Newman agrees with Kaine on energy proposals

RICHMOND — Virginia can recover from this economic downturn by developing new energy sources, Gov. Timothy M. Kaine told the General Assembly on Wednesday night, and two Lynchburg legislators agreed.

Kaine said Virginia can succeed by “focusing our efforts on the industries of the future,” including green jobs and new energy sources.

Sen. Steve Newman, R-Lynchburg, said after Kaine’s State of the Commonwealth speech that Republicans support proposals to use 25,000 acres of state-owned coastal lands for generating electricity from wind turbines and tidal movements.

The Republicans also support drilling for natural gas offshore and using the resulting royalties for transportation projects, said Newman, who helped deliver his party’s televised response to Kaine’s address Wednesday night.

Del. Shannon Valentine, D-Lynchburg, said opportunities exist for developing new nuclear business, and in renewable energy. The right use of them could give Virginia “an even bigger role in the economic future of our country,” Valentine said.

She said Kaine’s energy proposals appeared to have developed from a comment he made recently to a group of business and government officials. “A crisis is a terrible thing to waste,” Valentine recalled him telling the Virginia Foundation for Research and Economic Education.

Newman said Virginia needs to approve offshore drilling for gas quickly so it can capture royalties that might otherwise go to North Carolina or South Carolina if those states move faster.

Del. Ben Cline, R-Rockbridge, said he found a bipartisan tone in Kaine’s remarks and hoped that mood would continue during the 45-day session that ends Feb. 28.

Cline also said he liked the concept of Kaine’s proposals for tax credits for environmental developments but “I don’t know if we can afford them” in the face of a $3 billion revenue shortfall.

Kaine said that “while government action is necessary, it will be the entrepreneurial spirit of our people that will turn this economy around.”

“Those who dare to take risks will create the new companies and the new jobs,” he said.

“Our job is to allow that creativity, that risk-taking, that dedication, to flourish,” Kaine said.

Del. Dave Albo, R-Fairfax, who joined Newman in presenting the Republicans’ response to Kaine’s State of the Commonwealth message, promised the party will support a program by the Tobacco Commission to develop alternative energy.

The Tobacco Commission has proposed investing $100 million of its funds into the energy-research program. Albo said it would help universities and businesses create jobs and spur economic growth.

Newman criticized other aspects of Kaine’s speech, however.

Kaine and the General Assembly face some hard choices, Newman said, but the state needs to live within its means and not raise taxes.

Referring to Kaine’s proposal for a 30-cents-a-pack increase in Virginia’s cigarette tax, Newman said, “do we want to impose new taxes on some Virginians and not others? Or do we want government as a whole to learn to live within its means, just like working families?”

While Virginia faces a $3 billion shortfall, much of it could have been avoided if Kaine and the rest of the General Assembly had listened to warnings from the Senate’s Republican minority, Newman said.

Revenue forecasts from the governor’s office were too optimistic last year and many Republicans knew it, Newman said.

“We were sure the economy could not grow at 5.2 percent the first year and 6.7 percent this year,” Newman said.

“Had a more sober approach been taken, our rainy-day fund would be full and not on the verge of depletion.

“Unfortunately these warnings were ignored and the cuts needed today are much deeper than would have been necessary if we had used a more conservative fiscal approach,” Newman said.

“Once again the estimates appear to be inflated, so the headlines in February are likely to read ‘More cuts needed to balance Virginia’s budget,” Newman said.

But the governor and General Assembly Republicans are almost on the same page “when it comes to energy,” Newman said

Republicans want to work with Democrats and keep the cost of heating oil, gas and electricity down, and “we want to make sure our resources for energy are clean, and also reliable and affordable,” Newman said

“We want to set aside 25,000 acres of state land for renewable energy.

But, “while we have heard from our governor about his desire to support green energy, his administration continues to stand in the way of private windmill farms that could help us with green energy,” Newman said.

Republicans will support a bill by Sen. Frank Wagner, R-Virginia Beach “to tap Virginia’s vast natural-gas resources off the coast of Virginia, and the royalties from that would come back to transportation. It “could represent billions for infrastructure needs,” Newman said.