SD35 - Annual Report of the Virginia Coal and Energy Commission


Executive Summary:
The Virginia Coal and Energy Commission held four meetings prior to the 1991 Session of the General Assembly. During August of 1990, the Commission held two meetings in Abingdon. Issues discussed at these meetings included how best to prepare for the day when Virginia's production of coal begins to irreversibly decline, the impacts of proposed amendments to the federal Clean Air Act on Virginia's coal and electric power industry, electric ratepayers, and the Commonwealth as a whole, and transmission capacity and the wheeling of power. At its third meeting, the Commission reviewed issues related to the funding of several state energy programs and the problems which continue to plague cogeneration/power projects seeking air permits. The Commission also received an update on the status of regulations being developed under the new Virginia Gas and Oil Act at its final meeting.

While the Commission met on four separate occasions during the year, the Commission's Energy Preparedness Subcommittee and Coal Subcommittee also held meetings. The Energy Preparedness Subcommittee reviewed the accomplishments and funding of various state energy programs while the Coal Subcommittee studied the impacts to date of Virginia's Coal Employment and Production Incentive Tax Credit.

During the course of the year, the Commission made several recommendations to Virginia's Congressional Delegation and the Governor. The recommendations made to Virginia's Congressional Delegation were as follows:

1. That certain proposed amendments to the federal Clean Air Act relating to units in progress, toxics, visibility protection, nonattainment/NOx controls, and the WEPCO doctrine should be supported, opposed, or modified because of their potential impact upon Virginia's coal and electric industries, electric ratepayers, and the Commonwealth as a whole; and

2. That EPA's regional administrative responsibilities over the Commonwealth should be shifted from EPA's Region III to Region IV so that Virginia might enjoy a more favorable regulatory climate.

The recommendations made to the Governor were as follows:

1. That the Low Income Housing Energy Assistance Program should be provided with at least the same level of funding for fiscal year 1991-92 as it received during fiscal year 1990-91, in order that the program can continue to achieve statewide coverage; and

2. That the Weatherization Assistance Program should be provided with state funding for fiscal year 1991-92 at a level which is sufficient to allow the program to achieve statewide coverage.