Pennsylvania West Virginia POWER ROUNDTABLE NOVEMBER 12, 2015

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1 Pennsylvania West Virginia POWER ROUNDTABLE NOVEMBER 12, 2015 OPENING REMARKS, INTRODUCTION OF SPONSORS AND HOSTS Mark Critz, Director, Rural Development Council, Commonwealth of PA Mark noted that the region has been through similar transitions in the past, most notably with the steel industry. But through hard work, the region was able to reinvent itself. Now our region is in another transition and it isn t any easier. Change is always difficult as people feel animosity and are apprehensive about what s happening. But we have to look to the future. The situation is very similar to the auto industry bail-out. The automotive industry received help and is now healthy again. We didn t do much when the steel industry collapsed, but we are addressing this transition now with POWER, which is bringing multiple agencies together to work on what is needed to make the transition. Steve Howsare, Executive Director, Southern Alleghenies Planning and Development Commission Coal, steel and rail have been the economic drivers of our region, and the coal industry has provided good wages to help economic and community growth. The Commonwealth wants to ensure that we do not lose the workforce and communities that have been a part of this industry, as that will cause negative economic impacts. R. John Dawes. Executive Director, Foundation for Pennsylvania Watch Water reclamation is a major focus that contributes to water conservation. HOST COMMITTEE Linda Thomson, President and CEO, Johnstown Area Regional Industries Welcomed everyone to Johnstown. Petra Mitchell, President and CEO of Catalyst Connection Introduced the US Department of Commerce MEP and IMCP programs. David Satterfield, Director of Asset Development, West Virginia University Discussed their role in the project and partnership. Jason Walsh, White House Senior Policy Advisor, Executive Office of the President The United States is experiencing a dramatic energy transformation. There is movement to new energy sources, and there are positive aspects to this. However, some communities are struggling as a result, and Appalachia is being disproportionally impacted. Jason reviewed the POWER PLUS program: 1) They are making new investments in FY 15 and are looking to expand with new appropriations in ) There are legislative reforms being put in place that ensure the solvency of UMWA pension plans. 3) The Federal government will spend $1 billion over 5 years, with the money from the Abandoned Mine Land Economic Proposal. There is even money available for environmental land recovery, while keeping an economic purpose in the forefront. Allocations to various areas will be based on historical production. 4) There will be new tax credits available for new and existing power plants when CO 2 sequestration is established. Meeting Notes Revised P a g e 1

2 While there are ongoing discussions and disagreements within Congress as to why coal is struggling, we should agree that the communities affected deserve help from the federal government. Mark Critz: Commented that we need a glide path for our people when transitions like this occur. MORNING PANEL: Federal Agency POWER Panel U.S. DEPARTMENT OF COMMERCE Doug Lynott, POWER Program Manager, Economic Development Administration, Washington, DC What is a coal impacted community? There is no official list or definition. Any community that can make a case that they have been affected can be funded. And it is not just coal mining that is affected - power production, manufacturing supply chains, transportation and logistics can all be negatively impacted. The focus now is on finding new employment and advancement on a career path to reclaim lost wages and benefits for impacted workers. The focus of the planning grants is on strategic economic development plans, workforce retraining and market feasibility. EDA has been designated as lead agency for POWER by the White House and it is funded in FY 15. Andrew Reid Economic Development Specialist (EDS), EDA Philadelphia Regional Office EDA is a relatively small federal agency. They have 4 funding programs. The public works fund provides funding for construction. The Economic Adjustment Assistance is programmatic funding that requires more long-term planning and partners. Local technical assistance funds are available for short term planning. To qualify, the area must meet economic distress criteria like low per capita income and high unemployment, or special needs like plant closures. This funding is tied to the economic development strategy for the region. Environmental Protection Agency, Washington, DC They focus on helping communities to clean up brownfields. There is funding of up to $200,000 available to clean up a brownfield and the property owner must be involved. They have other major grant programs. The Assessment for Environmental Clean-Up is a revolving loan fund for clean-up costs. EPA also provides environmental workforce and job training program for remediation workers. A technical assistance program is available from the New Jersey Technology Center. Lyn Doverspike, Director, US Commercial Service, Pittsburgh, PA Their agency focuses on growing exports. The organization can help with trade counseling including matchmaking for customers and sales reps overseas where they have 75 offices, with 100 additional offices in the US. They provide market research, and have off-the-shelf Commercial Guides for 124 countries. They can help to provide advocacy in other countries. 98% of all US exporters have less than 500 employees but typically only sell to one market. PA is in the top 10 exporting states. The agency will be attending Discover Global Markets at the Hanover Messe in Germany in 2016, which is the largest industrial trade show in the world. The United States will be country partner. This show includes anything and everything that might be needed in a modern factory. Steve Miller, Select USA, Washington, DC This organization supports foreign direct investment and offers information and counseling to EDO s and investors. They conduct an Investment Promotion Platform where they bring together investors with various contacts in all 50 states. An example of their work is helping an Italian firm locate in WV to make pressure gauges for the shale industry. Meeting Notes Revised P a g e 2

3 U.S. DEPARTMENT OF AGRICULTURE Sam Rikkers, Acting Administrator, Rural Development Business and Cooperative Program, Washington, DC The USDA Rural Cooperative Service has a local presence with 92 employees in PA. Gary Reed is the local contact. Bill Locker from Somerset Trust has worked with USDA for loan guarantees. They also work with nonprofits for grant programs. U.S. DEPARTMENT OF ENERGY Hilary Bright, Economic Development Specialist, Jobs Strategy Council, Washington, DC The DOE offers technical assistance related to carbon capture, solar and wind power. There is a loan program to support advanced technology vehicles which covers a wide swath in the manufacturing industry. These funds can be used to help upgrade your plant or to look for a market related to particular types of vehicles. They have a loan program office to assist. APPALACHIAN REGIONAL COMMISSION David Hughes, Business Development Analyst, Washington, DC The ARC works through SA to access ARC funding and serves as the portal for day-to-day access. ARC participated in the POWER implementation. They do have funding and information is available on their website. ARC was very involved in the IMCP and very happy about Catalyst s award. We are the 3rd IMCP in Appalachia. ARC will be attending a trade show in September in There will be 30 companies at the show that can access the overseas audience for coal related equipment and the focus of the trade show is on mining equipment companies. They have a web based tool that can be used to determine where employment is centered, and can breakout employment by county, as well as by coal and agriculture. This tool is accessible at www://https/ U.S. SMALL BUSINESS ADMINISTRATION Kelly Hunt, District Director The Pittsburgh office covers 27 counties in SWPA. They don t have grants but can provide assistance to individuals who are starting a business or have a small business that is serving a supply chain. They do provide one-to-one counseling and partner with the SBDC s and SCORE for delivery of services. The SBA does provide access to capital by guaranteeing loans, and can also assist with government contracting. QUESTIONS/COMMENTS Bill Locher: Stated that it was good to work with USDA on project that he had. Sue Mukerjee: We need a story to better understand the programs available from the federal government. Jason Walsh: POWER is young, but we do need to see those stories Hillary Bright: We need to include a higher education piece as well, not just trade schools and community colleges. There needs to be all educational levels involved in this effort. Brad Clemenson, LIFT Johnstown: Is there a single POC for these agencies? Doug Lynott: POWER includes 4 federal agencies. You have to submit individually but could have a common narrative. David Hughes: Need to include high schools and counselors in this conversation. Meeting Notes Revised P a g e 3

4 Meeting Notes Revised P a g e 4

5 AFTERNOON PANEL Local and Regional Resources PENNSYLVANIA STATE SYSTEM FOR HIGHER EDUCATION Sue Mukherjee, Executive Director for Program Alignment & Policy The state college system has 100,000 students enrolled annually, and 80% of the students are from PA. 80% of the graduates remain in the area. SWPA is most vibrant for workforce development. The focus needs to be on program and system alignment. PSSA works with the 14 universities to connect with employers. They are conducting new research and data to better understand the colleges impact on the regional economic environment. 22,000 students are currently enrolled in colleges located in SWPA. TECH SHOP Les Geis, Senior Corporate Accounts Manager Tech Shop is a membership based organization that offers open access to a fabrication studio. Members can access many different types of tools and training including metalworking, woodworking and textiles. They are the world s largest makerspace network with a total of 8 locations. They provide access to tools needed to make a product and start a business, or on-the-job training. They are interested in expanding their footprint into coal impacted regions, and they already have a curriculum and access to equipment. PA DEPARTMENT OF LABOR & INDUSTRY Mike Fleck, Director, Bureau of Workforce Partnerships and Operations This bureau oversees Career Link staff who work with the WIBS, and falls under the workforce deputate. They applied for a $2 million DOL grant that will go to the 3 WIBS. The impact on the coal industry is very significant as each mining job supports 4.2 support jobs. Mike also heads up the state s rapid response team. As an example of the indirect impacts of coal is GE Transportation laying off 1,500 people in Erie that made locomotives to haul coal. WEST VIRGINIA BROWNFIELDS ASSISTANCE CENTER Patrick Kirby, Director This center works on the redevelopment of property, primarily in West Virginia. Properties are in transition as the region is in transition. A major focus now is on development on waterfronts and river fronts. They are working on a site ready program for western PA and WV. WESTMORELAND COUNTY COMMUNITY COLLEGE Pat Gerity, Vice President for Continuing Education and Workforce Development The WCCC is engaged in helping the community and dislocated workers with new training programs. They have 10 centers, some are outside of Westmoreland County. POWER may be the solution to help coal workers retrain for other industries. The goal is to keep the communities and people intact. SOUTHWEST CORNER WORKFORCE DEVELOPMENT BOARD Ami Gatts, Director Their office has applied for more than $2 million in grants to help provide training for dislocated workers. They have received about $1 million to date. BENEDUM FOUNDATION Jim Denova, Vice President The Benedum Foundation provides grants for projects in PA and WV. Their primary focus is on investing in educational programs and workforce development. Their grantees serve an audience that ranges from school students through incumbent workers. Currently there is a lot of demand for manufacturing jobs in SW PA, but Meeting Notes Revised P a g e 5

6 there is a lot to learn before someone can do that: what skills do they already have, what is the training they need and how do we connect these workers to opportunities. Benedum doesn t have the money the federal government can provide, but they can seed connections where government funding isn t accessible across county and state lines. They support the development of new curricula, particularly with the involvement of the manufacturing industry, and new promotional campaigns like Explore the New Manufacturing. Schools need to be flexible and responsive in today s changing economic environment, an example of which is providing short term programs that lead to career pathways, such as the Siemens Mechatronics program this program has flexibility, regionalism and innovation. After some additional discussion, the program ended. Meeting Notes Revised P a g e 6

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