Business groups compromised on new environmental permits

May 14, 2008

Environmental groups lobbying at the 2008 General Assembly session managed to block a business-backed effort to undercut Virginia’s citizen environmental boards, but the resulting compromise will bring changes to the state’s environmental permit process.

Both sides hailed the outcome of negotiations, which produced some restrictions on the discretion of citizen boards but also opened the door for more public comment on projects that could impact the environment.

“Everyone came away with something,” said Alexander Macaulay, an attorney who has battled business interests seeking state environmental permits. “After some initial skirmishing, the parties sat down for a very responsible session.”

As originally introduced in 2007, the legislation would have stripped all permitting authority from the State Water Control Board and the Air Pollution Control Board, both made up of citizens appointed by the governor.

That drastic change was needed, according to business interests, because the citizen boards had too much discretion to take control of permit applications and make decisions based only on members’ subjective views.

Tim Hayes of Hunton & Williams, who helps businesses navigate the environmental permit process, complained that the citizen board members could be swayed by a roomful of opponents.

“Under the current system, the board can completely disregard the staff and the regulations without explaining why,” said Hayes. “We have seen this happen.”

Macaulay said that business interests chafed at the boards’ handling of public permit battles for the Mirant Power Plant in Alexandria and the proposed King William Reservoir.

Del. Steven Landes, R-Augusta County, and Sen. Phillip Puckett, D-Tazewell, sponsored bills to consolidate permit authority with the Virginia Department of Environmental Quality. The compromise that emerged from negotiations preserves the citizen boards’ decision-making power, but requires the boards to explain their decisions in writing, stating how their decisions comply with applicable laws and regulations.

The legislation also will impose deadlines for the decision-making process and will force public hearings when as few as 25 people request a hearing.

Gov. Kaine signed the Senate version of the legislation, Senate Bill 423, which takes effect July 1.

In other business-related legislation considered by the General Assembly:

• Business lobbyists narrowly managed to kill bills to provide tax relief for homeowners though a “Homestead Exemption.” Business leaders argued that giving tax relief just to homeowners would unfairly shift more of the overall tax burden to businesses.

• Only two immigration-related measures made it out of the legislature this year, thanks to opposition from the Virginia Chamber of Commerce and other business interests. Keith Cheatham with the chamber explained that employers opposed any state regulation in areas already covered by federal immigration law. One new state law would punish a businesses with a “pattern and practice” of knowingly hiring illegal aliens. The chamber did not oppose the bill, according to Cheatham, since it “gets at the people who completely ignore the law.”

• Businesses welcomed minor adjustments to the criteria for state unemployment compensation. Adjusting the requirements gradually as the economy changes is the preferred approach, according to Joyce Waugh with the Roanoke Chamber of Commerce. “It avoids a big surprise for employers down the road,” said Waugh, noting that unemployment benefits are paid solely by employers.

Waugh praised the defeat of bills to add mandated healthcare benefits for various conditions. “If you are a small business, you are less likely to able to provide any health insurance for employees [with added mandates],” Waugh said.

• The Virginia Chamber reported “profound disappointment” in the failure of the 2007 transportation package. Chairman Michael Daniels wrote, “[F]olks are left to wonder what if anything will materialize in both maintenance and construction.”

Written by Peter Vieth  |  Filed Under Real Estate 

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