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House panel omits money for Craney Island project

Posted to: Business Portsmouth

A congressional panel has dealt a setback to the Virginia Port Authority's

effort to gain federal funding for a new cargo terminal on Portsmouth's Craney Island.

The House of Representatives' Appropriations Committee voted Wednesday to approve spending $33.3 billion on energy and water projects for the federal fiscal year starting Oct. 1. None of the

$250 million that the state-controlled authority wanted for the Craney project was included, said Travis Burk, a spokesman for Rep. Thelma Drake, R-2nd District.

The committee decided not to include any new construction projects in this year's bill, Burk said. He said it's not clear whether the legislation can be amended before a vote by the full House, the date of which is uncertain.

In November, Congress authorized spending $356.1 million on the $2.2 billion project. However, Congress often is more generous at approving expenditures than at actually providing money.

Drake is "extremely disappointed" by the committee's decision, Burk said. She supported having a "significant portion" of the $250 million in the bill, though Burk would not say how much.

The Senate Appropriations Committee could include money for Craney in its energy and water spending plan, which is expected to be voted on next month. However, neither of Virginia's senators, John Warner and Jim Webb, are on that committee.

"At this point, unfortunately it's out of our hands what's happening" in Washington, said Port Authority spokesman Joe Harris. "We're just going to have to be patient."

Construction on the 600-acre Craney Island project is expected to start next year, with the first phase opening in 2017.

Gregory Richards, (757) 446-2599, gregory.richards@pilotonline.com

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GOOD!

This is a no win project for the citizens. It may make some folks in the Partnership some money but the rest of us will be dodging trucks, trains and the City trying to raise taxes because they can't figure out how to tax the facility.

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