The 1999 Session of the General Assembly passed House Joint Resolution No. 730 (Appendix A), which established a 13-member joint subcommittee to study the impact of satellite chip mills on Virginia's economy and environment. In conducting its study, the joint subcommittee was directed to examine the:

1. Experiences in other states with the operation of satellite chip mills;

2. Current and potential impacts of satellite chip mills on Virginia's economy, natural resources and environment;

3. Potential impact on private forest landowners, including long-term profitability, the availability of markets and forest management options;

4. Sustainability of Virginia's forest resources to accommodate current and potential satellite chip mill production, including methods to improve forest management by private landowners; and

5. Practical methods for assuring economic and environmental sustainability of the forest, including the need for adequate resources for the Department of Forestry and other government agencies charged with the conservation of Virginia's forestlands.

A budget of $12,000 was allocated to complete the study, and the subcommittee charged to report its findings and recommendations to the Governor of the 2001 Session of the General Assembly. The two-year budget provided funding for eight meetings of the joint subcommittee.