CENTRAL APPALACHIA PROSPERITY PROJECT Phase I Objective 1: Collect existing research and information instructive for Appalachia Prepared by: Rory McIlmoil, Evan Hansen, Anne Hereford, Fritz Boettner Downstream Strategies 219 Wall Street Morgantown, WV 26505 www.downstreamstrategies.com Prepared for: Bill Becker School of Public Affairs University of Colorado Denver P.O. Box 173364 ‐ Campus Box 142 Denver, CO 80217 Photo credits: Vivian Stockman (mountain top removal site) and Evan Hansen (wind turbines and river). July 24, 2009 TABLE OF CONTENTS 1. INTRODUCTION ......................................................................................................................................... 1 2. RELEVANT DEMOGRAPHIC/CENSUS DATA ................................................................................................. 2 2.1 PEOPLE, BUSINESSES, AND GEOGRAPHY FACTS FOR WEST VIRGINIA AND ITS MOUNTAINTOP REMOVAL COUNTIES ................ 2 2.2 UNEMPLOYMENT IN WEST VIRGINIA COUNTIES .................................................................................................... 15 2.3 WAGES IN WEST VIRGINIA COUNTIES ................................................................................................................. 18 2.4 COAL EMPLOYMENT CATEGORIES, EMPLOYEES, AND WAGES IN WEST VIRGINIA .......................................................... 20 2.5 LABOR AND UNEMPLOYMENT ACROSS CAPP STATES ............................................................................................. 25 2.6 POVERTY ACROSS CAPP STATES ........................................................................................................................ 37 2.7 EDUCATIONAL ATTAINMENT IN WEST VIRGINIA .................................................................................................... 48 2.8 APPALACHIAN REGIONAL COMMISSION COUNTY ECONOMIC LEVELS IN CAPP STATES .................................................. 51 3. INFRASTRUCTURE MAPS AND/OR DATA SHOWING RAIL, HIGHWAY, ELECTRICITY, WATER, AND OTHER CRITICAL INFRASTRUCTURE ............................................................................................................................... 58 4. WIND MAPS, INCLUDING IDENTIFYING GAPS IN RESOURCE MAPS, ISSUES WITH EXISTING MAPS, AND COST ESTIMATES FOR FINER‐SCALE REGIONAL WIND MODELING AND ENERGY POTENTIAL ........................................ 63 4.1 BACKGROUND ............................................................................................................................................... 63 4.2 GAPS/ISSUES WITH EXISTING WIND RESOURCE MAPS ............................................................................................. 65 4.3 RESEARCH NEEDS ........................................................................................................................................... 67 4.4 CONCLUSION ................................................................................................................................................. 67 4.5 ANEMOMETERS ............................................................................................................................................. 68 4.6 REFERENCES .................................................................................................................................................. 68 5. AGRICULTURAL RESOURCES AND CLIMACTIC CONDITIONS TO DETERMINE RENEWABLE ENERGY POTENTIAL FOR METHANE, BIOMASS, AND ENERGY CROPS................................................................................................. 69 5.1 BIOMASS RESOURCES IN WEST VIRGINIA AND CAPP STATES ................................................................................... 69 5.2 AGRICULTURAL RESIDUES ................................................................................................................................. 70 5.3 WOOD RESIDUES ............................................................................................................................................ 71 5.4 DEDICATED ENERGY CROPS ............................................................................................................................... 71 5.5 PRECIPITATION AND TEMPERATURE IN WEST VIRGINIA .......................................................................................... 72 5.6 REFERENCES .................................................................................................................................................. 77 6. EXISTING MANUFACTURING PLANTS THAT CAN MAKE COMPONENTS FOR GREEN ENERGY TECHNOLOGIES AND GENERAL REQUISITES/INCENTIVES FOR ATTRACTING INVESTMENT AND DEVELOPERS TO THE REGION ...... 78 6.1 BACKGROUND ............................................................................................................................................... 78 6.2 EXISTING MANUFACTURING WITH POTENTIAL TO MAKE RENEWABLE ENERGY COMPONENTS........................................... 80 6.3 INCENTIVES AND POLICIES TO DRIVE GROWTH OF GREEN MANUFACTURING ................................................................ 82 6.4 REFERENCES .................................................................................................................................................. 84 7. EXISTING GREEN INDUSTRIES AND EXISTING GREEN JOBS DEVELOPMENT AND SUPPORTING INFRASTRUCTURE IN THE REGION: TRAINING PROGRAMS, ADVOCACY AND POLICY GROUPS ............................ 85 7.1 BACKGROUND ............................................................................................................................................... 85 7.2 THE PEW STUDY ............................................................................................................................................. 86 7.3 ADVOCACY/NON‐PROFIT ORGANIZATIONS........................................................................................................... 87 7.4 TRAINING PROGRAMS ..................................................................................................................................... 88 7.5 SUPPORT/NETWORKING .................................................................................................................................. 88 7.6 DEVELOPMENT/INSTALLATION .......................................................................................................................... 90 7.7 GREEN INDUSTRY ........................................................................................................................................... 95 7.8 INDUSTRIAL WIND ENERGY DEVELOPMENT IN WEST VIRGINIA .................................................................................. 96 7.9 REFERENCE ................................................................................................................................................... 97 ii 8. THE NEED FOR AND EXISTING MODELS FOR ENVIRONMENTAL/LAND RESTORATION AND REMEDIATION, AND THE POTENTIAL FOR JOB CREATION IN A RESTORATIVE INDUSTRY ............................................................. 98 9. THE POTENTIAL FOR ADDITIONAL VALUE‐ADDED OPPORTUNITIES .......................................................... 138 10. EXISTING RETAIL AND ESSENTIAL SERVICES AND PROXIMITY TO TARGET DEVELOPMENT CENTERS ..... 160 11. AVAILABLE AND RELEVANT PUBLIC OPINION SURVEYS ON QUALITY OF LIFE, ECONOMIC DEVELOPMENT (ESPECIALLY AS RELATED TO COAL), AND MINING PRACTICES .......................................................................... 164 12. STRATEGIES AND MODELS FOR POVERTY ALLEVIATION ...................................................................... 176 13. RENEWABLE ENERGY AND ENERGY EFFICIENCY POTENTIAL (SMALL‐ AND LARGE‐SCALE) ..................... 192 14. ROADBLOCKS TO ECONOMIC TRANSITION INCLUDING POVERTY, LAND OWNERSHIP, EDUCATION CONSOLIDATION, LACK OF OR MISDIRECTED FUNDING, COUNTY‐LEVEL INEFFICIENCIES, HIGHER HEALTH COSTS 276 14.1 POLITICAL ................................................................................................................................................... 276 14.2 ECONOMIC DEVELOPMENT ............................................................................................................................. 276 14.3 SOCIAL ....................................................................................................................................................... 277 14.4 EDUCATION ................................................................................................................................................. 278 14.5 REGULATION ............................................................................................................................................... 278 14.6 GEOGRAPHY ................................................................................................................................................ 278 14.7 RELIGION .................................................................................................................................................... 278 iii TABLE OF TABLES Table 1: People, businesses, and geography: West Virginia .......................................................................................... 3 Table 2: People, businesses, and geography: Boone County ........................................................................................ 4 Table 3: People, businesses, and geography: Clay County ............................................................................................ 5 Table 4: People, businesses, and geography: Fayette County ....................................................................................... 6 Table 5: People, businesses, and geography: Kanawha County .................................................................................... 7 Table 6: People, businesses, and geography: Logan County ......................................................................................... 8 Table 7: People, businesses, and geography: McDowell County .................................................................................. 9 Table 8: People, businesses, and geography: Mingo County ...................................................................................... 10 Table 9: People, businesses, and geography: Nicholas County ................................................................................... 11 Table 10: People, businesses, and geography: Raleigh County ................................................................................... 12 Table 11: People, businesses, and geography: Wayne County ................................................................................... 13 Table 12: People, businesses, and geography: Wyoming County ............................................................................... 14 Table 13: West Virginia labor force statistics, annual and monthly comparison ........................................................ 16 Table 14: West Virginia average annual wages by county, 2000‐2008 ....................................................................... 18 Table 15: West Virginia coal‐related direct industrial employment, fourth quarter 2008 .......................................... 20 Table 16: West Virginia coal mining employment figures from various sources ........................................................ 24 Table 17: Labor force, unemployment, poverty, and median household income for West Virginia counties ............ 25 Table 18: Labor force, unemployment, poverty, and median household income for Kentucky counties .................. 27 Table 19: Labor force, unemployment, poverty, and median household income for Virginia counties ..................... 30 Table 20: Labor force, unemployment, poverty, and median household income for Tennessee counties ................ 33 Table 21: Alternative measures of labor underutilization for CAPP states, 2008 ....................................................... 36 Table 22: Poverty in West Virginia counties ................................................................................................................ 37 Table 23: Poverty in Kentucky counties ....................................................................................................................... 39 Table 24: Poverty in Virginia counties ......................................................................................................................... 42 Table 25: Poverty in Tennessee counties .................................................................................................................... 45 Table 26: Educational attainment in West Virginia, age 25 years and over, 2005‐2007 ............................................. 48 Table 27: Educational attainment in West Virginia counties, ages 25‐34 years, 2000 ................................................ 49 Table 28: Criteria for county economic levels of the Appalachian Regional Commission, FY06 ................................. 52 Table 29: Number of counties in Appalachian states per economic level in FY06, by state ....................................... 53 Table 30: County economic status in West Virginia, FY06 ........................................................................................... 54 Table 31: County economic status for ARC counties in Kentucky, FY06 ...................................................................... 55 Table 32: County economic status for ARC counties in Virginia, FY06 ........................................................................ 56 Table 33: County economic status for ARC counties in Tennessee, FY06 ................................................................... 57 Table 34: Wind potential in West Virginia ................................................................................................................... 63 Table 35: Estimated biomass resources in CAPP states (thousand tonnes/year) ....................................................... 69 Table 36: West Virginia’s biomass resources (thousand dry tons/year) ..................................................................... 70 Table 37: Mill residue uses in West Virginia in 2005 ................................................................................................... 71 Table 38: West Virginia manufacturing potential to support the wind, solar, and biomass industries ...................... 81 Table 39: Populations of cities, towns, and census‐designated places in southern West Virginia located more than 20 miles from large cities .................................................................................................................................. 160 Table 40: Existing retail and essential services in the vicinity of Whitesville and Sylvester ...................................... 163 iv TABLE OF FIGURES Figure 1: June 2009 unemployment in West Virginia counties ................................................................................... 15 Figure 2: County economic status in Appalachia, FY06 ............................................................................................... 51 Figure 3: West Virginia coal resources ........................................................................................................................ 59 Figure 4: West Virginia electrical features ................................................................................................................... 60 Figure 5: West Virginia electrical features with wind classes ...................................................................................... 61 Figure 6: West Virginia transportation features .......................................................................................................... 62 Figure 7: West Virginia wind speeds at 70 meters height with 200 meter resolution ................................................ 64 Figure 8: West Virginia wind speeds at 50 meters height with 200 meter resolution ................................................ 65 Figure 9: Wind resources on Coal River Mountain, West Virginia, with 90 meter resolution, 80 meter hub height .. 66 Figure 10: West Virginia average annual precipitation ............................................................................................... 73 Figure 11: West Virginia average annual temperature ............................................................................................... 74 Figure 12: West Virginia average maximum temperature .......................................................................................... 75 Figure 13: West Virginia average annual minimum temperature ............................................................................... 76 Figure 14: Potential renewable sector manufacturing jobs by county population classification ................................ 81 Figure 15: Zip codes used for essential services analysis .......................................................................................... 162 Note: Many portions of this document were cut and pasted directly from government documents, Web pages, and other sources. Due to the length of this report, direct quotations have not been placed within quotation marks. However, sources are clearly noted. v 1. INTRODUCTION The Central Appalachia Prosperity Project (CAPP) is a one‐year privately funded initiative to create a plan for the region’s transition to a clean energy economy built on green jobs and industries, healthy communities, protection of natural resources, and restoration of assets that have been depleted or damaged by past activities. Modeled loosely on the Presidential Climate Action Plan, the CAPP plan will contain detailed recommendations for changes in federal, state, regional, and local policies and programs to help the region accomplish this transition. This report contains partial results for Phase I, the gathering of data and information and the identification of additional research needs. Phase I has six objectives: 1. Collect existing research and information instructive for Appalachia; 2. Identify and engage with key stakeholder groups; 3. Identify federal, state, and local funds, programs, and policies that can help Appalachia transition toward a green economy; 4. Identify and characterize local, state and regional agencies with influence over economic development and energy policy; 5. Identify potential investors and project developers; and 6. Identify data gaps and frame research questions. This report includes results for Phase I, Objective 1. Future CAPP phases will perform new research and analysis, draft policy recommendations, generate outreach materials and information, and implement the recommendations. 1 2. RELEVANT DEMOGRAPHIC/CENSUS DATA A variety of demographic and census data are presented for West Virginia, and a subset of these data are presented for all four CAPP states, including Kentucky, Virginia, and Tennessee. 2.1 People, businesses, and geography facts for West Virginia and its mountaintop removal counties 2 Table 1: People, businesses, and geography: West Virginia Information West Virginia USA People Population, 2008 estimate 1,814,468 304,059,724 Population, percent change, April 1, 2000 to July 1, 2008 0.3% 8.0% Population estimates base (April 1) 2000 1,808,345 281,424,602 Persons under 5 years old, percent, 2007 5.8% 6.9% Persons under 18 years old, percent, 2007 21.4% 24.5% Persons 65 years old and over, percent, 2007 15.5% 12.6% Female persons, percent, 2007 51.0% 50.7% White persons, percent, 2007 (a) 94.6% 80.0% Black persons, percent, 2007 (a) 3.5% 12.8% American Indian and Alaska Native persons, percent, 2007 (a) 0.2% 1.0% Asian persons, percent, 2007 (a) 0.7% 4.4% Native Hawaiian and Other Pacific Islander, percent, 2007 (a) Z 0.2% Persons reporting two or more races, percent, 2007 0.9% 1.6% Persons of Hispanic or Latino origin, percent, 2007 (b) 1.1% 15.1% White persons not Hispanic, percent, 2007 93.6% 66.0% Living in same house in 1995 and 2000, pct 5 yrs old & over 63.3% 54.1% Foreign born persons, percent, 2000 1.1% 11.1% Language other than English spoken at home, pct age 5+, 2000 2.7% 17.9% High school graduates, percent of persons age 25+, 2000 75.2% 80.4% Bachelor's degree or higher, pct of persons age 25+, 2000 14.8% 24.4% Persons with a disability, age 5+, 2000 410,781 49,746,248 Mean travel time to work (minutes), workers age 16+, 2000 26.2 25.5 Housing units, 2007 882,685 127,901,934 Homeownership rate, 2000 75.2% 66.2% Housing units in multi-unit structures, percent, 2000 12.0% 26.4% Median value of owner-occupied housing units, 2000 $72,800 $119,600 Households, 2000 736,481 105,480,101 Persons per household, 2000 2.4 2.59 Median household income, 2007 $37,057 $50,740 Per capita money income, 1999 $16,477 $21,587 Persons below poverty, percent, 2007 17.1% 13.0% Businesses Private nonfarm establishments, 2006 40,566 7,601,160 Private nonfarm employment, 2006 583,196 119,917,165 Private nonfarm employment, percent change 2000-2006 4.5% 5.1% Nonemployer establishments, 2006 89,839 20,768,555 Total number of firms, 2002 113,087 22,974,655 Black-owned firms, percent, 2002 1.3% 5.2% American Indian and Alaska Native owned firms, percent, 2002 0.4% 0.9% Asian-owned firms, percent, 2002 1.1% 4.8% Native Hawaiian and Other Pacific Islander owned firms, percent, 2002 0.0% 0.1% Hispanic-owned firms, percent, 2002 0.6% 6.8% Women-owned firms, percent, 2002 27.7% 28.2% Manufacturers shipments, 2002 ($1000) 18,911,332 3,916,136,712 Wholesale trade sales, 2002 ($1000) 10,924,279 4,634,755,112 Retail sales, 2002 ($1000) 16,747,900 3,056,421,997 Retail sales per capita, 2002 $9,277 $10,615 Accommodation and foodservices sales, 2002 ($1000) 1,974,851 449,498,718 Building permits, 2007 4,795 1,398,414 Federal spending, 2007 ($1000) 17,066,594 2,536,629,405 Geography Land area, 2000 (square miles) 24,077.73 3,537,438.44 Persons per square mile, 2000 75.1 79.6 FIPS Code 54 Source: US Census Bureau. 2009. State & County QuickFacts: West Virginia. http://quickfacts.census.gov/qfd/states/54000.html. Notes: (a) Includes persons reporting only one race. (b) Hispanics may be of any race, so also are included in applicable race categories. FN: Footnote on this item for this area in place of data. NA: Not available. D: Suppressed to avoid disclosure of confidential information. X: Not applicable. S: Suppressed; does not meet publication standards. Z: Value greater than zero but less than half unit of measure shown. F: Fewer than 100 firms. 3 Table 2: People, businesses, and geography: Boone County Information Boone County West Virginia People Population, 2008 estimate 24,977 1,814,468 Population, percent change, April 1, 2000 to July 1, 2008 -2.20% 0.30% Population estimates base (April 1) 2000 25,535 1,808,345 Persons under 5 years old, percent, 2007 6.10% 5.80% Persons under 18 years old, percent, 2007 22.40% 21.40% Persons 65 years old and over, percent, 2007 13.60% 15.50% Female persons, percent, 2007 51.40% 51.00% White persons, percent, 2007 (a) 98.20% 94.60% Black persons, percent, 2007 (a) 0.80% 3.50% American Indian and Alaska Native persons, percent, 2007 (a) 0.10% 0.20% Asian persons, percent, 2007 (a) 0.20% 0.70% Native Hawaiian and Other Pacific Islander, percent, 2007 (a) Z Z Persons reporting two or more races, percent, 2007 0.60% 0.90% Persons of Hispanic or Latino origin, percent, 2007 (b) 0.50% 1.10% White persons not Hispanic, percent, 2007 97.80% 93.60% Living in same house in 1995 and 2000, pct 5 yrs old & over 66.40% 63.30% Foreign born persons, percent, 2000 0.40% 1.10% Language other than English spoken at home, pct age 5+, 2000 1.40% 2.70% High school graduates, percent of persons age 25+, 2000 64.00% 75.20% Bachelor's degree or higher, pct of persons age 25+, 2000 7.20% 14.80% Persons with a disability, age 5+, 2000 7,404 410,781 Mean travel time to work (minutes), workers age 16+, 2000 33.8 26.2 Housing units, 2007 11,811 882,685 Homeownership rate, 2000 78.90% 75.20% Housing units in multi-unit structures, percent, 2000 4.40% 12.00% Median value of owner-occupied housing units, 2000 $63,700 $72,800 Households, 2000 10,291 736,481 Persons per household, 2000 2.47 2.4 Median household income, 2007 $35,654 $37,057 Per capita money income, 1999 $14,453 $16,477 Persons below poverty, percent, 2007 18.20% 17.10% Businesses Private nonfarm establishments, 2006 354 40,566 Private nonfarm employment, 2006 6,614 583,196 Private nonfarm employment, percent change 2000-2006 19.80% 4.50% Nonemployer establishments, 2006 749 89,839 Total number of firms, 2002 1,076 113,087 Black-owned firms, percent, 2002 F 1.30% American Indian and Alaska Native owned firms, percent, 2002 F 0.40% Asian-owned firms, percent, 2002 F 1.10% Native Hawaiian and Other Pacific Islander owned firms, percent, 2002 F 0.00% Hispanic-owned firms, percent, 2002 F 0.60% Women-owned firms, percent, 2002 31.60% 27.70% Manufacturers shipments, 2002 ($1000) NA 18,911,332 Wholesale trade sales, 2002 ($1000) D 10,924,279 Retail sales, 2002 ($1000) 156,269 16,747,900 Retail sales per capita, 2002 $6,088 $9,277 Accommodation and foodservices sales, 2002 ($1000) 9,623 1,974,851 Building permits, 2007 11 4,795 Federal spending, 2007 ($1000) 190,438 17,066,594 Geography Land area, 2000 (square miles) 502.98 24,077.73 Persons per square mile, 2000 50.8 75.1 FIPS Code 5 54 Metropolitan or Micropolitan Statistical Area Charleston, WV Metro Area Source: US Census Bureau. 2009. State & County QuickFacts: Boone County, West Virginia. http://quickfacts.census.gov/qfd/states/54005.html. Notes: (a) Includes persons reporting only one race. (b) Hispanics may be of any race, so also are included in applicable race categories. FN: Footnote on this item for this area in place of data. NA: Not available. D: Suppressed to avoid disclosure of confidential information. X: Not applicable. S: Suppressed; does not meet publication standards. Z: Value greater than zero but less than half unit of measure shown. F: Fewer than 100 firms. 4 Table 3: People, businesses, and geography: Clay County Information Clay County West Virginia People Population, 2008 estimate 10,075 1,814,468 Population, percent change, April 1, 2000 to July 1, 2008 -2.50% 0.30% Population estimates base (April 1) 2000 10,330 1,808,345 Persons under 5 years old, percent, 2007 6.30% 5.80% Persons under 18 years old, percent, 2007 22.70% 21.40% Persons 65 years old and over, percent, 2007 15.10% 15.50% Female persons, percent, 2007 50.40% 51.00% White persons, percent, 2007 (a) 98.00% 94.60% Black persons, percent, 2007 (a) 0.20% 3.50% American Indian and Alaska Native persons, percent, 2007 (a) 0.80% 0.20% Asian persons, percent, 2007 (a) Z 0.70% Native Hawaiian and Other Pacific Islander, percent, 2007 (a) 0.00% Z Persons reporting two or more races, percent, 2007 1.00% 0.90% Persons of Hispanic or Latino origin, percent, 2007 (b) 0.40% 1.10% White persons not Hispanic, percent, 2007 97.60% 93.60% Living in same house in 1995 and 2000, pct 5 yrs old & over 66.00% 63.30% Foreign born persons, percent, 2000 0.10% 1.10% Language other than English spoken at home, pct age 5+, 2000 2.20% 2.70% High school graduates, percent of persons age 25+, 2000 63.70% 75.20% Bachelor's degree or higher, pct of persons age 25+, 2000 7.30% 14.80% Persons with a disability, age 5+, 2000 2,958 410,781 Mean travel time to work (minutes), workers age 16+, 2000 45 26.2 Housing units, 2007 4,980 882,685 Homeownership rate, 2000 79.20% 75.20% Housing units in multi-unit structures, percent, 2000 2.70% 12.00% Median value of owner-occupied housing units, 2000 $55,600 $72,800 Households, 2000 4,020 736,481 Persons per household, 2000 2.55 2.4 Median household income, 2007 $28,630 $37,057 Per capita money income, 1999 $12,021 $16,477 Persons below poverty, percent, 2007 23.80% 17.10% Businesses Private nonfarm establishments, 2006 110 40,566 Private nonfarm employment, 2006 1,348 583,196 Private nonfarm employment, percent change 2000-2006 10.40% 4.50% Nonemployer establishments, 2006 408 89,839 Total number of firms, 2002 556 113,087 Black-owned firms, percent, 2002 F 1.30% American Indian and Alaska Native owned firms, percent, 2002 F 0.40% Asian-owned firms, percent, 2002 F 1.10% Native Hawaiian and Other Pacific Islander owned firms, percent, 2002 F 0.00% Hispanic-owned firms, percent, 2002 F 0.60% Women-owned firms, percent, 2002 S 27.70% Manufacturers shipments, 2002 ($1000) NA 18,911,332 Wholesale trade sales, 2002 ($1000) D 10,924,279 Retail sales, 2002 ($1000) 36,474 16,747,900 Retail sales per capita, 2002 $3,508 $9,277 Accommodation and foodservices sales, 2002 ($1000) 1,316 1,974,851 Building permits, 2007 14 4,795 Federal spending, 2007 ($1000) 72,662 17,066,594 Geography Land area, 2000 (square miles) 342.4 24,077.73 Persons per square mile, 2000 30.2 75.1 FIPS Code 15 54 Metropolitan or Micropolitan Statistical Area Charleston, WV Metro Area Source: US Census Bureau. 2009. State & County QuickFacts: Clay County, West Virginia. http://quickfacts.census.gov/qfd/states/54015.html. Notes: (a) Includes persons reporting only one race. (b) Hispanics may be of any race, so also are included in applicable race categories. FN: Footnote on this item for this area in place of data. NA: Not available. D: Suppressed to avoid disclosure of confidential information. X: Not applicable. S: Suppressed; does not meet publication standards. Z: Value greater than zero but less than half unit of measure shown. F: Fewer than 100 firms. 5
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