West Virginia Bankers’ Association PAC Endorses Gary G Howell

FOR IMMEDIATE RELEASE
Contact: Gary Howell
(304) 788-6554 or (301) 707-3069
gghowell1@verizon.net

West Virginia Bankers’ Association PAC
Endorses Gary G Howell

CHARLESTON, WV - The West Virginians Bankers’ Association Political Action Committee (WVBankPAC) has extended their endorsement to Gary G Howell for the 2010 election to the West Virginia House of Delegates.

WVBankPAC is comprised of bankers from throughout West Virginia. The association conveyed, “We pride ourselves on supporting those candidates who take an expansive view of their role as potential legislators in matters of economic development and do our best to examine candidates from a variety of different perspectives.”

“I’m pleased to receive the endorsement of West Virginia’s Bankers,” said Howell, “a strong economy is key to creating jobs in the state and a robust banking system is a cornerstone to economic growth.”

Paid for by Citizens for Gary Howell

Congresswoman Capito on the Health Care Bill

Capito Reacts to State of the Union Address

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., released the following statement this evening, reacting to President Barack Obama’s State of the Union Address:

“Tonight we saw the President make a noticeable shift in tone. He put the economy front and center and I applaud him for doing so, yet it’s critical that we see a change in the agenda – not simply a change in rhetoric.

“West Virginians are hurting. Many have lost their jobs. And instead of seeing lawmakers foster an environment of job creation and economic security, they’ve seen Congress spend billions on a failed stimulus and push a trillion dollar health plan that will cut Medicare and raise taxes.

“Our constituents want to know that we’re listening to them, and they want to know that the President is listening to them too. They’re tired of a Washington agenda that’s pushing massive government programs – from health care to cap-and-trade – while the average family is simply trying to make ends meet and put food on the table. And they’re tired of seeing deficits as far as the eye can see.

“This past year alone we’ve seen record increases in discretionary spending. So while I appreciate the President’s call for a spending freeze, it’s important that we put it in perspective. His proposal is a start, but it’s far from a total solution.

“Simply put, the American people want to see a real focus on solutions that can impact their lives. I hope that’s where we can go as this year plays out.”

Public Service Commission of West Virginia Grants Siting Certificate for Pinnacle Wind Farm at NewPage

January 11, 2010 -- The Public Service Commission (PSC) of West Virginia granted a Siting Certificate for the construction of the Pinnacle Wind Farm at NewPage. The project, developed by Pinnacle Wind Force, LLC, a wholly owned subsidiary of US Wind Force, LLC, is the product of a joint development agreement between US Wind Force and Edison Mission Group (EMG).

"Pinnacle is delighted that the public service commission has granted the permit. While we have not yet had the opportunity to review the entire order, we are ready to put skilled West Virginians to work building this clean, renewable energy project. We anticipate that construction will likely begin once the terms of a power purchase agreement are finalized", said Dave Friend, vice president of US Wind Force.
The 23 turbine Pinnacle Wind Farm at NewPage will be located on Green Mountain, near Keyser WV, in Mineral County. The turbines will generate approximately 55 megawatts of power, which is enough electricity for over 14,000 households. The cost to construct the project is estimated at $130 million. County property taxes are projected to average more than $433,000 annually, placing it among the county's largest taxpayers. Additionally, Pinnacle has voluntarily committed to establish a community benefit fund that will provide locally controlled financial resources for community projects throughout the life of the project.

NewPage Corporation, the largest coated paper manufacturer in North America, is partnering with the project by placing six of the turbines on NewPage property near the company's Luke, Maryland facility. “NewPage is proud to partner strategically with US Wind Force, especially during a time when our country is facing significant energy challenges. This partnership is an example of our commitment to support the growth of sustainable energy and is consistent with our goal to continuously explore renewable energy opportunities for our facilities," said David Bonistall, vice president, environmental, health and safety for NewPage.

As part of the project planning process, a Community Advisory Panel (CAP) was established to create an ongoing dialogue with community members from the Keyser, New Creek, Piedmont, and Elk Garden areas. Members continue to meet to discuss the project and its progress. In addition to meeting with CAP members, US Wind Force has met with local civic and service organizations in Mineral County and conducted open house events. Friend added, "[W]e appreciate the tremendous amount of support the project has received from stakeholders in the local community and their willingness to provide valuable input throughout this phase of the process."

To learn more about the Pinnacle Project, please visit the US Wind Force website at www.uswindforce.com. Project area residents may stop by one of the community information repositories located at the Keyser Public Library, the Elk Garden Community School, and the Piedmont Public Library to see a copy of the application. A toll-free project line, 1-866-929-4429, is also available to anyone with questions about the project.
US Wind Force, LLC, based in Greensburg, Pennsylvania, is a privately held developer of utility-scale wind energy projects.

EMG companies rank as the seventh largest developer of wind energy projects in the United States with a current portfolio of 27 wind projects capable of producing more than 1,500 MW of electricity in operation or under construction in 10 states, including two projects in Somerset County, Pennsylvania. EMG also operates a power generating facility in Grant Town, West Virginia, which uses waste coal to generate electricity. EMG is headquartered in Irvine, California and is a subsidiary of Edison International.

Commercializing Welcome Centers, Rest Areas Could Ease WVDOH Financial Burden

Forty some odd years ago NASA realized that a ball point pen would not write in space. They worked on the problem and spent over a million dollars to make a ball point pen that would write in zero gravity.

They were successful and developed a beautiful pen at great taxpayer’s expense, but NASA solved the wrong problem. The problem was not to make a pen write in space, but to just “write” in space. The Russians realized that they only needed to write in space, not use a ball point pen and simply used a five cent pencil instead of wasting a million dollars. The lesson is the first thing you must do to be successful in solving a problem is make sure you have identified the true problem.

At the end of November the amount of expected revenue for the West Virginia highway fund was down $14.6 million, mostly because of the poor economy. Immediately there was talk out of Charleston about raising taxes, but the tax rate is not the real problem. The real problem is the rising cost and reduced revenue. Until these problems are solved, the state’s Department of Highways will continue to have problems even in good economic times. The state must get creative on generating additional revenue and cutting cost.

There are 22 welcome centers and rest areas run by the WVDOH. Each costs approximately $500,000 a year in annual maintenance for a total of $11 million dollars. Two of these on the West Virginia Turnpike have a Federal exemption to allow them to be commercialized, which is pretty common on toll roads. However they also occur in a few other places on non-Toll Road Interstates, such as I-95 north of Baltimore, MD.

Commercialization of West Virginia’s other twenty rest areas and welcome centers could provide a partial solution to the WVDOH funding problems. As these are leased to private companies then a $10 million drain on the WVDOH would disappear as responsibility for the maintenance would shift from the state to the private companies. There would also be a revenue stream generated from the lease agreements. A drain on the state highway fund would be turned into revenue generation, all without putting any additional burden on the taxpayers.

There would also be employment benefits for the state. Each rest area at a minimum would end up with a fast food restaurant and a convenience store/gas station. The average fast food chain restaurant employs about 60 persons and the convenience store 10 persons. This would generate approximately 1,400 private sector jobs across the state from entry level fry cooks to well paid manager positions. As an example; if the two rest areas in Braxton County were commercialized in this way, the Braxton County unemployment rate could drop from 8.3% to 5.3% making it the lowest in the state.

The benefits do not stop at increased employment and reduced operating cost to the state. The free market approach also creates new tax revenue streams into the states coffers. The 1,400 new employees and the new businesses created will pay income taxes to the state. There will now be property taxes paid to the counties at the rest areas on the equipment installed where before there was none. Most important to WVDOH is the gasoline sold at the new filling stations will pay new taxes directly to the highway fund without raising taxes on struggling WV families.

In these hard economic times West Virginia must work to solve the correct problems and reduce the burden of taxes on all the people of the state in the process. We must look for new solutions to old problems and stop thinking the only solution is increasing taxes.

Capito Reacts to Idling of Clay County Mine

Ambiguity from EPA, Courts Leaves Miners in the Lurch

WASHINGTON – In light of reports that as many as 300 employees may face layoffs at a Clay County coal mine, Rep. Shelley Moore Capito, R-W.Va., released the following statement:

“Today’s news is a sobering reminder that continued uncertainty surrounding mine permits poses a serious threat to jobs across our state. We’re talking about real families now forced to ponder the future of their jobs and their livelihood. These are not abstract consequences in some far away land; these are our friends and neighbors. These are hard-working West Virginians.

“This mine provides the vast majority of Clay County’s tax-base and is its largest employer, making the prospect of Fola shutting down troubling at best and economically devastating at worst.

“Though today’s sad news stems from action in our courts, we know that the practical differences between delays at the hand of the courts or at the hands of the EPA are few and far between. While some would have us believe that the EPA and government regulators are simply ‘doing their job,’ it is becoming quite clear that the combined impact of litigation and regulatory uncertainty poses a severe threat to the economic climate of our state.

“As the President proposes his new so-called ‘jobs bill’ and heads off to Copenhagen to tout the EPA’s new ruling on carbon, perhaps he should consider the economic impact his policies will reap in the hills of Appalachia.”

No Logic in States Numbers on Corridor H Funding

Recently an article appeared in the Charleston Daily mail entitled, “Official targets slow work on Corridor H” and state officials gave reasons for the continued delay of the highway. Most of the reasons given by the state make little or no sense.

The state claims they couldn’t pay the back the bonds. According to the article, “Even if the Legislature raised the cap, Walker said the state still couldn't pay back the debt on such a project.” This statement is totally illogical, as the bond method builds the highway at a lower cost. Consider that the current estimate for completing constructions is 1.5 billion dollars over the next 26 years. Of those 1.5 billion dollars, the state is responsible for 20% matching funds as outlined by the Appalachian Region Commission and that cost would be $300 million dollars.

Now if the state issues bonds to complete the final 50 miles of Corridor H that have yet to receive funding, at 22 million dollars per mile , then total construction cost would be approximately 1.1 billion dollars. The states portion of that would be $220 million saving the West Virginia taxpayers 80 million dollars and saving the US taxpayers 400 million dollars.

Walker went on to say, “"It would completely bleed the state road fund. If we were able to do all of that, very important programs, like paving and bridge repairs, would have to be sacrificed." My question to Mr. Walker would be; why would freeing up an extra 80 million dollars from Corridor H, require the state to cut other projects? Those 80 million dollars in savings from Corridor H could be used to increase funding of very important programs, like paving and bridge repairs. The reality is the exact opposite of what Mr. Walker says; the state will have to cut $80 million worth of future projects, because they are not changing the funding method.

Now it is estimated that Corridor H over its length will create an additional 8,000 jobs in the state. If we bond the highway and complete it in 2015, then using the median income in the state, 32,589 dollars , those 8,000 jobs will create an additional 260 million dollars of annual income in the state. The state taxes as on that median income will be around 15.6 million dollars in annual revenue for the state. From an early completion date of 2015 to 2035 the current funding completion date, the total taxes collected from those new jobs, adjusted for inflation , will be 439 million dollars. The estimated annual Federal Tax from the new jobs will be 39 million dollars annually or 1.1 billion over 20 years adjusted for inflation.

So our choices are continue with the current funding method of Corridor H, which will complete it around 2035 and cost the taxpayers of the nation and state 1.5 billion dollars with small increase in employment during the construction phase, or build it over the next 6 years at a cost of 1.1 billion generating around 1.5 billion in new state and Federal tax revenue between 2015 and 2035 in the process as those new jobs are created in the near term. I prefer the method where Corridor H is completed early and pays for itself with taxes generated from the new jobs it will create. We have to start being smart about how we build highways and other large projects in the state. We must be fiscally responsible.

What's the Difference Between Conservatives and Liberals?

Conservatives seek to govern. Liberals seek to rule.

Conservatives believe adults ought to make their own decisions about smoking, gun ownership, and other issues. Liberals believe that the only adult choice that ought to be left to anyone is whether or not to abort a pregnancy. At that point a 12 year old ought to decide on their own.

Conservatives see guns in terms of protection. You protect your home from intruders, protect your society from an oppressive government. Liberals see them for sport only. And they want to eliminate the sport!

Conservatives want to create conditions where prosperity can take hold, develop, and create opportunities. Liberals seek to plan and tax prosperity out of existence even before it happens.

Conservatives believe clean energy comes from private investment in a variety of profitable areas, such as wind power. Liberals believe clean energy is when no energy is produced, but somehow they end up with it while everyone else conserves.

Conservatives see government as the means; it is a necessary evil. Liberals see it as the means and the end; the curbing of human desires is a good thing in itself even when those desires harm no one or only harm the individual making the choice.

Conservatives believe that the United States has a right to protect its security by acting in response to threats wherever they present themselves in the world, as Franklin Roosevelt proclaimed. Liberals believe it is all America's fault.

Conservatives believe, as Martin Luther King Jr., that men and women should be judged not by the color of their skin, but the content of their character. Liberals believe in reparations for wrongs done over one hundred and fifty years ago. Among those who should foot the bill are tens of millions whose ancestors were not even here.

Conservatives believe in a responsible balance between the interests of human beings and the maintenance of nature. Liberals do not mind putting thousands out of work on the off chance that a bird somewhere has been harmed.

Certainly conservatives individually will stray from their core beliefs. The world sometimes asks for, other times demands compromise. It is important to remember our standards and principles as American conservatives. We do not believe in simply sticking to everything that existed in the past. We believe that American principles are still relevant and that each generation must find its own way to conserve them.

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Party of the Common Man Update

I never want to hear a Democrat complain about tax cuts for the wealthy again. How many Democratic leaders have we uncovered among Obama appointees who individually opted out of paying their taxes. Three at last count.

The IRS owes Obama a thanks for uncovering some pretty major tax cheats. Of course they won't lose their homes or go to jail.

Windmill Truths: Economic Impact and Jobs

Let’s face it we need jobs in our community. The economy is turning down and many in the area have been laid off and people are looking for new job creation. Many see the Windfarm on Green Mountain as a potential job creator. Both sides of the issue are putting their spin on what will happen with job creation.

The anti-windmill faction has been sending out the following information on jobs, “one maintenance employee for every 12-15 turbines. A 20 turbine windplant in Meyersdale, Pennsylvania now employs only two maintenance employees.” I was e@mailed that information again by the anti-windmill faction after yesterday’s blog, but I have seen it before. I can not attest to its accuracy, because no source was quoted. As for US Windforce’s position, they have made no official claim as to the number of jobs created.

From my own research I believe that the claim of one employee for every 12-15 turbines is probably in the ball park. Wind energy production is not very labor intensive, but how does it compare to coal electrical generation? Dominions Mt. Storm Power plant has 3 units. Unit 1 and 2 are rated at 551 Megawatts each and unit 3 at 553. (1) That gives the plant a total capacity of 1,656 MW. With 270 employees (1) that is about 6 MW generated for each employee.

The name plate capacity on the US Windforce project is 55.2 Megawatts (2). Typically a windfarm can only operate on an annual basis of about 30% of rated name plate capacity. So if we believe that the US Windforce project is only going to employ two people, then that works out to about 8 MW generated for each employee.

This means from a labor stand point that wind energy generation is slightly more efficient, but real close to what the nearest coal fire plant achieves. This begs the question; is the anti-windmill faction advocating that the Windfarm is too efficient? Efficiency leads to lower cost electricity and for most people that is a good thing.

But the permanent employment numbers are only part of the story. The anti-windmill faction provided the following information, again from an unnamed source, “of the 200 total construction jobs, only 20 were local—and all disappeared within six months.” Most construction workers don’t hang around after the job is complete. That is the nature of construction jobs; they are there until the job is complete. It doesn’t make them any less important to the community.

At the last public windmill meeting on Feb 2^nd, 2009, Mr. Shirley a local construction worker working on the Mt. Storm project indicated he had been employed for 2 years on that project. Many other workers that have been employed on that project were in attendance and expect to move to the Green Mountain project. Our area is developing a skilled work force of wind turbine erectors and these workers may begin to travel with their new skills. They will still be bringing those paychecks home. That fact is completely discounted by the anti-windmill faction. In claiming that only 20 construction jobs are local, they fail to take into consideration that the local concrete plants, lumber yards, earth movers will all be local subcontractors.

But the local economic impact is not limited to those employed by the project. The landowners will receive lease payments for the use of their land. While the lease agreements with the specific landowners on the Green Mountain project are private, typically $5,000 per windmill is what is seen in the industry for our area. That will pump around $115,000 annually into the local economy. An additional $373,000 in property taxes (2) will be paid to Mineral County.

The average wage of a Mineral County resident is $26,645 per year (3). That $488,000 in new money being brought into Mineral is the equivalent of 18 new wage earners being brought to Mineral County. We also know that each dollar brought into the local economy has a multiplier effect as it is spent.

The real effect on the economy is much more than the information being disseminated by the anti-windmill faction. In this case we are finding that even the numbers presented by US Windforce under estimate the true economic impact of the project.

Reference:

(1) May 2005, Power Engineering Magazine, “Dominion Mt. Storm”

(2) US Windforce official website

(3) US Census Bureau

A response to yesterdays Windmill blog from Kolin Jan

I received the following e@mail from Kolin Jan on yesterdays blog. It had many attachments with it, some were from unknown sources and some known, but all left out vital information on making an informed decision on the proposed windmills. I thought I would share Kolin's letter with you and my response.

_______________________________________________________

Gary,
From something you wrote today it appears you have bought into the US WindForce propaganda....especially the part about jobs. Here are several emails that might help you discover the rest of the story on this issue. The jobs are very temporary.....check out what has happened at other locations....and the advertised permanent jobs are inaccurate. Industry-wide you can expect one permanent job per 10-13 turbines (ask Jim and Joe to prove to you otherwise). I care about the environmental impacts, but what I care more about is the science behind the turbines, and how ineffective and expensive they are.
I don't blame US WindForce for taking advantage of what an uninformed Congress has allowed; after all, we're a capitalistic society. I'd just like these guys to tell the whole truth for a change and answer some basic questions in a public arena. r/ Kolin

_____________________________________________________

Kolin,

You don’t know me very well. I have been a student of Wind Energy most of my life. In grade school and high school I did science fair projects in generating electricity from the wind and won many awards up to national levels, including awards from Fortune 500 companies for my research. I have personally visited the large windfarms on the west coast and stood beneath those at Tehachapi Pass. My family generated electricity from the wind as far back as the 1930’s on their farm. I’m not some Johnny Come Lately to wind energy. I have done my own research both literal and empirical.

The information that you forwarded to me is mostly propaganda and misleading. It is not independent information you are disseminating as the truth, it comes from the anti-windmill, anti-growth faction. That being said the information coming from US Windforce is going to be favorable to their side of the issue. That is why I do not rely on the information from either source, but do my own research. My 30 years of study and experience with wind energy does tell me that US Windforce’s information is much closer to the truth than the true propaganda you just forwarded to me.

Sir, it is you relying on propaganda from only one side and distributing it to an uninformed public. I am not uninformed on this issue and I am not a NIMBY. I want to see growth in my community. I want to see jobs brought to my community. I know that you are not from here, but I think you have been here long enough to realize we are not bunch of Hillbillies. The stereotypes of West Virginia are not real. We are an educated people that can think for ourselves.

You state you want to see US Windforce answer questions in a public arena; they do the first Monday of every month. In the forum they answer most of the questions on the spot, if it is something that needs detail and cannot be answered off the cuff, then they defer it to a later meeting. They are hiding nothing as you imply with your statement. Those meetings are public and open to those that wish to attend.

I suggest you do some research of your own instead of relying only on information from the anti-wind, anti-growth loons.


Respectfully

Gary Howell

_______________________________________________________

NIMBY = Not in my backyard

Winds of Change, Words of Deceit

Monday night I had the opportunity to attend one of the monthly Windmill meetings that are open to the public and designed to keep the community informed and give the opportunity for the public to ask questions. The format is quiet simple, a presentation is made, questions are ask of the permanent panel of local leaders, then the public in attendance is allowed to ask questions. If it is something that can’t be answered immediately, then it is put on the agenda for the next meeting or a reference for that information is given. It works quite well.

Last night there were some anti-jobs people there disrupting the meeting, I’m all for exercising freedom of speech, but you don’t purposely disrupt a meeting and make accusations you can’t back up. Several times during the meeting the anti-jobs people had to be ask to be respectful to the other speakers. It was mainly a tactic to get the attention of the media present and judging by Tuesday’s paper they succeeded, as the article doesn’t accurately reflect the events of the meeting.

I especially like the quote by Greg Trainor in the newspaper, “This is more of monologue.” While it was true that Mr. Trainor said that, it fails to point out it was during Dave Friend’s presentation. The presentation was supposed to be a monologue, the question and answer session came after is presentation, not in the middle of it. Mr. Trainor didn’t want to play by the rules like the rest of the people in attendance were willing to do, and when the question and answer session came Mr. Trainor didn’t really ask questions as much as he made accusations. Mr. Trainor needs to understand you learn by listening and not shouting over the people that are trying to answer your questions.

Trainor did ask a question that is impossible to answer. “I want to know how many houses will be powered, what you really think?” But it was his point to ask a question that couldn’t be answered correctly. You can take average estimated output of the windfarm and average home electrical usage, but beyond that the question can’t be answered. Mr. Trainor knew that. He wanted an exact number that doesn’t exist, because then he could use that number to say look under these conditions that it is wrong.

Well most people are quick to understand that in the middle of the night in the fall when there is a strong wind and people are asleep using very little electric the project may meet the needs of 100,000 homes. The average person is also smart enough to understand that on a 100 degree summer day a noon and no wind is blowing that the project can’t supply work to a single electric fan. The people are smarter than Mr. Trainor believes.

In 30-days the project is filing its papers with the Public Service Commission. 99% of the questions asked by the anti-jobs group will be answered in that public filing. The Windmill project is operating releasing its information as prescribed by the laws of the state of West Virginia, but the anti-jobs group is demanding information be released in a matter not in accordance with the law. US Windforce is complying with the law as they should and when the follow the law the anti-jobs group accuses them of trying to hide something. The anti-jobs group is using deceit to stop the positive change coming to our community.

Brunswick to Close Cumberland, Md., Boat Plant

Brunswick to Close Cumberland, Md., Boat Plant

LAKE FOREST, Ill., Nov. 13 /PRNewswire-FirstCall/ -- Brunswick Corporation (NYSE: BC) today announced that it will transfer production of Trophy offshore fishing boats made at its plant in Cumberland, Md., to another Brunswick facility in Ashland City, Tenn. The shift will precipitate ceasing production at the Cumberland manufacturing facility by the end of 2008, eliminating approximately 115 production and support positions.

"As we deal with the global economic downturn and its impact on recreational marine markets, we are continuing to shrink our North American manufacturing footprint," Dustan E. McCoy, Brunswick chairman and chief executive officer, said. "This decision is no reflection upon the Cumberland work force or product, but the result of our need to develop a more efficient manufacturing footprint.

"As previously announced, Brunswick has been following through on a number of measures to reduce expenses and resize the company to compete in the global marine market," McCoy added. "Over the past two years, we have closed 12 other North American boat plants, in addition to Cumberland, and have continually reduced production rates throughout our marine businesses. Cumberland will also observe three weeks of furlough, during which time all boat production temporarily is halted, while the phase down is completed."

Brunswick stated it will offer outplacement assistance for affected employees, including severance and other support aimed at helping them transition to another job.

About Brunswick

Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; Albemarle, Arvor, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Lowe, Lund, Maxum, Meridian, Ornvik, Princecraft, Quicksilver, Rayglass, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock parts and accessories distributors; IDS dealer management systems; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables; and Dynamo, Tornado and Valley pool tables, Air Hockey and foosball tables. For more information, visit http://www.brunswick.com.

SOURCE: Brunswick Corporation

CONTACT: Daniel Kubera, Director - Media Relations and Corporate
Communications of Brunswick Corporation, +1-847-735-4617,
daniel.kubera@brunswick.com
Web site: http://www.brunswick.com

The Energy Answer is Under Our Feet

Of all the states, West Virginia’s economy ranks at the bottom while we sit on mountains filled with energy in the middle of an energy crunch. Our economy should be booming, yet it is not. One reason is that we have a tendency to look to government for solutions and not to ourselves. Ronald Reagan once said, “Government is not the solution to our problem. Government is the problem.” His words hold true today. Everyday as we fuel up our vehicles paying close to $4 or more per gallon we are reminded government has not solved the problem, nor will it.

Government officials hold meetings and conferences, form committees and coalitions, but then all that happens is they talk about the problem and get their pictures in the media. One conference referred to the “New Technology of Coal Liquefaction.” For the record Friedrich Bergius developed one of the first processes for turning coal into gasoline almost 100 years ago.

Government doesn’t even know how old the processes are; are we sure we want it in charge?
One of the ideas being floated is a Private-Public Partnership, where government becomes a partner in the construction and operation of a coal liquefaction plant. The problem is government becomes the dominating partner in these ventures; the project becomes bloated, inefficient, and politically influenced to the detriment of the private business partner, the taxpayer and the consumer. History also reveals that the term “corporatism” was coined by Benito Mussolini to describe Private-Public Partnerships, which were used as a way to maintain government control. This is not a road we want to go down.

So what should be government’s role? Government’s first and most important goal should be to make as level and competitive playing field as possible. We must give West Virginia’s businesses a competitive advantage through business friendly tax and legal reforms. Half measures like eliminating the franchise tax by 2015 is not going to give us a competitive advantage anytime soon. It is like getting in a swimming pool one toe at a time instead of jumping in all at one time, getting wet and starting to swim. We must enact the needed tax and legal reforms wholly and fully now — get the initial shock out of the way and then begin to swim in increased jobs and tax revenue as our economy expands because West Virginia will be economically competitive.

So if government’s job should be to provide a level playing field for the competitors, then how do we move forward? The free market will always seek the lowest price and if fuel made from coal is cheaper, then the market will purchase fuel made from coal instead of oil. While we know we can currently make fuel cheaper from coal than oil, the problem is in regard to the cost and time of building the coal liquefaction plant. That cost is estimated at around $2 billion with about 2 years of construction. Some company has to be willing to risk the investment in the plant and take the chance that oil prices will remain high long enough for the plant to pay them back with interest.

Sometimes the only nudge the free market needs is the spark of an idea. Consider that CSX Corporation in 2006 purchased $1.2 billion dollars worth of fuel and you know from your own visits to the pump its 2008 numbers are substantially higher. What if the West Virginia coal Industry sits down with CSX Corp and says, since CSX already services 130 active coal mines and purchases billions of dollars worth of fuel, together we can build a profitable coal liquefaction plant. The plant could provide CSX with lower cost fuel, provide West Virginia coal producers with a new market outlet, provide high paying jobs across the board, give the state increased tax revenues and pump billions of dollars into the West Virginia economy.

As a state loaded with natural resources we have an opportunity, but only if we are willing to make the necessary political changes to make it happen. If we are not held back by Charleston’s bad economic policies, then West Virginia has an answer to the nation’s energy challenges. That answer is under our feet.

Exporting Coal eliminates West Virginia jobs

Think about it. Think about what happens to every truckload or trainload of coal that leaves the state. Where does it go? What is it used for? For the most part it goes to power plants in other states, but why?

For years our state politicians have been trying to increase our coal exports to retain jobs in the coal industry, but at what expense? That expense has been the loss of new jobs and tax base of the state of West Virginia. The fact of the matter is we can use our coal to both retain jobs in the coal industry and to create new high paying jobs in the coal consuming industry.

When a trainload of coal leaves the state it goes to a power plant in say Arkansas, Michigan, or Georgia it took our jobs with it. Those power plants employ workers and they pay those workers well. Instead of sending our coal and jobs to Arkansas, Michigan, or Georgia lets keep our coal and jobs, and send them electric power. The reason this is possible is because the entire country is wired into a power grid. This grid is a big web that distributes power throughout the country, and within reason the grid doesn’t care where the power plant is, so lets put new ones in WV.

Let us create new jobs in West Virginia by building power plants in the state. We already have one major advantage; we have the coal here. That gives WV a cost advantage to the power companies to build here. There is already an example of how this works in Mt. Storm, WV. The power plant in Mt. Storm sits close to the coal, thus reducing coal transport cost making the coal cheaper allowing the power company to generate cheaper power here, than say a plant in the tidewater Virginia area where coal must be trucked in.

Let’s encourage our state to government to overhaul the tax code to create incentives to build here. This will continue to pay us back for years to come through construction jobs, workers at the plants, contract maintenance jobs all of which will increase the state and local tax base.

We as West Virginians should work with and encourage our government to use West Virginia’s resources to the advantage of West Virginia. Next time you see a load of coal leave the state, think of it not just as load of coal leaving, but as WV jobs leaving.