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.
A nice split, I think.
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.
Say it ain't so!
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.