DIVISION OF LEGISLATIVE SERVICES

VOLUME 18 ISSUE 6

Virginia Legislative Record NOV—DEC 2008

HJR 178/SJR 70: Joint Subcommittee Studying Development and Land Use Tools in Virginia’s Localities Inside this issue:

Interim Studies November 12, 2008 environmentally friendly. Those Land Use Tools 1

factors driving the goals of the task Certain ABC Issues The joint subcommittee held its force, according to Mr. Lecos, 4 Science, Math, & third meeting at the General Assembly include: Technology Education 6 Building in Richmond. Legislative • Creation of a people-focused urban DLS Report on HB 1441 7 members in attendance were Chairman setting so that residential development is Did You Know? Athey, Vice-Chairman Vogel, Delegates 8 encouraged in nearly all of Tysons Single Sales Factor 9 Oder and Miller and Senator Lucas. Corner. Members who serve ex officio in Substance Abuse Prevention 10 attendance were Pierce Homer, • Redesign of the transportation network so Biosciences & Biotechnology 12 Secretary of Transportation, and Alex that modes of traveling (walking, biking, Virginia’s Seaports 14 Daniel, Assistant Secretary of transit, cars) are balanced, 95% of At-Risk Children & Families 16 Commerce and Trade and designee for development is within a short walk of Rapid Transit Networks the Secretary of Commerce. transit, and urban streets exist within 18 Tysons Corner. Hampton Roads Transportation 20 Commissions and Councils Presentations • Strong emphasis on the environment so William Lecos, Tysons Land that streams are restored, parks meet Coal and Energy 21 Use Task Force urban park standards, and the Civil War Commission 23 William Lecos delivered a presenta- architecture and buildings are Energy and Environment 25 tion to the joint subcommittee entitled environmentally friendly. Freedom of Information Planning and Urban Design for Tysons Advisory Council 28 • New authority for implementation of the Corner. He began by stating that the Small Business Commission 30 Tysons Land Use Task Force's mission is task force's work. Regulatory Alert 31 to transform Tysons Corner from In summary, Mr. Lecos stated that suburbia to a truly urban place that is the vision of the Tysons Land Use For more information, built for people, not for cars. The goals Task Force is that Tysons Corner is visit study websites. of the task force are to make Tysons an environmentally sustainable—as DLS staff members maintain Corner a top downtown center, measured by its parks, restored a comprehensive website on nationally known by its green steward- streams, and "green" buildings—urban each study that contains a ship, where people want to reside. To center with 200,000 jobs and 70,000 achieve that goal, Mr. Lecos testified residents that contains a variety of complete summary of each that the task force focused growth on affordable and workforce housing meeting and links transit, on creating more jobs and choices, because twenty percent of to additional study increasing residents in Tysons Corner, the buildings contain residential information, handouts, and on making Tysons Corner more units. and resources.

Dr. Sheryl Bailey, Virginia incompatibility and automatic reductions for Resources Authority perimeter constraints (e.g., mountains, rivers) Dr. Bailey delivered a presentation to the exist. He, however, noted the grandfathering joint subcommittee entitled Innovative provisions of the new secondary street Financing to Build Virginia Communities. After acceptance requirements: Virginia delivering an overview of the Virginia Resources Resources Authority (VRA), Dr. Bailey • Streets within a proffered plan of development, site Authority’s discussed specifically how VRA's invest- plan/subdivision plat, preliminary subdivision plat or investments and ments and financial support have made a approved street construction plan may be accepted difference in Virginia, such as funding more under former requirements. financial support than 800 projects across the Common- have made a wealth since the inception of VRA. She next • Proposals officially accepted for review by a local difference in detailed the financing options VRA is able government may be accepted under the former requirements at the request of the locality. Virginia, funding to provide localities. Namely, Dr. Bailey more than 800 stated that financing is available anytime • New requirements allow previous area type and that localities can utilize revolving loan projects in requirements to apply when area type is modified after funds, participate in the Virginia Pooled approval of development proposal. localities across Financing Program, or seek VRA equipment the state since and term financing to undertake projects. Also, Mr. Donohue noted that pedestrian the agency’s Relating to urban development areas, Dr. accommodations required in the secondary street acceptance requirements are generally inception. Bailey stated that existing VRA tools can augment development by either establishing based on density and specifically state what a VRA revolving loan fund for local types of accommodations, if any, are required infrastructure or combining initial capital depending on the lot size. With respect to investment with existing VRA Pooled stormwater runoff, Mr. Donohue remarked Financing Program to maximize impact. that the Virginia Department of Transporta- However, the General Assembly must define tion has worked with the Department of loan eligibility criteria, but localities can Conservation and Recreation and the private capitalize on VRA's proven record of getting sector to develop a list of innovative stormwa- investment to communities quickly. ter facilities that can be placed within Virginia Department of Transportation rights-of-way Nick Donohue, Assistant Secretary because such placement is not currently of Transportation permitted. Nick Donohue delivered a presentation Finally, Mr. Donohue stated that implemen- relating to new secondary street acceptance tation of the new requirements includes the requirements. He stated that the require- production by the Virginia Department of ments, which will supersede and replace Transportation (VDOT) of a guidance existing subdivision street requirements, are document to accompany regulation to assist a result of legislation introduced at the local staff and developers, as well as provision request of Governor Kaine and unani- by VDOT of outreach and training similar to mously approved during the 2007 General the outreach and training that was provided for Assembly Session. The intent of such the traffic impact analysis regulations. requirements is to ensure streets accepted into the state system for perpetual public Alan Pollock, Virginia Department maintenance provide public benefit. Mr. of Environmental Quality Donohue highlighted the connectivity Alan Pollock delivered a presentation to the requirements contained within the joint subcommittee entitled Progress Report on secondary street acceptance requirements, Nutrient Trading in the Chesapeake Bay Watershed but noted that connectivity is not always of Virginia. After discussing the Chesapeake feasible and that exceptions for land use 2000 Agreement and tributary strategies,

P AGE 2 Virginia Legislative Record NOV—DEC 2008

Mr. Pollock discussed the nutrient credit Jack Frye, Virginia Department exchange legislation that was adopted in 2005 of Conservation and Recreation that: Jack Frye began his presentation by discussing the statutory requirements for • Authorizes the Chesapeake Bay Watershed Nutrient urban development areas and stormwater A spokesman Credit Exchange Program. management. He shared with subcommittee from DEQ members the timeline in which proposed • Directs the Department of Environmental Quality to discussed the issue a watershed general permit for point source stormwater management regulations become Chesapeake Bay discharges of nutrients (nitrogen and phosphorus) to effective and also shared the changes reflected the Chesapeake Bay and its tributaries. in the proposed regulations. Mr. Frye testified Watershed that the changes incorporate better site design Nutrient General • Authorizes the creation of the nonprofit Virginia and LID techniques into site design process Permit, which Nutrient Credit Exchange Association to assist the and allow for regional approaches, pro-rata regulated community in complying with the fees, exceptions, etc. Key areas of compatibil- was effective watershed general permit. ity exist between the statutory requirements January 1, 2007, for urban development areas, such as The purpose of utilizing a watershed general covers 124 satisfaction requirements for stormwater permit and market-based point source significant and management and reduction of subdivision nutrient credit trading program is to: 23 nonsignificant street widths, and the proposed stormwater • Meet the nutrient cap load allocations cost management regulatory requirements, such as discharges, and effectively and as soon as possible in keeping with reduction of impervious cover as in narrower has a compliance the 2010 timeline and objectives of the Chesapeake streets, which reduce best management date of January 2000 agreement. practice requirements. 1, 2011. Mr. Frye discussed the impacts of • Accommodate continued growth and economic proposed regulations on higher density development in the Chesapeake Bay watershed. development. He concluded that initial • Provide a foundation for establishing market-based evidence from studies indicates that incentives to help achieve the Chesapeake Bay addressing stormwater requirements can be Program's nonpoint source reduction goals. compatible with higher density development; and stormwater requirements will address all

development of all densities and intensities to Mr. Pollock discussed highlights of the varying degrees, both within and outside of Chesapeake Bay Watershed Nutrient General urban development areas. Permit, which was effective January 1, 2007, covers 124 significant and 23 nonsignificant discharges, and has a compliance date of Next Meeting January 1, 2011. Furthermore, he stated that The next meeting of the joint subcommit- a wastewater treatment facility can grow tee is scheduled for January 13, 2009. under nutrient caps by a locality and acquire nonpoint source offsets, purchasing HJR 178/SJR 70 additional point source allocations from other plants and upgrading to more advanced Joint Subcommittee Studying treatment. Finally, in relating point source Development and Land Use Tools nutrient load caps to urban development in Virginia’s Localities areas, Mr. Pollock noted that nutrient loads Delegate Clifford Athey, Chair discharged from treatment plants are capped but growth is not and lots of creative Kevin Stokes and Jeff Sharp, DLS Staff possibilities are provided through the (804) 786-3591

Nutrient Credit Exchange Program.

http://dls.virginia.gov/DLUT.htm

VOLUME 18 ISSUE 6 P AGE 3

Joint Meeting of the Special Subcommittees of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services Studying Certain ABC Issues November 14, 2008 The committees well as how the committee eventually began to focus on the idea of moving to a volume eventually Delegate Albo called the meeting to order based ratio calculation for mixed beverage focused on the and provided a quick review of the three restaurant licensees. idea of moving main study priorities of the 2008 Interim, to a volume which are characterizing the proliferation of Presentation based ratio new classes of retail licenses, determining the need for a bar vs. restaurant distinction for Curtis Coleburn, ABC Board calculation for mixed beverage licensees, and studying Curtis Coleburn discussed his study of mixed beverage certain issues associated with the food ratio licensees and potential problems meeting the restaurant for mixed beverage restaurant licensees. food/beverage ratio requirements. Mr. licensees. Coleburn randomly sampled 4% of mixed beverage restaurant licensees. He revealed Staff Review of Issues that the average ratio for each region was Maria Everett reviewed the committees' between 77% and 92%. Mr. Coleburn discussion of the proliferation of non- pointed out that many of the restaurants in restaurant retail licenses. Although the the sample were family restaurants. He then committee discussed the possibility of looked at a region with a high concentration creating a "limited service" or "personal of entertainment-type establishments. service" license with a new food sale Delegate Gear asked whether it was simple to requirement, the committee determined that separate entertainment-type establishments. the best approach was to limit the creation Mr. Coleburn responded that the only way to of any new classes of retail licenses. She also do that would be to select establishments by reviewed the committees' ongoing discussion recognizable names. He was able to identify on the potential for distinguishing between a the area of Shockoe Bottom, which had 32 bar and restaurant in the Code of Virginia. licensees with an average ratio of 71.4 %; six There was ultimately very little support for reported a ratio below 50%; and one did not this concept. meet the ratio requirements. Delegate Dance Ms. Everett reviewed potential alterna- asked if there was an outside review of this tives to the food/beverage ratio and information. Mr. Coleburn stated that by law discussed one option that would permit he is prohibited from sharing information licensees to petition the ABC Board for related to the licensees outside of the leniency if the licensee has had difficulty Department. Delegate Dance stated that she meeting the food/beverage ratio due to had a problem using a 4% sample size and increased purchases of high-end mixed questioned whether the sample size was beverages. This potential regulatory fix was statistically significant. ultimately rejected by the committees as well. Mr. Coleburn also spoke about potential Ms. Everett also discussed the option of trends in eating and drinking habits. He creating Class A, B, and C licenses that examined about half of the licensees in the would allow greater flexibility in distinguish- sample, looked at the past five years of ing between bars and restaurants. Delegate records, and for the Richmond region Albo noted that the restaurant industry actually noticed a declining trend in mixed opposed creating a bar license. There was beverage sales. Mr. Coleburn also looked at discussion on some of the problems specific licensees and noticed that where food associated with limiting the Class C licenses, sales have dropped, mixed beverage sales have which would essentially be bar licenses, as not increased.

P AGE 4 Virginia Legislative Record NOV—DEC 2008

Public Comment on the volume of mixed beverages, expressed as food sales compared to proof gallon of William Baldwin, the president of the spirits purchased from the Board or food Virginia Nightlife Association and a sales as compared to dollar sales of mixed restaurant owner, stated that he has worked beverages. A complete draft of the legislation The Chairman hard to make the food/sales ratio. The is available on the committees' website. requested that problem is that he has to open for lunch to meet the food requirement, because no one the ABC Board wants to eat dinner next to a dance floor. He Final Recommendations report back to says he is just breaking even on food sales the committees After a brief discussion, members of the and actually loses money when he takes into prior to the account the cost of keeping his establish- committee discussed potential problems with 2009 Session ment open for lunch. voting on legislation that requires ABC to Delegate Bulova asked if there was any define major portions of the pilot project. so that members benefit in going from a dollar ratio to a Senator Miller asked if it would be better if can vote on volume ratio. Mr. Baldwin responded that potential volunteers were made aware of the whether to he supported any effort to reduce the details of the pilot project prior to volunteer- ing. The committees voted to delay the approve and burden on restaurant owners. Delegate Albo introduce a pilot asked Mr. Baldwin if a business model deadline for volunteers until after the existed to open a high-end whiskey bar. Mr. parameters of the pilot project were defined project. Baldwin responded that the food sales would by ABC. have to be extremely high to support an Delegate Albo requested ABC to calculate the establishment that wanted to serve very dollar amount of a proof gallon and the expensive mixed beverages. Delegate Albo dollar amount of food sales assigned to each stated that he would like to reserve the proof gallon that shall be sold by each mixed remainder of the meeting to discuss the beverage restaurant licensee participating in feasibility of a change to a volume ratio. the project. The goal should be to maintain Peter Fulge, restaurant owner in Arlington, the 45 percent food-to-beverage ratio so that stated that a change to a volume-based ratio any currently compliant licensees would would help his business. Mr. Fulge said that remain compliant under the new volume- although he makes some money on his food based ratio. sales, the majority of his profits come from Delegate Albo requested that ABC report the sale of mixed beverages and alcohol. back to the committees prior to the start of Tom Lisk, representing the Virginia the 2009 General Assembly session so that Hospitality and Travel Association, voiced the members could make a final vote on his concern of the accuracy of the reporting whether to approve and introduce the pilot by licensees and any subsequent reliance on project. self-reported data. Mr. Lisk stated that the VHTA supports the committees' effort to Joint Meeting of the Special Subcommittees of examine the possibility of a volume-based the House Committee on General Laws and the ratio. Senate Committee on Rehabilitation and Social Services Studying Certain ABC Issues Review of Draft Legislation Senator Linda “Toddy” Puller, Chair The members reviewed draft legislation Delegate Terrie Suit, Chair that would create a two-year pilot project for Maria Everett and Patrick Cushing, DLS Staff certain mixed beverage restaurant licensees (804) 786-3591 of the Alcoholic Beverage Control Board to provide an alternative method for calculating http://dls.virginia.gov/ABC.htm the 45 percent food-to-beverage ratio based

VOLUME 18 ISSUE 6 Virginia Legislative Record P AGE 5

HJR 90: Joint Subcommittee Studying Science, Math, and Technology Education at the Elementary, Secondary, and Undergraduate Levels

Some schools in program. Students can ultimately earn November 17, 2008 their Bachelor of Science degrees in Virginia are engineering science by successfully making the effort The Joint Subcommittee Studying completing a mixture of on-site and to promote Science, Math, and Technology Education distance learning courses. The first children's held its final meeting on November 17, students to participate entered the engineering, but 2008, in Richmond. program in the fall of 2007 and are currently 18 months into the program. A professional local company in Lynchburg funded the development is Presentations majority of the start-up costs for CVCC necessary for Cindy Jones, Virginia Children's and, along with 12 other local companies, Engineering Council teachers to feel funded many scholarships for tuition, fees, Cindy Jones discussed the benefits of comfortable and books. Additionally, the local teaching children's engineering in grades companies have hired many of the incorporating the K-5, and across subject areas. Ms. Jones engineering students for internships. fundamentals of highlighted several programs and schools in Currently no state money is supporting the engineering into Virginia that are making the effort in the program, but UVA and the VCCS intend every subject area. area of children's engineering and encour- to continue with expansion plans because aged the joint subcommittee to find a way to the need for the program has become promote children's engineering by funding evident. Partnerships with companies the professional development necessary for located near community colleges so far teachers to feel comfortable incorporating have provided the best option for steady the fundamentals of engineering into every funding and it is in the companies' best subject area. She estimated that it would interests to hire local employees. take between $1.5 and $3 million to make sure that at least several teachers in every school or in every school division could be Public Comment trained and then they could take that The joint subcommittee heard brief knowledge back to their schools to train public comments before taking a vote on others. the final recommendations. Comments Dr. Darrel W. Staat, included support for a children's engineer- Central Virginia Community College ing curriculum in grades K-5; an interdisci- Dr. James Groves, plinary approach to the teaching of the University of Virginia (UVA) STEM subjects of science, technology, Dr. Staat and Dr. Groves provided the engineering, and math; and support for joint subcommittee with information about the funding of math specialists. the Produced in Virginia program. Produced in Virginia is a partnership Final Recommendations between the School of Engineering and Applied Science at the University of The joint subcommittee approved the Virginia and the Central Virginia Commu- following recommendations, which will be nity College (CVCC) that offers students advanced during the upcoming 2009 the ability to earn an Associate of Science in Session of the General Assembly. Engineering (or equivalent) degree and become eligible to enter into the UVA • A resolution recognizing the seven new Career Engineering Science undergraduate and Technical Education Academies and

P AGE 6 Virginia Legislative Record NOV—DEC 2008

encouraging local school divisions to consider • A resolution directing the Board of Education establishing an academy based on the Board of to study the need for creating either a STEM Education criteria for establishing a Governor's teacher specialist endorsement, a science Career and Technical Education Academy. teacher specialist endorsement, or a combination of the two and to report to the • A resolution endorsing and supporting Project Lead The joint the Way and recent efforts on the part of the General Assembly by January 1, 2011. Department of Education to provide four start-up subcommittee grants in 2008 for schools to implement Project Lead In addition to the recommendations, made numerous the Way. there were numerous suggestions and recommendations • Add section requiring the Center for Innovative recommendations generated by the joint for legislation Technology to survey Virginia's technology industry subcommittee with an eye toward an every two years on the demand for graduates in improved economic landscape. All of the during the 2009 STEM fields and report findings to institutions of higher education, the General Assembly, and the recommendations will be highlighted in Session, as well as Joint Commission on Technology and Science. the final report. offered suggestions • A resolution recognizing the efforts of UVA and the An Executive Summary of the joint with an eye on an subcommittee's findings and recommenda- Virginia Community College System, specifically improved economic Central Virginia Community College, to collaborate in tions for the year will be submitted no later establishing an engineering partnership that offers than the first day of the 2009 Regular landscape in the students the ability to earn an Associate of Science Session and a final report will soon follow. future. in Engineering (or equivalent) degree and become eligible to enter into the UVA Engineering HJR 90 undergraduate program. Students can ultimately earn their Bachelor of Science degrees in Joint Subcommittee Studying engineering by successfully completing a mixture of Science, Math and Technology on-site and distance learning courses. Education in the Commonwealth • A resolution encouraging school systems to use existing intervention, remediation, and at-risk funding at the Elementary, Secondary, to hire K-8 mathematics teacher specialists as an and Undergraduate Levels effective means to improve the performance of low achieving students and to support K-8 mathematics Delegate John Cosgrove, Chair specialists who have earned the Virginia Board of Education's licensure endorsement. Mathematics Nikki Cheuk and Patrick Cushing, DLS Staff specialists would provide targeted mathematics (804) 786-3591 intervention and remediation. http://dls.virginia.gov/TechEd.htm

DLS REPORT ON HB 1441

House Bill 1441, enacted by the 2008 Session, requires the Division of Legislative Services to report annually concerning all reports, actions, and data collection required by legislation or otherwise requested of state agencies and collegial bodies by the General Assembly. The first report in compliance with the new law may be found on the Legislative Information System (LIS) website at http://leg1.state.va.us under “Searchable Databases: Reports to the General Assembly.” The report is organized by standing committees in the House and Senate and is designed to provide information to members regarding the status of reports and other information within the purview of the respective committees that have been requested by the General Assembly. For additional information, please contact Brenda Edwards, DLS Staff, at (804) 786-3591 or [email protected].

VOLUME 18 ISSUE 6 Virginia Legislative Record P AGE 7

Did You Know ?

"Did You Know?" will appear in each issue of the Virginia Legislative Record. The article will feature important topics or interesting facts relevant to the Virginia General Assembly. For general questions or issue suggestions, please contact the Division of Legislative Services at (804) 786-3591 or by email to [email protected].

Virginia's Revenue The next step in the revenue estimating Estimating Process process is when the Governor's Advisory Council on Revenue Estimates reviews the Virginia's process of estimating revenues economic forecast of the Board of has been largely unchanged for many years. Economists, as well as the preliminary Although the Governor of Virginia is required revenue estimates. The Council is comprised to introduce a Budget Bill by December 20th, of business leaders throughout the one of the first steps in the process begins Commonwealth selected by the Governor. months earlier when the process of The Council also includes the Speaker and formulating the official revenue estimate Majority Leader of the House of Delegates, begins. The specific steps in the process are the President pro tempore and Majority governed by Section 2.2-1503 of the Code of Leader of the Senate, and the chairmen of the Virginia. money committees of both the House and The first step in the process is when the Senate. The members of the Council review Virginia Board of Economists, 15 members all the economic outlook based on their appointed by the Governor, convenes to knowledge of Virginia and the specific sectors present its view of economic conditions and in which they are involved. As with the Board the economic outlook for the upcoming of Economists, the meeting is held in budgetary period. The Board also evaluates Executive Session so that both business recent revenue collections with the most leaders and legislative members can speak recent official forecast to determine if the freely regarding their views on the economy, econometric models need to be refined or the revenue estimates, and their adjusted. The Department of Taxation serves own confidential proprietary information as staff to the Board. The Board has access to regarding the economy. the state's economic forecasting service— The last step in the process is when the Global Insight. The staffs of the Division of Governor and his administration take all the Legislative Services, House Appropriations, consensus forecasts and views of the economic and Senate Finance Committee are invited to outlook and formulate the official estimates hear and participate in the discussions of the that will serve as the basis of the Governor's Board. Once a consensus forecast for Budget Bill. economic activity is determined, the Department of Taxation plugs these estimates - John Garka, Manager into the econometric models to determine the Business & Finance Section, DLS preliminary revenue estimates.

P AGE 8 Virginia Legislative Record NOV—DEC 2008

HJR 177/SJR101: Joint Subcommittee Studying Benefits of Adopting a Single Sales Factor for Corporate Income Tax Purposes

November 17, 2008 saying it should not be a question of Many members whether something needs to be done to aid Opening Remarks business and manufacturing in Virginia but think the tax

rather what should be done. He then liability on Co-chair Walter Stosch presided over the expressed concern about the lack of manufacturers is final meeting, which was held in Richmond, performance numbers associated with the inequitable and of the joint subcommittee studying the tax relief provided by the adoption of the that the single benefits of adopting a single sales factor for single sales factor formula and suggested corporate income tax purposes. He began by that some relief with regard to the sales factor thanking everyone for the presentations that machinery and tools tax may be a better way would help had been made and for the ongoing interest to help more businesses. Next, he suggested Virginia conformity with the Federal Code regarding in the topic. He reminded everyone it was the companies that final meeting and that he was looking forward bonus depreciation which would offer are particularly to the ideas and discussion to follow. The immediate tax relief for companies making Senator then asked Mark Vucci, staff to the investments in Virginia. The memorandum hard hit. study, to review for the joint subcommittee concluded with the following statement: questions that need to be considered with regard to the single sales factor formula. "In summary, Virginia needs to maintain a tax code that is business friendly and encourages the core economic activity of manufacturing and Single Sales Factor Considerations intellectual property investments. Given unlimited

resources, changing to a Single Sales Factor Mr. Vucci provided the joint subcommit- Formula would have beneficial impacts in that tee the following questions to consider: regard. However, since we do not have unlimited resources, I am strongly inclined to look at other • To whom should it apply? All corporations or only sources of tax relief which would have equal relief manufacturers? for companies but would likely have far greater positive economic benefits for the Commonwealth." • Who is a manufacturer? • If adopted, should there be a delayed effective Delegate Byron date? Co-chair Kathy Byron had also sent out a • If adopted, should it be conditioned on job growth, memorandum before the meeting in which capital investment or other economic performance measure? she proposed a "Virginia Single Sales Factor Hybrid Model." Its major components are • If it is not adopted, should a grant program be as follows: established to reward manufacturers that increase/retain employees or make capital • Optional and for manufacturers only. investments? • If yes, what is the grant amount and which year is • Require companies to elect Single Sales Factor the baseline? (SSF) for a "minimum stay" of two years.

• Require "performance assurance" from Members' Suggestions manufacturers through wage certification.

Delegate Pollard • Phase in over four years beginning in 2010 as follows: 2010 and 2011 -3 factor formula with Prior to the meeting, Delegate Pollard had triple-weighted sales; 2012 -3 factor formula with distributed a memorandum in which he quadruple-weighted sales; and 2013 and shared his thoughts on the topic. He began by thereafter -100% sales.

VOLUME 18 ISSUE 6 P AGE 9

Other Comments Options Discussed In general, most of the joint subcom- mittee members favored the adoption of a The following options were discussed and considered by the members: single sales factor formula. Many think The joint the tax liability on manufacturers is • Recommend that the entire corporate income tax subcommittee inequitable and the single sales factor structure be studied. voted to would alleviate that. Those companies • Look at other tax relief for businesses such as that are headquartered in Virginia are hit machinery & tools tax or BPOL tax. recommend the particularly hard when they have lots of • Help businesses through credits or grants. Virginia Single property and payroll in the state. It was • Hybrid single sales factor. Sales Factor suggested that while the single sales factor • Protect businesses headquartered in Virginia. Hybrid to the may not completely save all the manufac-

2009 General turing jobs, it will help slow the rate of loss of those jobs. Another member Recommendations Assembly. believes adopting the single sales factor After much discussion, a majority of the joint will not result in a revenue loss but will subcommittee agreed to recommend the actually increase revenues over a five to adoption of Co-chair Byron's proposal for the ten year period. Virginia Single Sales Factor Hybrid. The Some members were not convinced members also agreed that other areas of business that the single sales factor will produce the needed to be evaluated over time. economic benefit that everyone desires and therefore prefer more targeted HJR 177/SJR 101 economic development initiatives. Concern was also expressed about the Joint Subcommittee Studying Benefits of current economy and having no way of Adopting a Single Sales Factor for knowing when it might improve. Corporate Income Tax Purposes There was some discussion concerning whether the entire corporate income tax Senator Walter Stosch and needed to be examined rather than this Delegate Kathy Byron, Chairs

small segment of it. There was a Joan Putney and Mark Vucci, DLS Staff suggestion that either a JLARC study or a joint subcommittee study would be the (804) 786-3591

way to undertake such an examination. http://dls.virginia.gov/ssf.htm

SJ77: Joint Subcommittee Studying Strategies and Models of Substance Abuse Treatment and Prevention Presentations and Reports November 18, 2008 Virginia Recovery Community The third meeting of the Joint John Shinholser, Executive Director of the Subcommittee to Study Strategies and McShin Foundation, a recovery resource Models of Substance Abuse Treatment and foundation, spoke about the importance of Prevention was held at the General including recovering addicts and members of Assembly Building in Richmond. Senator the recovery community in the substance Hanger welcomed the members and abuse treatment process. Mr. Shinholser gave a speakers and gave opening remarks. brief overview of the history and development

P AGE 10 Virginia Legislative Record NOV—DEC 2008

of recovery community organizations, then Substance Abuse Services, described recent identified ways in which existing clinical efforts of the Office of the Inspector General to and professional networks could better review substance abuse outpatient services for coordinate with the recovery community to adults, and to determine the range and capacity Spokesperson for enhance services and bring about better of all substance abuse services currently the Dept. of results for individuals seeking treatment. In available through community services boards. Education noted conclusion, Mr. Shinholser recommended Mr. Stewart reported that the range, variety, that substance reimbursement for recovery support and capacity of substance abuse services services provided by recovery community available were found to be not adequate to abuse negatively organizations, equitable recognition of peer meet the needs of consumers in the majority of affects the training and credentialing, maximizing the Virginia communities. Specifically, many academic progress authentic recovery community experience, community services boards reported inadequate and success of and increasing the role of recovery-based or no capacity in medical and social detoxifica- organizations at every level. tion programs, medically assisted outpatient students, leading

treatment, day treatment, intensive outpatient to lower grades, Department of Mental Health treatment, group counseling, individual truancy, and Ken Batten, Director of the Office of counseling, psycho-education group therapy, drop-out. Substance Abuse Services, presented family support therapy, aftercare services, information on the Department of Mental residential services, and case management. Health, Mental Retardation, and Substance Further most community services boards Abuse Services' efforts to respond to reported inadequate or no capacity for jail and recommendations made in the Joint prison-based services, or community-based Legislative Audit and Review Commission's services, including drug courts, for persons report on Mitigating the Costs of Substance involved with the criminal justice system. This Abuse in the Commonwealth, and improve lack of availability of services was found to quality, capacity, access, and accountability result in an average waiting time from first call of substance abuse services in the Com- to first appointment of 25.4 days. The report monwealth. Mr. Batten pointed out that also found that for many persons needing current data does not allow the Depart- services, the services were prohibitively ment to accurately report the effectiveness expensive, further reducing access. The full of services provided by the 40 community report is available on the website of the Joint services boards, that evidence-based Subcommittee Study Strategies and Models of practices (EBPs) are not uniformly utilized Substance Abuse Treatment and Prevention in service delivery, and that access to and the website of the Office of the Inspector services is limited by capacity and other General. barriers including a lack of funding. To address these problems, the Department is Department of Education Substance working to establish standards of care; Abuse Challenges consistent data collection, analysis and Jo Ann Burkholder, Coordinator, Depart- reporting services to study treatment and ment of Education, spoke on the impact of prevention efforts; effective quality and substance use on education. Ms. Burkholder compliance monitoring processes; and noted that substance use and abuse negatively effective IT systems. However, efforts are affects the academic progress and success of hampered by recent budget cuts and could students, leading to lower grades, higher be further limited by new cuts in funding. truancy, lower expectations, and higher drop- out rates. She stressed the importance of Outpatient Substance Abuse Services

prevention efforts and early intervention James Stewart, Inspector General for among students, pointing out that students' Mental Health, Mental Retardation, and brains are still developing and that the impacts

VOLUME 18 ISSUE 6 P AGE 11

of substance use on adolescent brains can buprenorphine, reduce potential public health disrupt brain functioning in critical areas. Ms. problems, bring about changes in treatment Burkholder then described the Department's delivery, and improve treatment. efforts to prevent and reduce substance use The members among students, highlighting Student Discussion of decided to discuss Assistance Programming; drug use and Recommendations violence prevention activities funded with Safe and vote on and Drug Free Schools and Communities Act At the end of the meeting, the joint budget and Funds in Virginia's 132 school divisions; and subcommittee solicited suggestions for legislation evidence-based curricula and programs recommendations from stakeholders and recommendations implemented in the Virginia educational decided to discuss and vote on budget and system. legislation recommendations for the 2009 for the 2009 Session at the final meeting on December 8, Session at its Medication Therapy for Substance Abuse Disorders 2008. next meeting on December 8, Morrie Olson, Medical Advisor, Reckitt SJR 77 Benckiser Healthcare, presented information 2008. on medication therapy for substance abuse Joint Subcommittee to Study disorders, specifically addressing medical Strategies and Models for the treatment of opioid dependency. He described Prevention & Treatment of Substance Abuse the role of medications in substance abuse treatment, and past and current uses of Senator Emmett Hanger, Jr., Chair medication to treat opioid addiction, most notably the use of methadone. Mr. Olson then Sarah Stanton, DLS Staff

discussed a second option, buprenorphine, a (804) 786-3591 synthetic opioid, available for medical treatment of substance abuse disorders. Mr. http://dls.virginia.gov/subabuse.htm Olson stated that the drug Suboxone can reduce the misuse, abuse, and diversion of

HJ 248: Joint Subcommittee Studying Biosciences and Biotechnology in the Commonwealth

November 19, 2008 Commonwealth. The draft would add this requirement to the existing duties of VEDP. The joint subcommittee held its fourth The joint subcommittee felt that it was and final meeting in Richmond. The meeting important to target promotion of the was used to consider and vote on the final biosciences specifically, as many exciting legislative recommendations of the joint research and commercialization advances take subcommittee. place regularly in the Commonwealth, but there is currently no central effort to promote these achievements statewide. This promotion Legislative Drafts will help Virginia compete with neighboring VEDP expansion of duties states Maryland and North Carolina that have The first legislative draft considered would a well-established biotechnology industry and add in the Code of Virginia a requirement will help demonstrate that Virginia is also that the Virginia Economic Development highly competitive in this field. Partnership (VEDP) promote the biosciences The draft language presented to the joint and bioscience-related advances in the subcommittee would require VEDP to

P AGE 12 Virginia Legislative Record NOV—DEC 2008

"formulate, promulgate, and advance the funds available for the credit be reserved programs in the Commonwealth to solely for companies that were created to encourage the development of research and commercialize university research and industry in fields related to the biosciences, development, and the remaining fifty percent of including marketing and promoting the credit would be open to any company that The members biosciences-related research advances and fit the definition of an eligible business, voted on three business developments in the Common- regardless of whether or not it was created to wealth." The joint subcommittee voted to commercialize university research and legislative recommend this legislation in concept, with development. Under current funding drafts to be amendments that would clarify that VEDP mechanisms, this would mean that $1.5 million recommended would be required to undertake initiatives in credits would be reserved for the university- to the 2009 related to the promotion of biosciences, and related businesses. The joint subcommittee General would not need to create new programs. In voted to recommend this legislation, as addition, the joint subcommittee recom- amended. Assembly. mended that language be included that clarifies that marketing may be done through Technology funding the use of press releases and VEDP's website. The final bill considered by the joint subcommittee would amend the existing Investment tax credit Commonwealth Technology Research Fund The second legislative draft considered by (CTRF). The Fund would be renamed the joint subcommittee would amend the Commonwealth Research Commercialization existing qualified equity and subordinated Fund, as uses of the Fund would be focused on debt investment tax credit. Currently, an commercialization efforts. The Fund would be eligible business for investment purposes is limited to research programs and technologies defined broadly, and the Department of focused in the fields of energy, conservation, Taxation has indicated that it might include environment, microelectronics, lifespan biology businesses other than technology-related and medicine—the fields of research that the companies. Therefore, bills seeks to redefine Virginia Research and Technology Advisory what is considered an eligible business, and Commission recommended in 2007 as areas in to do so in a narrow way. The proposed which the Commonwealth excelled, and where definition would be limited to businesses in research should be focused. The Funds could the fields of advanced computing, advanced be used to support three different programs, the materials, agricultural technologies, focus of which is to be determined by the biotechnology, electronic device technology, Secretary of Technology, the Virginia Economic energy, environmental technology, medical Development Partnership, and the chairman of device technology, nanotechnology, or other the Innovative Technology Authority: similar technology-related field. • Matching federal Small Business Innovation Research The bill, as proposed to the joint (SBIR) and Small Business Technology Transfer subcommittee, would have also required that (STTR) grants. in order to be considered an eligible business, the company would need to have • Assisting qualified institutions in leveraging federal and been created to commercialize proprietary private funds for the commercialization of qualified research developed at or in partnership with research. an institution of higher education. After receiving comment on the draft, the joint • Creating a program for loans of up to $500,000 to finance facilities used for commercializing research. subcommittee decided that this element narrowed the credit too far, as very few The third proposal generated substantial companies in the Commonwealth would discussion. Currently, the CTRF is funded at meet this criteria. Instead, it was proposed $1 million per year. Since it's inception, it has that the credit be split so that fifty percent of

VOLUME 18 ISSUE 6 P AGE 13

been funded at up to $10 million per year, and amendments to the provisions relating to the in some years no funding has been provided. SBIR/STTR matching grant program. As a result, the joint subcommittee had concerns at balancing the demands on the Final Remarks by the Chairman

The study Fund and the accompanying workload in reviewing applications with the amount of Delegate Sickles, chair of the joint subcom- achieved its Funds available. For example, Virginia is mittee, thanked all of the subcommittee goal of developing currently quite successful in obtaining SBIR members for their hard work and thoughtful practical and STTR grants, and in a given year, the discussions over the course of the Interim. The chairman said that his goal for the joint legislative CTRF may not be funded at a high enough level to match all of the grants. However, it is subcommittee was to develop practical recommendations likely that all eligible grant recipients would legislative recommendations to advance the to advance the apply for the matching funds. Therefore, it fields of biosciences and biotechnology in the fields of was suggested that if the CTRF was funded at Commonwealth, and he felt like the joint subcommittee exceeded this goal. biosciences and less than $7 million per year, the only SBIR biotechnology and STTR grants eligible to apply for matching HJR 248 funds would be those awarded by the National in Virginia. Institute of Health, and the matching grants Joint Subcommittee Studying would be capped at $50,000 for the develop- the Development and Enhancement of the ment of a commercialization plan for the SBIR Biosciences and Biotechnology or STTR technology. There was also discussion as to whether the loan program in the Commonwealth could be effective, given the current low Delegate Mark Sickles, Chair funding of the CTRF. It was agreed, however, Senator Janet Howell, Vice Chair that the language would be left in, as it is a discretionary program that could be instituted Lisa Wallmeyer and Patrick Cushing, DLS Staff when funds allow. The joint subcommittee (804) 786-3591 voted to recommend the bill with http://dls.virginia.gov/biotech.htm

HJR 72: Joint Subcommittee Studying Public-Private Partnerships Regarding Seaports in Virginia Presentations December 1, 2008

Eric Sisco, APM Terminals Americas The joint subcommittee held its fourth meeting at Old Dominion University in Eric Sisco delivered a presentation to the Norfolk. Legislative members of the joint joint subcommittee after first answering subcommittee in attendance were Delegates questions posed by Dr. Wayne K. Talley, Purkey (chairman), Joannou, Massie, and Executive Director of the International Melvin and Senators Lucas and John Miller. maritime Ports and Logistics Management Nonlegislative members of the joint Institute at Old Dominion University. Mr. subcommittee in attendance were Messrs. Sisco began his presentation by discussing the Coffer, Godfrey, Martinez, Moye, Padgett, history, portfolio, and commitments of APM and Sisco. A designee represented Mr. Terminals Americas. Next, Mr. Sisco showed Whyte, also a nonlegislative member. to the joint subcommittee a video that Delegate Purkey called the fourth meeting of highlighted the operations of APM Terminals the joint subcommittee to order and delivered Americas. He then described, quantitatively, opening remarks. APM Terminals Americas' impact on the

P AGE 14 Virginia Legislative Record NOV—DEC 2008

Hampton Roads community, specifically noting public-private partnerships. He discussed the $6 million it pays to the City of Portsmouth the attractiveness of public-private in property taxes. Mr. Sisco stated that APM partnerships to governing bodies of port Terminals Americas' supports the surrounding authorities, citing the resulting redeploy- community through its provision of ment of government spending and asset The joint "technologically-advanced jobs and workforce monetization. Likewise, Mr. Ralph subcommittee training" to residents of the community. He also discussed what attracts private investors to plans to meet described those industry structures relating to the seaport industry, and noted such four times in the ownership and operation of ports; Mr. Sisco attraction results from "visible and provided a chart illustrating such description. predictable earnings, "long-term leases [and] 2009 to While noting the benefits of private investment low risk assets," and "inflation linked continue its and operation in or of Virginia seaports, Mr. revenues." Next, Mr. Ralph discussed the work as Sisco discussed how strategic operators two types of private buyers of ports: authorized contribute most to the seaports' value in the "strategic buyers (carriers and global under long-term and how financial investors with terminal operators)" and financial buyers, "high-levered investments are being challenged which include both aggressive investors HJR 72. in the current economic environment." who seek to "maximize the purchased asset Moreover, Mr. Sisco opined that economic value through debt leverage" and passive development and a "more efficient approach investors who "focus on the asset providing toward capacity development" could be a stable, longer term yield for the owners." maximized through permissible coordination Furthermore, Mr. Ralph discussed changes between APM Terminals Americas and the in 2008 regarding the new availability and Virginia Port Authority and Virginia Interna- cost of debt (e.g., higher rate; more tional Terminals. Mr. Sisco concluded his stringent leverage requirements), the presentation by suggesting future examinations, availability of capital as infrastructure explorations, and reviews the joint subcommit- funds, the reemergence of strategic buyers tee could make. in "build-to-suit" concessions and open bidding, and the pursuit of public-private Bill Ralph, R.K. Johns & Associates partnerships and sale opportunities by Bill Ralph delivered a presentation to the ports and terminal operators. Lastly, Mr. joint subcommittee regarding port-related, Ralph listed several key considerations he

* Ports Table Port Type Publicly Owned and Operated Lease/Concession Public-Private Partnership Port authority is responsible for Port authority leases land to private Greater responsibility to private capital investment in infrastructure operator, typically for sector for infrastructure and equipment 30-50 years development

Port authority typically runs yard, Port authority invests in major Public entities invest in connecting gate, and vessel operations infrastructure development and quay infrastructure (roads, rail, channel) Descriptions wall

Port authority may subcontract Port operator typically invests in Private operator invests in major operations or other to stevedoring equipment, buildings, and paving to port infrastructure, taking company in shorter-term contract ready the land for operational use increased risk in return for a long- term concession

City and State Savannah, Charleston, Houston, and Los Angeles, New York, New Jersey, Vancouver, Mobile, and Virginia Examples Kingston Tacoma, Jacksonville, Miami, and Oakland

* Information provided by Eric Sisco, President and CEO, APM Terminals Americas

VOLUME 18 ISSUE 6 P AGE 15

suggested that the joint subcommittee and Future Plans other public bodies take into account when The joint subcommittee plans to meet four reviewing public-private partnerships times, as authorized under HJR 72 in 2009. relating to ports. Additional information on the presentations Member Comments may be found on the study website. HJR 72 Each joint subcommittee member Joint Subcommittee Studying commented on the past and future workings of the subcommittee. Addition- Public-Private Partnerships Regarding ally, Jerry A. Bridges, Executive Director of Seaports in Virginia

the Virginia Port Authority and Joseph A. Delegate Harry Purkey, Chair Dorto, President and CEO of Virginia International Terminals, Inc., both offered Caroline Stalker and Kevin Stokes, DLS Staff

statements in response to the presentations (804) 786-3591 made and the discussions that took place. http://dls.virginia.gov/ports.htm SJR:75 Joint Subcommittee Studying the Comprehensive Services Program for At-Risk Youth and Families

The third meeting of the Joint Subcom- Localities all, which adversely affects localities in many mittee Studying the Comprehensive Services areas, including negotiating contracts with received an Program for At-Risk Youth and Families was providers, monitoring outcomes, and identify- average of held on December 1, 2008, in Portsmouth. ing alternate funding sources. $14,600 per Senator Emmett W. Hanger, Jr., gave Delegate Hamilton pointed out that funding year from the opening remarks and announced that a final for this program is skewed against localities, meeting would be held in early January in state to more so than other programs. Richmond. administer Gail Schreiner, Reynold Jordan, and CSA, an Presentations Dr. Roderick Hawthorne, Portsmouth CSA amount that Nathalie Molliet-Ribet, CSA The next speakers were representatives of has been level Administrative Costs and Funding Portsmouth's CSA program. They discussed since 1997. The first speaker was Nathalie Molliet- some of their more innovative programs. One Ribet, who spoke on the issue of administra- such program includes therapeutic day tive costs and funding for the CSA program. treatment in public schools for students with JLARC first studied this issue in 2006, and emotional problems. They also discussed the her presentation came from that study. Ms. importance of holding FAPT meetings in Molliet-Ribet went over the purpose of schools in order to bring in more parents. They administrative funding and the role of CSA stressed that going into schools is key to early staff in administering the program. She intervention. pointed out that localities with CSA Portsmouth also has innovative foster care coordinators had lower overall costs than programs, including the CARES program, localities that did not. Localities receive an which includes parent/family training for foster average of $14,600 per year from the state to families and individualized services for children. administer CSA, an amount that has been The program is a public/private partnership, level since 1997. Localities must supple- which creates more value with higher quality ment this money with local funds. Most still services for the children. There is also a do not have full-time CSA coordinators. homeless brokerage program, which finds ways Some instead have part-time staff or none at to keep children out of foster care by keeping

P AGE 16 Virginia Legislative Record NOV—DEC 2008

families from becoming homeless. The program For this reason, military families are adding looks for landlords to lower rents, waive strain to the Virginia Beach CSA budget. deposits, and also offers to oversee tenants. Denise Gallop and Mike Terkeltaub, Keeping families together is ultimately less Hampton/Newport News CSA traumatic for the child as well as cost effective The joint for the state. Denise Gallop of the Hampton CSA spoke about how the program is currently subcommittee will Portsmouth has had some success with its focused on looking at data previously CSA program, such as 271 children served in vote on any final collected and using this data to improve the fiscal year 2008 and for the past two years the recommendations program. One important lesson CSA has congregate care rate has been 11% (national best to the 2009 learned from the data is that families need to practice is 10%). However, there are still be more involved in the process. Ms. Gallop General Assembly problems, for example, permanent placement for stressed that CSA would not have realized at its final a 16 year old coming into foster care is just not this was a problem if not for the data, and feasible before they age out of the system. The meeting in now this is an area it focuses on improving. group concluded with a final message that CSA January. can work and the Portsmouth DSS demonstrates She also discussed a program called this with its successful programs. Youth in Fast Forward, which was initiated by a local judge, Judge Jay Dugger. The Dr. Susan Dye, Virginia Beach CSA program is modeled after a program to send The next speaker was Dr. Susan Dye of the adults back to work and has now been Virginia Beach CSA program. She also gave an modified for young adults aging out of the overview of some of its successful programs, foster care system. The program brings including the Pendleton Child Service Center, public and private providers together to help which is a private facility that offers a three young people transition out of foster care month residential program for children in and into successful adult lives. Virginia Beach. The program requires intense Ms. Gallop noted the importance of core parental involvement, in fact, parents must be values and beliefs to success—help one child there five days a week. They are also starting to at a time; families are the experts about their use professional foster homes, which are homes families; programs must be child-centered with highly trained parents who do not work and family-focused; and to realize progress begins with the outcome, not the process. outside of the home. These parents have shown some success in working with challenging children, however, recruitment of such parents is Final meeting difficult. The joint subcommittee will meet again Virginia Beach currently has about 40 of its in January to vote on any final recommenda- 700 CSA children in residential care. Many of tions for the 2009 Session. these children have juvenile justice problems. Community-based group homes seem more appropriate for these children, perhaps because SJR 75 their backgrounds have made them so unaccus- Joint Subcommittee Studying the tomed to a family environment. Virginia Beach Comprehensive Services for is also facing challenges with its CSA program, At-Risk Youth and Families including children who are not responsive to treatment, children who age out, and especially Senator Emmett Hanger, Jr., Chair in the Virginia Beach area, problems with Delegate Phillip Hamilton, Vice Chair children of military families. Military families with special needs children are often transferred Sarah Stanton and Jessica Eades, DLS Staff here because of the specialized services available, however, no additional funds, federal or (804) 786-3591 otherwise, are appropriated for this purpose. http://dls.virginia.gov/CSA.htm

VOLUME 18 ISSUE 6 P AGE 17

SJR 122: Joint Subcommittee to Study Regional Rapid Transit Networks

The VRE December 4, 2008 began service in 1992 and operates two lines: Manassas and Fredericksburg. VRE runs 29 operates two lines The meeting was called to order followed trains at 18 stations and connects to Metro in in Manassas and by brief opening remarks by Chairman five locations and Amtrak in seven locations. Fredericksburg Barker. The Honorable Pierce R. Homer, VRE operates on 90 miles of track and averages and runs 29 Secretary of Transportation, Mr. Dale 16,500 daily riders. Mr. Zehner explained that trains at 18 Zehner, Chief Executive Officer, Virginia VRE leases track access from CSX for the Fredericksburg line and Norfolk Southern for stations, as well Railway Express (VRE), and Mr. Tom Harrington, Director of Long Range the Manassas line. VRE has an annual budget as connects to Planning, Washington Metropolitan Area of $79 million for fiscal year 2009 and employs Metro in five Transit Authority (WMATA) were in 37 full time staff. In terms of who rides VRE, locations and attendance and made presentations before Mr. Zehner stated that over 70% of riders have Amtrak in seven the joint subcommittee. a household income greater then $100,000 per year. Commuter rail is characterized by multi- locations. Remarks by Secretary Homer trip tickets, station to station fares, 20-30 minute headways, and is usually a long-haul Secretary Homer began by expressing the commute (i.e. 50-60 miles from a central Governor's interest in and support of this business district). Mr. Zehner explained that study. He then discussed the notion of commuter rail is not a subway, light rail or travel choices in Northern Virginia, focusing trolley system and it does not carry heavy on the Interstate 95, Interstate 66, Interstate volume. Mr. Zehner looked at VRE's impact 495 and Dulles Toll Road corridors. For on the region, including reducing congestion instance, travelers on Interstate 95 and and lowering emissions. Possible growth Interstate 66 have choices which include opportunities for VRE include the Gainesville/ Metro, HOV, bus, and VRE service. On Haymarket and Spotsylvania County exten- the other hand, Interstate 495 is the busiest sions. Mr. Zehner closed his remarks by road with the least number of options. commenting on challenges for VRE growth: Secretary Homer explained that the keys to VRE has no dedicated funding source; there is successful regional transit service in a shortage of both mid-day train storage in DC Northern Virginia include: time advantage, and auto parking at key VRE stations; and the reliability of service, frequency of service, governance structure does not allow for growth connectivity between regional activity outside of existing jurisdictions without centers, and dedicated operational funding. membership additions. The keys to successful HOV service in the Tom Harrington, WMATA region include: time advantage, reliability of location, safe parking, and nearby bus For the day's final presentation, Mr. service. Secretary Homer explained that it is Harrington provided information on the Metro important to create credible, reliable options system. It is the second largest rail transit in these travel corridors so that there are as system and the fifth largest bus network in the many travel choices as possible. nation. Metro provided over 347 million passenger trips in fiscal year 2008. Mr. Presentations Harrington explained that Metro serves an area of 1,500 square miles and a population of over 3.5 million. Metro has no dedicated source of Dale Zehner, VRE funding. Metrorail ridership is expected to Dale Zehner provided a brief overview of increase from 800,000 daily trips in 2008 to Virginia Railway Express (VRE), which 950,000 daily trips in 2020. In addition,

P AGE 18 Virginia Legislative Record NOV—DEC 2008

Metrobus ridership is predicted to grow SJR 122 from 475,000 daily trips in 2008 to 550,000 Joint Subcommittee to Study Regional daily trips in 2020. Mr. Harrington stated Rapid Transit Networks that Metro's planning approach is to maximize the capacity of the existing system, Senator George Barker, Chair Possible balance system maintenance needs with Alan Wambold and Caroline Stalker, DLS Staff recommendations system expansion, and develop an integrated to the 2009 multimodal transit system. Mr. Harrington (804) 786-3591 looked at some options for serving the General Assembly http://dls.virginia.gov/transit.htm Interstate 95 and Interstate 66 corridors, will be discussed including extensions of the Orange, Blue, or at the final Yellow lines. meeting to be held

Final Meeting on December 18, 2008, in Prior to adjournment, Chairman Barker For multiple copies of the Virginia Woodbridge. asked the committee members to think Legislative Record or other about possible recommendations for the DLS publications, please contact the final meeting, to be held on December 18, House or Senate Clerks Office. 2008, at the Potomac-Rappahannock Transportation District Transit Center in Woodbridge.

DLS BULLETIN BOARD

• Joint subcommittees on studies should submit an • All requests for redrafts and corrections for executive summary including findings and legislation to be prefiled to DLS by 5:00 p.m. on recommendations to DLAS by the first day of the January 9, 2009. General Assembly’s Regular Session. • Covered drafts of legislation to be prefiled • All requests for drafts of legislation for prefiling available at DLS by noon on January 13, 2009. to be submitted to DLS by 5:00 p.m. on • All requests for drafts, redrafts, and corrections December 8, 2008. for first-day introduction bills to be submitted to • All drafts of legislation to be prefiled returned by DLS by 5:00 p.m. on January 13, 2009. DLS for requester's review by midnight January • Prefiling for the 2009 Session ends at 10:00 a.m. 2, 2009. on January 14, 2009. • All requests for drafts, redrafts, and corrections of • The 2009 General Assembly convenes on legislation creating or continuing a study to DLS January 14, 2009, at noon. by 5:00 p.m. on January 9, 2009.

VOLUME 18 ISSUE 6 P AGE 19

HJR 194: Joint Subcommittee to Study the Transportation Network of Hampton Roads The study demonstrated that failure to build The members December 10, 2008 any of the proposed improvements would result

will recommend in peak traffic demand almost double the The joint subcommittee met at the to the 2009 available capacity of key transportation corridors, Virginia Modeling, Analysis, and Simulation especially during the tourist season. VMASC's General Center in Suffolk with Chairman S. Chris efforts indicated that the six projects approved by Assembly that Jones presiding. the MPO would provide marginal improvement the study be to recurring congestion at the HRBT. The continued for an Presentation greatest benefit would be brought about by the additional year Mike Robinson, Senior Project Scientist, construction of the Third Crossing (both Virginia Modeling, Analysis and Simulation phases), which would reduce demand on the to explore an Center (VMASC) presented the final report HRBT. As expected, the greatest improvement extension of the of VMASC's Hampton Roads Alternatives at the HRBT occurs if this facility is expanded, HRBT and Project. The Project concentrated on six but even this improvement leaves significant widening of I-64 alternatives recommended by the Hampton recurrent congestion during peak use periods. If in the Roads Metropolitan Planning Organization the HRBT is widened to eight lanes, analysis (MPO) as follows: indicates that the facility will be able to discharge Hampton area. peak demand in 2030. Such an expansion • Construction of a Third Crossing between the Peninsula and Southside Hampton Roads (in would also reduce incident-induced congestion two phases). and improve travel times.

• Construction of the Southeastern Parkway/ Dominion Boulevard project linking Virginia Recommendations Beach and Chesapeake. Following a discussion, Delegate Oder moved • Widening the Midtown Tunnel to four lanes (two that legislation be offered in the 2009 Session to in each direction) and extending the Martin extend the joint subcommittee's mandate for an Luther King Freeway (four lanes) to connect to Interstate Route 264. additional year, and that this further study specifically include consideration of extension of • Improving U.S. Route 460 between Suffolk and the HRBT to connect the Peninsula to Terminal Interstate Route 295 near Petersburg, including the eventual construction of a new facility Boulevard and widening of Interstate Route 64 paralleling the present route. on the Peninsula between Interstate Route 664 in Hampton and Interstate 295 east of Rich- • Widening Interstate Route 64 on the Peninsula as far west as Virginia Route 199 near mond. Several members of the audience also Williamsburg. made suggestions for further items to be studied, • Widening Interstate Route 64 on Southside including leveraging technology, increased use of Hampton Roads between Battlefield Boulevard transit, and traffic management strategies. in Chesapeake and Bowers Hill in Suffolk.

• At the request of the Joint Subcommittee, HJR 194 VMASC also modeled the congestion impacts that would result from expansion of the The Joint Subcommittee to Study the Hampton Roads Bridge Tunnel (HRBT). Transportation Network of The project compared data from 2000 Hampton Roads with 2030 projections using both a "no Delegate S. Chris Jones, Chair build" scenario that assumes that none of the seven projects would be built and an "all Alan Wambold and Caroline Stalker, build" scenario that assumes that all of the DLS Staff projects would be built. (804) 786-3591

P AGE 20 Virginia Legislative Record NOV—DEC 2008

COMMISSIONS AND COUNCILS Legislative Commissions and Advisory Councils are also staffed or monitored by Division of Legislative Services and some, such as FOIA and JCOTS and others that are featured in the Legislative Record, have independent, comprehensive websites that contain a wealth of information regarding research, proposed legislation, and ongoing activities and scheduled workshops. Be sure to visit each respective Commission and Council website for more detailed information.

Virginia Commission on Coal associated. Whether a coastline is convex or concave and Energy 11-6-08 can have a significant effect on the area contained in the offshore parcels and, therefore, the amount of any royalties available from revenue sharing programs. After a call to order, Senator Wagner provided the Commission with a review on the background Carl Hobbs, VIMS and importance of domestically supplied natural gas. Carl Hobbs from Virginia Institute of Marine He pointed out that purchases of foreign energy Science (VIMS) provided the Commission with total more than $700 billion each year. background on the environmental issues that should be considered if offshore drilling in federal waters off PRESENTATIONS the coast of Virginia becomes a reality. The environmental issues are far reaching and numerous Renee Orr, MMS aspects of the drilling operation must be considered: Renee Orr from the federal Minerals production platforms; transportation of the gas or oil Management Service (MMS) introduced the legal to the shore; consequences of submarine pipelines; framework applicable to offshore drilling and and the interface of the pipeline and the shore. Mr. exploration. The controlling law is the Outer Hobbs also noted the various regulatory parties that Continental Shelf Lands Act, which provides that might oversee offshore drilling activities. "the Outer Continental Shelf is a vital national resource . . . which should be made available for Lawrence Sullivan, Society of Petroleum Engineers expeditious and orderly development, subject to Lawrence Sullivan discussed the significant environmental safeguards. . ." For its part, the MMS improvements made in the drilling industry over the operates a Five Year Plan that sets forth the size, past fifty years. He predicts that technology will evolve timing, and locations available leases. In recent to a full zero impact by 2012 based upon what we see years, the Five Year Plan has been accelerated. The today in Norway. In fact, technology for drilling, current Five Year Plan applicable to the years 2007- completion, and production rivals that found at 2012 plan may be replaced, before its fulfillment, by NASA and in the U.S. military for its safety, security, another Five Year Plan applicable to the years 2010- and efficiency. One of the great challenges to the 2015. Virginia is the only Eastern state with offshore industry is the availability of training of the workforce. leases available off its coast and is uniquely The knowledge cohort that joined the industry in the positioned with a three to four year advance on any late 1970s will retire soon. Virginia has an other states that might be included in a future Five opportunity to begin training its workforce sooner Year Plan. Delegate Kilgore asked about the length rather than later if offshore drilling is pursued. of time required to accomplish a specific sale. Ms. Orr responded that the arrangement of a lease sale Jim Kibler, AGL Resources may require between 18 months and two years. Jim Kibler spoke to the Commission about Operations on the lease may also then require opportunities for the natural gas industry if drilling is further administrative approvals. pursued offshore of Virginia. The vast majority of Senator Wagner pointed out the general existing production comes from the Gulf of Mexico, triangular shape of the parcel of land off the coast of an area vulnerable to hurricanes and waning Virginia and noted that there is disappointment discoveries. New production areas will require a with the area designated. The MMS applied skilled workforce and infrastructure to deliver the gas internationally accepted standards for drawing to market. Downstream economic benefits to the boundaries to determine the offshore parcels and Commonwealth would include stabilized natural gas the respective states with which that parcel would be supplies, jobs, investment, tax revenues, and royalties.

VOLUME 18 ISSUE 6 P AGE 21

Jerry Grantham, Virginia Oil and Gas Association taken seriously and that the public will have an Jerry Grantham presented the Commission with opportunity to be heard. Delegate Danny Marshall an overview of the natural gas industry in Virginia. stated his agreement with Delegate Hogan and asked The resources found in Southwest Virginia are that the scope of the study is broad and includes an varied and include coal bed methane recovery, tight examination of uranium mining on agriculture and gas sands, and gas shale. While many wells in real estate prices. He hopes that the subcommittee Virginia would be needed to produce the same will hold some of its meetings in the communities amount of gas as one well in Texas, the economies that would be affected. of scale do not necessarily weigh in favor of fewer, Katie Whitehead, with the Dan River Basin larger wells. The cost of inputs, maintenance, and Association, contributed to the Uranium skilled labor may be less when managing many Administrative Group that studied the issue in the smaller wells. 1980s. She expressed her interest in public education and public participation, especially at the front end OTHER BUSINESS—URANIUM MINING when deciding whether to do a study and the scope of Delegate Kilgore introduced the issue of uranium that study. Sara Motley, a nurse and resident of mining to the Commission and discussed some of Chatham, expressed her respect for the stakeholders the questions that have arisen in the local and cautioned the Commission to be careful. communities before opening the floor to the public. Whit Clement spoke on behalf of Virginia Todd Benson with the Piedmont Environmental Uranium and assured the members that the owners Council stated that his organization is opposed to do not want to do anything that would hurt their uranium mining in Virginia and asked whether the community. The only thing sought by Virginia proponents of the study would be able to show five Uranium is a fair, independent, and unbiased study instances where mining has been performed safely. of the science, health, and welfare issues. Mr. Benson also noted the emphatic dissent of Delegate Kilgore introduced the motion of the Elizabeth Haskell during the last study on uranium Commission to appoint a subcommittee to study the mining during the 1980s. issue of uranium mining. The Commission voted Delegate Kilgore assured the attendees that the unanimously to approve the motion. Coal and Energy Commission strongly desires to involve the public at every stage of the study. Nancy NEXT MEETING Pool, president of the Halifax County Chamber of Commerce, approached the podium and asked that Information on the next meeting of the Coal and Delegate Hogan form a task force to solicit the Energy Commission will be posted on the DLS opinion of citizens in the region. Cale Jaffe, website as soon as a date has been determined. representing the Southern Environmental Law Center, asked that any study of uranium mining proceed with caution. He expressed his hope that the study encompassed a view of risks to the mine over its entire life and examined the risks of natural disasters such as hurricanes. Mr. Jaffe drew the Commission's attention to the fact that other Coal and Energy Commission uranium mining operations that have been conducted in arid climates without the risks of flooding. Mr. Jaffe also noted that a genuinely cautious study may find that mining cannot be

performed safely and that the hard work of a study THE HONORABLE TERRY GILGORE, CHAIR must be done by a reputable organization like the National Academy of Sciences. Ellen Porter, DLS Staff

Delegate Hogan spoke to the Commission to Telephone (804) 786-3591 express his hope that all parties who care about this issue will have the opportunity to contribute to the http://dls.state.va.us/cec.htm subcommittee. A representative from Southside Concerned Citizens expressed the concern that the broad issues reviewed by the subcommittee will be

P AGE 22 Virginia Legislative Record NOV—DEC 2008

Virginia Sesquicentennial interpretation. Mr. Campi invited the Commission to partner with the CWPT on the 2009 Institute, in ways of the American Civil War that could include: (i) endorsing the Teacher Institute; Commission - Executive Committee (ii) offering a letter of welcome to be included in the 11-17-08 Teacher Resource book; (iii) advertising Commission events and its website in the Teacher Resource book; Executive Committee members present: Speaker (iv) sending Commission members to participate in the William J. Howell, Delegate Albert C. Eisenberg, Institute; (v) screening the educational DVD for Delegate Algie T. Howell, Jr., and Dr. Charles F. teachers; and (vi) providing resource materials for Bryan, Jr. teachers in the exhibit area. Staff was directed to work Speaker Howell called the meeting to order and with Mr. Campi to establish a partnership for the 2009 welcomed members. He announced that this would Civil War Teacher Institute. be the last meeting of any of the Commission's DVD PREVIEW: "VIRGINIA IN THE CIVIL WAR, 1859-1865: A subcommittees for the year. SESQUICENTENNIAL REMEMBRANCE"

Jim Hammerstrom, Producer/Director, Blue Ridge Presentations Public Television Members of the Executive Committee previewed INFORMATIONAL BRIEFING: BATTLEFIELD segments of the DVD being produced by Blue Ridge PRESERVATION GRANTS Public Television under the direction of Dr. James I. Robertson, Jr. The DVD is scheduled for completion Kathleen Kilpatrick, Director, Department of Historic Resources in June 2009, with distribution beginning in August Kathleen Kilpatrick briefed the Commission on 2009. It will be distributed, free of charge, to every recent awards made from the Civil War Battlefield school, library, and historical society in Virginia. Preservation Fund, which received an appropriation Members of the Executive Committee also asked that of $5 million during the 2008 General Assembly attention be given to distribution outside of the session. The funds require a 2:1 match, yielding $15 Commonwealth, including a partnership with The million for battlefield preservation. The Department History Channel. of Historic Resources established criteria for grant disbursement and affirmative recruitment to ensure Staff Reports that the highest priority sites were protected. Twenty- one grants have been disbursed to four nonprofits, DEVELOPMENT UPDATE protecting over 1,500 acres. Danielle Watkins provided an update on In response to questions, it was noted that of 384 committed donors and pending prospects to the Civil priority battlefields identified by Congress, one-third War Sesquicentennial Foundation as well as a plan for are in Virginia. Ms. Kilpatrick indicated that, while donor recognition levels. the state is doing well in terms of acres that have been preserved, there is still a lot of work to be done WORKGROUP 1 - COORDINATION protecting remaining threatened land in the Cheryl Jackson gave the report of Workgroup 1, Commonwealth. which is chaired by Senator Colgan and oversees the statewide coordination effort. CIVIL WAR PRESERVATION TRUST: 2009 TEACHER INSTITUTE Local Committees: 95 of the 134 counties and cities

have established local sesquicentennial committees to Jim Campi, Policy Director work with the Commission and plan commemorative Jim Campi discussed the Civil War Preservation events. Staff communicates regularly with the local Trust's (CWPT) very successful Teacher Institute liaisons through a listserv and periodic meetings of the program, which is held over a three-day period and Civil War 150 Local Committee Roundtable. involves as many as 200 teachers from across the Kiosks: The Workgroup is developing recommenda- country. The 2009 Civil War Teacher Institute will tions to place kiosks throughout the state with be held in Spotsylvania County from July 24-26. The information on Civil War-related travel destinations, goal of the Institute is to impart in teachers not only a based on the interactive "Then/Now" map on the better understanding of the Civil War for themselves, Commission's website. There are currently 35 kiosks but also to give them the tools to teach the Civil War, in operation in Virginia's state parks, which the including how to incorporate battlefield

VOLUME 18 ISSUE 6 P AGE 23

Department of Conservation and Recreation has offered Harper's Ferry event: Staff continue to work to partner with the Commission in creating a larger with representatives of the West Virginia legislature statewide network of kiosks. The Executive Committee and Harper's Ferry National Historical Park to plan directed staff to form a workgroup to further develop the a joint-state event that will serve as the national recommendations, composed of representatives of the kickoff of the sesquicentennial. The event is Virginia Tourism Corporation, Virginia Department of scheduled for June 25, 2009. Transportation, Department of Conservation and Document Digitization pilot program: The Recreation, National Park Service, Dominion Power, and Library of Virginia is working with the Danville and Imperial Multimedia. Washington County sesquicentennial committees to Micro-grants to Localities: Earlier in 2008, the conduct a pilot of the document scanning project. Commission made funds available to offer matching The pilot will be held on November 22 at the grants in conjunction with local committees for Institute for Advanced Learning and Research in marketing of sesquicentennial events that support the Danville. goals of the commemoration. The grant program will be administered by the Virginia Tourism Corporation, with WORKGROUP 3 - EDUCATION the first application window opening in January 2009. Brenda Edwards briefed the Commission on the The Executive Committee will have review oversight and progress of Workgroup 3, which is chaired by make final decisions on grant recipients. Delegate Algie Howell and is charged with oversight MOU Review/Criteria for Letters of Support: Staff of the education component of the commemora- reviewed the Memorandum of Understanding that local tion. The workgroup has formed an Ad Hoc committees and others who desire to use the Subcommittee, chaired by Sen. Locke, to review the Commission's logo must sign, as well as criteria for letters various methodologies for teaching American Civil of support or endorsements by the Commission. In all War history, address the hard and controversial cases, third parties must agree to work in concert with issues of the Civil War and its legacy that teachers and furtherance of the Commission's goals for the may encounter in the classroom and options for commemoration, which include diversity, inclusiveness, dealing with controversies in the classroom, review accessibility, education, and positive long-term legacy. the "message" of various sesquicentennial initiatives, Requests for letters of support or endorsement will be and recommend alternatives to resolve concerns. brought to the Executive Committee for approval. Dr. Stephen Rockenback outlined academic approaches to teaching Civil War history, which

WORKGROUP 2 - SIGNATURE EVENTS include narrative, thematic, and community history Cheryl Jackson provided an update on the plans of approaches. Workgroup 2, which is chaired by Speaker Howell and is The Workgroup supports the idea of a one-stop, charged with oversight of Signature Events and comprehensive resource for educators, and to that Activities. end, is developing a Compendium on the Signature Conference: The first official sesquicenten- Sesquicentennial of the American Civil War for nial event in the nation is the Commission's inaugural Educators. The workgroup is also recommending Signature Conference, "America on the Eve of the Civil two Law School Symposia. The first would be a War." It will be a day-long conference held at the moot court held in 2011, highlighting legal issues University of Richmond on Wednesday, April 29, 2009. surrounding the separation of West Virginia and Virginia. The second is scheduled for 2013, in Members were briefed on the schedule and asked to th consider an invitation list. conjunction with the 150 anniversary of the Emancipation Proclamation, to examine the Themes and Signature Conferences 2010 - 2015: The historical, political, social, and legal context of the Executive Committee discussed the future schedule for 13th, 14th and 15th amendments to the United States annual conferences, as well as the establishment of Constitution, the import of these Amendments on themes highlighting a wide range of subjects throughout the rule of law, and their legacy in modern times. the commemoration. After a discussion on the merits of providing a full array of programs that includes homefront, social and cultural themes as well as Other Business battlefront and military themes, Dr. Bryan moved, and Speaker Howell recognized Dr. Charles F. Bryan, Del. A. T. Howell seconded, adoption of the themes and Jr. on his retirement from the Virginia Historical conference schedule as presented. The motion was Society, thanked him for his vision on the approved unanimously. sesquicentennial and his service to the Commission,

P AGE 24 Virginia Legislative Record NOV—DEC 2008

and presented him with a gift. Dr. Paul A. Levengood programs be administered by electric utilities, government will succeed Dr. Bryan. agencies, commercial organizations, other types of third parties, or some combination of the entities listed here? VIRGINIA SESQUICENTENNIAL OF THE • To what, if any, extent should the Commission incorporate AMERICAN CIVIL WAR COMMISSION quantified environmental externalities—or any other externalities—into the regulatory process? (Mr. Bolstad SPEAKER WILLIAM J. HOWELL, CHAIR noted that the real cost impact of environmental Cheryl Jackson, Brenda Edwards, externalities has gained special importance recently and and Danielle Watkins, DLS Staff cannot be cast aside in light of public awareness of global

Telephone (804) 786-3591 warming and the possibility of greenhouse gas regulation.)

http://dls.virginia.gov/civilwar.htm The sole recommendation of the SCC report was http://www.virginiacivilwar.org that electric utilities provide information and data to determine the “cost-effectiveness” of demand-side management programs. Since the publication of the

report in 2007, the SCC has been involved with applications for several pilot programs managed by Virginia Commission on Energy the utilities; renewable energy portfolio standards; and Environment 11-19-08 the development of a consumer education plan; and integrated resource planning. Senator Whipple called to order the fourth meeting Senator Petersen asked about the efficiency goal of the Commission on Energy and Environment. After of a 10% reduction in electricity consumption and brief introductions, the Commission began with the whether the measurement of this goal was clear. Mr. first speaker on the agenda. Bolstad responded that there was confusion as to

how the goal accounted for growth of population Arlen Bolstad, State Corporation Commission and that more clarity would be helpful. Hugh Arlen Bolstad provided the Commission with an Montgomery, who was also a member of one of the overview of the report by the State Corporation workgroups contributing to the SCC report, voiced Commission ("SCC") on the feasibility of a 10 percent his concern that electricity rates are not structured in reduction in electric energy consumption by 2022. The a way to encourage conservation. Senator Whipple SCC received input from 180 people and adopted five asked for an update on the progress of the self-directed subgroups: general issues; conservation development of a consumer education plan. Mr. and energy efficiency; demand response; financial Bolstad responded that the plan borrows heavily considerations; and consumer education. SCC staff from the fifth subgroup created for the production of concluded that the 10 percent goal was indeed the report. Mr. Wallmeyer asked about the declining achievable and noted the potential programs set forth rate structures currently used and whether other in the Virginia Energy Plan as a manner of achieving models had been attempted. The SCC has asked that goal. The SCC specifically asked for policy utilities to examine rate design infrastructure and the guidance in four key areas: inclusion of more intelligent price signals.

• To what, if any, extent should regulated retail electric prices in Neal Elliott, ACEEE Virginia be used as a means to promote cost-effective Neal Elliot presented the Commission with the conservation of energy through fair and effective demand side American Council for an Energy-Efficient Economy management, conservation, energy efficiency, and load (ACEEE) report "Energizing Virginia: Efficiency management programs? First." After reviewing the process used to develop the report, he stressed that states should view • Will participants pay for their own energy efficiency measures electricity efficiency and conservation as the least-cost out of anticipated electric bill savings or will energy efficiency resource to meet our growing energy demands. Mr. measures be funded out of a pot of money collected from the Elliott also stressed the distinction between general body of ratepayers? conservation and efficiency. Efficiency is a resource that can be purchased, for example by obtaining • Apart from pure peak reduction programs that must be more modern appliances or weather-stripping. administered by the system operator, will energy efficiency Conservation is a reflection of changed behavior to

VOLUME 18 ISSUE 6 P AGE 25

avoid the consumption of energy. The ACEEE report be the favored approach by industry and that what was found that the Commonwealth could actually meant by decoupling should be carefully examined. Mr. achieve a 19% energy reduction, equivalent to Reasor then referred to a pending rate case where base 28000GWh, and examined how that reduction could rates are increased to cover fixed costs; the quantity of be achieved among sectors of the economy through usage is then passed through to the user.

various technological and regulatory policies. Mr. David Green, Dominion Resources Elliot reinforced that electricity rates are rising now David Green reviewed the numerous innovative pilot and will continue to rise in the future. The effect of programs being explored by Dominion. Dr. Hatcher aggressive conservation and efficiency program would asked about the susceptibility of smart meters to simply be decline in the rate of increase. Another lightning strikes. Mr. Green responded that 1/3 of important benefit of an aggressive conservation and meters already in use are solid state meters similar to efficiency program would be the creation of jobs over that in smart meters and that no problems have been the long-term, whereas expanded generation reported. primarily creates jobs during the short-term construction phase. Delegate Poindexter asked about the interface of the smart meter. Mr. Green responded that the meter can Delegate Sickles asked whether there was a interact generally with the thermostat or specifically to conflict between electric efficiency and conservation separate appliances—various technologies are being programs and renewable portfolio standards. Mr. explored in the pilot programs. Mr. Wallmeyer asked if Elliott responded that there was no conflict, information from the pilot programs would be available especially when efficiency planning enters into the soon enough to impact the upcoming round of scenario to ensure renewable energy is affordable. For integrated resource planning. Mr. Green noted that example, when energy needs are reduced, the savings Dominion would file its IRP within 90 days. Senator can be invested in the implementation of renewable Whipple inquired about the time frame to deploy energy. This happens often when designing a advanced meter infrastructure. Mr. Green responded building. Senator Stuart asked about opportunities that it would be phased in over time. Already tests are for cogeneration and the regulatory obstacles that being done on two circuits in the Richmond area. The might exist for cogeneration. Mr. Elliott explained next step would be full test at another office such as that combined heat and power ("CHP") has Charlottesville. Senator Petersen asked if there are any historically been regulated by its multiple outputs--air auditors reviewed the success of the pilot programs. emissions as a generator and as a public utility for the Green commented that Dominion has internal auditors distribution of electricity. The more modern view and employs consultants, but that there were no would be to treat CHP according to its inputs, since external auditors specifically used to do so. it produces two types of energy, electric and thermal, with the same fuel. If CHP could be regulated on its Ron Jefferson, AEP Appalachian Power single input rather than its multiple outputs, the Ron Jefferson discussed the numerous approaches administrative penalty could be lessened. AEP Appalachian Power takes to helping customers Dr. Hatcher asked about the calculation used to conserve electricity and demonstrated the tools on determine additional energy efficiency jobs and AEP's website to allow customers to calculate energy whether it reflected the avoided jobs from a savings in their home. dampened need to expand the energy generation Mr. Wallmeyer asked if AEP would be able to meet sector. Mr. Elliott replied that this was taken into the current efficiency goal in the Commonwealth to account. reduce consumption by 10%. Mr. Jefferson responded

Jack Reasor, ODEC that he was confident that AEP would be able to meet this goal through various programs. Senator Whipple Jack Reasor began by noting that Old Dominion asked how AEP had achieved such penetration with Electric Cooperative (ODEC) has been working on compact fluorescents for lighting. Mr. Jefferson said that this issue for more than 25 years and that the consumers were educated by product packaging, media, organization is unique because 95 percent of its users invoice inserts, and other utility promotions. are residential. Delegate Nixon asked about market driven conservation efforts and whether Mr. Reasor Bill Carden, Potomac Supply Corporation agreed with rate design issues need to be addressed, Senator Stuart introduced his constituent Bill perhaps according to a decoupling model like that Carden, the president of Potomac Supply Corporation. implemented by the General Assembly for natural Mr. Carden provided an engaging review of the gas. Mr. Reasor responded that decoupling may not importance of forestry and lumber products industries

P AGE 26 Virginia Legislative Record NOV—DEC 2008

to Virginia. Although these industries are Dr. Schulz discussed her constituent's desire for experiencing economic difficulties, there is an support of solar energy through a feed in tariff and the untapped potential to adapt wood products for use as establishment of a solar center at a major university. The energy feedstocks. Governor's office is already considering feed in tariffs and a solar center at DMME has been in place for many Public Comment years without funding. The Commission reviewed correspondence from the Senator Stuart made a motion to allow public Fairfax County Board of Supervisors requesting tax comment prior to the Commission's discussion of credits for residential solar installation and from the other business. Virginia Trucking Association recommending a number Sara Rispin spoke on behalf of the Southern of anti-idling provisions. Several of these recommenda- Environmental Law Center in support of the ACEEE tions are also already being discussed by the report and emphasized that efficiency is the best way administration. to meet growing energy needs. Ms. Rispin also lauded Senator Petersen said he would like to introduce the work of the Governor's Commission on Climate legislation to rewrite the current goal of reducing electric Change and its recent endorsement of 101 consumption by 10 percent. recommendations, many of them related to the mitigation of energy demands. Mr. Glen Besa spoke The Commission discussed the role of energy audits on behalf of the Sierra Club and asked that the and energy managers in state government. The Commission carefully look at all options and Governor has adopted an aggressive plan to reduce incentivizing Virginians and utilities to make the energy use by state agencies by executive order. right choices for the environment. Mr. Tom Cormons spoke on behalf of Appalachian Voices and Recommendations sounded his groups favor of looking to energy efficiency as a resource to avoid building new Senator Whipple gave final remarks and summarized generation and consuming more coal, both of which the recommendations of the Commission as follows:

contribute to destructive environmental externalities. • Identify dedicated funding for biofuels production. Ms. Ivy Main spoke on renewable energy options for the Sierra Club. She noted that coal can no longer be • Require that diesel fuel include a minimum of two percent viewed as the low cost fuel option in light of synthetic fuel. strengthening prices. She asked that a new scenario • Clarify the existing goal to reduce electricity consumption by 10 be adopted to fully acknowledge the potential of percent by 2022. offshore wind to produce electricity.

Member Discussion Next Meeting Senator Petersen discussed the importance of The next meeting of the Energy and Environment biofuels and urged that the General Assembly locate Commission will be posted on the DLS website when dedicated funding to catalyze the progression of information is available. second generation cellulosic biofuels. Senator Whipple noted that we could strengthen the market for biofuels by requiring that diesel fuel sold in the Commission on Commonwealth include two percent biodiesel by volume. Any legislation should include a delayed Energy and Environment effective date. Mr. Montgomery expressed concern that legislation should not be too specific but should support policy of including any of a number of SENATOR MARY MARGARET WHIPPLE, CHAIR

synthetic fuels. Ellen Porter, DLS Staff

Delegate Poindexter noted the importance of 910 Capitol Street using forest debris for a renewable energy feedstock. General Assembly Building, 2nd Floor Mr. Walz commented that a significant obstacle to Telephone (804) 786-3591 using forest debris is the infrastructure needed to transport the feedstock from its source to a point for http://dls.virginia.gov/energy.htm processing.

VOLUME 18 ISSUE 6 P AGE 27

Virginia Freedom of Information SSNs should be a separate statute and not a part of FOIA so as not to harm the underlying policy of FOIA as noted above. Advisory Council 12-1-2008 Secondly, entire SSNs should be treated as confidential and The Freedom of Information Advisory Council (the their release prohibited except under limited circumstances, Council) held its final meeting of 2008 in Richmond. including to law-enforcement and criminal justice agencies or pursuant to proper judicial order. The joint subcommittees voted to table further consideration of HB 1102 that would Subcommittee Reports create a FOIA exemption for social security numbers. Personal Identifying Information Subcommittee: The Electronic Meetings Subcommittee: Chair Craig Fifer, PII Subcommittee, with the concurrence of the JCOTS reported that the subcommittee unanimously recommends SSN Subcommittee, recommended to the Council the draft legislation that would allow the Air Board and the following legislative proposals: Water Board to meet by electronic means provided the • Amendments to the Government Data Collection and meeting is held in compliance with the provisions of the Dissemination Practices Act (GDCDPA): Clarification that the FOIA, specifically § 2.2-3708, except that a quorum of the recently enacted prohibition on collection of social security respective Boards would not be required to be physically numbers without authorization would apply to the collection of assembled at one primary or central meeting location. The all or any portion of a social security number; and extension of the implementation date of the prohibition to July 1, 2010. draft legislation also required that discussions of the respective Currently, the prohibitions are set to become effective on July Boards held via such electronic communication means must 1, 2009. However, due to the response from the social be specifically limited to those matters for which the meeting security number surveys and the immense amount of data to was called, and no other matter of public business shall be process and verify, it was recommended that an additional discussed or transacted by the respective Boards. year might be necessary to thoroughly review and process all Database Index Subcommittee: Chair Frosty Landon of the implementation issues. reported that the subcommittee met to consider the database • Concealed Handgun Permits: The PII Subcommittee voted index requirement set forth in subsection J of § 2.2-3704, and again to recommend SB 529 as introduced in 2008 because of as a related matter, the statement of rights and responsibilities its belief that it reflects the proper balance between privacy required under § 2.2-3704.1. The Subcommittee voted and public access. The draft legislation would require the unanimously to recommend a draft that would repeal the Department of State Police (DSP) to withhold from pubic database index requirement as it found that agencies were not disclosure permittee information submitted to the DSP for complying with the requirement and the public was not purposes of entry into the Virginia Criminal Information inquiring about the indices. The draft would also amend the Network, with a limited exception for access by law- required rights and responsibilities statement to require enforcement agencies. Records of the names and addresses of holders of concealed weapons permits issued by the DSP to agencies to provide a general description, summary, list, or out-of-state persons would be publicly available from DSP. index of the types of records it has and exemptions that may Permittee records will still be open to the public at each circuit apply to those records. The new requirements would help to court where the permits are issued. increase public oversight without trying to define the term "database." The new provisions could also be used by agencies • Protection of Social Security Numbers in Public Records: HB 1096 would prohibit the release of social security numbers on to help coordinate disclosure with the required retention public records, but would allow the last four digits to be released schedules under the Virginia Public Records Act. Mr. for purposes of identity verification to certain entities, such as the Landon reported that while it may entail a little more work at press, private investigators, and data aggregators. Questions first, the general reaction from state agencies was supportive. were raised about allowing the last four digits to be released to Meeting Minutes Subcommittee: Staff reported that the the press, private investigators, and data aggregators for verification purposes, and not to the general public. This subcommittee recommended draft legislation that would provision raised questions about the definition of a news- require explicitly that meeting minutes be in writing. The gathering organization as the proliferation of electronic media recommendation is declaratory of existing law, and makes makes it difficult to determine. The joint subcommittees technical changes. recommended reintroduction of HB 1096, but would allow anyone to receive the last four digits of a social security number for verification purposes. Action on Subcommittee Reports • Personal Identifying Information Subcommittee: The Staff presented three approaches to protect the Council voted unanimously to adopt the PII disclosure of SSNs, including the PII Subcommittee Subcommittee recommendations to amend the GDCDPA. recommendation. The reason for differing approaches With respect to the protection of SSNs, the Council voted came as a result of questions raised during the drafting of to defer action on this issue because none of the the PII Subcommittee recommendation. First, protection of approaches appeared to strike the proper balance.

P AGE 28 Virginia Legislative Record NOV—DEC 2008

• Electronic Meetings Subcommittee: The Council voted records would be protected. VEDP responded that this unanimously to adopt the EMeetings Subcommittee suggestion did not change their position. All parties agreed to recommendation. continue to work to find a compromise. • Database Index Subcommittee: The Council voted James G. Council on behalf of the Prince William County unanimously to adopt the Database Index School Board discussed with the Council the School Board Subcommittee recommendation. proposed legislation to exempt from FOIA records relating to • Meeting Minutes Subcommittee: The Council had the school system's electronic visitor identification system. He previously voted unanimously to approve the explained that the system was capable of taking government recommendation of the Subcommittee. identification and scanning it into a database which captures The Council will include draft legislation on above name, address, SSN, date of birth, and other personal as part of the its legislative recommendations to the information. He stated that the system was beneficial to the 2009 Session of the General Assembly. schools because they could cross check this information with sexual predator registries, for example. Craig Merritt, representing VPA, advised the Council that FOIA already Legislative Preview (Part II) covered protection of security systems and that the collection Delegate Griffith reminded the Council that Part I of of other personal information was not essential to the school the annual legislative preview was held at the October 6, security mission. He suggested that this issue be given to the 2008 meeting where the Council heard from the Virginia PII Subcommittee for further examination. Economic Development Partnership Authority and the The Council then heard from Mark Flynn of the Virginia Virginia Municipal League. Delegate Griffith also Municipal League (VML) concerning the expansion of the reminded the Council that the purpose of the legislative exemption for complainant information related to zoning preview was not to take action on any particular proposal, violations found at subdivision 10 of § 2.2-3705.3 to also but instead to bring the issues to light so that resolution of provide protection for individual building code and fire them might be achieved before Session. prevention code complaints. He noted that there had been William Watt, Policy and Planning Specialist, some compromise with the VPA. Craig Merritt on behalf of Department of the Treasury, advised the Council of the VPA explained that the compromise made the proposal better, need for a FOIA exemption for the Commonwealth's but not good. VPA opposes the exemption on the basis that agency risk management and internal control standards there should be no anonymous "snitching" on neighbors. assessments. Mr. Watt explained that the proposal is a result of the Comptroller's directive to implement an Other Business annual assessment of agency internal control systems in Mr. Fifer proposed that the FOIA rights and order to provide reasonable assurances of the integrity of all responsibilities statement currently required for state public fiscal processes related to the submission of transactions to bodies under § 2.2-3704.1 be expanded to apply to local public the Commonwealth's general ledger and stewardship over bodies. Mr. Fifer requested the Council to take action on his the Commonwealth's assets. The concern was that if proposal. After public comment that this issue had not been internal controls were known, they could be defeated at the vetted, the Council by consensus agreed to appoint a risk of the Commonwealth's assets. subcommittee to work on this issue in 2009. Staff distributed The Council then heard from Sandy McNinch of the the executive summary for the Council's 2008 annual report to Virginia Economic Development Authority (VEDP) the Governor and the General Assembly, and requested that concerning expansion of the current record exemption for any revisions be submitted in a timely fashion. economic development to include certain business retention information. Ms. McNinch reported that there was agreement that business retention information should Virginia Freedom of Information be protected; however, there was disagreement on how to Advisory Council accomplish it. She advised that VEDP prefers the draft option that does not require the "earmarking" of proprietary documents upon submission as it is DELEGATE MORGAN GRIFFITH, CHAIR impracticable in the fast paced economic development Maria J.K. Everett, Executive Director setting. Craig Merritt, representing VPA, reported that VPA favored the earmarking provision and suggested that 910 Capitol Street to address VEDP's concerns that earmarking would slow General Assembly Building, 2nd Floor down the economic development process VEDP would not Telephone (804) 225-3056 be required to make a written determination of which http://dls.virginia.gov/foiacouncil.htm

VOLUME 18 ISSUE 6 P AGE 29

SMALL BUSINESS section of the National Federation of Independent Businesses inform its membership about Section 125 plans. COMMISSION 12-0-08 MANDATED HEALTH INSURANCE BENEFITS Overview Senator George L. Barker, who is a member of both the Commission and the Special Advisory Commission on The Small Business Commission held its final meeting Mandated Health Insurance Benefits, updated the prior to the 2009 Session in Richmond on December 9, Commission on the work of the Special Advisory 2008, with co-chairmen, Delegate Jeffrey M. Frederick and Commission. He noted that the Special Advisory Commission Senator W. Roscoe Reynolds presiding. considered four mandates involving in vitro fertilization, hearing aids for children, amino acid based formulas, and Presentations autism services. Of the four, the Special Advisory Commission's only recommendation was for the autism HOUSE BILL 352 services mandate. Senator Barker explained that he offered an House Bill 352: Motor carriers; liability insurance for amendment that would require that this mandate also apply to buses with capacity of no more than 40 passengers was passed the state health insurance plan, but that this amendment was by in the House Committee on Transportation during the defeated. 2008 Session of the General Assembly and the bill was forwarded by letter to the Commission for further study. The Public Comment bill was first considered by the Commission at its August Delegate Daniel W. Marshall, III, spoke to the 12th meeting, where the Commission asked Delegate Mark Commission about limited benefit health insurance L. Cole to meet with the relevant stakeholders and prepare a policies in the form of his bill from 2007, House Bill new proposal to be revisited at a future meeting. 3160. This bill would allow the sale of insurance Delegate Cole has filed a similar bill, House Bill 1627, for policies that are not required to provide coverage for the 2009 Session. The bill would still allow sightseeing some or all of the mandated health insurance benefits trolleys to maintain liability insurance on buses in the contained in the Virginia Code. The bill limits the amount of $1,500,000, instead of the $5,000,000 currently availability of such plans to small businesses that employ required by the Code of Virginia. House Bill 1627 also between two and 50 employees and that had not offered features a revised definition of the term "trolley." health insurance during the preceding six months would The Commission also heard from Robert Bradshaw, who be eligible to purchase such policies. The Commission represents the Independent Insurance Agents of Virginia, had voted at its last meeting to recommend the bill in and Dennis Gallagher, who represents the Virginia Taxicab concept. Association, both of whom opposed the bill. The Commission expressed concerns regarding the Legislative Recommendations potential impact of lowering the amount of liability insurance on trolleys and declined to take any action on the bill. The Commission voted to endorse House Bill 3160 and during the 2009 Session. The Commission also directed ACTION ON SECTION 125 PLANS staff to prepare letters to the chairs of the relevant General Assembly committees informing them of the Commission's Stephen W. Bowman, Senior Staff Attorney for the Joint recommendations, including the Commission's Commission on Health Care (JCHC) made a presentation recommendation adopted at its last meeting stating that no on Section 125 plans. Mr. Bowman explained that Section new insurance mandates should be enacted during the 2009 125 of the Internal Revenue Code enables employees to Session. purchase health insurance policies with pre-tax dollars. Mr. Bowman reported that the JCHC considered several policy options for dealing with Section 125 plans and endorsed Small Business Commission three: (i) requesting that the Department of Human Resources Management, in conjunction with the DELEGATE JEFFREY M. FREDERICK. CHAIR Department of Business Assistance, create detailed SENATOR W. ROSCOE REYNOLDS, CHAIR documents highlighting Section 125 plans, posting a sample

Section 125 plan form, and making these documents David Cotter, DLS Staff available to the business community, (ii) requesting that the Telephone (804) 786-3591 Virginia Chamber of Commerce inform its membership about Section 125 plans, and (iii) requesting that the Virginia http://dls.virginia.gov/business.htm

P AGE 30 Virginia Legislative Record NOV—DEC 2008

REGULATORY ALERT A CONVENIENT GUIDE TO REGULATORY ACTIVITY IN THE COMMONWEALTH

The Regulatory Alert is intended to assist General Assembly members a s they keep u p with the myriad regulations being proposed by agencies i n t he Commonwealth. The goal of this project is to provide a timely, simple, and accurate summary of the rules that are being proposed by agencies, boards, and commissions. Highlighting regulations when they are published as "proposed regulations" gives General Assembly members notice that the critical public participation phase of the rulemaking process is well underway. It is during the public participation process that the questions of an Assembly member or constituent m a y be most effectively communicated to the agency and examined by the individuals crafting the regulatory proposal. The Regulatory Alert is not intended t o be a substitute for the comprehensive information on agency rulemaking activity that is currently published biweekly in the Virginia Register of Regulations or the notification services offered by the Regulatory Town Hall website maintained by the Department of Planning and Budget. It is hoped that the Legislative Record will assist all members as they monitor the development, modification, and repeal of administrative rules in the Commonwealth. Access the Virginia Register of Regulations online at http://legis.virginia.gov/codecomm/register/regindex.htm or contact [email protected] or the Code Commission staff at (804) 786-3591 for further information.

TITLE 6. CRIMINAL JUSTICE TITLE 12. HEALTH

AND CORRECTIONS

STATE BOARD OF HEALTH FORENSIC SCIENCE BOARD

12VAC5-391. Regulations for the Licensure of 6VAC40-60. DNA Data Bank Regulations (adding Hospice (amending 12VAC5-391-10, 12VAC5-391- 6VAC40-60-10 through 6VAC40-60-80). 120, 12VAC5-391-150, 12VAC5-391-160, 12VAC5- 391-180, 12VAC5-391-300, 12VAC5-391-440, Written public comment may be submitted until 5 p.m. on 12VAC5-391-450, 12VAC5-391-460, 12VAC5-391- January 23, 2009. 480, 12VAC5-391-500; adding 12VAC5-391-395, 12VAC5-391-445, 12VAC5-391-446, 12VAC5-391- Summary: 485, 12VAC5-391-495, 12VAC5-391-510). The proposed regulations establish the procedures for law enforcement to obtain information from the Written public comment may be submitted until 5 p.m. on DNA data bank and further establish who at the January 23, 2009. Department of Forensic Science has access to the DNA data bank. The regulations also detail the level of access for each Department of Forensic Summary: Science employee. Chapter 391 of the 2007 Acts of Assembly places oversight of hospice facilities with the Department of Health and establishes that continuity of hospice For further information, please contact Michele M. Gowdy, services provided in a patient's home also be Department Counsel, Department of Forensic Science, provided in a dedicated facility. Richmond, telephone (804) 786-6848, FAX (804) 786-6857, or email [email protected]. This change in law necessitates amending the current regulation by expanding the standards addressing patient care and safety in hospice facilities. The proposed amendments also address omissions in the regulation when it was revised in 2005. The proposed amendments (i) clarify definitions pertaining to hospice facility and inpatient services; (ii) provide clarification between a hospice facility and inpatient services in a hospital or nursing facility; (iii) require notifying the Department of Health of the relocation

VOLUME 18 ISSUE 6 P AGE 31

of a hospice facility; (iv) add provisions for handling medical errors and drug reactions; (v) require Division of Legislative Services compliance with state and local codes, zoning and building ordinances and the Uniform Statewide Building Code; (vi) prohibit a hospice facility from 910 Capitol Street, 2nd Floor being used for any purpose other than the provision Richmond, Virginia 23219 of hospice services; (vii) require that a set of as-built plans be retained; (viii) establish additional physical (804) 786-3591 plant requirements for operating a hospice facility; (ix) establish necessary hospice facility financial E. M. Miller, Jr., Director controls and requirements for handling patient funds; R.J. Austin, Manager, Special Projects (x) require 24-hour nursing services including Lynda Waddill, Publication Editor trained and supervised staff to meet the total needs of Lea Ann Robertson, Copy Editor the hospice patients; (xi) allow facilities with six or fewer beds to have a single licensed nurse as long as © 2008 Division of Legislative Services patient needs are met; (xii) provide for a 20-minute Published in Richmond, Virginia response time if a registered nurse is not present at by the Division of Legislative Services, the facility; and (xiii) make changes to provide consistency with other facility-type regulations. an agency of the General Assembly of Virginia.

For further information, please contact Carrie Eddy, The Legislative Record is available online at-

Department of Health, Richmond, telephone (804) 367-5100, http://dls.virginia.gov/pubs/legisrec/2008/welcome.htm or email [email protected].

Division of Legislative Services 910 Capitol Street General Assembly Bldg, 2nd Floor Richmond, Virginia 23219

Virginia Legislative Record