Gov. Bob McDonnell is gaining traction with his proposal to earmark potential royalties from oil and gas drilling off the Virginia coast for improving the state's transportation network.
A bill introduced at the governor's request by freshman Del. Chris Stolle, R-Virginia Beach, would require that 70 percent of any future drilling royalties be deposited in the state's Transportation Trust Fund. Twenty percent would go to the Virginia Coastal Energy Research Consortium and 10 percent would go to affected localities for drilling-related infrastructure.
Stolle's bill, HB 756, won approval Monday in the House Appropriations Committee.
Stolle and supporters of the measure, including the road-building industry and the Virginia Manufacturers Association, said it will help position Virginia as the future energy capital of the East Coast. If petroleum reserves are found off the coast, they said, the state could earn as much as $5 billion in royalties over 30 years.
Several environmental groups oppose the bill.
One critic on the committee, Del. James Scott, D-Fairfax, said the measure is highly speculative because Congress has shown no inclination to allow East Coast states to share in drilling revenue. He also noted that the Navy has expressed reservations about negative effects from drilling on its operations.
Delicious
Digg
Reddit
Facebook
Google
Yahoo
Why is this article pushed to the back?
VA Pilot would make large gains in readership with more articles like this in the forefront. This seems to be what the residents of VA want and it would be a huge help on solving our transportation problems. Maybe an article on how safe gas and oil drilling off shore is today and all the safeguards put in place to prevent spills. Think back to Katrina and how many oil rigs in the gulf were damaged or destroyed yet no oil spills. VA Pilot would be doing a great public service by doing investigative reporting and articles on such a large public interest story.
Done deal!
YES! Va is finally gonna get money (W-A-AY down the line) when the feds approve drilling, approves sharing it (fat chance), and everyone jumps through legal hoops. Just the thing to satisfy the highly speculative campaign promise to fund transportation in a reasonable lifetime, (not mine, though).
Enough
$5 billion / 30 yrs. x 70% = $167 million per year.
Certainly can help us maintain and build roads, but not enough to let us have our third crossing and eat it too.