MORGANTOWN — The House of Delegates spent close to two hours Tuesday morning debating the bill aimed at bringing a $2.7 billion steel-making plant to Mason County, and passed it overwhelmingly 91-2.
The bill, SB 1001, and four accompanying supplemental appropriations bills all then returned to the Senate for final approval and completed their legislative journeys. This was the second day of the special session called by Gov. Jim Justice to pass the bills before the start of the 2022 legislative session and his economic development announcements planned for his Wednesday evening State of the State Address.
The House suspended its three-day reading rule to pass SB 1001 and the other appropriations bills.
SB 1001, the Industrial Advancement Act, requires the yet-unnamed company — generally believed to be North Carolina-based steelmaker Nucor — to buy property for expansion or revitalization, to spend at least $2 billion and hire 500 full-time employees within six months. The project is expected to employ about 800, with another 1,000 construction jobs.
SB 1001 provides for the company to take a 50% tax credit for its investments against the personal income tax or corporate net income tax, along with certain sales tax exemptions already in code for other companies.
Justice’s Chief of Staff Brian Abraham told House Finance on Monday that the bill’s tax credit provisions are already in code, but the bill bundles them all up for clarity, at the company’s request.
The state has also conditionally pledged to put up about $315 million for infrastructure work. After the company invests $500 million, the state will put up $125 million. After the company invests another $750 million, the state will put up $150 million.
The third state payment will be linked to the company leasing or purchasing property for a related Northern Panhandle transloading facility, said to be outside Weirton. That payment will be $40 million.
On the House floor, both negative votes came from Republicans. But several Democrats urged caution and remarked that the bill’s passage was needlessly hasty, without thorough review, tied to the Justice’s planned announcements.
Delegate Larry Rowe, D-Kanawha, said, “”This is an interesting concept. It’s a dangerous concept. … We are proceeding, I think, un-cautiously into deep water that ought to be dealt with during the session.” But he was willing to balance all the benefits, he said — jobs, wages, industrial activity.
Delegate Phil Diserio, D-Brooke, hoped that the company will employ West Virginia workers. He noted a Kentucky mill project that brought in Gulf Coast construction workers. Had the process been more deliberate, he said, he would have offered an amendment to provide incentives for employing in-state workers.
Delegate Evan Hansen, D-Monongalia, said he voted against the rule suspension but supports the bill. It’s important to grow the manufacturing base with high-paying jobs in an environmentally responsible way, he said. He praised Nucor’s commitment to green manufacturing and its statement that this plant will have a lower carbon footprint than nearby competitors.
Delegate Barbara Evans Fleischauer, also D-Monongalia, said that previous efforts to claw back money when economic deals went south always failed, and she hoped this deal has better provisions. “I’m going to vote yes with my fingers crossed.”
Finance chair Eric Householder, R-Berkeley, assured the members that the deal includes protections for the state’s investments. “If they do not meet any of these requirements, we have the ability to retroactively claw back any money we have invested with this company.”
Majority Whip Paul Espinosa, R-Jefferson, said, “For me it’s not a really a difficult call at all.” He referred to the WVU business school study that projects the project will have a $25 billion economic benefit over 10 years, for a relatively modest $315 million investment in infrastructure.
Delegate Mark Zatezalo, R-Hancock, said he grew up in the steel town of Weirton and this will be a good project. It will generate more activity, including downstream manufacturing. “This is the start of something good. This is not the end of anything. The hard work starts now.”
The supplemental appropriations bills involved shifting funds from various accounts and channeling $150.5 million of American Rescue Plan COVID relief funds to the Economic Development Promotion and Closing Fund. All passed by overwhelming majorities.
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