Virginia Lawmakers Approve Energy Initiatives, Consolidate Research Efforts

Several of Gov. Tim Kaine's energy and job creation proposals were included in the approved revisions to Virginia's current two-year budget passed by the General Assembly last month. Lawmakers, faced with a projected $ 3.7 billion deficit, made revisions and incorporated federal stimulus funding from the American Recovery and Reinvestment Act (ARRA) to amend the budget.

Legislators passed a measure proposed by Gov. Kaine to merge the Innovative Technology Authority (ITA) and the Virginia Research and Technology Advisory Commission into a single entity named the Innovation and Entrepreneurship Investment Authority.

The new Innovation and Entrepreneurship Investment Authority will continue the work of the ITA - the governing body of the Center for Innovative Technology - with heightened responsibilities regarding the oversight of R&D efforts, according to the governor's office. The authority is charged with developing a strategic roadmap for the state identifying research areas worthy of institutional focus and incorporating the strategic plan for each of Virginia's research universities.

The revised budget uses federal stimulus money to boost funding for the Governor's Development Opportunity Fund. Legislators approved an amendment authorizing the governor to use $ 588,945 in federal stimulus funds for economic development projects in the second year. Total funding available is $ 12.5 million in FY10, an increase of $ 5 million in the second year from the approved 2008-10 biennial budget. Lawmakers also restored $ 500,000 that was removed in the governor's proposed amendments for the Virginia Economic Development Partnership.

To expedite the state's deployment and reduce cost of broadband access, legislators approved SB 1336, establishing the Governor's Broadband Advisory Council.

Gov. Kaine won approval for reform measures under the Renew Virginia Initiative announced in December as a green jobs and energy proposal (see the Jan.7, 2008 issue of the Digest). They include:

• SB 1186 - A measure to amend the existing Biofuels Production Incentive Grant Program to create a larger incentive for advanced biofuels that are made from cellulose, hemicelluloses, lignin or algae than for biofuels made from food stocks, such as corn.
• SB 1339 - A measure providing tools to expand energy efficiency and the use of renewable energy sources by allowing utility companies to modify electric rates to allow customers to shift electric use to non-peak times when rates are lower. This measure also raises the state's renewable energy portfolio standard to 15 percent by 2025.

Tax credits for individuals and corporate entities to install renewable energy systems and a measure to exempt sales and use tax for renewable energy systems installed on residential property were not approved.

Lawmakers passed a measure increasing incentive funding for grants provided through the Virginia Investment Partnership Act. The measure, HB 2442, raises the per project amount for Virginia Investment Performance grants from $ 1.5 million to $ 3 million and is intended to encourage expansion of manufacturing and R&D services supporting manufacturing in the state. Budget documents note that because of a two or three year lag between a company's performance and its receipt of grant payments, no fiscal impact will occur in the current biennium. 

The revised budget uses federal stimulus money to boost funding for the Governor's Development Opportunity Fund. Legislators approved an amendment authorizing the governor to use $ 588,945 in federal stimulus funds for economic development projects in the second year. Total funding available is $ 12.5 million in FY10, an increase of $ 5 million in the second year from the approved 2008-10 biennial budget. Lawmakers also restored $ 500,000 that was removed in the governor's proposed amendments for the Virginia Economic Development Partnership.

To expedite the state's deployment and reduce cost of broadband access, legislators approved SB 1336, establishing the Governor's Broadband Advisory Council.

Another $ 127 million in federal stimulus money was approved for colleges and universities by lawmakers, who directed school officials not to raise tuition more than 5 percent in the fall, reports The Washington Post. The General Assembly will convene April 8 to consider Gov. Kaine's vetoes.

The conference report is available at: http://leg2.state.va.us/moneyweb.nsf/bud2009.