trending Market Intelligence /marketintelligence/en/news-insights/trending/McGcFkglD7L-abXdphmwRg2 content esgSubNav
In This List

Virginia's top environmental regulator accepted Masters golf gift from Dominion

Case Study

A Leading Renewable Energy Financing Bank Gains Important Insights on U.S.- based Opportunities

Blog

Exploring the Energy Dynamics of AI Datacenters: A Dual-Edged Sword

Blog

Despite turmoil, project finance remains keen on offshore wind

Case Study

An Energy Company Assesses Datacenter Demand for Renewable Energy


Virginia's top environmental regulator accepted Masters golf gift from Dominion

Dominion ResourcesInc. paid for David Paylor, the head of Virginia's Department of EnvironmentalQuality, to attend the Masters golf tournament in Augusta, Ga., in 2013, accordingto an investigative report posted on the website of WAMU, a public radio stationat American University in Washington, D.C.

The value of the trip to the Masters totaled about $2,300, accordingto Paylor's 2013 financial disclosure statement. Dominion also paid fora more than $1,200 outing to O'Toole's, an Irish pub in Augusta that Paylor visitedalong with nine other people, according to the report.

Paylor was appointed director of the Virginia DEQ by Gov. TerryMcAuliffe, a Democrat, in January 2014 and previously was appointed by Gov. BobMcDonnell, a Republican, in 2010. He originally was appointed director by Gov. TimKaine, a Democrat, in 2006. The DEQ regulates many aspects of Dominion's operationsin Virginia, including how Dominion's utility subsidiary, Dominion Virginia Power,known legally as Virginia Electricand Power Co., handles the storage of coal ash at various sites acrossthe state.

Virginia DEQ spokesman Bill Hayden declined to comment on thetrip to WAMU but noted that it was disclosed as required by law. Dominion spokesmanDavid Botkins told WAMU that the Masters trip is not relevant because new ethicslaws passed in Virginia would prohibit such gifts in the future. "I think theinference you're making does not have merit," Botkins said.

SNL Image

David Paylor, director, Virginia Department of Environmental Quality
Source: Virginia DEQ

In May 2015, McAuliffe signed into law a bill that changed existingVirginia law by lowering the gift limit to $100 annually for gifts from lobbyistsand lobbyist principals. Virginia legislators, legislative employees, candidates,executive officials, certain executive branch employees, and certain local officialsand employees are subject to the new limit. The new ethics law was passed in responseto the federal corruption scandal that led to the convictions of McDonnell and hiswife.

Even before the new lobbying gift restrictions took effect, theVirginia State Corporation Commission had its own internal policy that highly discouragedcommissioners and staff members from accepting gifts, SCC spokesman Ken Schrad saidin an interview. If SCC officials did receive gifts from lobbyists, they were requiredto report them, like Paylor did for the Masters golf tournament gift from Dominion,on their statement of interest reports, he said.

In Pennsylvania, officials at the state Department of EnvironmentalProtection must follow a rule that prohibits them from accepting gifts from lobbyists,DEP spokeswoman Colleen Connolly said. Pennsylvania Gov. Tom Wolf in January 2015,upon his inauguration, banned all state workers under his jurisdiction from acceptingor soliciting anything of value from lobbyists.

The governor's policy is stricter than state law, which letsstate officials receive gifts up to $250 without reporting them. Pennsylvania'sformer governor, Tom Corbett, and his wife, reportedlyaccepted $11,343 worth of gifts in 2010 and 2011, including Pittsburgh Steelersplayoff tickets, a yacht vacation and an inaugural ball gown.

WAMU also reported that records show financial ties between Dominionand one member of the Virginia State Water Control Board. The board's members areappointed by the governor and the board is housed under the DEQ. The member, NissaDean, serves as the Virginia director for the Alliance for the Chesapeake Bay. In2015, Dominion's charitable foundation donated $45,000 to the alliance to help funda pair of environmental projects, WAMU reported.

The State Water Control Board voted 5-1 on Jan. 14 to approve applications from DominionVirginia Power to drain wastewater from the ponds at the Possum Point plant in PrinceWilliam County, Va., and the Bremo Bluff plant in Fluvanna County, Va. The VirginiaDEQ then issued the permits.

WAMU reported that hundreds of public comments were submittedto the board, the vast majority opposing the permits. Two dozen state and localagencies, including Maryland's Department of Natural Resources, filed letters formallyopposing the plan, according to the report. But the board ultimately approved thepermits.

Dominion also contributes large sums to members of Virginia'sGeneral Assembly. Just days before state Sen. Scott Surovell introduced coal ashlegislation on Jan. 13 and before the General Assembly came into session, Dominiondonated $105,000 to state party committees — $55,000 to Republicans, $50,000 toDemocrats, according to the WAMU report. Virginia law bans companies from donatingwhile the General Assembly is in session. The bill would have required companiesto excavate coal ash ponds and move the ash to dry landfills away from rivers.

Dominion opposed the legislation, highlighting its estimatedcost of $3 billion and the potential environmental risks of transporting tons ofdry coal ash across the state by truck, WAMU reported. In a committee vote, sevenmembers voted to pass Surovell's coal ash legislation and seven voted against it.Democratic committee member Rosalyn Dance, whose campaigns reportedly have received$23,000 from Dominion over her career as a Virginia lawmaker, abstained, which effectivelykilled the bill, according to WAMU.