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Grants totaling $14.2 million announced for Eastern Kentucky Economic Development Projects


Gov. Andy Beshear and U.S. Rep. Harold ‘Hal’ Rogers (KY-05) on Monday announced six economic development projects in five Appalachian counties have been selected for $14.2 million in Abandoned Mine Lands (AML) Pilot Program grants.

Gov. Andy Beshear

The projects, in Floyd, Harlan, Laurel, Morgan and Perry counties, range from the construction of water treatment plants to robotic instruction and will revitalize the coalfields in Kentucky’s Appalachian region through job creation and economic development. Since 2016, 54 projects in 21 counties have been selected for funding through the AML Pilot Program.

“These projects are creating good jobs, more opportunity and a healthier future for Eastern Kentuckians,” Gov. Beshear said. “These projects mean drinkable water, training and re-employment for those who have been laid off. For many of our people, the projects will mean more peace of mind and a fresh start when so many need it as we emerge from this pandemic, from devastating storms and from the downturn in the coal economy.”

“While this funding was designed to help our coal mining communities recover from the downturn of the coal industry, it will also serve as an essential resource as our rural Appalachian region recovers from the economic impact of the COVID-19 pandemic,” said Congressman Rogers. “These grants will help meet important needs in our region, from improving access to clean, reliable water to opening new opportunities for jobs in Southern and Eastern Kentucky.

“I appreciate the work of Gov. Beshear and Secretary Goodman to keep this program moving despite the challenges we have faced during the pandemic. Congratulations to all of our communities that have competitively earned these grants.”

Rep. Hal Rogers

The projects include:

• $3.5 million to Perry County and the City of Hazard to improve the water systems of Perry County through the KY-15/KY-7 Interconnect and the development of a new Buckhorn Water Treatment Plant. The project will provide a reliable water source for 1,198 residential customers and 36 businesses in the Coal Fields Industrial Park that employ in excess of 370 people.

• $3.769 million to BPM Lumber of Laurel County for the purchase and installation of an optimized merchandising system that will allow BPM to produce value-added hardwood lumber products. This will sustain 123 current jobs and allow for the re-employment of 62 employees at the London and Whitesburg locations who were previously laid off during the COVID-19 pandemic.

• $400,000 to Backroads of Appalachia, a non-profit entity that supports job training and economic development through tourism and motorsports. Backroads will partner with local government and non-profit organizations to repurpose an abandoned mine land property in Harlan County into a welcome center to increase regional motorsports tourism in Lynch. As a second chance employer, Backroads employs individuals in local addiction recovery programs and provides them with job training and paid employment.

• $3 million to fund the eKAMI Advanced Robotic Instruction Project in Morgan County. This project will build on eKAMI’s successful model of advanced CNC machining training by expanding instruction to include an advanced manufacturing robotics credential track for incarcerated individuals at the East Kentucky Correctional Complex in Morgan County.

• $2.05 million to the City of Wheelwright and Floyd County for the construction of a new water treatment plant in Wheelwright that will replace an aging conventional sand filtration plant built in the 1930s. The new facility will assist in the re-opening of the Southeast Kentucky Correctional Center that closed in 2012.

• $1.5 million to Harlan County Fiscal Court to bring natural gas infrastructure to the Harlan County Business Park project in Harlan County. This project will develop natural gas service for the Tri-Cities area of Harlan County and bring natural gas service to the Harlan County Business Park site on previously mined lands near Cumberland, Benham and Lynch. Harlan County Fiscal Court has worked to redevelop this site bringing new companies and up to 50 local jobs. The site has recently received certified Build-Ready status by the Kentucky Cabinet for Economic Development.

Energy and Environment Cabinet (EEC) Secretary Rebecca Goodman selected the projects for initial vetting by the U.S. Office of Surface Mining, Reclamation and Enforcement (OSMRE). More than 70 applications for funding in 2020 AML Pilot year were received by EEC’s Division of Abandoned Mine Lands.

“These projects are being initiated and developed by people who live and work in these communities,” Secretary Goodman said. “They have a stake in making their communities better and that is why these projects succeed.”

Information about the AML Pilot Program can be found at eec.ky.gov

From Governor’s Office


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