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2002 SESSION
023097604Be it enacted by the General Assembly of Virginia:
1. § 1. Title. This act shall be known and may be cited as the “Commonwealth of Virginia Environmental Stewardship Bond Act of 2002.”
§ 2. Authorization of Bonds and BANs. Subject to a favorable vote of a majority of the qualified voters voting on this act at the November 5, 2002, general election as hereinafter provided, the Treasury Board is hereby authorized, by and with the consent of the Governor, to sell and issue, at one time or from time to time, bonds of the Commonwealth, to be designated “Commonwealth of Virginia Environmental Stewardship Bonds, Series...,” in an aggregate principal amount not exceeding $488,495,075. The Treasury Board is further authorized, by and with the consent of the Governor, to borrow money in anticipation of the issuance of the bonds by the issuance of bond anticipation notes (“BANs”), including BANS as commercial paper.
§ 3. Purpose; Projects. The proceeds of the bonds and BANs, excluding amounts needed to pay issuance costs and other financing expenses, shall be used as provided in § 4 hereof for capital projects for biological nutrient removal at sewage treatment facilities, rehabilitation to dams owned by soil and water conservation districts, combined sewer overflow, renovation of state parks and acquisition of real estate for parks and acquisition of permanent interests in real estate for conservation purposes. The projects shall be classified as Category 1, Category 2, Category 3, Category 4, and Category 5 projects, respectively, with each category being subject to different preconditions. Bonds to finance the cost of Category 2 projects may be issued only if the aggregate principal amount of $96,974,000 in bonds has been issued to finance the cost of Category 1 projects. Bonds to finance the cost of Category 3 projects may be issued only if the aggregate principal amount of $9,850,000 in bonds has been issued to finance the cost of Category 2 projects. Bonds to finance the cost of Category 4 projects may be issued only if the aggregate principal amount of $25,300,000 has been issued to finance the cost of Category 3 projects. Bonds to finance the cost of Category 5 projects may be issued only if the aggregate principal amount of $156,371,075 has been issued to finance the cost of Category 4 projects.
The projects and the amount of bonds authorized to be issued for each such project shall be as follows:
Category 1 projects
Category 1 projects shall be capital projects for biological nutrient removal at the following sewage treatment facilities and in the following amounts:
Facility Amount
Town of Leesburg Sewage Treatment Plant $70,000
Virginia's Share of Blue Plains Sewage Treatment Plant $1,078,000
Alexandria Sanitation Authority Sewage Treatment Plant $2,827,000
Arlington County Sewage Treatment Plant $435,000
Dale Service Corporation Sewage Treatment Plant #1 $105,000
Dale Service Corporation Sewage Treatment Plant #8 $118,000
Fairfax County - Noman Cole Sewage Treatment Plant $1,910,000
Prince William County Service Authority - Mooney Sewage
Treatment Plant $2,143,000
Town of Purcellville Sewage Treatment Plant $111,000
Augusta County Service Authority - Stuarts Draft Sewage
Treatment Plant $141,000
Town of Strasburg Sewage Treatment Plant $1,724,000
Town of Colonial Beach Sewage Treatment Plant $45,000
Upper Occoquan Sewage Authority Sewage Treatment Plant $259,000
Town of Parkins Mill Sewage Treatment Plant $1,337,000
Augusta County Service Authority - Fishersville Sewage
Treatment Plant $1,337,000
Town of Luray Sewage Treatment Plant $817,000
City of Waynesboro Sewage Treatment Plant $3,340,000
Town of Front Royal Sewage Treatment Plant $1,337,000
Town of Woodstock Sewage Treatment Plant $45,000
King George County Sanitation Authority - Dahlgren Sewage
Treatment Plant $470,000
Town of Culpeper Sewage Treatment Plant $2,097,000
City of Fredericksburg Sewage Treatment Plant $2,399,000
Hanover County - Ashland Sewage Treatment Plant $1,135,000
Hanover County - Doswell Sewage Treatment Plant $1,669,000
Hampton Roads Sanitation District - York River Sewage
Treatment Plant $5,000,000
Chesterfield County - Falling Creek Sewage Treatment Plant $790,000
City of Hopewell Regional Sewage Treatment Plant $26,260,000
City of Richmond Sewage Treatment Plant $29,479,000
City of Petersburg - South Central Wastewater Treatment
Authority Sewage Treatment Plant $7,650,000
Town of Cape Charles Sewage Treatment Plant $846,000
TOTAL $96,974,000
The General Assembly hereby finds and determines that the estimated useful life of the capital projects above is in excess of twenty-one years.
The Director of the Department of Environmental Quality shall determine the priority of funding for Category 1 capital projects. To the extent that the cost of any Category 1 capital project is less than the amount allocated to such project, the Director of the Department of Environmental Quality may increase the amount allocated to any other Category 1 capital project. No such allocation to a Category 1 capital project may be increased, however, until it has been demonstrated to the satisfaction of the Director of the Department of Environmental Quality that (i) the cost of the capital project has been reduced to the extent reasonable, (ii) the capital project has not been expanded or enhanced beyond that originally approved, and (iii) the capital project is suitable and adequate for the scope originally intended. No increase in the amount allocated to any Category 1 capital project shall constitute an authorization for the issuance of bonds in an amount in excess of the aggregate amount authorized hereunder.
Category 2 projects
Category 2 projects shall be capital projects for rehabilitation to dams owned by soil and water conservation districts as follows:
Major Modifications to Dams Amount
Major modifications/upgrades to bring dams in compliance with
required spillway design flood requirements promulgated
by the State Water Control Board pursuant to § 10.1-605
of the Code of Virginia, with modifications/upgrades
including widening of the existing emergency spillway,
adding a new emergency spillway, increasing the storage
volume for impounded water, providing overtopping
protection for the entire dam, concrete rehabilitation
and repair, pressure grouting, riser tower replacement
and repair, or outfall pipe sleeving or concrete joint
sealing for the following dams:
Henry/Blue Ridge - Marrowbone #1 $2,000,000
Augusta/Headwaters - South River #25 $700,000
Augusta/Headwaters - South River #23 $600,000
Augusta/Headwaters - South River #26 $600,000
Augusta/Headwaters - South River #6 $500,000
Henry/Blue Ridge - Leatherwood #5 $300,000
Henry/Blue Ridge - Leatherwood #6 $350,000
Henry/Blue Ridge - Leatherwood #3 $350,000
Franklin/Blue Ridge - Upper Blackwater #4 $600,000
Craig/Mountain Castles - Johns Creek #1 $2,500,000
Periodic Rehabilitation to Dams
Rehabilitation/structural repairs for periodic non-maintenance
including repairs or replacements to embankments, plunge
pools, riser towers, outfall pipe and appurtenant
structures for the following dams:
Henry/Blue Ridge - Leatherwood #5 $50,000
Augusta/Headwaters - South River #19 $50,000
Craig/Mountain Castles - Johns Creek #2 $50,000
Upper Blackwater River Dam #6 $50,000
Horse Pasture Creek Dam #2 $50,000
Mountain Run Dam #8A $35,000
Mountain Run Dam #13 $25,000
Beautiful Run Dam 2A $75,000
South River Dam #11 $30,000
Stony Creek Dam #9 $50,000
Stony Creek Dam #10 $30,000
Shoemaker River Dam #1A $25,000
Shoemaker River Dam #3B $30,000
Leatherwood Creek Dam #2A $25,000
Leatherwood Creek Dam #4 $20,000
Beautiful Run Dam #10 $20,000
South River Dam #24 $35,000
Willis River Dam #7 $20,000
Willis River Dam #9 $20,000
Muddy Creek Dam #1 $20,000
Muddy Creek Dam #2 $20,000
Bush River Dam #2 $25,000
East Fork Falling River #7 $30,000
East Fork Falling River #15 $30,000
East Fork Falling River #21 $30,000
Roanoke Creek Dam #67 $20,000
Roanoke Creek Dam #4A $20,000
Roanoke Creek Dam #61A $25,000
Roanoke Creek Dam #31B $20,000
Roanoke Creek Dam #54 $20,000
Johns Creek Dam #3 $25,000
John's Creek Dam #4 $25,000
Buffalo Creek Dam #1 $15,000
Buffalo Creek Dam #3 $15,000
Buffalo Creek Dam #4 $15,000
Buffalo Creek Dam #2 $15,000
Buffalo Creek Dam #5 $15,000
Buffalo Creek Dam #6 $15,000
Buffalo Creek Dam #7 $15,000
Buffalo Creek Dam #8 $15,000
Little Falling River Dam #1 $15,000
Little Falling River Dam #2 $15,000
Little Falling River Dam #3 $15,000
Roanoke Creek Dam #35A $15,000
Roanoke Creek Dam #68 $15,000
Roanoke Creek Dam #5B $15,000
Roanoke Creek Dam #6A $15,000
Roanoke Creek Dam #49A $15,000
Little River Dam #4 $15,000
Lower North River #80 $25,000
Lower North River #78 $25,000
Lower North River #83 $25,000
South Anna Dam #4 $20,000
TOTAL $9,850,000
The General Assembly hereby finds and determines that the estimated useful life of the capital projects above is in excess of twenty-one years.
The Director of the Department of Conservation and Recreation shall determine the priority of funding for Category 2 capital projects. To the extent that the cost of any Category 2 capital project is less than the amount allocated to such project, the Director of the Department of Conservation and Recreation may increase the amount allocated to any other Category 2 capital project. No such allocation to a Category 2 capital project may be increased, however, until it has been demonstrated to the satisfaction of the Director of the Department of Conservation and Recreation that (i) the cost of the capital project has been reduced to the extent reasonable, (ii) the capital project has not been expanded or enhanced beyond that originally approved, and (iii) the capital project is suitable and adequate for the scope originally intended. No increase in the amount allocated to any Category 2 capital project shall constitute an authorization for the issuance of bonds in an amount in excess of the aggregate amount authorized hereunder.
Category 3 projects
Category 3 projects shall be capital projects for combined sewer overflow as defined in § 62.1-241.11 of the Code of Virginia. Bond proceeds in the amount of $25,300,000 shall be deposited to the Combined Sewer Overflow Matching Fund established pursuant to § 62.1-241.12 of the Code of Virginia and such proceeds shall be reserved for the payment of grants for the following combined sewer overflow capital projects, subject to such terms and conditions on such grants as determined by the State Water Control Board under the authority of § 62.1-241.12 of the Code of Virginia:
Project Amount
Lower Gillies Creek Conveyance (# III-2), City of Richmond $12,500,000
Combined Sewer Overflow Separation Project 12.4, in the
General Area of Oak Ridge Boulevard, Connecticut
Avenue, and Pennsylvania Avenue, City of Lynchburg $4,300,000
Combined Sewer Overflow Separation Project 12.3, in the
General Area of Tolley's Lane, Sussex Street, and
New Hampshire Avenue, City of Lynchburg $4,500,000
Combined Sewer Overflow Separation Project 12.2, in the
General Area of Thomas Road, MacCausland Street,
and College Street, City of Lynchburg $4,000,000
Total $25,300,000
The General Assembly hereby finds and determines that the estimated useful life of the capital projects above is in excess of twenty-one years.
The State Water Control Board shall determine the priority of funding for Category 3 capital projects. To the extent that the cost of any Category 3 capital project is less than the amount allocated to such project, the State Water Control Board may increase the amount allocated to any other Category 3 capital project. No such allocation to a Category 3 capital project may be increased, however, until it has been demonstrated to the satisfaction of the State Water Control Board that (i) the cost of the capital project has been reduced to the extent reasonable, (ii) the capital project has not been expanded or enhanced beyond that originally approved, and (iii) the capital project is suitable and adequate for the scope originally intended. No increase in the amount allocated to any Category 3 capital project shall constitute an authorization for the issuance of bonds in an amount in excess of the aggregate amount authorized hereunder.
Category 4 projects
Category 4 projects shall be capital projects for state park renovation, acquisition and development as follows:
Park and Recreational Facilities Amount
Renovation of the following projects at existing state parks:
Park Description of project
Chippokes Plantation Renovate Conference Shelters $563,591
Chippokes Plantation Renovate Historic Structures $6,761,464
Chippokes Plantation Repair Trails $540,722
Chippokes Plantation Replace Water System $618,812
Douthat Renovate Nature Discovery/
Environmental Education Center $631,164
Douthat Trail Repairs $73,986
Fairy Stone Renovate Historic Beach
Concession Complex $2,135,199
First Landing Cape Henry Trail Repair $449,581
Hungry Mother Develop Campground $813,934
Hungry Mother Replace Water Lines $729,828
New River Trail Development of Foster Falls
Headquarters and Hotel $4,498,240
New River Trail Renovate/Improve Horseshoe Campground $5,882,082
New River Trail Trail-Wide Facility Development $2,042,590
Pocahontas Road Repairs $445,450
Sailor's Creek Battlefield Renovate Hillsman Residence $200,000
Staunton River Renovate CCC Visitor Center $1,114,344
Staunton River Battlefield Renovate Mulberry Hill Structures $4,726,591
Various Parks Repair of Shoreline Erosion $5,350,510
Various Parks Roof Repairs $500,000
Subtotal $38,078,088
Acquisition of land for state parks
Acquisition of land for a park in the RADCO District $7,000,000
Acquisition of land for a park to be located on the Middle
Peninsula along the Chesapeake Bay or major tributary $7,000,000
Acquisition of land for a park to be located in the Central
Shenandoah Staunton/Harrisonburg area - Natural Chimneys,
Grand Caverns, and additional land to bring park to standards $3,500,000
Acquisition of land for a park to be located on the North Fork
of Shenandoah River - Seven Bends area $7,000,000
Various Parks Inholdings, Adjacent Properties, and Viewshed
Protection Easements/Acquisitions $10,000,000
Rail Trail Projects $500,000
Subtotal $35,000,000
Acquisition of land for Natural Area Preserves
Projects identified by the Division of Natural Heritage
Acquisition of lands statewide for Natural Area Preserves $30,000,000
Subtotal $30,000,000
Development of the following projects:
Park Description of project
Lake Anna Construct New Campsites $3,869,091
Belle Isle Construct Connecting Trail Bridge $431,618
Chippokes Plantation Construct Maintenance Complex $622,428
Claytor Lake Construct Campground D Bathhouse $273,662
RADCO District Development of a park $3,648,130
James River in the
vicinity of Richmond Development of a park $3,648,129
Douthat Construct Equestrian Camping Area $1,833,810
False Cape Construct Visitor Center Complex $2,500,000
First Landing Construct A and B Area Restroom $593,340
Grayson Highlands Construct Bathhouses and
Well Water System $873,840
James River Construct Equestrian Campground $1,833,810
James River Construct Housekeeping Cabins $4,867,222
James River Construct Law Enforcement
Officer Residence $144,917
Lake Anna Construct Cabins $4,175,215
Leesylvania Construct Boat Launches and Piers $224,488
Leesylvania Construct Group Use Picnic Shelter $72,503
Mason Neck Construct Law Enforcement
Officer Residence $144,917
Natural Tunnel Construct Cabins $4,867,222
Occoneechee Construct Cabins $4,867,222
Sailor's Creek
Battlefield Construct Visitor Center and Restroom $2,300,000
Shenandoah "Andy Guest" Construct Road - Culler's Tract $2,435,488
Shenandoah "Andy Guest" Construct Cabins and Campground $6,557,052
Staunton River Construct Equestrian Campground $1,833,810
Twin Lakes Construct Shop/Maintenance Facility $530,156
Westmoreland Construct Law Enforcement
Officer Residence $144,917
Subtotal $53,292,987
TOTAL $156,371,075
The General Assembly hereby finds and determines that the estimated useful life of the capital projects above is in excess of twenty-one years.
The Director of the Department of Conservation and Recreation shall determine the priority of funding for Category 4 capital projects. To the extent that the cost of any Category 4 capital project is less than the amount allocated to such project, the Director of the Department of Conservation and Recreation may increase the amount allocated to any other Category 4 capital project. No such allocation to a Category 4 capital project may be increased, however, until it has been demonstrated to the satisfaction of the Director of the Department of Conservation and Recreation that (i) the cost of the capital project has been reduced to the extent reasonable, (ii) the capital project has not been expanded or enhanced beyond that originally approved, and (iii) the capital project is suitable and adequate for the scope originally intended. No increase in the amount allocated to any Category 4 capital project shall constitute an authorization for the issuance of bonds in an amount in excess of the aggregate amount authorized hereunder. No allocation shall be made to any Category 4 capital project included herein until all applicable requirements of § 10.1-200.1 of the Code of Virginia have been met.
Category 5 projects shall be capital projects for acquisition of permanent interests in real estate for conservation purposes as follows:
Acquisition of Permanent Interests in Real Estate Amount
for Conservation
Virginia Land Conservation Foundation $170,000,000
Office of Farmland Preservation $30,000,000
TOTAL $200,000,000
GRAND TOTAL $488,495,075
The General Assembly hereby finds and determines that the estimated useful life of the capital projects above is in excess of twenty-one years.
Bond proceeds allocated to the Virginia Land Conservation Foundation shall be used exclusively for the acquisition of permanent interests in real estate purchased for conservation purposes. The permanent interests in real estate acquired shall be determined pursuant to the provisions of Chapter 10.2 (§ 10.1-1017 et seq.) of Title 10.1 of the Code of Virginia.
Bond proceeds allocated to the Office of Farmland Preservation, established pursuant to Chapter 3.3 (§ 3.1-18.9 et seq.) of Title 3.1 of the Code of Virginia, shall be used exclusively for the acquisition of permanent interests in real estate purchased for conservation purposes. The permanent interests in real estate acquired shall be development rights to real estate purchased by local governments from such bond proceeds as are allocated to local governments by the Office of Farmland Preservation; however, all such acquisition of development rights from such bond proceeds shall be pursuant to a local purchase of development rights program approved by the Office of Farmland Preservation.
§ 4. Application of Proceeds. Proceeds (including any premium) of the bonds and any BANs (except the proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds and (iii) refunding BANs) shall be deposited by the State Treasurer in a special capital outlay fund in the state treasury and shall be disbursed only for the purpose for which the bonds or any BANs have been issued. In the event that the proceeds of the bonds or BANs exceed the cost of the projects specified in § 3, the Treasury Board shall cause such excess proceeds to be applied to the retirement of the bonds or BANs. The proceeds of (a) bonds the issuance of which has been anticipated by BANs, (b) refunding bonds and (c) refunding BANs and any funds provided by the General Assembly, or available from any other source, for the purpose, shall be used to pay such BANs, refunded bonds and refunded BANs.
The proceeds of the bonds and any refunding bonds or BANs are hereby appropriated for disbursement from the state treasury for the current biennium pursuant to Article X, Section 7 of the Constitution of Virginia, and § 2.2-1819 of the Code of Virginia. The general conditions and general provisions of the general appropriation act enacted pursuant to Chapter 15 (§ 2.2-1500 et seq.) of Title 2.2 of the Code of Virginia, in effect from time to time, and all of the terms and conditions contained therein shall apply to the capital projects listed in § 3. The Governor or his designee is hereby authorized to increase the appropriation for any project listed in § 3 by the amount of the proceeds of donations, gifts, grants or other nongeneral funds paid into the state treasury in excess of such appropriation.
§ 5. Details, sale of bonds and BANs. The bonds shall be dated, shall mature at such time or times not exceeding twenty-one years from their date or dates and may be made redeemable before their maturity or maturities at such price or prices or within such price parameters, all as may be determined by the Treasury Board, by and with the consent of the Governor. The principal of the bonds shall be amortized, by payment into a sinking fund or otherwise, in annual installments. The first annual installment of principal of the bonds shall become due not later than one-tenth of the term of the bonds, and no installment of principal of the bonds shall be more than twice the smallest previous installment. Any such sinking fund shall not be appropriated for any other purpose.
The bonds shall be in such form, shall bear interest at such rate or rates, either at fixed rates or at rates established by formula or other method, and may contain such other provisions, all as the Treasury Board or the State Treasurer, when authorized by the Treasury Board, may determine. The principal of and premium, if any, and interest on the bonds and BANs shall be payable in lawful money of the United States of America. Bonds and BANs may be certificated or uncertificated as determined by the Treasury Board. The Treasury Board may contract for services of such registrars, transfer agents, or other authenticating agents as it deems appropriate to maintain a record of the persons entitled to the bonds and BANs. Bonds and BANs may be issued under a system of book entry for recording the ownership and transfer of ownership of rights to receive payments on the bonds and BANs. The Treasury Board shall fix the denomination or denominations of the bonds and the place or places of payment of principal, premium, if any, and interest, which may be at the office of the State Treasurer or at any one or more banks or trust companies within or without the Commonwealth.
The Treasury Board may sell the bonds and any BANs in such manner, either by competitive bidding, negotiated sale or private placement, and for such price as it may determine, by and with consent of the Governor, to be in the interest of the Commonwealth.
In the discretion of the Treasury Board, bonds and BANs may be issued at one time or in part from time to time and may be issued and sold at the same time with other general obligation bonds and bond anticipation notes, respectively, of the Commonwealth authorized pursuant to Article X, Section 9(a)(3), (b) or (c) of the Constitution of Virginia, either as separate issues, as a combined issue designated “Commonwealth of Virginia General Obligation Bonds [Bond Anticipation Notes], Series 20….,” or as a combination of both. The bonds and BANs shall be signed on behalf of the Commonwealth by the Governor and by the State Treasurer, or shall bear their facsimile signatures, and shall bear the lesser seal of the Commonwealth or a facsimile thereof. In the event that the bonds or BANs bear the facsimile signature of the State Treasurer, they shall be signed by such administrative assistant as the State Treasurer shall determine or by such registrar or paying agent as may be designated to sign them by the Treasury Board. If any officer whose signature or facsimile signature shall appear on any bonds or BANs shall cease to be such officer before the delivery, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery, and any bond or BAN may bear the facsimile signature of, or may be signed by, such persons as at the actual time of the execution are the proper officers to sign such bond or BAN although, at the date of such bond or BAN, such persons may not have been such officers.
§ 6. Refunding. The Treasury Board is hereby authorized, by and with the consent of the Governor, to sell and issue, at one time or from time to time, refunding bonds and BANs of the Commonwealth, to refund any or all of the bonds and BANs, respectively, issued under this act or otherwise pursuant to Article X, Section 9(b), of the Constitution of Virginia. Refunding bonds and BANs may be issued in a principal amount up to the amount necessary to pay at maturity or redeem the bonds and BANs to be refunded and pay all issuance costs and other financing expenses of the refunding. Such refunding bonds and BANs may be issued whether or not the bonds or BANs to be refunded are then subject to redemption. Any escrow or trust fund established with the proceeds from the sale of refunding bonds shall be irrevocably pledged to the payment of the bonds to be refunded, and shall be used solely to pay such bonds or BANs at maturity or upon redemption or for the purchase of not less than all of the bonds or BANs to be refunded. Any such escrow or trust fund shall constitute a special fund for the payment of such refunded bonds or BANs, and such refunded bonds or BANs, to the extent of amounts, including the maturity amounts of investments, set aside for the payment thereof in such escrow or trust fund, shall not be included for the purposes of determining any limitations upon the amount of bonded indebtedness of the Commonwealth that may be incurred pursuant to Article X, Section 9(b), of the Constitution of Virginia. The Treasury Board may, however, direct that the interest received from the investment of the proceeds of the bonds or any BANs be transferred to the general fund of the State Treasury.
§ 7. Authorized Investments. Pending the application of the proceeds of the bonds or BANs (including refunding bonds and BANs) to the purpose for which they have been authorized and the application of funds set aside for the purpose to the payment of bonds or BANs, they may be invested by the State Treasurer in securities that are legal investments under the laws of the Commonwealth for public funds and sinking funds, as the case may be. Whenever the State Treasurer receives interest from the investment of the proceeds of bonds or any BANs, such interest shall become a part of the principal of the bonds or any BANs and shall be used in the same manner as required for principal of the bonds or BANs.
§ 8. Security for bonds and BANs. The full faith and credit of the Commonwealth are hereby irrevocably pledged for the payment of the principal of and the interest on bonds and (unless the Treasury Board, by and with the consent of the Governor, shall provide otherwise) BANs issued under this act. The proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds and (iii) refunding BANs are hereby irrevocably pledged for the payment of principal of and interest and any premium on such bonds or BANs to be refunded thereby. In addition, the Treasury Board may pledge the full faith and credit of the Commonwealth for the payment of the principal of and interest on any BANs. If sufficient funds are not appropriated in the general appropriations act for any fiscal year for the timely payment of the principal of and the interest on the bonds, any refunding bonds or any BANs where the full faith and credit of the Commonwealth has been pledged, there shall be set apart by direction of the Governor, from the first general fund revenues received during such fiscal year and thereafter, a sum sufficient to pay such principal and interest.
§ 9. Expenses. All expenses incurred under this act shall be paid from the proceeds of the bonds, or any refunding bonds or BANs, or from any other available funds as the Treasury Board shall determine.
§ 10. Exemption of interest from tax. The bonds and BANs issued under the provisions of this act, their transfer, and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation by the Commonwealth and by any political subdivision thereof. The interest on the bonds and any refunding bonds or BANs may be subject to inclusion in gross income of the holders thereof for federal income tax purposes.
§ 11. Referendum. The question of the effectiveness of this act and the authorization of the bonds shall be submitted to the qualified voters of the Commonwealth at the general election to be held on Tuesday, November 5, 2002. Notice of the election shall be given, the ballots shall be prepared, distributed and voted, and the results thereof ascertained and certified, in accordance with Title 24.1 of the Code of Virginia, relating to special elections. The ballots to be used at the election shall pose the question in substantially the following form:
QUESTION: Shall Chapter ____, Acts of the General Assembly of 2002, authorizing the issuance of general obligation bonds of the Commonwealth of Virginia in the maximum amount of $488,495,075 pursuant to Article X, Section 9(b) of the Constitution of Virginia for capital projects for improving sewage treatment, rehabilitation to dams, avoiding sewage overflows, renovation of state parks and acquisition of real estate for parks, and acquisition of interests in real estate for conservation purposes, take effect?
The State Board of Elections shall cause to be sent to the electoral boards of each county and city sufficient copies of the full text of this act and the question contained herein for the officers of election to post in each polling place on election day. The State Board of Elections shall without delay make out and transmit to the Governor and to the Treasury Board an official copy of the report of the whole number of votes cast at the election for and against the act, certified by it.
If a majority of those voting thereon shall vote in favor of this act, this act shall take effect and the bonds may be issued as hereinabove provided. If a majority of those voting thereon shall vote against this act, this act shall not take effect and the bonds shall not be issued.
The expenses incurred in conducting this election shall be defrayed as in the case of election of members of the General Assembly.
§ 12. Severability. The provisions of this act or the application thereof to any person or circumstance that are held invalid shall not affect the validity of other provisions or applications of this act that can be given effect without the invalid provisions or applications.
2. That the amount of funding for Category 1 capital projects shall be deemed to be grants from the Water Quality Improvement Fund, established under § 10.1-2128 of the Code of Virginia, to finance at least fifty percent of the cost of design and installation of biological nutrient removal facilities or other nutrient removal technology at publicly owned treatment works as provided in subsection C of § 10.1-2131 of the Code of Virginia.
3. That the Department of Environmental Quality shall consult with local governments and other interested parties to develop criteria for purposes of determining the priority of funding for Category 1 capital projects.