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 Perez announced the move at the Shaping our Appalachian Region
(SOAR) summit in eastern Kentucky, a region hard hit by the downturn
in the U.S. coal industry. He said funds would be available to
"communities that have laid the groundwork" by launching initiatives
to jumpstart new industries and opportunities to branch out from
coal mining.
"I have an unrelenting sense of optimism about what the future can
be," he said.
The announcement is part of a federal effort to help the Appalachian
region adapt its economy to a sharp drop in coal production, growing
unemployment and a loss of population.
Kentucky lawmakers from both parties have met some of these
proposals with skepticism, and have said the administration's
proposed regulation of coal-fired power plants is a cause of the
industry's decline.
 Competition from natural gas and cheaper coal in the west of the
state, depleted mines as well as the mechanization of mining have
all contributed to coal's demise in the region.
The competitive grants come from the Obama administration's
Partnership for Opportunity and Workforce and Economic
Revitalization (POWER) initiative, which was launched in March, to
invest in communities that have been affected by changes in the coal
and power industries.
Perez said eastern Kentucky's SOAR initiative was the inspiration
for the POWER initiative because it relies on the “inclusive
participation” of local communities.
SOAR is the brainchild of Kentucky Senator Steve Beshear, a
Democrat, and Congressman Hal Rogers, a Republican representing
eastern Kentucky, who started the initiative in 2013 to try to boost
the economically distressed region that had reached a tipping point.
SOAR’s second-ever strategy summit held Monday brought together
nearly 1,500 local leaders, lawmakers, businesses and NGOs, in
addition to Perez and other administration officials.
Priorities needed to boost economic growth in the remote region
identified by SOAR include an expansion of broadband internet and an
expansion of the mountain highway that links the area to larger
cities like Lexington.
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Beshear and Rogers said a turnaround for the region should stem from
within Appalachia rather than from outside the state.
“People have to decide what they want to happen in their
communities,” Beshear said, adding the transformation could take
15-20 years. “They need a hand to help them get back on their feet.”
Potential job creating industries discussed for the region include
information technology, education, community health, local foods and
eco and heritage tourism.
Rogers, whose district is home over two dozen coal-producing
counties, said coal would continue to play an important role in the
local economy but said it needs to be supplemented by different
industries.
“There is not going to be one silver bullet to our problem. There
are going to be a thousand silver bullets that are small,” said
Rogers.
Rocky Adkins, majority floor leader in Kentucky's House of
Representatives, said while the state will continue to fight for the
survival of the coal industry, it is time to adapt.
"We have an opportunity in some other fields to stabilize and really
revitalize the economy of the region ... and give our people the
same hope and opportunity that they have in other parts of this
country and the world," he said.
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