Wind vs. Bats in West Virginia

The New York Times’ Todd Woody reported in December that a federal judge’s ruling has stopped construction on a 119-turbine wind farm project in Greenbrier County, WV in an effort to protect the endangered Indiana bat population located near the project site. Judge Roger W. Titus described the situation saying, “This is a case about bats, wind turbines, and two federal polices, one favoring protection of endangered species and the other encouraging development of renewable energy resources.” Indeed wind projects throughout the country face potential obstacles in the form of uncertainty over effects on habitat and migration patterns for bats and birds, though the West Virginia case is thought to be the first decision on the issue. The decision is unlikely to constitute a domino effect for other projects, provided the individual projects do not violate the provisions of the Endangered Species Act. Many project developers are attempting to head off such controversy by partnering with conservation groups such as Bat Conservation International (BCI). BCI’s statement on wind energy, “We believe that minimizing harmful impacts to wildlife is an essential element of “green energy” and that developers of wind energy must substantially increase efforts to improve siting and develop and test methods to reduce harm to wildlife.” Such efforts to improve siting are drawing on information gained from studying bats killed by existing projects to learn more about migration patterns and habitat range. A study conducted by the University of Calgary’s Erin Baerwald and Robert Barclay informed heavily by...

Prospects for an Appalachian Recovery

As recent data point to the beginnings of a recovery for much of the global economy, many segments of the American economy show signs of a more permanent strain. In his December article “Prospects for a Rural Recovery,” Federal Reserve Bank of Kansas officer Jason Henderson stresses the increased importance of entrepreneurship, innovation and access to capital in rural areas in particular, writing “entrepreneurship and innovation may become even more important to the economic revitalization of rural America”. This is particularly true throughout Central Appalachia, where poverty rates are consistently higher than other regions of the country.While rural regions as a whole have generally fared better in terms of employment numbers than cities, the rural Midwest and Southeast face particularly tough times, according to Henderson. Structural challenges afflict rural economies in general, and those of Appalachia in particular, including continued outmigration and farm consolidation.Access to capital is another significant hurdle for rural communities, but one rural community banks have often met through community-based lending (See Local banking boosting local communities). Henderson points to signs that rural America may be well positioned to recover from “the steepest and longest contraction since the Great Depression” pointing out that in addition to sustaining fewer job losses than urban areas, the housing crisis has generally been less severe in rural areas. One of the sectors likely to drive recovery, Henderson says, is food processing.Given the high concentration of food processing activities in rural areas, this is likely to be a “relatively bright spot”...

Department of Energy Recovery Act Funds in Central Appalachia...

The American Recovery and Reinvestment Act of 2009 was intended to create or save jobs and spur economic activity while fostering accountability and transparency in government spending. If there’s any area in the country that can benefit from new jobs and economic growth, it’s Central Appalachia. Energy efficiency in particular offers great promise for increasing economic activity in the region, particularly in the face of steadily rising electricity prices. Programs designed to help homeowners and businesses use less energy can result in both lower utility bills and reduced carbon emissions, while creating new jobs for contractors installing energy efficiency upgrades. The U.S. Department of Energy (DOE) received $36.7 billion of the Recovery Act’s climate and energy-related funds. How much of that funding has benefitted Central Appalachia so far? According to the state summary pages on Recovery.gov, Tennessee has received the fourth largest amount of DOE funding in the nation while West Virginia barely made it out of the bottom ten. Total DOE Recovery Act funding Tennessee-$1,205,031,961 Virginia-$282,642,660 Kentucky-$221,212,662 West Virginia-$77,202,457 The Department’s Office of Energy Efficiency and Renewable Energy (EERE) has the largest share of total DOE Recovery Act funding, at $16.8 billion. The EERE’s mission includes enhancing energy efficiency and bringing clean, reliable and affordable energy technologies to the marketplace…issues close to the hearts and pocketbooks of many Central Appalachians. As described in the Pew Center for Global Climate Change’s recently released U.S. Department of Energy’s Recovery Act Spending brief, the majority of the awarded EERE money has...

Renewables in Central Appalachia

Support for renewable energy in Central Appalachia is growing, prompting policy makers to consider incentives for renewable energy and energy efficiency throughout the region.While some supporters are motivated by the prospect of cleaner sources of electricity, others are buoyed by estimates of long-term job creation related to the manufacturing, distribution and installation of equipment required to realize renewable energy potential. Speculation persists among some citizens, however, that renewables are not viable in the region due to low-sunlight, variable wind patterns, or other technical barriers.In fact, the role of supportive policies is identified increasingly as the driving force for renewable energy installation rather than technical viability.New Jersey, a state with solar resources comparable to Kentucky’s, has created the second largest solar market in the United States as a result of adopting substantial policy incentives for renewable energy technology. A 2009 report by the Southern Alliance for Clean Energy has projected that: “With energy efficiency improvements, renewable energy could meet 30% or more of the Southeast’s need for electric power.” Andy McDonald, Director of the Kentucky Solar Partnership, wrote in a recent op-ed that the potential for renewable energy technologies—including solar, wind and low-impact hydroelectric installations—is substantial.Furthermore, embracing such technologies will promote a wide variety of benefits for the state not least of which, according to McDonald, would be economic development and job creation: “The bottom line is that solar and wind are being developed at a very large scale in other states. Those states are attracting billions of dollars in...

Local Banking Boosts Local Communities

2010 Rural Small Business Trends Small Business Trends, an online publication for small business owners and entrepreneurs, has compiled the top 10 trends for small businesses in rural communities for the coming year.The list highlights opportunities—like the growth of the Shop Local campaigns and expansion of rural broadband funded by the stimulus—as well as challenges, including state budget cuts and tighter lending markets, facing rural small businesses today. Small Business Trends author Becky McCray, who also writes her own blog Small Biz Survival, suggests thinking beyond the Shop Local campaigns that blossomed in 2009 to promoting a Bank Local effort in 2010, as an opportunity to move away from banks that are “too big to fail” and support strong local communities.The Move Your Money campaign is attracting attention to the Bank Local effort, offering a zip code tool for people to identify local banks and credit unions in their communities across the country. In addition to providing strong support for local economies, local banks and credit unions are better suited to support small businesses and entrepreneurs—both of which are vital to the continued success of rural communities throughout our region. Appalachia is fortunate to host several organizations aimed at supporting regional small businesses to capitalize on this year’s opportunities, including the Mountain Association for Community Economic Development’s Enterprise Development Program and the Kentucky Highlands Investment Corporation’s newly expanded Business Innovation and Growth Center in Kentucky and the Natural Capital Investment Fund serving North Carolina, northeast Tennessee, southwest Virginia and...

Dr. Margaret Palmer on the Colbert Show

The recently released report “Mountaintop Mining Consequences”, published in Science’s January issue can be summarized by lead author Margaret Palmer of the University of Maryland’s Center for Environmental Sciences statement to the Washington Post: “The science is so overwhelming that the only conclusion that one can reach is that mountaintop mining needs to be stopped.” Media coverage of the report, and its potential implications for policy decisions at the federal and state levels, has been substantial including excellent analysis by the WV Gazette’s Ken Ward and Grist’s David Roberts. Perhaps in an attempt to lighten up the tone of conversation on a very emotional and controversial topic, comedian Stephen Colbert—best known for his satirical style portrayed through the mock-news cable show the Colbert Report—hosted Dr. Palmer on his January 18th show. A report released this week by the consulting firm Downstream Strategies, “The Decline of Central Appalachian Coal and the Need for Economic Diversification” reinforces the largely tongue-in-cheek exaggerated simplifications drawn by Colbert that the problem of mountaintop mining may soon, by default, solve itself by driving out the region’s job opportunities, natural resources and communities.See post on Downstream Strategies report for more information. About Kristin TraczKristin Tracz served MACED’s Research and Policy team from 2009-2012 working on clean energy policy, energy efficiency programs and the Appalachian Transition Initiative. She joined MACED after finishing her Master of Environmental Management degree at the Yale School of Forestry & Environmental Studies. She now lives and works in Washington,...

KHIC goes BIG

Last week, London-based venture capital firm Kentucky Highlands Investment Corporation (KHIC) broke ground on a LEED-certified business incubator space, aimed at providing support for new and small business to grow in Kentucky. The Business Innovation and Growth Center is home to over 9,000 square feet of office and project development space, for use by up to 16 enterprises—expanding the capacity of the current incubator space, which has room for a maximum of three companies. KHIC expects the incubator “will assist 16 businesses, help create 127 new jobs and generate $6 million in private investment during the first five years”. “Most jobs in this country are created by small businesses,” said Jim Carroll, director of the BIG Center. “And, the jobs least likely to move to another state or country are the ones that are homegrown. This program will stimulate innovation and creativity to motivate young entrepreneurs and experienced business leaders to establish companies and create jobs here in Kentucky.” KHIC’s existing incubator space has graduated four companies that now employ more than 30 people in the area. Additionally, the training sessions offered by KHIC have educated over 500 people in the last three years. KHIC was established in 1972 on “the basic premise that significant reduction in poverty in the area could not be achieved without economic growth”. See also, the Times Tribune story: http://www.thetimestribune.com/local/local_story_018085606.html About Kristin TraczKristin Tracz served MACED’s Research and Policy team from 2009-2012 working on clean energy policy, energy efficiency programs and the Appalachian Transition...

New Study: Central Appalachian Coal in Decline

An important new study released this week paints a startling picture of the trajectory of coal in Central Appalachia, and makes a strong case for the need to begin planning for the transition that is already upon us. The Decline of Central Appalachian Coal and the Need for Economic Diversification, authored by Downstream Strategies, points out that regional coal production peaked about 1997, and current official projections suggest possible declines of around 46% between 2008 and 2020. The authors cited three primary factors for the decline of coal in Central Appalachia: Increased competition from other coal-producing regions and sources of energy Western coal has captured market share from Central Appalachian coal because it is cheaper to mine and more abundant, and because the cost to transport it has declined. In addition, more power plants are now buying high-sulfur coal from places like northern Appalachia—instead of Central Appalachian low-sulfur coal–as they install scrubbers to meet federal clean air requirements. And alternative sources like natural gas and renewable energy are increasingly price-competitive with coal and, especially in the case of renewable energy, popular with the public because they are cleaner and healthier. Depletion of the most accessible, lowest-cost coal resources. Central Appalachian coal is increasingly expensive to mine as thick seams of coal in the region become scarce. The authors convincingly examine this issue by comparing trends in Central Appalachian coal prices with trends in labor productivity—at the same time coal prices have gone up, the tons of coal produced per...