This is factory refurbished from VZW, with new casing (they say zero scratches, so I assume thats what they mean), comes with the same 1 yr warranty.
Thats a link to the CPO program splash page, you have to input your zip to get the actual phone pricing.
iPhone 4 16GB $149.99
iPhone 4 32GB $249.99
Since this isn't available at Apple.com I assume these are refurbished through Verizon themselves. Here's a little video about the VZW refurb process .