Virginia Gov. Bob McDonnell was joined by a bipartisan group of delegates and senators Wednesday afternoon as he signed legislation that will allocate 80 percent of future offshore royalties and revenues to transportation.
Posted: 4:02 PM Mar 10, 2010
Virginia Gov. Bob McDonnell was joined by a bipartisan group of delegates and senators Wednesday afternoon as he signed legislation that will allocate 80 percent of future offshore royalties and revenues to transportation and the remaining 20 percent to the Virginia Coastal Energy Research Consortium, which researches and develops renewable energy solutions.
House Bill 756, a key piece of the Governor’s ‘Jobs and Opportunities’ Agenda, will allocate 80 percent of future offshore royalties and revenues to transportation (70 percent to Transportation Trust Fund and ten percent to local transportation projects) and the remaining 20 percent to the Virginia Coastal Energy Research Consortium, which researches and develops renewable energy solutions.
Equally important, HB 787 provides a clear statement of the Commonwealth in support of oil and natural gas exploration, development, and production 50 miles or more off Virginia's coast.
McDonnell and members of his administration have been in steady communication with United States Secretary of the Interior Ken Salazar expressing strong support for keeping the offshore lease sale on schedule for 2011. These pieces of legislation underscore those efforts and provide valuable evidence of Virginia’s readiness to lead on offshore exploration and drilling.
While signing the legislation, McDonnell remarked, “These key pieces of legislation are necessary to help Virginia become the ‘Energy Capital of the East Coast.’ Virginians understand that this common-sense policy will lead to millions of dollars in revenue as well as thousands of new jobs. Revenue gained from offshore exploration will go directly to two key areas: transportation and energy research and development. Millions of dollars will go towards improving our transportation system that will ensure the free flow of commerce and attract further business investments in the Commonwealth. By investing 20 percent in renewable energy research and production we will ensure that energy sources of the future, such as wind and biofuels, are made more commercially practicable.
“It’s clear that the policy of the Commonwealth is to support both oil and natural gas exploration, development, and production. This is an issue with bipartisan consensus, both of Virginia’s U.S. Senators, and most of our Congressmen agree, that environmentally-safe, offshore energy development is a matter of national and economic security. In addition, we’re sending an important message that we are ready to go, and there should be no reason for Washington to delay the approval of the offshore lease sale and eventually exploration and drilling. Virginia is ready; we hope the federal government will move forward and join us in saying ‘yes’. I thank the patrons of this legislation, and leaders on this issue, and look forward to working with them to ensure Virginia becomes the first state on the East Coast to explore for oil and natural gas offshore.”
Speaking about the need for this legislation, Del. Chris Stolle comments, “Ensuring that revenue from offshore energy exploration goes to transportation and research and development is crucial for the economic viability and security of the Commonwealth. I was proud to carry this piece of the Governor’s ‘Jobs and Opportunities Agenda’ through the House of Delegates this session, and am pleased to see it signed into law today.”
Del. Villanueva adds, “I thank the Governor for his leadership on this issue and appreciate his focus on exploring for both oil and natural gas. Both will enable Virginians to reap revenue for generations to come. I am proud to stand with the Governor and our citizens to signal that Virginia is ready for energy exploration; it is my sincere hope that we Washington will agree and give its approval.”
Sen. Wagner also notes, "I'm pleased that we have made so much progress on moving the Governor's energy agenda forward during the 2010 session. We have come a long way since introducing the resolution asking Congress to lift the moratorium five years ago."
