VCC Summer-Fall 2021

V irginia C apitol C onnections , S ummer /F all 2021 16 Enhancement Tax Credit funds for the fund which is designed to attract renewable energy jobs and investment to the region. Through that program, funding is available for commercial/industrial renewable electricity generation projects such as solar, manufacture of renewable energy products and components and workforce development and training projects to prepare the region’s workforce for renewable energy jobs. The authority is poised to make the first award of funding from that program in September, however with the state legislature’s elimination of coal tax credit funding, the future of that program and two more which use that funding as its primary source hang in the balance unless additional funding is allocated to replace it. In the 2021 legislative session, theVirginia General Assembly took action and the governor signed legislation to eliminate the Coalfield Employment Enhancement Tax Credit, which predominantly impacted coal producers, however, a portion of the coal tax credit funds were allocated to VCEDA which in turn is using those funds as the primary source of funding for three specific VCEDA programs: • The Coalfield Revolving Loan Fund which provides a region-wide fund that provides low-interest loans for projects to help the region’s economic development and diversification; • The Coalfield Workforce Development and Training Fund which provides a source of loan and grant funds for workforce development and training in the region; and • The VCEDA Renewable Energy Fund previously mentioned. Listening sessions have been held by the Virginia Department of Mines, Minerals and Energy to gather input for a follow-up report to the legislature as to how the Commonwealth can provide economic transition support to the coalfield region. The support voiced for funding to be allocated to VCEDA to replace the funds lost through the 2021 legislative action has been overwhelming. A number of governmental and business entities have also gone on the record in support of restored funding to VCEDA. “Instead of reducing funding for economic development, which is what in part the elimination of the state’s Coal Tax Credit did, it is important that sources of funding to beef up economic development in the coalfield region be identified,” Belcher said. He noted the loss of coal tax credit funds will have a serious detrimental effect on the region’s economic development, because there will be significantly less money available to attract companies to the area and help businesses that are here now to grow and expand. “At the end of the day, economic development has to be about jobs and VCEDA having less funding to help create jobs in the area is not a good thing,” Belcher said. “Multiple studies that have examined the totality of VCEDA’s work have all shown that VCEDA has been a very effective organization that has significantly helped the economy of the area. Now is not the time to scale back on economic development funding for VCEDA’s e-Region.” In fact, the authority also has recently had another function added to it to provide staff support for the now operational Virginia Coalfields Expressway Authority. No additional funding was provided to VCEDA for that operationwhen it started in 2020.WithVCEDA’s assistance, that group is now moving forward and Belcher remains confident that with the climate being what it is now related to infrastructure development, the roadway has one of its best chances for development in years. It’s a key piece to economic development in the region, he added. “We are all passionate about bringing jobs to the region and improving the economy,” Belcher continued. “Whatever might happen in the future and despite the challenges we face as a region, I believe the region’s best and brightest days are ahead of it. VCEDA remains committed to do our part toward developing that.” Cathy St. Clair is the owner/operator of Focus Communications Consulting, LLC. She currently works as a consultant in Southwest Virginia with a number of small business clients, educational facilities and others, including VCEDA and is the former long-time news editor of the Virginia Mountaineer, a weekly newspaper in Southwest Virginia. Delegate Will Morefield, second from left, provides an update on a meeting held earlier this year with West Virginia officials on the Coalfields Expressway project. Sen. Travis Hackworth, left, who was also in attendance at the meeting agreed the meeting was an important step in advancing the project. Also pictured are Jay Rife, chairman of the CFX Authority Board, second from right; and Jonathan Belcher, executive director of the authority board, right. Coalfield Economic Development in Southwest Virginia from page 14 V