Saturday, October 18, 2014

Governor McAuliffe Signs Executive Order on Reducing Energy Consumption in Virginia Government

Logo of the CRC Energy Efficiency Scheme
Logo of the CRC Energy Efficiency Scheme (Photo credit: Wikipedia)
Today at an award ceremony honoring the Department of Motor Vehicles (DMV) energy efficiency efforts at the DMV Headquarters building in Richmond, Governor Terry McAuliffe signed Executive Order 31 to reduce energy consumption in state government. 
   
DMV received the “Energy Efficiency Leader Award” in recognition of the agency’s leadership in reducing its environmental impact.  The project was completed through the Virginia Energy Performance Contracting (EPC) program, which allows state agencies to partner with private sector vendors to improve environmental systems at state-owned buildings at no cost to the taxpayers.  These improvements are paid with the savings generated from upgrading to more efficient environmental systems.

Executive Order 31 instructs all executive branch agencies, authorities, departments, and all institutions of higher education to proactively pursue energy efficiency measures, especially EPC, to reduce energy consumption.  The EO also appoints Hayes Framme as Chief Energy Efficiency Officer within the administration to oversee the planning, implementation, and measurement of energy efficiency throughout state government. 

In signing the executive order, Governor McAuliffe said, “Reducing energy consumption in state government will save taxpayers money, strengthen our energy efficiency industry and decrease Virginia’s greenhouse gas emissions. It will also set an example for businesses and families of steps that we can all take to make Virginia the most energy efficient state in the nation.”

The Governor added, “The Department of Motor Vehicles has shown tremendous leadership in proactively seeking out energy efficiency measures that reduce consumption, reduce costs, and save taxpayer dollars.  The savings achieved in this project are fantastic, 36% energy consumption reduction and annual energy savings of $284,000.  Energy efficiency makes good business sense and is a responsible way to ensure each taxpayer dollar is as productive as possible.”     

The text of Executive Order Number 31 is below:

NUMBER THIRTY ONE (2014)


CONSERVING ENERGY AND REDUCING CONSUMPTION


Importance of the Issue

The cleanest and cheapest energy is energy that is not consumed. Strong energy efficiency measures in government, businesses, and residences can reduce energy consumption, costs, and bills, diminish the need to build new generation infrastructure, and increase Virginians’ quality of life through lower carbon emissions polluting the atmosphere. Increased energy efficiency measures will serve as a stimulus to the growing energy efficiency industry in Virginia, helping create new jobs and diversifying our economy. The Commonwealth of Virginia will demonstrate the extraordinary potential and invaluable business advantages achieved with energy efficiency. 

As a prudent steward of taxpayer dollars, Virginia is dedicated to finding creative solutions with increasingly limited resources. Pursuing sensible energy efficiency in state government will increase the productivity of the energy used, reduce consumption, save money, and lessen any negative environmental impact. The Commonwealth is seeking to reduce electricity consumption in state facilities by 15% by 2017, using 2009-2010 as a baseline.

While the Commonwealth embraces the challenge of reducing energy consumption, localities, businesses, and individual consumers are encouraged to use energy efficiently, and utilize available tools to conserve energy.  

Energy Efficiency Initiatives

By the power vested in me by Article V of the Constitution of Virginia, and § 2.2-103 of theCode of Virginia, and subject always to my continuing and ultimate authority and responsibility to act in such matters, I hereby direct all executive branch agencies, authorities, departments, and all institutions of higher education, to every extent practicable, to operate in accordance with the following guidelines:

·       All state agencies should proactively pursue energy efficiency measures, especially Energy Performance Contracting (EPC), to reduce energy consumption. EPC is a budget neutral, cost-effective tool that permits state agencies and publicly-owned facilities to reduce their deferred maintenance backlogs without adding any financial burden to the taxpayer. In addition, EPC is an effective mechanism to finance capital improvements using leveraged energy savings to reduce both energy costs and consumption. For agencies that have already employed EPC, overall energy consumption should be re-evaluated to identify areas for further efficiency improvements. 

·       Agencies should utilize the current process, at no cost to the agency, which provides for a general audit to assess whether EPC is appropriate for the agency. This portion of the process is managed by the Department of Mines, Minerals, and Energy (DMME), and all agencies should work with DMME to have a general audit conducted with the goal of implementing an EPC by 2016.
             
I have appointed the Advisor for Infrastructure and Development as the Commonwealth’s Chief Energy Efficiency Officer (CEEO) to oversee planning, implementation, and measurement of energy efficiency throughout state government, as follows:

·       Organize a meeting with all agencies tasked with overseeing EPC in state government and state-certified Energy Service Companies (ESCOs) to establish a fully transparent, streamlined, and standardized process that agencies will use to implement EPC. This will include the development of an “EPC Roadmap” that will lay out each step of the EPC process, and ensure accountability among agencies and the ESCOs at each stage of project development and implementation.

·       Coordinate with SCHEV to identify the deferred maintenance needs at each higher education institution and the opportunities to leverage energy savings to fund building infrastructure upgrades.

·       Work with the Department of General Services (DGS) and DMME to identify and prioritize state facilities that offer opportunities for significant cost and consumption reduction. 

·       Work with DMME to establish a comprehensive system to measure, verify, and track energy consumption in state facilities. 

·       Re-commission electrical equipment and systems in publicly-owned facilities, when needed.

·       Ensure that DMME reviews all annual project performance reports submitted by ESCOs to the agencies.

·       Work with subject matter experts to identify best practices to incentivize individuals and agencies regarding energy efficiency measures. Those who show leadership in energy efficiency, regardless of agency and project size, will be recognized. 


Effective Date of the Executive Order

This Executive Order shall be effective upon signing and shall remain in force and effect from its signing unless amended or rescinded by further executive order.
           
Given under my hand and under the Seal of the Commonwealth of Virginia, this 16th day of October, 2014.








Terence R. McAuliffe, Governor









Attest:             _______________________________________
                        Levar M. Stoney, Secretary of the Commonwealth

Fuel the economy but do not expend any energy doing so?  An expanding economy requires more energy.  Are we speaking about shrinking the economy here?  Common Sense need not apply!

Governor McAuliffe Announces Actions on the FY2015 Budget


At a press conference in Richmond, Governor Terry McAuliffe announced the savings actions he will execute to eliminate the revenue shortfall in the Virginia budget for Fiscal Year 2015.
Due to revenue collections that came in under the budget projection set in 2013, the Governor asked executive branch agencies to submit budget reduction plans of 5% for Fiscal Year 2015 and 7% for Fiscal Year 2016 in order to close an $882 million budget deficit. Today’s announcement focused on the Governor’s budget reduction strategies for FY2015. 
“Making these budget reductions has been the most difficult experience of my term so far,”said Governor McAuliffe.  “In a government as lean and well-run as ours, there are few spending cuts you can make without impacting the lives of Virginians. The goal was to keep lay-offs to a minimum and protect our core services. The budget I present in December will be a sound and balanced approach to navigating the challenges we face and building a foundation for a stronger economic future.”
Below are a copy of the Governor’s prepared remarks.


Governor’s Remarks - Budget Savings Plan Announcement

Good Morning.  Thank you for being with me here today.

Today, I am here to announce my actions on the budget for fiscal year 2015.  After much deliberation, discussions and hard decisions, I am presenting today the approved budget savings plan. 

Before I begin, I want to discuss the process, which is almost as important as the outcome. 

When I came into office in January, I promised to work together with the General Assembly to find common ground on issues of importance to all citizens of the Commonwealth.    From SOL reform to transportation prioritization to job creation, we came together to make Virginia a better place to live, work and prosper. 

Toward the end of the fiscal year, we started to see revenues not meet the forecast set out in 2013, before I took office.  This would create a shortfall for fiscal year 2014. 

I took immediate action.

First, I notified the leadership of the money committees and promised to work with them every step of the way to fill this shortfall.

Second, I directed all agencies to be prudent and curb any excess spending.

The General Assembly created budgetary reserves totaling $846 million in the current Appropriations Act.  In addition, $705 million could be withdrawn from the Revenue Stabilization Fund during the two year period.  These two items provide a “cushion” of $1.55 billion to address the revenue shortfall.   

Unfortunately, this wasn’t enough. 

The total shortfall in the new interim forecast is projected to be $2.4 billion. This means the problem remaining is $882 million.   Of this amount, $346 million will have to be found in this fiscal year, while $536 will be needed in fiscal year 2016. 

On August 15th, I asked all agencies to submit budget reduction plans of five percent in fiscal year 2015 and seven percent in fiscal year 2016.  These plans were due on September 19th to my office. 

During this time, I worked closely with the leadership of the General Assembly to set out the parameters for the cuts.  The outcome was HB 5010, a supplemental appropriations bill that outlined the process and the amount of cuts from four areas:
  • From executive branch agencies, $92.4 million in FY15 and $100 million in FY16
  • $45 million each year from higher education
  • $30 million each year from local governments
  • $102 million in unobligated balances in FY15 and $262 million in FY16

In addition, the bill authorized use of the Revenue Stabilization Fund for both fiscal years 2015 and 2016. 

I asked for three things to be a part of HB 5010, and I am glad to see they were all included in that legislation. 

The first request was that there would be no cuts to K-12 education in the first year.  We need to protect our core services including K-12.  All school divisions have already started the school year with a set budget adopted last spring. 

It would be irresponsible to make changes now.

Second, I asked that the money designated for “A Healthy Virginia”, my healthcare access plan, be preserved.  This bill gives me flexibility to utilize the remaining balance in the Health Care Fund to move forward with these much needed initiatives.

Finally, this budget bill allows me to reallocate $5 million for economic development and workforce training - both top priorities of mine.   

Making these decisions today has been an exhaustive process.  We have worked hard over the past few weeks to get to where we are today.  Some initial options were unacceptable, and we had to ask for a different strategy. 

My goal was to keep lay-offs to a minimum and protect our core services.  The 565 lay-offs that will result from these actions comprise just half a percent of our state workforce of 120,000 full time equivalents, both wage and salary. Ninety percent of these lay-offs are from the Department of Corrections alone. 

I have been working with the Department of Human Resource Management and have put a plan in place to give these individuals the resources they need to find future employment.  Had we not prioritized state employee jobs, this situation could have been far worse. 

In addition to our efforts limiting layoffs, these are some of the other themes that define the actions we are announcing today:

  • We are improving business practices and efficiencies
  • We are eliminating unneeded contractors, including outside consultants and attorneys. 
  • We are leaving vacant positions unfilled. 
  • We are using nongeneral fund money instead of general funds when feasible and allowed by law or contract. 

Specifically, we are doing the following:

  • For Department of Corrections, we are closing a correctional facility, a community corrections residential facility, a diversion center and delaying the opening of a women’s correctional facility.   This equates to $4 million in savings for FY 15
  • In the Department of Social Services, we are using one-time child care remaining balance of $2.7 million
  • For state police, we are selling one airplane and only filling 27 out of the 68 vacant trooper positions.  In addition, the state police will find an additional $4 million in operational efficiencies
  • For ABC, we are increasing the product mark-up on distilled spirits resulting in $2.5 million. 


On December 17th, I will present to the General Assembly the budget for fiscal year 2016. 

We will continue to review the 7% cuts in the second year, and I am not ready to make these decisions at this time. 

I have asked my staff to look at alternatives. Let me be clear - everything is on the table.

If we can preserve core services that Virginians need by adjusting fees or eliminating tax preferences, we should. The budget I present in December will be a sound and balanced approach to navigating the challenges we face and building a foundation for a stronger economic future. I have enjoyed a strong working partnership with the leadership of the General Assembly on these issues so far, and I am looking forward to continuing our collaborative work in the 2015 session.

Making these budget reductions has been the most difficult experience of my term so far. In a government as lean and well-run as ours, there are few spending cuts you can make without impacting the lives of Virginians.

While this budget plan represents a sensible approach, I am cautiously optimistic about the fiscal future ahead. Some areas of the economy are recovering slowly while other areas remain stagnant. It is my hope that we have set our revenue estimate low enough that our slow recovery may boost our budget to the point where we could begin to undo some of these cuts and strengthen the investments our economy needs. But until we actually see that happen, we have a responsibility to remain cautious in the face of an uncertain future.

Later today I will meet with the Joint Advisory Board of Economists (JABE) to seek their council.  I will heed their advice as well as the Governor’s Advisory Council on Revenue Estimates when they meet on November 24th.  

While I believe they too will remain cautious, the news has not been all bad. As we announced yesterday, preliminary total revenues for the month of September were up 5.3 percent and through the first quarter of fiscal year 2015 they are up 6.7 percent, ahead of the annual estimate of 2.9 percent. 

This is the first time revenues have increased three months in a row since the second quarter of calendar year 2013. 

Payroll withholding came in strong with 8.3 percent for the month due to an additional deposit day.  Sales tax collections are up about 3.5 percent for the month and are up 4.6 percent for the quarter.  This is ahead of the projected growth of 4.4 percent.

Recordation taxes finally had a positive month after falling for 13 straight months.  We saw a 1.9 percent growth in the month of September.

Even though this is positive news, we need to be prudent in the fiscal decisions we make. 

As we saw last year, an unexpected revenue decline could be just around the corner. In the midst of uncertainty over sequestration and the federal budget, we have an obligation to prepare Virginia as much as possible for the reduction in federal spending that we know is coming.

The reductions we are announcing today are a short-term response intended to insulate Virginia from the possibility of even further cuts. And in the long-term, as I have said before, we must work together to grow and diversify our state economy so that we are no longer subject to Washington uncertainty.

And so my focus will remain on building a new Virginia economy that is stronger, more independent and more resilient. My administration is hard at work pursuing that goal on all fronts.

We are working to strengthen our education and workforce development system so that we are giving every student the skills he or she needs in a 21st Century economy.

Yesterday, we unveiled the 2014 Virginia Energy Plan, which will help drive our economy into the future by growing key sectors like wind, solar, nuclear technology and natural gas so that we can offer businesses the cheapest, cleanest and most abundant energy in the nation.

We are continuing to grow and strengthen our transportation infrastructure in ways that encourage economic growth and raise Virginia’s quality of life.

Our outstanding quality of life, world class workforce and outstanding infrastructure are real assets.  And so is Virginia’s long-standing reputation for sound management, even in the face of difficult situations.

This budget shortfall is not what I had hoped to be dealing with in my first year as Governor, but I am proud of the manner in which leaders on both sides of the aisle came together to address it.

Thanks to the hard work of Secretary Ric Brown and his team, who worked alongside Chairmen Colgan, Stosch, Jones and their staff, we are meeting these challenges in a way that protects our core assets, minimizes layoffs, and positions our Commonwealth for future growth.

While I know we all hope that the budget news from here forward will be more positive, all Virginians should be encouraged to know that their leaders are capable of coming together to get things done for the good of the Commonwealth.

Thank you.  I will now be happy to take a few questions.

Friday, October 17, 2014

Virginia Receives $9.3 Million Grant to Help Virginians Access Health Coverage

Centers for Medicare and Medicaid Services (Me...
Centers for Medicare and Medicaid Services (Medicaid administrator) logo (Photo credit: Wikipedia)
Governor Terry McAuliffe announced that Virginia is one of only four states to have been awarded a $9.3 million federal grant to hire more than 100 enrollment assisters who will help state residents sign up on the Federal Marketplace for health insurance starting November 15. The federal grant will play a large role in helping Governor McAuliffe implement his “Healthy Virginia” plan to expand health care to more than 200,000 Virginians.

“This federal grant will boost my administration’s efforts to help Virginians get access to the health care they need,” said Governor Terry McAuliffe, who received the news Tuesday morning in a telephone call with U.S. Secretary of Health and Human Services Sylvia Mathews Burwell. “We will use this money to put more boots on the ground to make sure individuals and families find the best low-cost insurance options for them, and to make sure they know about the financial assistance that is available.”

During the initial 2013-14 sign-up period, Virginia’s state government was not an active participant in educational and outreach efforts. However, more than 216,000 Virginians purchased health plans. Unfortunately, an estimated 300,000 Virginians who are qualified for tax credits if they purchase insurance on the Federal Marketplace remain uninsured.

As part of his “Healthy Virginia” plan, Governor McAuliffe announced last month that he has set a goal to enroll up to 160,000 more Virginians on the Marketplace during the enrollment period that extends fromNovember 15 to February 15.

The federal grant awarded by the Centers for Medicare and Medicaid Services enables Virginia to partner with the Virginia Community Healthcare Association and the Virginia Poverty Law Center and deploy more than 100 paid enrollment assisters across the Commonwealth.

“This is a major step forward for Virginia,” said Virginia Secretary of Health and Human Resources Bill Hazel. “I am particularly pleased that some of the individuals who are in the Medicaid coverage gap will qualify for financial assistance on the Marketplace.”

The Virginia Community Healthcare Association is a nonprofit association representing 28 federally qualified health centers and one rural health clinic. The association trained and oversaw certified application counselors during the initial sign-up period. The grant and partnership with Virginia will enable it to step up outreach and enrollment activities this fall and winter.

The Virginia Poverty Law Center, based in Richmond, provides training to local Legal Aid program staff and is a designated Navigator organization in Virginia.

“The Virginia Community Healthcare Association is delighted with this opportunity,” said Neal Graham, Chief Executive Officer of VCHA. “This will enable us to provide funding to the Community Health Centers and other community partners to place enrollment staff at the local level.  As we learned last year, local staff make all the difference in assisting persons in making the important choices about the purchase of health care coverage; and health care coverage makes all the difference in people’s lives.”

“We are very excited about this opportunity to help more Virginians know about and enroll in affordable health insurance options,” added Jill Hanken, staff attorney for the Virginia Poverty Law Center.

As part of Virginia’s campaign to enroll state residents, the state will launch an improved website next month at coverva.org with user-friendly links to health care options and educational resources. The state also will begin a major media campaign this winter to increase awareness about the importance and availability of health insurance. A family of three with an income between $19,790 and $79,160 may be eligible for tax credits when purchasing insurance on the Federal Marketplace.

The grant will be administered by the Virginia Department of Medical Assistance Services.


September 2014 General Fund Revenue Collections Up 5.3% From Previous Year Fiscal-Year-To-Date Collections up 6.7%

English:
English: (Photo credit: Wikipedia)
All Major Sources Accounted for the Gain

RICHMOND - Today, Governor McAuliffe announced that the September General Fund revenue increased 5.3% from the previous year with all major sources contributing to the increase.  This is the first time revenues have increased for three consecutive months since April-June of 2013.  The Governor also stated that September completes the first quarter of fiscal year 2015 and is a significant month for revenue collections. Estimated payments from individuals, corporations, and insurance companies are all due in September, along with regular monthly collections in withholding, sales taxes, and other sources.
“I am pleased to see that our revenue collections are up, however, we must remain cautious because the Commonwealth has only collected about one-quarter of its general fund revenue estimate to date. My administration will continue to take a prudent approach to help ensure that Virginia remains fiscally strong,” said Governor McAuliffe.
On a fiscal year-to-date basis, total revenue collections rose 6.7%, well ahead of the revised annual forecast of 2.9% growth.  The main drivers of the revenue increase were the individual income tax, the corporate income tax, and sales tax.  With an additional deposit day compared with last year, collections of payroll withholding taxes rose 8.3% in September. September is a significant month for collections in non-withholding, since the first estimated payment for fiscal year 2015 is due.  Collections rose 2.8% in September from last year.  Collections of sales and use taxes, reflecting August sales, rose 3.5% in September. As with non-withholding, September is a significant month in corporate income tax collections, since the first estimated payment for the fiscal year is due in September.  Collections of corporate income tax grew 6.9% in September from September of last year.  Finally, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $26.4 million in September, compared with $25.9 million in September of last year.  The 1.9% growth in September ended 13 consecutive months of negative growth. 
On a year-to-date basis, collections of payroll withholding taxes – 64% of General Fund revenues -- increased 6.3%, ahead of the revised annual forecast of 2.7% growth.  Year-to-date non-withholding collections were $427.7 million compared with $372.8 million in the same period last year, rising by 14.7% and ahead of the annual estimate of 6.3% growth.  Sales tax collections – 19% of General Fund revenues – increased 4.6% through September, ahead of the annual forecast calling for a 4.4% increase.  Through the first quarter of the fiscal year, corporate income tax collections have grown 12.4% from the same period last year, ahead of the annual estimate of a 0.9% decline.

Read the full report here.


Governor McAuliffe Formally Unveils 2014 Virginia Energy Plan

English: Clean Energy Bike Français : Vélo Cle...
English: Clean Energy Bike  Clean Energy Planet (Photo credit: Wikipedia)
Richmond, Va. Governor Terry McAuliffe today formally unveiled the 2014 Virginia Energy Plan at an event co-sponsored by the Virginia Chamber of Commerce and the Virginia League of Conservation VotersThe Governor laid out his strategic vision for energy policy in Virginia in front of a mixture of members of the business and conservation communities.

The Governor’s energy plan highlights his commitment to a true “all of the above” energy strategy that will promote the use and development of all available resources.     

In his remarks, Governor McAuliffe said, “If we are going to build the economy Virginia families deserve, we must begin by giving them the energy plan our economy demands. The plan we are rolling out today is focused on growing our energy economy (particularly in the renewable sector), emphasizing energy conservation, strengthening our energy infrastructure and training the workforce we need for the future.

“By working together, I am confident that four years from now we will live in a stronger Commonwealth that is less dependent on external forces and is fueled by cleaner, cheaper and more abundant Virginia energy.”

Barry DuVal, President and Chief Executive Officer of the Virginia Chamber of Commerce, and event co-host stated, “We commend Governor McAuliffe’s commitment to an all-of-the above strategy for energy and look forward to working with his administration on strengthening Virginia’s energy infrastructure and growing this important sector of our economy.” 

Michael Town, Executive Director of the Virginia League of Conservation Voters, and also a co-host, added, “Governor McAuliffe campaigned on clean energy job creation. The good news is that his Energy Plan recognizes that smart pollution cuts can mean a business opportunity to create clean energy jobs and save consumers and businesses money. Neighboring states have created 290,000 clean energy jobs in recent years while Virginia stood still. He has an opportunity to change that with his response to the Clean Power Plan standards."

Key highlights of the Energy Plan include:

Strategically grow the energy sector by promoting increased development of renewable generation and supporting innovation in nuclear technology.

Reduce energy consumption by aggressively pursuing energy efficiency measures in government, businesses and residences. 

Invest in reliable and resilient energy infrastructure to strengthen Virginia’s already strong business climate.

Prepare Virginia’s workforce to drive the future energy economy.


(With a little bit of luck, one day we may be able to bring ourselves up to the level of Cuba.  If we work hard, maybe we can.  YES WE CAN!)



Va. makes minimal progress on its climate change plan

English: Flooding of ravine Blanche during hur...
 (Photo credit: Wikipedia)

(Thank Goodness For Small Miracles:)


By Tamara Dietrich, Daily Press (Newport News, Va.)
McClatchy-Tribune Information Services


Oct. 10--Virginia is one of only 14 states with a finalized plan to prepare for and adapt to climate change, but so far it has completed only two of its original 43 goals.

That's the assessment of the Georgetown Climate Center, which launched an online tool Thursday for the public to track where each state stands in addressing the widespread effects that scientists predict will come with a changing climate. The center is part of the Georgetown University Law Center in D.C.

"People want to know what their leaders are doing to prepare for climate change impacts, such as storms and rising seas," Vicki Arroyo, the center's executive director, said in a release. "This tool provides transparency and enables individuals and communities to track state progress."

(This crap is pretty funny until you realize these morons are serious about this stuff.)


Link to the rest of the story.  Beware, it has a front end advertisement that you have to click past to read the rest.