W.Va. Receives $30 Million To Revitalize Coal Communities

This year, nearly $30 million in federal funding will go toward projects that revitalize West Virginia’s coalfield communities and repurpose abandoned mine lands across the state.

In an effort to repurpose abandoned mine lands, state officials have granted millions of dollars in federal funding to community development projects on former West Virginia coalfields.

The funding was secured in the latest round of the Abandoned Mine Land Economic Revitalization (AMLER) Program. Since 2016, the program has provided federal dollars to community and economic development projects that rehabilitate coalfields, as well as the towns surrounding them.

West Virginia has hundreds of abandoned coal mining sites, with an estimated 173,000 acres of land across the state abandoned before 1977 alone.

For 2024, West Virginia was granted just under $30 million through the U.S. Department of the Interior’s Office of Surface Mining Reclamation and Enforcement (OSMRE), which oversees the program.

This year’s funding marks the most West Virginia has received since 2016, the first year of the program.

With OSMRE’s final approval still pending, West Virginia officials said that this year’s funding would be divided between 10 different economic development initiatives across the state.

Projects selected for funding by state officials this year include a cattle processing facility in Brooke County, a sports park in Marion County and a heritage center in Ohio County.

Announced Thursday, the following projects were tapped for AMLER funding this year by the West Virginia Department of Environmental Protection, the West Virginia Department of Commerce, the West Virginia Department of Transportation and the Governor’s Office:

  • Chief Logan Resort and Recreation Center, Logan County: $6,800,000
  • West Virginia Farm Foods, Brooke County: $4,000,000
  • City of Thomas Water Improvement Project, Tucker County: $3,000,000
  • Cleanwater RU2 Process Project, Kanawha County: $2,950,000
  • Ashland Resort Tourism Park, McDowell County: $2,993,500
  • Liberty Station Lodge & Tavern, Mercer County: $2,421,968
  • Opal Smith Highwall and Roanoke Center Expansion, Lewis County: $2,406,739
  • Gravity Adventure Park, Kanawha County: $2,163,954
  • Wheeling Heritage Center, Ohio County: $2,011,172
  • Baxter VFD Sports Park, Marion County: $600,000

Insulin Manufacturing Plant Coming To Morgantown

South Korean pharmaceutical company UNDBIO is set to build an insulin manufacturing facility in Morgantown.

South Korean pharmaceutical company UNDBIO is set to build an insulin manufacturing facility in Morgantown.

The plant will manufacture insulin shots that those with diabetes would inject once a week to control their blood glucose levels, as opposed to multiple times a day. 

UNDBIO Chairman Caleb Jun said during the announcement of the deal’s completion Wednesday morning that bringing a plant to West Virginia is part of his personal goal to make his company global.

“The products of UNDBIO will both save human life and improve the quality of life of those afflicted with diabetes,” Jun said. “And if all goes according to plan, UNDBIO will become one of the top global pharmaceutical companies while bringing price-competitive insulin to the U.S. market.”

The company estimates the facility will add 200 manufacturing jobs to the region during the project’s first three-year phase. That number is expected to grow to 600 after the company secures FDA approval for the insulin product, according to West Virginia Secretary of Commerce Mitch Carmichael. 

Gov. Jim Justice contrasted it to the closure of the area’s Mylan plant in 2020.

“[After] the blow that we took with the closure of an incredibly large plant, with a lot, a lot, a lot of folks, this absolutely is tremendous news for that area and for our state,” Justice said.

West Virginia University will work with UNDBIO on research and development, clinical trials and post-market studies, with the company also sponsoring research and internships for students and faculty. 

The facility is being built on land leased by WVU. Construction is expected to begin this fall.

Small Business Federal Contract Eligibility Expands To Five Counties

Small businesses in Boone, Clay, Hampshire, Monroe, and Preston counties are now eligible for financial help through a federal program.

Small businesses in Boone, Clay, Hampshire, Monroe, and Preston counties are now eligible for financial help through a federal program.

The counties are now designated as Historically Underutilized Business Zones, or HUBZones. Small businesses located in these areas are given exclusive federal contracting opportunities and preferential price evaluations for those contracts.

The program’s goal is to give three percent of federal contract dollars to businesses certified with the program.

Department of Commerce Secretary James Bailey says the program is meant to help businesses in these designated, underserved areas compete.

“It gives a tremendous opportunity to small businesses throughout the state to get into the game,” Bailey said. “It’ll help small businesses in West Virginia compete against huge federal vendors in other parts of the country.”

Gov. Jim Justice requested the counties be granted the designation by the U.S. Small Business Administration last month. In 2022, 59 West Virginia businesses located in areas automatically designated as HUBZones federally received almost $100 million in total funding.

The SBA will update its HUBZone map July 1, which shows where designated HUBZone areas are located nationwide. Bailey says once the map is updated, they’ll be able to identify additional HUBZones and add more areas designated by the governor’s office.

New Commerce Secretary Leads Diverse Agencies

James Bailey was appointed recently as the new Commerce Secretary for the state of West Virginia. He comes into the cabinet level position with extensive legal and leadership experience in the executive and legislative branches of state government.

James Bailey was appointed recently as the new Commerce Secretary for the state of West Virginia. He comes into the cabinet level position with extensive legal and leadership experience in the executive and legislative branches of state government.

Government Reporter Randy Yohe spoke with Bailey on the challenges of managing a diverse department that includes everything from forestry to rehabilitation services.

This interview has been lightly edited for clarity.

Yohe: What would you say is the most important tidbit of optimum job fulfillment, if you will, that you learned as you take on this cabinet position?

Bailey: Having the opportunity to take on projects and to have an impact on our state. The Department of Commerce is probably the most diverse department within state government. There’s agencies from our state Geological Survey, which is made up of geologists, to the Division of Natural Resources, to WorkForce West Virginia and the Division of Labor.

A spread of diversity over the subject areas is a huge plus to me. I love learning about completely different things all the time. The one thing they all have in common is they all play integral roles in our state’s economy and our workforce and the opportunities that our citizens have to provide a living for themselves.

Yohe: How do you manage 2,000 employees working in such different entities?

Bailey: It’s a very appealing challenge to me because of the opportunities that it presents, to be involved in so many different types of things. It gives me a lot of fulfillment just to go to work and know that what I’m doing makes a difference and it’s diverse enough to where I know I’m never going to be bored.

Yohe: Economic development is coming to West Virginia at a fast and furious pace. This development will need hundreds of workers. You lead WorkForce West Virginia. The state’s workforce participation rates are among the nation’s lowest, what plans do you have to grow that rate?

Bailey: That is one of our most pressing challenges as a state, to increase our workforce participation. That rate can be increased by adding people to the state. There are a number of things we hope will do that. We recently had, for the first time in recent history, a positive inward migration, which is a huge plus. That’s one of the more immediate ways to do it. We are undertaking efforts to increase our workforce participation rate by educating individuals who aren’t currently in the workforce as to the opportunities that are out there.

Yohe: Your office is over the Department of Natural Resources. Would you expand on what you recently told the Parks, Recreation and Natural Resources interim legislative committee about implementing House Bill 4408? This bill gives third party contracts to build and operate state forest and state park recreation and lodging facilities?

Bailey: What we’re trying to do is open up the opportunities that were there for the few, to all the state parks. What those agreements allow us to do is to go out and reach concessionaire agreements with private industry folks. Agreements from as big as multi-state developers that might develop a campground, to as small as an individual who wants to give horseback riding lessons.

It really opens up a broad array of possibilities that can only go towards increasing the recreational opportunities for the people that visit our parks. It’s something we’re excited about to expand and to increase, because there’s typically private investment in that as well. That way, the concessionaire has skin in the game and all the motive to run and operate whatever it is they’re doing. The things that we look to do are only things that will enhance and provide more opportunities for folks. As soon as we do anything that ruins what the appeal is, you ruin any incentive for anyone to come in and invest.

Yohe: Your predecessor, Ed Gaunch, told me that one challenge for commerce going forward is removing obstacles like 200 boards and commissions from things like occupational licensing to help entrepreneurs have more success and starting up a West Virginia business.

Bailey: There is no argument that they create barriers to entry for people to get into whatever that workforce area may be. You have to balance that with the public good that those boards provide making sure people are qualified. However, too often, those boards operate more like professional associations than they do regulatory boards, which results in protectionism. Those are the downsides, boards that have created unnecessary burdens to people getting into the industry.

There’s examples of licensing fees that folks have to pay in the hundreds and hundreds of dollars a year. All that does is fund employees at the board. It has to be done carefully and on a case by case basis, because there isn’t going to be a one size fits all for each of these different boards.

Yohe: The Fraud Task Force that was passed by the legislature — has that kicked into gear?

Bailey: Yes, in fact we had an investigation through that task force that resulted in an indictment in the Northern District Federal Court.

Yohe: What we’re referring to there is the Unemployment Fraud Task Force, which kind of peaked during the COVID-19 crisis. We saw that as a problem throughout the country. As COVID-19 has somewhat left us, I guess there’s still a situation?

Bailey: It will continue and people will try to defraud the government. It’s not things like these are victimless crimes, those are resources that are being taken away that can be used for people who are actually in need of those resources. It’s something we take very seriously and have put a lot of work into getting that task force up and running. The investigators are in place and we’re already seeing success. The work will continue far beyond the pandemic to be necessary.

2 More Officials Out in West Virginia Disaster Housing Rift

Two more officials involved in an embattled housing program aimed at helping West Virginia flood victims are out of their jobs.

 
Mary Jo Thompson and Russell Tarry of the West Virginia Development Office were scheduled to speak Tuesday at an interim legislative committee meeting on the deadly 2016 floods but lawmakers were told they resigned on Friday.

 
Tarry was the office’s deputy director and Thompson was director of community advancement and development.

 
Gov. Jim Justice forced out state Commerce Secretary Woody Thrasher earlier this month and Deputy Commerce Secretary Josh Jarrell was fired after complaints about poor management and residents receiving no help from RISE West Virginia, a $150 million housing assistance program.

 
The Commerce Department was put in charge of the program in 2016 by then-Gov. Earl Ray Tomblin.

Burch Named as Interim West Virginia Commerce Secretary

Gov. Jim Justice named W. Clayton Burch as interim secretary at the West Virginia Department of Commerce on Friday, a day after forcing out his predecessor.

Justice said in a statement that Burch has done a good job as acting secretary of the Department of Education and the Arts. Justice said he thinks Burch will be a good fit at the Commerce Department until a permanent leader is named. He said a search will begin immediately.

Justice said Thursday he asked for Commerce Secretary Woody Thrasher’s resignation after complaints about poor management and residents receiving no help from a housing assistance program for 2016 flood victims.

Justice named West Virginia Adjutant General James Hoyer earlier this month to take control of the flood recovery program. On Friday, Hoyer said officials were making progress on moving claims forward in the RISE West Virginia program.

To accelerate the rebuilding process, Hoyer has said that case management systems under the Federal Emergency Management Agency and RISE West Virginia would be monitored separately through a disaster response group, the West Virginia Voluntary Organizations Active in Disaster. Hoyer said Friday that after reviewing all the claims in the RISE system, officials believe there are 452 family homes that need to be addressed.

Gov. Earl Ray Tomblin, Justice’s predecessor, had put the Commerce Department in charge of the program in 2016. Justice temporarily stopped it this year after it was discovered that a $17 million contract change order had not been properly vetted. Justice has since said that the consulting contract with Horne LLP, a Mississippi-based firm that helps states respond to natural disasters, will be reduced to $9 million or $10 million.

A subsequent investigation uncovered problems within the Commerce Department and the RISE program, which has received $150 million in community development block grants for disaster recovery from the U.S. Department of Housing and Urban Development.

Justice said the HUD money wasn’t made available until this past February. The RISE program began receiving applications for assistance last August but little money had been doled out. He also said Thrasher’s November 2017 news release claiming more than 1,100 families had been served was “totally inaccurate.”

The 2016 floods were unleashed by severe thunderstorms that killed 23 people statewide and destroyed or damaged thousands of homes, businesses and schools. Senate President Mitch Carmichael and House of Delegates Speaker Tim Armstead wrote last month that many survivors still await help.

After Thrasher’s termination, House and Senate Democratic caucus leaders issued a statement critical of the administration of Justice, a Republican, on its handling of the flood program while taking swipes at the governor himself.

One lawmaker, Delegate Isaac Sponaugle, D-Pendleton, called for Justice to resign as well “so someone else can do the real work” of the governor.

Justice responded by saying he has accomplished more in 17 months than the “lifetime politicians” have in years. He said he has no intention of stepping down and aims to continue working to make West Virginia a better place.

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