THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, January 10, 1995 TAG: 9501100343
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Long : 130 lines
The state Department of Environmental Quality was having a hard time last year deciding what to do about plans for large-scale medical waste incinerators.
The incinerator companies, which promised jobs and taxes to needy areas such as Hopewell and Bland County, complained that proposed air pollution guidelines were too harsh. People living downwind from the likely sites said they needed the regulations to protect their health and safety.
The debate ended when Gov. George F. Allen moved into the executive mansion last January and planted an ``Open For Business'' sign on the front lawn.
In July, industry got what it wanted when the state Air Pollution Control Board, stocked with a fresh slate of Allen appointees, gave preliminary approval for waste incinerators to emit a higher level of dioxin, a toxin that is a component of Agent Orange.
``They shortchanged us in this deal,'' complained Harlan Cox, a Bland County resident who has organized opposition to an incinerator in his community. ``They're pro-business; they don't care a whole lot about the environment.''
Virginia's environmental policy, which conservationists say has never been that stringent anyway, has become even more business-friendly during Allen's first year in office.
``I'll tell you,'' Allen said Monday, ``whether I'm in Southwest Virginia or in the Tidewater area, all I hear from people is how pleased they are with the attitude and (the fact) that DEQ is actually a service agency, rather than a bunch of folks who are telling you, `You can't do this; you can't do that,' or delaying some economic development opportunity.''
The Republican has exerted his influence through the regulatory process, an arcane area of government that provides the governor with sweeping powers over the implementation of state and federal statutes.
Allen has ordered a complete review of existing regulations with an eye toward vaporizing environmental rules that go beyond federal requirements or that he thinks interfere with free enterprise.
In the meantime, the issuance of new environmental regulations has slowed to a trickle. Initiatives already in the regulatory pipeline when Allen took office - such as a plan to protect five mountain streams - have been held up for further scrutiny. Measures required by federal law, such as enhanced vehicle emission testing in Northern Virginia, have been delayed as the Allen administration files legal challenges to the federal Clean Air Act.
``I think it's very clear that the governor has said we want to make sure we didn't have regulations that we don't need,'' said Peter W. Schmidt, a former concrete company executive whom Allen named to head the Department of Environmental Quality.
The few regulations that have emerged in the past 12 months generally have industry's blessing. Hospitals and physicians will save $5 million a year because of less stringent rules for handling and transporting infectious waste. Farmers will find it easier to discharge pollution directly into streams. Electric companies will save $4.8 million a year in disposal costs because they are now allowed to use coal ash as fill dirt.
Becky Norton Dunlop, the state's natural resources secretary, said the goal is to ``benefit the environment by enabling business to comply.''
Critics say the governor who came into office promising to give government back to the people has given it away to the business community.
``There isn't any attempt to weigh the environmental benefits or even the public health risks,'' said Patti Jackson, president of the Lower James River Association, which monitors water quality in the river.
``I think there is a lot of concern about who is really benefiting by some of the actions that have been taken or some of the recommendations that have been made,'' Jackson said. ``I think they should be concerned of the appearance of catering to special interests.''
In particular, critics said they found it curious that one of the few successful regulations would benefit a Chesapeake-based company once headed by Schmidt, the DEQ director.
``It doesn't look good,'' said Kay Slaughter, staff attorney with the Southern Environmental Law Center in Charlottesville.
Schmidt denied any conflict of interest, saying he had no role in the enactment of coal ash regulations sought by coal operators, railroads and electric power companies.
The regulations will open the way for increased recycling of fly ash residue from coal-fired electric power plants. Power companies sought the regulations to cut disposal costs. Coal producers - under pressure from power companies to take back coal residue - sought to use the fly ash in mine reclamation.
The regulations also would benefit Schmidt's former company - Agglite Corp. of Chesapeake - which specializes in converting fly ash into building materials such as concrete blocks.
After he was appointed DEQ director in June, Schmidt retained a minority ownership of Agglite and described his tenure in state government as a ``sabbatical'' from the company. But he sold his interest in Agglite when his appointment was confirmed in September.
``I thought it was better to be clean,'' Schmidt said, adding that he holds a ``repurchase agreement'' that would allow him to buy back his shares if he decides to return to Agglite.
Schmidt argued that the new regulations would hurt Agglite by generating increased competition from railroads, which can now haul fly ash back to the coalfields.
Not everyone in his field is so pessimistic. An executive with one of Agglite's competitors said the Virginia regulations represent a tremendous opportunity for companies that handle fly ash.
``It's extremely good news,'' said Robert Waldrop, vice president of ReUse Technology Inc. of Georgia.
Waldrop said the railroads will not be able to compete for many contracts because it costs so much to transport ash back to the coalfields. Waldrop noted that Agglite, which handles ash from Virginia Power Co.'s plant in Chesapeake, recently won the contract for the electric company's new Clover plant near Halifax.
Allen administration officials say environmental regulations are a key part of their effort to generate 120,000 jobs during the governor's four-year tenure.
But critics say the lack of attention to environmental protection may hurt economic development in the long run.
Slaughter, with the Southern Environmental Law Center, cited a study by the Massachusetts Institute of Technology showing that regions with strong environmental laws have a better quality of life and sustain economic growth longer than regions with weak environmental laws.
Although Allen remains popular, Slaughter predicted a public backlash once the results of his pro-business environmental stance becomes apparent.
``As they begin to see the siting of medical waste incinerators and the protests about them, that's when you'll see a real outcry from the public,'' she said. ``I think most people are not willing to give up the kind of protections we have.''
Critics say the proposed incinerator rules - which are ready for final approval - are so lax that they could make Virginia the dumping ground for medical waste from other states. ILLUSTRATION: Gov. Allen wants regulations to be business-friendly.
KEYWORDS: INDUSTRY ENVIRONMENTAL QUALITY INCINERATOR AIR POLLUTION by CNB