Steven Allen Adams DEFENDING THE BILL – House Finance Committee Vice Chairman John Hardy defended a bill Friday to provide $105 million in surplus tax dollars toward the Form Energy battery project in Weirton.

CHARLESTON – Debate over whether to leverage taxpayer dollars for a proposed battery manufacturing project in Weirton spilled over into a second day as the West Virginia House of Delegates passed the bill Friday.

The House passed House Bill 2882, making a supplemental appropriation to the Department of Economic Development, in a 69-25 vote Friday morning after more than two hours of debate, sending the bill to the state Senate.

HB 2882 transfers $115 million from available surplus tax dollars for the previous fiscal year to the department, with $10 million going toward broadband expansion projects and $105 million going to the Economic Development Project Fund.

The $105 million is part of an overall $300 million package the state is providing for a proposed proprietary iron-air battery manufacturing project by Massachusetts-based startup Form Energy on a 55-acre site on the former Weirton Steel property.

“Weirton is looking at this as the beginning of its redevelopment,” said Delegate Mark Zatezalo, R-Hancock. “I’ve talked to some of the Form Energy people. They are ready to start working … I’m excited for that. The people of Weirton are excited for that.”

The Economic Development Authority already approved a $75 million economic incentive package from the Economic Development Project Fund for the project in December, using that to purchase the property now part of the Frontier Crossing development, with the property being used as collateral.

The state will retain ownership of the land and buildings as a backstop to guarantee the state’s investment, while Form Energy meets certain project requirements. The state will provide another $110 million to Form Energy once the project is complete.

According to Form Energy, its Weirton project will be a $760 million investment with the goal of creating as many as 750 jobs. Form is putting $350 million up front to get the project started. The company will manufacture its own proprietary batteries using iron-air technology for energy storage for solar and wind power projects.

The Economic Development Project Fund created by the Legislature last year allows the Economic Development Authority to loan companies money for high-impact development projects.

The company would have to invest more than $50 million of its money before being eligible for the loan and agree to create at least 200 jobs.

The House spent more than 90 minutes Thursday debating amendments and motions to either separately vote on the Form Energy and broadband appropriations or to eliminate the $105 million Form Energy appropriation altogether, all of which failed. But debate continued Friday among the 88-member Republican caucus for more than two hours.

Supporters of HB 2882 believe the project is necessary to create new jobs and revitalize the Weirton area, once a steel-making powerhouse. They also raised concerns about the message opponents were sending to other companies who might consider West Virginia for their manufacturing projects.

“If we don’t want to be in this game, we’re going to bury our heads in the sand and the country is going to pass us by,” said House Finance Committee Vice Chairman John Hardy, R-Berkeley. “What are we trying to accomplish in this House? I think we’re trying to accomplish economic development. We’re trying to broaden our base. We’re trying to grow our economy and provide good jobs for our citizens.”

“I frankly believe this is a prudent investment for West Virginia and I support it.” said Delegate Bob Fehrenbacher, R-Wood. “Since we signed this deal, I think it is our duty and our obligation to support this investment. Hopefully that will create those jobs and even more so in this state.”

Opponents expressed concerns about leveraging taxpayer dollars for the Form Energy project. Some see the Form Energy project as an attempt by the green energy industry to eliminate coal-fired and natural gas-fired power generation, despite the project itself relying on that generated power.

“Everybody should be able to come and work and do business here, and we want to be friendly too, but I don’t know that we want to open that cookie jar and empty it on a risky business,” said House Majority Whip Marty Gearheart, R-Mercer.

“We may have an economic development of $2.5 billion. We might not,” said Delegate Bill Ridenour, R-Jefferson. “I would urge tremendous caution as we’re about to do this vote, because your vote will result in $290 million going, eventually, to this company and potentially with no significant return.”

HB 2882 enjoyed support from the House Democratic Caucus voting with the majority of the Republican caucus. House Minority Whip Shawn Fluharty, D-Ohio, criticized the vocal Republican minority of pushing conspiracy theories and unfounded rumors about the Form Energy project.

“This is shameful. I hope no CEO is watching,” Fluharty said. “Imagine at the 11th hour after 16 states competed for projects and the Legislature drops the ball. Can you imagine that? Because that’s what this sounds like here. I think a few of you want to start the no-jobs caucus.”

In an opinion published Friday in this and other newspapers, Department of Economic Development Cabinet Secretary Mitch Carmichael defended HB 2882 and the Form Energy project.

“This is a landmark, winning transaction for West Virginia,” Carmichael wrote. “We get an opportunity to welcome an innovative company with 750 advanced manufacturing jobs. Our state will produce and provide the manpower to strengthen our American electrical grid. And, we have protected the taxpayers of our state with full collateral and security.”