Dominion Projects Tied To Facebook Approved

Posted on April 18, 2019 by | 6 comments

Ratepayers of Dominion Energy Virginia will start in June to pay for construction and operation of two solar energy facilities in Surry County intended to meet Facebook’s renewable energy goals.  The State Corporation Commission decided one issue created by the case in favor of consumers but punted on another that pit one group of customers against another.

In an opinion released this week, the SCC allowed Dominion to proceed with a new rate adjustment clause on customer but kept alive a dispute over how to allocate the costs between various classes of electricity customers.  The SCC staff and the Office of the Attorney General are complaining that the traditional cost allocation formula is less fair to residential customers when the generator is non-dispatchable, intermittent and provides its benefit through lower fuel costs.

Back in January, the SCC approved the certificates of public necessity for the project, 240 megawatts in two fields designated US-3, which will cost about $410 million to build and $843 million in total over its lifetime.  In response to SCC staff concerns, reported in Bacon’s Rebellion in November, it put various conditions on the approval intended to protect customers if the project fails to produce as much electricity as promised.  Continue reading →

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Posted in Energy, Regulation

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Is Smart Scale Working Like It’s Supposed to?

Posted on April 17, 2019 by | 6 comments

Republican legislators in Northern Virginia (the few that are left) are wondering what happened to Virginia’s Smart Scale mechanism for allocating transportation dollars. Smart Scale was established during the McAuliffe administration to score proposed transportation projects on key metrics such as congestion relief, economic development, safety, land use, and the environment. But somehow 84% of the transportation dollars raised through Northern Virginia regional taxes were directed to transit projects, assert Del. Dave LaRock, R-Loudoun, and Del. Tim Hugo, R-Fairfax. Only $8 million per year of the $200 million in state funding has gone to highway projects.

“These recommendations are nothing short of outrageous and demonstrate beyond any shadow of a doubt that SMART SCALE scoring is failing,” said LaRock in a prepared statement yesterday. “It is not following the legislative mandates imposed by the Virginia Legislature in 2014. Northern Virginia’s notorious congestion will not go away if 70% of the estimated benefit of projects comes from Land use, Economic Development, and Accessibility, with another 18% from Environment.” Continue reading →

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Posted in Transportation

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Arlington Could Spend $11.5 Million to Do What?

Posted on April 17, 2019 by | 3 comments

Let’s see now. Arlington County offered $29 million in incentives to land the economic development coup of the decade, Amazon’s HQ2 project. Now, according to the Washington Business Journal, the County Board is considering granting another $11.5 million in incentives to keep the Drug Enforcement Administration in town. Are you kidding me?

Citizens are raising legitimate concerns that the influx of 25,000 Amazon employees will drive up housing costs and displace lower-income residents and make Northern Virginia’s overloaded roads and highways even more congested. I have argued that the benefit to Arlington — increased economic dynamism and diversification — is worth the millions of dollars worth of enticements. But let’s not pretend there isn’t a cost.

Who needs to bribe the DEA when you’ve got Amazon coming? And not just Amazon, but all the vendors, partners, spin-offs, and other enterprises that will become part of the Amazon ecosystem. What does the DEA bring to the table? Economic diversification? Hah! The DEA perpetuates dependency upon the federal government. Economic dynamism? Laugh out loud! The DEA is a government bureaucracy. Continue reading →

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Posted in Economic development

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Toxic Chemicals and Relative Risk — an Alien Concept to Virginians

Posted on April 17, 2019 by | 6 comments

The chemical structure of 1,2,4 trimethylbenzene, of which 132,000 pounds were released into Virginia’s air and waterways in 2017. Are we safe? Should you be worried? Should government spend billions to “do” something?

The West Point paper mill, one of Virginia’s 10 largest emitters of toxic materials in 2017, emitted 7.6% fewer toxic materials in 2017 compared to the year before, reports the Daily Press today. All told, the paper mill released 852,914 pounds — mostly menthol, ammonia, and hydrochloric acid — into the air and water. That news got me to thinking…

There are a couple of obvious story lines that could be extracted from the data, which comes from the release of 2017 numbers from the Toxic Release Inventory (TRI). One, which the Daily Press adopts, is that West Point, like other major manufacturers, has done an excellent job over the years in grinding out steady reductions in the volume of toxic chemicals it releases into the environment.

The other story line is the degree to which Virginians are absolutely insensate to the massive volume of chemicals pumped into the air and water. The TRI lists 138 toxic chemicals from 1,2,4-Trimethylbenzene to zinc compounds — totaling 34.5 million pounds in all. These chemicals vary widely in their emission volumes, their toxicity, and the speed with which they break down or are otherwise rendered harmless.

But one thing these compounds have in common is that no one is losing sleep over them. Continue reading →

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Posted in Environment

What can Virginia learn from Nashville (Part 1)?

Commentary - Posted on April 16, 2019 by | 28 comments

Photo credit: Rachael Ray Every Day – Awesome Things to Do in Nashville

Juggernaut. The Guardian published a story today on the amazing rise of Nashville as a business center, an entertainment center, a tourist destination and a city. Music City is certainly going through a multi-decade growth spurt rising from a population of 170,874 in 1960 to an estimated population of 691,243 in 2017. Interestingly, Richmond had 28% more people than Nashville in 1960 but is only one third the size of Nashville today. In a similar vein, Nashville was 88% more populous than Alexandria in 1960 but is 4.3X bigger than Alexandria today. However, as we’ll see, this is not quite “apples to apples.” The relative growth of Nashville was far more the result of ambitious, aggressive and sometimes hard decisions by the state of Tennessee and the City of Nashville than any failings on the part of Richmond or Alexandria. Yet this amazing growth spurt comes at the cost of considerable growing pains. The question for Virginia is whether the Nashville model (or the Austin, Charlotte, Louisville or Atlanta models for that matter) hold any lessons for the Old Dominion. This topic will be presented in two parts – this post (background and history) and a future post (more recent history, current successes and challenges). I will publish the second post when I return from a long weekend in Nashville at the end of April. Continue reading →

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Posted in Commentary, Economic development

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Extreme Weather Event, Extreme Weather Event, Go Away…

Posted on April 16, 2019 by | 18 comments

Now, we’re told, we have a new reason to fear climate change: Record rainfalls are straining the capacity of combined-sewer overflow (CSO) systems in Richmond, Lynchburg and Alexandria. In heavy rains, the antiquated systems, which combine stormwater runoff and wastewater, release untreated wastewater into the river.

“We’re on the frontlines dealing with climate change,” Grace LeRose, program manager for the Richmond public utilities, told The Virginia Mercury. “We’re seeing bigger and more frequent storms that are going to tax our system even more.”

In  May and June the city experienced 23 inches of rain, the highest ever recorded. That year, contends the Virginia Mercury, was indicative of a longer-term trend. There was a 33% increase in the number of heavy rainstorms in Virginia, and an 11% increase from the largest storms between 1948 and 2011.

Of course, you can make statistics say anything you want them to, so I thought I’d do some checking. Continue reading →

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Posted in Environment, Infrastructure, Water-waste water

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A Street Sign by Any Other Name Is Still Just a Street Sign

Posted on April 16, 2019 by | 28 comments

The Arlington County board is expected to ask the Commonwealth Transportation Board (CTB) to rename the section of the Jefferson Davis Highway, Rt. 1, that runs through the county.

What took it so long?

I defend the preservation of Civil War statues, especially those along Richmond’s Monument Ave. The statues are magnificent works of public art that are integrated into the urban design of the community. No one erects statues of this quality any more — just compare the craftsmanship of the Lee, Jackson and Stuart effigies compared to the modest and forgettable memorials that pop up today. Remove the statues, and you create gaping holes in the streetscape. But a street name is just a street name. Continue reading →

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Posted in Race and race relations

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Is Winter Coming For Virginia Pipeline Projects?

Posted on April 16, 2019 by | 23 comments

The Mountain Valley Pipeline route on Brush Mountain, July 18, 2018. (Heather Rousseau/The Roanoke Times)

The building season is here, but for developers of Virginia’s two hotly-contested natural gas pipelines, activity is back in the government agencies and courthouses.  The construction sites remain largely silent, delays running up the ultimate cost of the projects, including the cost of failure.

Here is my (probably flawed) attempt at a status report.  And you thought Game of Thrones is a complicated plot.  Continue reading →

23 Comments

Posted in Energy, Environment, Regulation

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Northam Waters Down Virginia’s Livestock Fencing Plan

Commentary - Posted on April 15, 2019 by | 23 comments

Northam Administration vs The Chesapeake Bay. Two disturbing facts were brought to light last week. First, a survey of two agriculture-intense Virginia counties found that the effort to reduce agricultural pollution by fencing off farm streams from cattle is far behind schedule. Second, our supposedly progressive governor put forth a very watered down Watershed Improvement Plan that effectively eliminates the livestock fencing goals in the Commonwealth.

Cows do more than fart and burp. U.S. Rep. Alexandria Ocasio-Cortez, D-New York, raised more than a few eyebrows when her New Green Deal included measures to curb the greenhouse gas effects of farting and burping cows. Ms. Ocasio-Cortez whimsically referenced the emissions of methane and nitrous oxide as digestive byproducts from many farm animals, especially cattle. While these emissions are a legitimate issue, a bovine prescription for Gas-X and Rolaids would not solve the problem. The production of meat in general, and beef in particular, has a sizable negative impact on the environment. Every step in raising, slaughtering, packaging and shipping meat adds to greenhouse gas emissions. Across the globe animal agriculture is responsible for more greenhouse gas emissions (14-18%) than transportation (13.5%). However, the environmental impact of animal agriculture doesn’t end with greenhouse gas emissions. A 1400-pound Holstein steer produces 115 pounds of manure per day or about 21 tons per year. Some of this prodigious amount of manure finds its way from cows and steers to farm creeks and eventually into the Chesapeake Bay. The manure contains high levels of nitrogen and phosphorus which cause excess algae growth de-oxygenating the bay’s water. Many consider animal waste the biggest problem confronting the Chesapeake Bay. Continue reading →

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Posted in Agriculture & forestry, Commentary, Environment, Water-waste water

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Virginia’s Decline in Crime

Posted on April 15, 2019 by | 3 comments

Source: Demographics Research Group, StatChat blog

One of the advantages of living in Virginia is that citizens are less likely than other Americans on average to become crime victims. The rate of violent crimes (seen above ) is about half the national average, according to data published today on the StatChat blog based on 2017 FBI crime data. The rate for property crimes is only three-quarters of the national average. That’s pretty impressive considering that Virginia’s demographics come pretty close to matching the national profile. The Old Dominion is doing something right.

Not that you’d know it by reading Charlottesville’s Daily Progress today. Continue reading →

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Posted in Crime and corrections, Race and race relations

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Another Fig Leaf Solution for Affordable Housing

Posted on April 15, 2019 by | 12 comments

Virginia lawmakers are adding $4 million this year to the Commonwealth’s affordable housing trust fund. While acknowledging that the sum is a “drop in the bucket” when it comes to affordable housing costs — the money would bring the revolving low-interest loan fund up to $9.5 million — the Washington Post cites housing officials as saying that the money “is a sign that the state is paying attention to a growing need.”

I would characterize the $4 million expenditure differently. The political function is to allow the Northam administration and lawmakers generally look like they’re doing something while. in actuality, they are studiously ignoring the underlying problem. The erosion of affordable housing is mostly a supply-side problem, not a financing problem. Continue reading →

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Posted in Housing

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Courts Authorizing “Reverse Location” Warrants in Virginia

Commentary - Posted on April 15, 2019 by | 13 comments

FBI “reverse location” warrant in Henrico County…. Photo credit: Forbes

Big brother Google is watching you. Back in October, 2018,  Forbes reported that a Virginia court had authorized the FBI to use a “reverse location” warrant to try to solve a series of crimes in Henrico County, Va. This warrant, also known as a geofence warrant, allows police to compel Google to provide all cellphone activity for all people in a general area over a specified period of time. The resulting handover of data includes locations and other information on potentially hundreds, if not thousands, of people. While Google has complied with the warrants in the past, it is unclear whether the company complied in the Henrico case. Continue reading →

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Posted in Commentary, Courts and law, Crime and corrections, General Assembly, Individual rights, Public safety & health, Science & Technology

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Medicaid: Report The Taxes Along With The Growth

Posted on April 15, 2019 by | 8 comments

Expansion tracking on the Virginia DMAS website. Click to expand, web version is here.

Virginia makes is easy to track the growth of Medicaid enrollment since the decision a year ago to expand coverage but tracking the tax dollars behind the scenes is another matter.

The new enrollment expansion dashboard on the Department of Medical Assistance Services website is updated every couple of weeks, with the April 4 report showing just under 260,000 people added to the program since late last year.  The City of Salem has added the fewest, only 34 new recipients, while Fairfax County has added the most at 18,220.  The advertised goal for expansion was 400,000 persons, so probably there are more to come.  Continue reading →

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Posted in Health Care, Taxes

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17th-Century Renderings of Native Virginians

Posted on April 14, 2019 by | 1 comment

Wenceslaus Hollar, a prolific maker of etchings in the 1600s, has an exhibit dedicated to his works now on display at the Virginia Museum of Fine Arts. Born in Bohemia, he spent most of his adult life in Germany, Netherlands and England, where he cranked out a prodigious number of works, sometimes of his own contrivance, sometimes copying the paintings of others as etchings. Two renderings, I thought, were worthy of note for Bacon’s Rebellion, for they depicted the indigenous inhabitants of “Virginia” — a term used somewhat more loosely than it is today — before they were displaced by the Europeans. One etching is of the muscular gent above. And the other… Continue reading →

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Posted in Race and race relations

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VRS Not Out of Woods Yet

Posted on April 14, 2019 by | 18 comments

Following up on Jim’s recent post about the WMATA pension problems, I decided to check on the recent performance of the Virginia Retirement System.  Now that I get a monthly check from these folks, my interest is more active than in the past.

Analysis of pension plans is out of my league, but there is a recent report that does create some concern and even I understand it.  VRS is required by statute to conduct periodic stress tests.  The latest one was released in December.  For those who are interested in digging into the weeds, here it is .  Toward the end of the report, the authors point out that VRS lost about 25% of its value in the first couple of years of the Great Recession.  They warn that, if there is another great shock or even a period of a few years of returns lower than needed, the plan would be in a worse position to absorb the shock than it was in 2009.  The Free Lance-Star had a good summary of the issue in this editorial.

In summary, to keep VRS able to meet its pension obligations, the General Assembly needs to continue its recent practice of paying down the plan’s unfunded obligations.

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Posted in Government workers and pensions, Uncategorized

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