit.

According to The Virginia Mercury, cake pops are Ms. Phillips’ side hustle. Her day job is as a manager in a financial planning firm. But what began simply as irresistible treats she made for birthday parties and baby showers grew into a little cottage business.

Phillips now sells her gorgeously decorated confections mostly at craft fairs. If Richmond regulators have their way, she’ll have to stop.

Virginia’s stringent food safety regulations, designed to protect folks from unsanitary practices, make exceptions for small craft bakeries. But ridiculous regs, such as the one that allows these homemade goodies to be sold at farmer’s markets but not craft fairs make absolutely no sense.

“What is the difference between a farmers market and a craft show?” Phillips asked The Mercury.

Gee, I don’t know. A roof? Continue reading →

8 Comments

Posted in Business and Economy, Central planning, Entrepreneurs and Innovation, Regulations and Government Oversight

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Keep Carytown Safe for Cars

Posted on December 19, 2023 by | 67 comments

by Jon Baliles

The debate about making Richmond’s Carytown a car-free zone is edging closer to the forefront in recent months with strong opinions, interesting suggestions, some good ideas, and some bad ones.

The Times-Dispatch Editorial Board weighed in with its opinion, and it was vocal. It’s worth the entire read and filled with stats you probably never heard of, such as that of the 250 or so pedestrian malls created in the U.S. since the 1960’s, only about 10 remain. The piece is filled with great information and two quotes worth noting:

Making Richmond a walkable paradise is certainly a worthy goal. But turning Carytown into a pedestrian mall, and undercutting the businesses that have made it into a regional shopping destination — is not.

The editorial points out that making Carytown car-free could lead many shoppers (who come from near and far) to go elsewhere, and worries that the owners of the unique mix of shops and merchants could be driven out of business, which is also a way of making it a car-free zone. It also points out that many in Carytown are open to new ideas, and certainly to making it safer, but skeptical of closing it to cars. Continue reading →

67 Comments

Posted in Business and Economy, Land use & Development, Transportation

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Sorry, Senator. Zalenskyy is No George Washington

Posted on December 13, 2023 by | 68 comments

Sen. Tim Kaine

by Kerry Dougherty

Tim Kaine jumped the shark.

Get a load of the nonsense this United States Senator – from VIRGINIA – Tweeted on Tuesday:

President Zelenskyy spoke to the Senate today about the critical role of American support for Ukrainian democracy. He stood beneath a portrait of George Washington, who helped birth an America free from domination by a great power. A moving moment.

— Tim Kaine (@timkaine) December 12, 2023

Seriously, senator?

No member of Congress should ever compare America’s first president with this little corruptocrat.

This is the problem when Virginians vote for a Kansan to represent them in Washington. He missed fourth grade Virginia history and apparently they didn’t teach American history in the schools he attended either.

If they had, the senator would know that Washington was a humble man who fervently believed in freedom and the rights of man. He was an educated, measured leader who stepped down after two terms in office and refused to allow himself to be set up as anything more than a man of the people.

In his farewell address, Washington warned against foreign entanglements.

Presidents have been ignoring Washington’s admonitions for decades, unfortunately. Continue reading →

68 Comments

Posted in Defense and National Security, Democracy and Western Civilization, Government Finance, Immigration, Politics

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SCC Examiner Says No to Dominion Gas Plans

Posted on December 10, 2023 by | 46 comments

By Steve Haner

A hearing examiner at the Virginia State Corporation Commission has recommended rejection of Dominion Virginia Energy’s plan to maintain and add to its fleet of fossil fuel generators. It failed to overcome the presumption in state law that all such plants must go away, she wrote.

In her extensive report following the months-long regulatory battle, Ann Berkebile notes that the Commission itself (still hobbled with only one full member and a retired commissioner sitting in) may reach a different conclusion. And the pending case, Dominion’s Integrated Resource Plan (IRP), does not actually involve final decisions on what power plants to add or delete from its assets in coming years.

But Dominion was looking for a blessing from the Commission on its proposal to maintain most of its natural gas plants and even add one, a 1,000 megawatt facility it wants to place in Chesterfield County. The 2020 Virginia Clean Economy Act has set a schedule for their retirement, with all fossil fuel generation expected to be gone in about 20 years. Dominion’s announcement last May that it was seeking to keep and add to its natural gas plants was immediately denounced by environmental advocates.

The 2020 legislation included a provision to allow the SCC to approve an additional fossil fuel plant if a utility demonstrates “that it has already met the energy savings goals identified in § 56-596.2 and that the identified need cannot be met more affordably through the deployment or utilization of demand-side resources or energy storage resources and that it has considered and weighed alternative options, including third-party market alternatives, in its selection process.” Continue reading →

46 Comments

Posted in Business and Economy, Energy, Environment, Regulations and Government Oversight, Utilities

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Virginia’s Final (Maybe) RGGI Tax Grab: $97M

Posted on December 9, 2023 by | 23 comments

Virginia’s final (maybe) sale of allowances for power plant carbon emissions produced a record $97.4 million. The price for each permit to emit one ton of carbon dioxide, which is passed to customers, has about doubled in four years.

by Steve Haner

Virginia has participated in its final (for a while anyway) Regional Greenhouse Gas Initiative auction and the proceeds on the carbon tax set a new record, with Virginia collecting more than $97 million in one swoop. The total carbon tax take for the state is just under $828 million in three years.

The clearing price on December 6 reached $14.88 per ton. It would have been higher but the demand for allowances was so high the RGGI organization released some of its “cost containment reserve” or CCR allowances to tamp down the price increase. The news release on the auction is here. A chart showing Virginia’s proceeds over the three years is attached.

Why the record price? Here’s a solid suggestion: Power producers fear another major winter stressing their systems and know full well that wind and solar are unpredictable and unreliable. They are stocking up on allowances to keep our lights on with fossil fuels.

Just four years ago when the Thomas Jefferson Institute of Public Policy produced this explainer on what RGGI was, the “carbon price” was $5.27 a ton and the prediction was Virginia would collect $150 million a year from electricity producers and eventually their customers. “There is no guarantee the price won’t rise,” we noted, and indeed a steadily rising price for carbon emissions is entirely the point of RGGI.

Pushed by Governor Glenn Youngkin (R) the Air Pollution Control Board voted earlier this year to rescind the state regulation that forces Virginia’s larger electric power plants to purchase allowances from RGGI for every ton of coal, natural gas or oil they burn. So far, efforts to reverse that decision in the courts have failed. Continue reading →

23 Comments

Posted in Energy, Environment, General Assembly, Regulations and Government Oversight, Taxes, Utilities

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Virginia Beach Nixes Kitty Hawk Wind Cables

Posted on December 1, 2023 by | 17 comments

Site map for the first phase and cable connection route for the proposed Kitty Hawk Wind project.

by Steve Haner

The political leaders of the City of Virginia Beach have informed an offshore wind developer that they oppose its plan to bring power cables ashore at Sandbridge Beach. No formal vote was taken on the application, however, according to media reports.

The story appeared in The Virginian-Pilot and on local television station WAVY around Thanksgiving. When Bacon’s Rebellion last visited this matter, Virginia Beach City Council had conducted a May public hearing at which most speakers strongly opposed the power cable location. Continue reading →

17 Comments

Posted in Business and Economy, Energy, Environment, Land use & Development, Regulations and Government Oversight, Utilities

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Excess Profits Squeezed Out From Dominion Rates

Posted on November 17, 2023 by | 37 comments

By Steve Haner

The long struggle to prevent Dominion Energy Virginia from earning excess profits in its base rates year after year appears to be over and consumers finally won.  That is the main takeaway as the first general review of its base rates since the 2023 regulatory re-write is moving toward a quick settlement.

The complicated changes in the regulatory structure included wins and losses for consumers, but the impact on this first rate case review is proving to be net positive for the 2.6 million customer accounts.  Most of the various parties who have been dissecting the company’s accounts and forward projections are now willing to end the case with a settlement. Continue reading →

37 Comments

Posted in Business and Economy, Energy, General Assembly, Regulations and Government Oversight, Utilities

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