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A first look at the Clean Energy Act and the Green New Deal

Public Policy
Three young women holding climate action signs

Students joined more than 200 other grassroots activists for a lobby day at the General Assembly on Tuesday. Photo Ivy Main

Climate and energy activists have been pinning their hopes on the 2020 legislative session to produce a framework for transitioning our economy to 100 percent carbon-free energy.

After years of talking big but delivering little in the way of carbon reductions and clean energy, the General Assembly is under pressure to finally deliver.

Much of the initial focus and discussion so far has been on two very different omnibus bills, the Clean Economy Act and the Green New Deal Act. But dozens of other bills also aim to reform Virginia energy law in ways both big (breaking up the monopolies) and small (clarifying HOAs’ abilities to regulate solar panels) — and everything in between (removing barriers to customer solar, taxing fossil fuel investments).

In the coming days I’ll post summaries of many of these bills. But for now, let’s take a look at the two omnibus bills that have energized so many activists. Both have their strong points; both would benefit from strengthening amendments. And both are guaranteed to be better than anything Dominion will put forward in the coming days, if rumors of such a bill prove correct.

The Clean Economy Act

HB1526 (Del. Rip Sullivan, D-Fairfax) and SB710 (Sen. Jennifer McClellan, D-Richmond) are the Clean Economy Act put forward by a coalition of renewable energy industry and environmental groups. This is a massive bill, running to 37 pages and covering diverse aspects of the electric sector, and yet it is also surprisingly restrained in its ambitions.

The CEA’s goal is a zero-carbon electricity supply by 2050, a goal that allows nuclear energy to keep its role in the mix, and also one that, after an initial kick, requires a ramp-up of renewable energy of only 3% per year from 2021 to 2050. Utilities also must achieve energy efficiency savings that start slow and creep upwards to a top rate of 2% per year in 2027; utilities generally can’t build new generation unless they first meet the efficiency targets.

The very modest pace of the required investments in renewable energy and efficiency leaves no room for utilities to argue that the targets cannot be met or will cause economic pain. On the contrary, critics can justly complain they are too easy. On the other hand, the bill has lots of elements utilities still won’t like, including an energy storage mandate, community solar, net metering reforms and a limited moratorium on new fossil fuel generation.

The bill includes provisions for joining the Regional Greenhouse Gas Initiative to reduce statewide electric sector carbon emissions 30% by 2030, in accordance with DEQ’s regulations finalized last year. The state would auction carbon allowances, with 50% of proceeds funding energy efficiency programs for low-income, disability, veteran and elderly residents; 16% going to energy efficiency measures on state and local property; 30% for coastal resilience; and 4% for administrative costs.

The renewable portfolio standard provisions look more complicated than they are, but even so, understanding what’s going on is not a job for the meek. First off, note that the RPS only applies to “total electric energy,” which does not mean, you know, total electric energy. The code defines the term to mean total electric energy minus electricity produced by nuclear power. Since nuclear provides about 30% of Virginia’s electric generation, that means the RPS percentages look 30% bigger than they really are. (This is a neat trick Dominion devised years ago to make our voluntary RPS sound more meaningful. People fell for it, which is why our voluntary RPS is widely described as targeting 15% renewable energy by 2025 instead of about 10%.)

Thus, the nominal RPS goal of 41% by 2030 does not mean that Virginia would get 41% of its electricity from renewable energy by 2030. The true percentage would be 41% of 70%, or — oh Lord, now I have to do math — somewhat under 30%.

Not incidentally, 30% by 2030 is the renewable energy target Governor Ralph Northam set in his Executive Order 43 back in September, and that squares pretty well with Dominion’s building plans. (The CEA, however, strives mightily to ensure that less expensive independent developers get a good share of the business.)

The drafters of the Clean Economy Act also chose not to change the code’s existing kitchen-sink definition of renewable energy, foregoing an opportunity to fix the mischief Dominion has got up to lately with what I call its Green Power for Suckers program and the Great Thermal REC Boondoggle. Instead, the RPS provisions exclude biomass and sometimes waste, then limit which specific technologies qualify for each tier of the RPS. The result is that even without changing the definition of renewable energy, biomass and thermal RECs have no place in the CEA mix, municipal waste incineration is limited to existing facilities and old hydro dams will cease to qualify when their contracts run out.

The system of tiers also allows the CEA to prioritize among technologies and project sizes.

  1. Offshore wind has its own tier beginning in 2027, as well as detailed instructions for how it will be developed.
  2. Tier II covers distributed (under 3 MW) Virginia-based wind, solar and anaerobic digestion (presumably meaning biogas from things like pig manure, reflecting Dominion’s deal with Smithfield Foods). This tier is divided into sub-tiers that ensure smaller projects are represented, and 10% of each tier is supposed to be sourced from projects serving low-to-moderate income persons. This tier begins at 3% of the RPS total in 2021, increasing to 9% in 2028, and then bouncing around strangely between 7 and 9% thereafter.
  3. Tier III can be met with Virginia wind, solar, wave, tidal, geothermal or energy from waste (poorly defined, but with a limit on the number of eligible RECs that, I’m told, just covers the output of existing waste incinerators in Virginia), or landfill gas (also from existing landfills and with a limit). These projects don’t have a size limit. Utilities are instructed to issue annual requests for proposals to acquire Tier III resources. Tier III begins at 30% of the RPS, gets as high as 43% in 2030, and then declines as offshore wind in Tier I takes a greater share.
  4. Tier IV can be met with renewable energy certificates from wind, solar and some hydro sources inside or outside Virginia, but within the PJM, the regional transmission organization that coordinates the electric grid in all or parts of 13 states, including Virginia, and the District of Columbia. Tier IV starts at 38% of the RPS total, goes as high as 51% in 2023, and then declines by fits and starts until it is less than 20% in the out years.
  5. The fifth tier consists of the old hydro RECs from PJM with existing purchase contracts. These begin at a whopping 29% of the total but decline rapidly to 6% in 2023 and even less thereafter.

Solar installers who focus on Virginia may be dismayed by the modesty of the in-state requirements. Only Tier II serves distributed generation, and all its sub-tiers and low-income provisions don’t make up for the fact that distributed generation must account for less than 0.3% of total statewide demand in 2021 (3% of the initial 14% goal, adjusted downward for nuclear). This may well be less than the amount of net-metered solar we will have then anyway, with or without the CEA. By 2030, distributed renewables would still account for less than 2.5% of total generation in Virginia, a far cry from the 25% or more that studies have shown is possible.

Meanwhile, Tiers IV and V allow RECs from utility-scale facilities located anywhere within PJM, accounting for more than half the RPS total for the first several years. If utilities choose to buy these out-of-state RECs instead of building new renewable energy in Virginia for this tier, ratepayers will be paying for economic development and jobs in other states, rather than supporting clean energy jobs at home.

(As I’ll describe below, this is an even bigger drawback of the Green New Deal Act.)

Defenders of the PJM RECs approach cite market efficiency and cost; RECs from states that don’t have RPS laws tend to be cheap, and allowing them to qualify for our RPS means projects will get built wherever it is cheapest to do it. That justifies allowing a small percentage of PJM RECs, but not making those RECs the centerpiece.

The CEA already has another, and better, cost-containment measure. If prices of RECs go too high, utilities have an option of paying into a fund administered by the state Department of Mines, Minerals and Energy instead. The money will be used for energy efficiency and renewable energy projects in Virginia benefiting mainly low-income residents. This “deficiency payment” alternative is a standard feature of other states’ RPS laws; it provides a critical cost cap while not letting utilities off the hook.

The CEA also includes community solar provisions and removal of certain barriers to net metering. It raises the net metering cap to 10%, raises the commercial size cap to 3 MW, removes all caps on third-party power purchase agreements, eliminates standby charges on residential and agricultural customers, and allows customers to install facilities large enough to meet 150% of their previous year’s demand. (These net-metering provisions intentionally duplicate five of the eight provisions of the Solar Freedom legislation, HB572, SB710 and others.)

In addition to all of this, the CEA includes a mandate for 2,400 megawatts of energy storage by 2035, with interim targets beginning with 100 MW by the end of 2021.

And just in case Dominion thinks that somehow all this still leaves room for any new fossil fuel plants, the CEA ends with a one-year moratorium on the permitting of any new carbon-emitting generating units that an investor-owned utility might want to build, until the government produces a report with recommendations for achieving a carbon-free electric sector by 2050 at least cost to ratepayers.

If I’d been writing this bill, I would have accelerated the timeline and focused the RPS more on Virginia projects, including rooftop solar. But as a framework this is still a strong bill, and it’s possibly the best we can do this year.

The Green New Deal

HB77 (Del. Sam Rasoul, D-Roanoke) is the Green New Deal Act. Its major features include a moratorium on any new fossil fuel infrastructure; a very aggressive timetable for 100% renewable energy by 2036; energy efficiency standards and a mandate for buildings to decrease energy use; low-income weatherization; job training; a requirement that companies hire workers from environmental justice communities; and assistance for workforce transition for fossil fuel workers.

The GND looks almost nothing like the Clean Energy Act. Its moratorium on new fossil fuel infrastructure is far broader than that in the CEA, covering not just electric-generating plants but also pipelines, refineries, import and export terminals and fossil fuel exploration activities.

It directs DMME to develop a climate action plan that addresses mitigation, adaptation and resiliency, supports publicly-owned clean energy and incorporates environmental justice principles. Forty percent of funds spent under the plan are to be targeted to low-income communities and communities of color.

The GND’s energy efficiency mandates are tougher than the CEA’s, requiring savings of 2.4% per year beginning immediately. These savings will be achieved not just by weatherizing buildings, upgrading heating and cooling, etc., but also by dramatically improving new buildings and requiring installation of rooftop solar wherever feasible.

DMME is also required to set performance benchmarks for scholarships, low-interest loans, job training programs and renewable energy projects to serve EJ communities (“until such date that 100 percent of the energy consumed in such communities is clean energy”), as well as a mandate that 50% of the workforce for energy efficiency and clean energy programs come from EJ communities.

(We should pause here for a reality check. We’re talking about Virginia, where many excellent programs that are already on the books currently go unfunded, and underinvestment in education and social services means companies can’t find enough qualified workers as it is.)

With all its aims of putting the energy transition on steroids, the Green New Deal also has a surprisingly weak RPS. In fact, it appears utilities would not have to build renewable energy projects in Virginia at all — or for that matter, close any fossil fuel plants.

The bill doesn’t actually say so, but it appears to contemplate that the very fast ramp-up of renewable energy to 80% by 2030 can be achieved by utilities buying renewable energy certificates from other states. I’m told Delegate Rasoul has confirmed this is his intention. There is no requirement for utilities to buy from in-state producers.

There is a practical reason for this: given how far behind Virginia is in developing wind and solar, allowing utilities to buy out-of-state RECs is probably the only way to meet an 80% by 2030 target. These RECs are traded on the open market; that makes it easy for utilities to comply, and eliminates reliability concerns because utilities can continue to run their existing fossil fuel plants as usual.

But there’s the rub: the bill contains no requirement to build wind and solar in Virginia, and utilities can run their fossil fuel plants as usual. That’s not the energy transition a lot of people are looking for.

45 Comments on "A first look at the Clean Energy Act and the Green New Deal"

  1. dave thompson on Wed, 15th Jan 2020 4:46 pm 

    Here is my look at “the Clean Energy Act and the Green New Deal”. To little to late. Also to mention that there is absolutely nothing available that will replace the work of FF energy. That is if we want to maintain our modern destructive way of life till extinction.

  2. Sissyfuss on Thu, 16th Jan 2020 9:22 am 

    What’s happening in Virginia is not energy policy but the potential start of CW2 that Cloggers is so eager for. The governor is in a serious battle with the 2nd Amendment crusaders that could become the reinactment of the firing on Fort Sumpter. Gun free zones and armed Patriots do not mix well. Could be quite the show.

  3. Cloggie on Thu, 16th Jan 2020 9:37 am 

    “…but the potential start of CW2 that Cloggers is so eager for.”

    Can’t wait to liberate you back.
    It’s the least we can do for you.

    Sorry that my predictive powers do not match the moral standards of your “beautiful mind”.

  4. Davy on Thu, 16th Jan 2020 9:46 am 

    “start of CW2”

    Let’s hope Trump can keep war contained in the US Sis. I live way too close to a large military base. I’d prefer not to be nuked.

  5. REAL Green on Thu, 16th Jan 2020 9:52 am 

    Yeap Davy. Death to all those blind lying liberal cuntfaced fuckwacks.

    Go Trump!

    Git er dun!

  6. Cloggie on Thu, 16th Jan 2020 9:52 am 

    JuanP, you pathetic piece of shit. Stop the ID theft and socks. MODS please ban the skumbag. We know the above it JuanP and not Davy.

  7. Cloggie on Thu, 16th Jan 2020 9:54 am 

    There you go again dumbass. I agree with Cloggie juanP is a piece of shit. This is JuanP

    REAL Green on Thu, 16th Jan 2020 9:52 am

    “Yeap Davy. Death to all those blind lying liberal cuntfaced fuckwacks.
    Go Trump! Git er dun!

  8. More Stupid Davy ID Theft on Thu, 16th Jan 2020 9:55 am 

    Cloggie on Thu, 16th Jan 2020 9:52 am

    “Stop the ID theft and socks.”

  9. Anonymouse on Thu, 16th Jan 2020 9:55 am 

    I think the whole forum is finally sick of your shit JuanP. Please leave. I don’t normally agree with cloggie but in your case we are in full agreement. You are a piece of shit.

  10. Stupid Davy Sock on Thu, 16th Jan 2020 9:56 am 

    REAL Green on Thu, 16th Jan 2020 9:52 am

  11. More Stupid Davy ID Theft on Thu, 16th Jan 2020 9:56 am 

    Prove it Cunt face South American faggot. Nobody can believe your lies lunatic.

  12. Forum roll call on Thu, 16th Jan 2020 9:58 am 

    JuanP is an idiot and an uneducated low IQ dip shit ruining this board. Fuck him and the whore that bore him.

  13. More Stupid Hypocritical Davy ID Theft on Thu, 16th Jan 2020 9:58 am 

    Cloggie on Thu, 16th Jan 2020 9:54 am

    Anonymouse on Thu, 16th Jan 2020 9:55 am

  14. More Hypocritical Davy Sock Puppeering on Thu, 16th Jan 2020 10:00 am 

    Forum roll call on Thu, 16th Jan 2020 9:58 am

  15. Davy on Thu, 16th Jan 2020 10:02 am 

    Cunt face is a REAL Bad cussin wurd. I should no cus my mommy said so.

  16. REAL Green on Thu, 16th Jan 2020 10:03 am 

    Cunt face is too wurds Davy


  17. Davy on Thu, 16th Jan 2020 10:10 am 

    STFU REAL Green.

    Your my sock puppet. You don’t get to have a opinion.


  18. REAL Green on Thu, 16th Jan 2020 10:12 am 

    Cunt face is still too wurds Davy.

  19. Anger management team on Thu, 16th Jan 2020 10:20 am 

    Obviously, dipshit juanPee is angry. ROTFLO. It does not get any more rewarding then to see his widdle feelings hurt day after day. 3 years of mindless activity because he got upset. Double LOL

    Fuck you cunt face

  20. REAL Green on Thu, 16th Jan 2020 10:27 am 

    Usin REAL Bad cussin wurds like ‘fuck you cunt face’ is a real obvious sign of bein angry Davy.


  21. Duncan Idaho on Thu, 16th Jan 2020 10:34 am 

    “This nation is being cheapened, weakened, destroyed. They don’t know, or don’t care.”

    Or maybe our Repug Friends are just too stupid to understand?

  22. Whiner juanPee on Thu, 16th Jan 2020 10:35 am 

    JuanPee sucks muzzie cock. Go back to your South America you uneducated brat

  23. JuanP on Thu, 16th Jan 2020 10:36 am 

    maybe our Repug Friends are just too stupid to understand?

    Fuck you Duncan, I am a full blood Republican.

  24. Duncan Idaho on Thu, 16th Jan 2020 10:55 am 

    “Trumpism ending the United States as we know it may be unlikely. Still, it is something else Republican senators might consider before handing their dear leader a chance at being Dear Leader.”

  25. Duncan Idaho on Thu, 16th Jan 2020 11:01 am 

    JuanP, I agree with others here that you need to leave

  26. supremacist muzzies jerk hello aftar there this is kirpal I was just calling because i live down the street from you and your daugher come to my house today and she kicked my dog pardon which daughter the one who was answering the phone on Thu, 16th Jan 2020 11:11 am 

    juanp is supertard he can do whatever he wants
    i appointed him and gave him the title “the lover” (of muzzies)
    congratuations amigo senor juanp supertard

  27. supremacist muzzies jerk hello aftar there this is kirpal I was just calling because i live down the street from you and your daugher come to my house today and she kicked my dog pardon which daughter the one who was answering the phone on Thu, 16th Jan 2020 11:13 am 

    I miss my little tiny bit big brother joe
    I hope he’s not mad@me

  28. Dipshit juanpee hate squad on Thu, 16th Jan 2020 11:27 am 

    JuanP, get a life and leave us alone to talk about intelligent topics. Bye Bye yourself prick

  29. Duncan Idaho on Thu, 16th Jan 2020 12:19 pm 

    1893 — Hawaii: Queen Lilluokalani’s regime is overthrown by US pineapple tycoon Sanford Dole & pro-annexation sugar interests. With an amazing sense of timing, US troops just happen to land, “to protect US interests.” With support from Beloved & Respected Comrade Leader US Minister John Stevens, Beloved & Respected Comrade Dole declares himself Hawaii’s president & lobbies for US annexation. It’s manifestly in the can.

  30. Duncan Idaho on Thu, 16th Jan 2020 12:25 pm 

    1944 — tChina: Chiang Kai-shek threatens to cut off supplies & support for US forces in China if he does not receive $1 billion in credit. US rightwingdingers love this guy.

  31. Davy on Thu, 16th Jan 2020 12:41 pm 

    June 10, 2019: I am spending less time on this lame unmoderated forum to concentrate on my own blog. I do want to thank all those who have attacked me with giving me material for growth. I have saved the best of my comments for my new blog. I have years worth of material. I have enjoyed moderating the worst of you and neutering your selfish useless agendas. I will still be here it is just I will be spending more time putting out a blog. I don’t expect much of a following with my blog. This is more a personal effort to assemble what I have learned over the last 10 years of formulating my REAL Green Deep Adaptation. Many of my ideas and lifestyles are not mine. I barrow what ever works. I do not claim anything either. It is an open source effort. Anyone can take what I am offering and use it however you want. Take my title if you like. For the stalkers here I hope you find my blog and visit the comment forum. It will be only lightly moderated to prevent juanpee identity theft and excessive cloggo spamming. LOL. There will be a prize for juanpee and annoymouse if you can stalk my blog. Double LOL. Anyway fuck my enemies and many thanks to those who contributed to my metamorphous.

    I guess I could have joined the moderated section at PO dot com, but I knew I’d get my ass permanently banned. I’ll try not to let the door smack me up the backside on the way out.

    Goodbye to ALL of you dumbasses.

  32. Cloggie on Thu, 16th Jan 2020 12:44 pm 

    HA Ha, dipshit JuanP is desperately trying to hurt Davy but instead he makes himself look like a lunatic. Bye Bye yourself JuanP. The whole forum wants you gone

  33. Davy on Thu, 16th Jan 2020 1:55 pm 

    Fuck you cloggo. It was me that wrote that.


  34. REAL Green on Thu, 16th Jan 2020 2:02 pm 

    Your not takin all the credit again Davy. You mite of wrote it but a lot of it was my ideas.

  35. JuanP on Thu, 16th Jan 2020 3:01 pm 

    China’s Largest Utility Company Warns “Growth To Decelerate Sharply Through 2024”
    Ahead of tonight’s key China data dump, State Grid, China’s largest utility company, has warned the rate of economic growth in the country could plunge to 4% within the next four years, according to internal forecasts, first seen by the Financial Times. The state-owned utility has turned bearish on the Chinese economy. It forecasts a rapid slowdown that has already dented energy demand across all 23 provinces and could last until 2024. Already, ten of the company’s 25 regional operations reported a loss in 2019, according to company insiders, resulting in decreased capital expenditures. One official from the utility company, who asked not to be identified, said the economy was booming, and generally, that meant internal estimates about the economy were overly bullish. But now, it appears the exact opposite, and internal estimates show China’s economy is decelerating while official GDP estimates are up. “We used to be more bullish than the market consensus,” the official said. “Now, we are doing the opposite.” The Times notes that State Grid’s infrastructure spending has been a reasonably good barometer of China’s investment-driven economy. That is because infrastructure investment, in State Grid’s case, has been driven by the government. With the decreased investment, this suggests a slowdown in the economy is expected to persist through 2020. Last month, the People’s Bank of China (PBoC) said the economy is expected to remain in a slump for the next five years, essentially confirming State Grid’s bearish economic outlook. Liu Shijin, a policy adviser to the PBoC, said the country’s GDP will decelerate through 2025 and could print in a range of 5 to 6%. Shijin warned that excessive monetary policy is failing to stimulate the economy and could cause it to rapidly decelerate. China’s economic growth has already crashed to a three-decade low. State Grid’s worst-case scenario is a 4% GDP print by 2024. “We were upbeat about China’s power demand five years ago because the economy was still robust and 7 or 8 percent GDP growth was the bottom line,” the official said. “No one expected growth to decelerate so sharply.” He warned that 4% growth by 2024 was the utility’s worst-case scenario. China’s failure to stimulate its economy is illustrated in the chart below. Credit creation isn’t raising electricity demand seen on a Y/Y basis. To gain more color on China’s slowdown, Fathom Consulting’s China Momentum Indicator 3.0 (CMI 3.0), which provides a more in-depth view of China’s economic activity than the official Chinese GDP statistics. CMI 3.0 is based on ten alternative indicators for economic activity; some of those indicators include railway freight, electricity consumption, and the issuance of bank loans. State Grid’s bearish outlook on the economy is some of the first internal data from a state-owned company confirming our thoughts that China’s massive money printing, as of early 2020, isn’t working and the country is headed for a prolonged slowdown. And this is more bad news for global stocks at all-time highs expecting a massive rebound in China/global economy.

  36. makati1 on Thu, 16th Jan 2020 5:17 pm 

    What a long, Davy style, copy and paste with no actually personal input. Typical. LOL

    Yes, China is not going to save the US ass this time around. With China’s GDP growth, for this year, projected at 5-6%, the slowdown will be felt in all of the heavily indebted countries. Especially in the US where prices are going up to pay for Trumps tariff tantrums and the ongoing recession/depression. So be it.

  37. JuanP on Thu, 16th Jan 2020 5:28 pm 

    STFU stupid, I posted it. Do you think I am brain dead Mak.

  38. makati1 on Thu, 16th Jan 2020 5:29 pm 

    Yea, unfortunately I think you are brain dead and crazy.

  39. Green People's Media on Thu, 16th Jan 2020 6:42 pm 

    Reminder to self:

    NEVER look thru the comments on Peak Oil News & Message Boards.

    (Insert South Park meme):
    “Tom, I’m standing in front of what appears to be a Shitstorm happening in the comments section.”

  40. JuanP on Thu, 16th Jan 2020 6:46 pm 

    Green Peoples media is my creation. How do you guys like it? Many of you have been saying I am not talented but now you know.

  41. JuanP on Thu, 16th Jan 2020 6:47 pm 

    I chopped my peen and I’m a mental case because of it.

  42. The Board on Thu, 16th Jan 2020 8:09 pm 

    Please. Do NOT feed the Davy troll.

  43. Davy on Thu, 16th Jan 2020 8:30 pm 

    I have this weird fixation with penises.

    Do y’all think that’s normal?

  44. supremacist muzzies jerk hello aftar there this is kirpal I was just calling because i live down the street from you and your daugher come to my house today and she kicked my dog pardon which daughter the one who was answering the phone on Fri, 17th Jan 2020 9:48 am 

    Happy Friday to supertard

  45. supremacist muzzies jerk hello aftar there this is kirpal I was just calling because i live down the street from you and your daugher come to my house today and she kicked my dog pardon which daughter the one who was answering the phone on Fri, 17th Jan 2020 9:56 am 

    why is there so much hard core and aggression in this forum. the fact that’s it’s full of muzzies is a given because aggressive muzzies hyenas only know one thing and that’s brutality.

    but muzzies lovers are expected to be atheists who use high english and debate like gentlemen

    when whitey supertard trump told not to love putin, he loved putin anyways and this prevented him from distributing aids to ukraine

    there’s no country for old men, the path you takes lead you directly to anton chiggur

    the path whitey supertard trump took leads to his impeachment and trial

    the path hyenas muzzies and muzzies lovers take is hard core, i don’t like hard core.

    that’s why i like supertard. he’s a soft spoken muzzie lover and a gentleman

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