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Be it enacted by the General Assembly of Virginia: 1. That §§2.2-206.2, 2.2-1111, 2.2-5101, 2.2-5102, 30-309, 30-310, and 45.1-394 of the Code of Virginia are amended and reenacted as follows: §2.2-206.2. Economic incentive grant programs; responsibilities of the Secretary. A. By July 15 of each year, the agencies listed in subdivisions B 1 through 7 shall report the information outlined in subsection C to the Secretary of Commerce and Trade for the three prior calendar or fiscal years, as applicable, so that the Secretary may develop and issue a report on the effectiveness of economic development incentive grant programs administered by the Commonwealth in meeting performance goals and stimulating economic activity. By September 15 of each year, the Secretary shall submit the draft report to the Joint Legislative Audit and Review Commission for its review of the accuracy of the information contained in the report and the effectiveness of the evaluation methods. The Joint Legislative Audit and Review Commission shall provide its comments on the content of the report and the Secretary's analysis to the Secretary, and such comments shall be included as an appendix to the final report, which shall be submitted to the Chairmen of the House Appropriations and Senate Finance Committees by November 15 of each year. B. The report shall include a review of allocations from the following economic development incentive programs and funds for the previous three calendar or fiscal years, as applicable, as follows: 1. Virginia Economic Development Partnership: Advanced Shipbuilding Training Facility Grant Program, Aerospace Engine Manufacturing Performance Grant Program, Clean Energy Manufacturing Incentive Grant Program as it was in effect prior to July 1, 2015, Governor's Development Opportunity Fund, Investment Partnership Grant subfund, Major Eligible Employer Grant subfund, Semiconductor Memory or Logic Wafer Manufacturing Performance Grant Program as it was in effect prior to July 1, 2016, Specialized Biotechnology Research Performance Grant Program as it was in effect prior to July 1, 2015, Economic Development Incentive Grant subfund, and any customized incentive grants; 2. Virginia Economic Development Partnership Authority: Virginia Jobs Investment Program; 3. Department of Housing and Community Development: Enterprise Zone Job Creation and Real Property Investment Grant Programs; 4. Tobacco Indemnification and Community Revitalization Commission: Tobacco Region Opportunity Fund; 5. Virginia Tourism Authority: Governor's Motion Picture Opportunity Fund; 6. Virginia Port Authority: Port of Virginia Economic and Infrastructure Development Grant Program; and 7. Innovation and Entrepreneurship Investment Authority: Growth Acceleration Program. C. The report shall assess the effectiveness of allocations made for each program listed in subsection B. Each agency administering programs outlined in subsection B shall submit the applicable data regarding jobs, wages, capital investment, and any other related information requested by the Secretary of Commerce and Trade for purposes of evaluating economic development incentive programs in meeting their performance goals and stimulating economic activity. For each program, the report shall include (i) an explanation of the overall goals of the program, describing whether the program is focused on job creation and capital investment or investments are governed by ancillary goals of community development and revitalization or the development of a particular industry sector in the Commonwealth; (ii) for each of the previous three calendar or fiscal years, as applicable, summary information, including the total amount of grant funding made available for the program, the total dollar amount of the grants awarded, the total number of grants awarded, the average dollar amount approved per job and average wage expected, where applicable, and any grant amounts repaid; (iii) for each of the three previous calendar or fiscal years, as applicable, for projects that have reached completion or a performance milestone, an aggregate comparison of the projects' performance measures, including the actual number of jobs created, the actual average wages paid, and the actual amount of capital investment, with the expected number of jobs, assumed average wage, and planned capital investment when the grant awards were made, and the proportion of projects that met or exceeded the project-specific goals relevant to the program; (iv) for each of the three previous calendar or fiscal years, as applicable, for all projects that have reached completion or a performance milestone, an aggregate assessment of the projects' actual rate of return on the Commonwealth's investment compared with the expected rate of return when the grant awards were made; (v) for each of the three previous calendar or fiscal years, as applicable, for all projects that have reached completion or a performance milestone, an aggregate estimate of the projects' total economic impact measured by the Virginia Economic Development Partnership Authority on the basis of estimated state tax revenues generated directly or indirectly by the projects, where applicable; and (vi) for all projects that reached completion five calendar or fiscal years, as applicable, prior to the year of the report, an aggregate final comparison of jobs reported by companies at the time of completion and jobs at the end of the most recent calendar year, and an aggregate final comparison of the projects' rate of return at the time of completion and a five-year rate of return based on the most recent job levels. §2.2-1111. Purchases to be made in accordance with the Virginia Public Procurement Act (§2.2-4300 et seq.) and regulations of Division; exempt purchases. A. All purchases made by any department, division, officer or agency of the Commonwealth shall be made in accordance with the Virginia Public Procurement Act (§2.2-4300 et seq.) and such regulations as the Division may prescribe. B. The regulations adopted by the Division shall: 1. Include a purchasing plan that shall be on file at the Division and shall be available to the public upon request; 2. Require that before any public body procures any computer system, equipment or software, it shall consider whether the proposed system, equipment or software is capable of producing products that facilitate the rights of the public to access official records under the Freedom of Information Act (§2.2-3700 et seq.) or other applicable law; 3. Require state public bodies to procure only shielded outdoor light fixtures and provide for waivers of this requirement when the Division determines that a bona fide operational, temporary, safety or specific aesthetic need is indicated or that such fixtures are not cost effective over the life cycle of the fixtures. For the purposes of this subdivision, "shielded outdoor light fixture" means an outdoor light fixture that is (i) fully shielded so that no light rays are emitted by the installed fixture above the horizontal plane or (ii) constructed so that no more than two percent of the total luminaire lumens in the zone of 90 to 180 degrees vertical angle is permitted, if the related output of the luminaire is greater than 3200 lumens. In adopting regulations under this subdivision, the Division shall consider national standards for outdoor lighting as adopted by the Illuminating Engineering Society of North America (IESNA). For any project initiated on or after July 1, 2003, the Virginia Department of Transportation shall design all lighting systems in accordance with current IESNA standards and recommended practices. The lighting system shall utilize fixtures that minimize glare, light trespass, and skyglow, all as defined by the IESNA, while still providing a comfortable, visually effective, safe, and secure outdoor environment in a cost-effective manner over the life cycle of the lighting system; 4. Establish the conditions under which a public body may use, as a basis for the procurement of goods and nonprofessional services, a particular vendor's contract-pricing that has been negotiated and accepted by the U.S. General Services Administration; 5. Establish procurement preferences for products containing recycled oil (including reprocessed and rerefined oil products) and recycled antifreeze no later than December 31, 2002; 6. Establish conditions under which a public body shall demonstrate a good faith effort to ensure that state contracts or subcontracts for goods or services that involve the manual packaging of bulk supplies or the manual assemblage of goods where individual items weigh less than 50 pounds be offered to employment services organizations as defined in §2.2-4301 that offer transitional or supported employment services serving individuals with disabilities; and 7. Establish the conditions under which state public bodies may procure diesel fuel containing, at a minimum, two percent, by volume, biodiesel fuel or green diesel fuel, as defined in §59.1-284.25 as such section was in effect on June 30, 2015, for use in on-road internal combustion engines. The conditions shall take into consideration the availability of such fuel and the variability in cost of biodiesel fuel with respect to unblended diesel fuel. C. The Division may make, alter, amend or repeal regulations relating to the purchase of materials, supplies, equipment, nonprofessional services, and printing, and may specifically exempt purchases below a stated amount or particular agencies or specified materials, equipment, nonprofessional services, supplies and printing. §2.2-5101. Virginia Investment Performance Grants. A. Subject to the appropriation by the General Assembly of sufficient moneys to the Investment Performance Grant subfund, any eligible manufacturer or research and development service that is not eligible for a major eligible employer grant under §2.2-5102 shall be eligible for an investment performance grant as provided in this section. B. The Partnership shall establish an application process by which eligible manufacturers and research and development services may apply for a grant under this section. An application for a grant under this section shall not be approved until the Partnership has verified that the capital investment has been completed. C. The amount of the investment performance grant that an eligible manufacturer or research and development service shall be eligible to receive under this section shall be determined by the Secretary, based on the recommendation of the Partnership, and contingent upon approval by the Governor. The determination of the appropriate amount of an investment performance grant shall be based on the application of guidelines that establish criteria for correlating the amount of a grant to the relative value to the Commonwealth of the eligible investment. D. The Partnership shall assist the Secretary in developing
objective guidelines that shall be used in awarding investment performance
grants. No grant shall be awarded until the Secretary has provided copies of such
guidelines for review to the 1. The number of new jobs created by the capital investment; 2. The wages paid for the new jobs and the amount by which wages exceed the average manufacturing wage for the locality or region; 3. The extent to which the capital investment produces (i) measurable increases in capacity, productivity, or both; (ii) measurable decreases in the production of flawed product; or (iii) measurable advances in knowledge, research, or the application of research findings for the creation of new or significantly improved products or processes that support manufacturing; 4. The amount of the capital investment; 5. The net present value of benefits to Virginia; 6. The amount of other incentives offered by the Commonwealth and the locality; and 7. The importance of the manufacturing or research and development facility to the economy of the locality or region. The guidelines shall also address the eligibility of manufacturers or research and development services that make a capital investment in phases over a period of years, and limits on eligibility for multiple grants by the same manufacturer or research and development service within stated periods of time. E. The amount of an investment performance grant to any eligible manufacturer under this section shall not exceed $3 million or 10 percent of the amount appropriated by the General Assembly to the Investment Performance Grant subfund in the year that the terms of a grant are determined. For all eligible projects awarded grants on or after July 1, 2005, and before July 1, 2009, the amount of an investment performance grant to any recipient under this section shall not exceed $1.5 million. For eligible projects awarded grants on or after July 1, 2009, the amount of an investment performance grant to any recipient under this section shall not exceed $3 million, except for eligible projects that demonstrate extraordinary characteristics described in guidelines implementing this chapter the amount of an investment performance grant to any such recipient under this section shall not exceed $5 million. F. For all eligible projects awarded grants before July 1,
2005, the aggregate amount of investment performance grants approved under this
section in any year shall not exceed $6 million, and the aggregate amount of
grants outstanding to all eligible manufacturers under this section for all
years shall at no time exceed $30 million. For all such grants awarded prior to
that date, the annual obligations of the Commonwealth to make grant payments to
individual eligible manufacturers under this section shall not exceed $600,000.
For all eligible projects awarded grants on or after July 1, 2005, and before
July 1, 2009, the aggregate amount of investment performance grants approved
under this section in any year shall not exceed $3 million, and the aggregate
amount of such grants awarded after that date and outstanding at any time shall
not exceed $15 million. For all such grants awarded on or after that date, the
annual obligations of the Commonwealth to make grant payments to individual
recipients under this section shall not exceed $300,000. For all eligible
projects awarded grants on or after July 1, 2009, and before July 1, 2015,
the aggregate amount of investment performance grants approved under this
section in any year shall not exceed $6 million, and the aggregate amount of
such grants awarded on or after G. Any eligible manufacturer or research and development service shall be eligible to receive a grant from the Fund in five equal installments beginning in the third year after the capital investment is completed and the Partnership has verified that the requirements applicable to such grant have been satisfied. Any eligible manufacturer or research and development service located in a fiscally distressed area of the State, as defined in the guidelines implementing this chapter, shall be eligible to begin receiving grants in the second year after the capital investment is completed and verified. §2.2-5102. Performance grant for major eligible manufacturers. A. As used in this section, "major eligible employer" means any eligible manufacturer or other nonmanufacturing basic employer that makes a capital investment of at least $100 million that results in the creation of at least 1,000 new jobs. For corporate headquarters and other basic employers that make a capital investment of at least $100 million and create at least 400 new jobs paying at least twice the prevailing average wage for the area, the 1,000 job requirement may be reduced in proportion to the factor by which the wages for the new jobs exceed the prevailing average wage for the area. All other provisions of this chapter shall apply equally to major eligible manufacturers and major eligible nonmanufacturing basic employers, in this chapter collectively referred to as "major eligible employers." B. Subject to the appropriation by the General Assembly of
sufficient moneys to the Major Eligible Employer Grant subfund, any major
eligible employer shall be eligible for a grant under this section of up to $25
million, to be payable from such subfund over a period of not less than five
years and not more than seven years, commencing in the C. The Partnership shall establish an application process by which major eligible employers may apply for a grant under this section. An application for a grant under this section shall not be approved until the Partnership has verified that the capital investment has been completed. D. The Comptroller shall not draw any warrants to issue checks for grants under this chapter without a specific legislative appropriation as specified in conditions and restrictions on expenditures in the appropriation act. The payment of any grant under this section shall be in accordance with the terms and conditions set forth in a memorandum of understanding between a major eligible employer and the Commonwealth. These terms and conditions shall supplement the provisions of this chapter and shall include but not be limited to the terms of the payment of the grant. The payment of the grant shall be made in full or in proportion to a major eligible employer's fulfillment of the terms of the memorandum of understanding. The Secretary shall consult with the House Committee on Appropriations and the Senate Committee on Finance prior to entering into any memorandum of understanding. The House Committee on Appropriations and the Senate Committee on Finance shall have the opportunity to review any memorandum of understanding prior to its execution by the Commonwealth. §30-309. MEI Project Approval Commission; membership; terms; compensation and expenses; definition. A. The MEI Project Approval Commission (the Commission) is
established as an advisory commission in the legislative branch of state
government. The purpose of the Commission shall be to review financing for
individual incentive packages, including but not limited to packages offering
tax incentives, for economic development projects (including but not limited to
MEI projects) for which (i) one or more of the incentives in the incentive
package is not authorized under current law or B. The Commission shall consist of 10 members as follows: C. Members shall serve terms coincident with their terms of office. Vacancies for unexpired terms shall be filled in the same manner as the original appointments. Members may be reappointed for successive terms. D. The members of the Commission shall elect a chairman and E. Legislative members of the Commission shall receive such compensation as provided in §30-19.12, and nonlegislative members shall receive such compensation as provided in §2.2-2813. F. As used in this chapter, "MEI project" means the same as that term is defined in §2.2-2260. §30-310. Review of incentive packages. A. 1. The Commission shall review individual incentive
packages, including but not limited to packages offering tax incentives, for
economic development projects (including but not limited to MEI projects) for
which (i) one or more of the incentives in the incentive package is not
authorized under current law or 2. a. Any time a proposed individual incentive package is to
be considered by the Commission, materials outlining (i) the value of the
proposed incentives, (ii) assumed return on investment, (iii) the time frame
for repayment of incentives to the Commonwealth, (iv) average wages of the jobs
created by the prospective MEI project or other economic development project,
(v) the amount of capital investment that is required, and (vi) the need for
enhanced employment opportunities in the prospective location of the
prospective MEI project or other economic development project, shall be
provided to the Commission members not less than b. The timing of any request for an endorsement of a proposed individual incentive package should be scheduled so that the MEI Commission could, at its discretion, have up to seven days subsequent to the presentation of the incentive package prior to endorsing or rejecting such proposal. B. An affirmative vote by three of the five members of the
Commission from the House of Delegates and two of the three members of the
Commission from the Senate shall be required to endorse any incentive package,
including but not limited to packages offering tax incentives, for economic
development projects (including but not limited to MEI projects) for which (i)
one or more of the incentives in the incentive package is not authorized under
current law or §45.1-394. (Repealed effective July 1, 2017) Biofuels Production Incentive Grant Program. A. For the purposes of this section: "Advanced biofuels" means a fuel derived from any cellulose, hemicellulose, or lignin that is derived from renewable biomass, or algae. "Biodiesel fuel" means a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of ASTM D6751. "Biofuels" means neat biodiesel fuel, neat green diesel fuel, or neat ethanol fuel that is not blended with a traditional fuel such as gasoline or diesel. "Ethanol fuels" means fermentation alcohol derived from agricultural products, including potatoes, cereal grains, dry mill corn, whey, and sugar beets; forest products; or other renewable resources, including residue and waste generated from the production, processing, and marketing of agricultural products, forest products, and other renewable resources, that: 1. Meets all applicable ASTM specifications; and 2. Is denatured as specified in 27 C.F.R. Parts 20 and 21. "Feedstock" means the agricultural or other renewable resources, whether plant or animal derived, used to produce biofuels. "Green diesel fuel" means a fuel produced from nonfossil renewable resources, including agricultural or silvicultural plants; animal fats; residue and waste generated from the production, processing, and marketing of agricultural products; silvicultural products; and other renewable resources, and meeting applicable ASTM specifications. "Producer" means any person, entity, or agricultural cooperative association, as defined in the Agricultural Cooperative Association Act (§13.1-312 et seq.) that, in a calendar year, produces in the Commonwealth at least one million gallons of advanced biofuels or biofuels using feedstock originating domestically within the United States. B. 1. A producer of neat advanced biofuels or neat biofuels, including but not limited to such biofuels derived from cereal grains, shall be eligible to receive a biofuels production incentive grant for each gallon of the same that it produces in the Commonwealth. However, a producer shall be eligible for a grant from the Biofuels Production Fund (the Fund) established under §45.1-393 only for each gallon of neat advanced biofuels or neat biofuels that it produces in the Commonwealth on or after January 1, 2014, which gallon has also been sold by the producer to customers. 2. The grant for neat advanced biofuels or neat biofuels produced in the Commonwealth and subsequently sold to customers shall equal (i) $0.04 per gallon for sales to customers in calendar year 2014, (ii) $0.03 per gallon for sales to customers in calendar year 2015, and (iii) $0.025 per gallon for sales to customers in calendar year 2016 and for the period January 1, 2017, through June 30, 2017. 3. Each producer applying for a grant under this section for 2015 production of neat advanced biofuels or neat biofuels shall make a good faith effort to produce the same using feedstock that is not derived from corn or the corn kernel, stalk, or any other part of the plant. Further, no grant shall be awarded for neat advanced biofuels or neat biofuels produced in 2016 or thereafter using feedstock derived from corn or the corn kernel, stalk, or any other part of the plant. No person shall be eligible for any grants pursuant to this section if the person, or an affiliate of the person, was the recipient of a grant under the Clean Energy Manufacturing Incentive Grant Program (§ 59.1-284.25 et seq.) as such program was in effect prior to July 1, 2015. 4. In no case shall the Director of the Division of Energy approve more than $1.5 million in grants in each of fiscal years 2014-2015, 2015-2016, and 2016-2017. Grants awarded under this section shall be paid from the Fund. C. In the event applications for grants pursuant to subsection B as approved by the Director of the Division of Energy exceed the total amount of money allocated in the Fund, grant payments shall be apportioned among eligible producers pro rata based upon the total qualifying gallons of neat advanced biofuels or neat biofuels sold in the respective calendar year by all such eligible producers. D. Any producer eligible to apply for a grant pursuant to this section shall provide evidence in the form of production reports, satisfactory to the Director of the Division of Energy, that the producer met the production requirements provided under this section for the respective calendar year. The producer shall also provide evidence in the form of sales reports, satisfactory to the Director, of the number of qualifying gallons of neat advanced biofuels or neat biofuels sold by the producer to customers in the respective calendar year. Such reports shall be filed no later than March 31 following the calendar year in which the producer sold the qualifying gallons of biofuels. Failure to meet the filing deadline shall render the applicant ineligible to receive a grant. The postmark cancellation shall govern the date of the filing determination unless the Director has approved an alternative means of filing. No producer shall be eligible to receive grants pursuant to this section for qualifying sales made in more than six calendar years. No grants shall be paid under this section for neat advanced biofuels or neat biofuels sold on or after July 1, 2017. E. The Director of the Division of Energy shall determine the amount of the grant payable to each qualifying producer. The Director shall then certify to the Comptroller the grant amount each producer of biofuels is eligible to receive in a given calendar year. Payments shall be paid by check issued by the State Treasurer on warrant of the Comptroller. F. The Director, upon presenting appropriate credentials, may examine the records, books, invoices, bills of lading, storage and production facilities, and other applicable documents to determine whether the production and sale of neat advanced biofuels or neat biofuels meet the requirements for grants as set forth in this section. 2. That the Virginia Economic Development Partnership shall by November 30, 2015, provide a written report to the members of the MEI Project Approval Commission established under §30-309 of the Code of Virginia identifying the specific statutes or programs under which state incentives were committed or allowed to economic development projects between January 1, 2010, and January 1, 2015, pursuant to incentive packages of the Virginia Economic Development Partnership. The report shall include the aggregate dollar value of state incentives committed or allowed under each specific statute or program during the five-year period. The report shall also include an assessment of the relative effectiveness of each state incentive and an evaluation of how each could be improved to better address the economic growth of the Commonwealth. 3. That Chapter 22.3 (§§59.1-284.13 through 59.1-284.15:1) of Title 59.1 of the Code of Virginia is repealed effective July 1, 2016. 4. That Chapters 22.7 (§59.1-284.24) and 22.8 (§§ 59.1-284.25, 59.1-284.26, and 59.1-284.27) of Title 59.1 of the Code of Virginia are repealed. |