Development package could help save hundreds of local jobs

Bill also increases pay for KSP

from ASHLAND ALLIANCE AND ADI

ASHLAND, Ky. — The Kentucky House and Senate completed the legislative process of passing House Bill 535 on Friday. The bill now goes to Gov. Matt Bevin for approval. The bill provides economic incentives for AK Steel to upgrade the existing Blast Furnace and related cost of reopening the facility if the decision is made to reopen. 

The Ashland Works facility has been idle since Dec. 18. Over 600 employees have been laid off as a result of the idle.

The state Senate on Tuesday passed the House bill that would extend economic development incentives to AK Steel to refurbish its blast furnace at its Ashland Works facility in Boyd and Greenup counties.

The state Senate on Tuesday passed a House bill that would extend economic development incentives to AK Steel to refurbish its blast furnace at its Ashland Works facility in Boyd and Greenup counties.

The bill was voted out of the Appropriations and Revenue Committee Tuesday morning and passed on the consent calendar without debate Tuesday evening.

But the committee first attached provisions of an unrelated bill to increase pay for Kentucky State Troopers — but one of the sponsors of the original bill doesn’t think it will kill the incentives legislation.

The increase in pay for KSP is supported by both the Democratic House andRepublican Senate but is tied up in budget negotiations between the two chambers.

Rep. Jill York, R-Grayson, thinks that means the attachment of the provision to House Bill 535, sponsored by Rep. Kevin Sinnette, D-Ashland, and York, won’t doom the economic incentives.

The incentives are part of a 2014 measure that exempts from sales and use taxes material, supplies, repair and parts to refurbish the blast furnace which was idled as foreign steel companies began “dumping” steel products on the U.S. market — selling it below market prices and in some cases production costs.

Sinnette says “dumping” by foreign steel producers, primarily China, so undercut domestic steel prices and production that the AK Steel laid off 550 of the 900 employees at Ashland Works.

Tuesday, he told the Senate Appropriations and Revenue Committee that those layoffs have had a “ripple effect” on employment in the eastern Kentucky coal fields and with contractors who serve the Ashland Works facility.

Statements on the bill’s passage

Sen. Robin Webb, D-Grayson

The passage of the bill; Sen. Robin Webb, D-Grayson: “The issue was taken very seriously by my chamber and I appreciate their cooperation in the issue that is so important to our steelworkers, our tristate, our 18th Senate District and to me personally. We have done our part to request and incent that the furnace be firing and our world class workforce gets back to what they do best.”

Rep. Kevin Sinnette, D-Ashland

Rep. Kevin Sinnette, D-Ashland was the primary sponsor along with Rep. Jill York, R-Grayson. Rep Sinnette, D-Ashland: “The passage of HB535 contains paramount economic development incentives to assist AK Steel in making the necessary repairs to the Ashland Furnace and get it up and running. The support by the KY General Assembly by passing HB535 sends a clear message that it values the steel making industry in Northeast Kentucky which has been the economic backbone for close to 100 years.  I am hoping that AK Steel can begin making needed repairs as soon as possible.”

Rep. Jill York, R-Grayson

Rep. York, R-Grayson: “Happy that the General Assembly has provided this measure that gives AK Steel more reasons to say ‘yes’ to bringing the furnace back online.”  When you combine this action with ongoing efforts at the federal level we have delivered a double blow to the economic conditions that lead to the layoffs at the plant.”

Rep. Lew Nicholls, D-Greenup

Rep. Lew Nicholls, D-Greenup: “I am especially proud that in my first legislative session, I was able to support and vote on such an important piece of legislation to my district and for Northeast Kentucky.”

Majority Floor Leader Rep. Rocky Adkins, D-Elliott

Kentucky Majority Floor Leader Rep. Rocky Adkins, D-Elliott: “I hope the AK Steel Board of Directors are watching today. I also hope it is time for the AK Board to make the investment to the Blast Furnace for the future generation of employment in NE Kentucky.”

Tim Gibbs, President Ashland Alliance

Tim Gibbs, President Ashland Alliance: “The passage of this bill, once signed by the Gov. Bevin, has the ability to bring a strong commitment to the AK Steel Ashland Works Facility from the Commonwealth of Kentucky.  This is an example of how our local community along with the state are working together to do everything we can to restart the facility.”

The Bill passed 38-0 in the State Senate. It was passed earlier in the session 96-0 and was passed again after amendment 96-0 in the Kentucky Legislature has spoken with one voice in favor of support for AK Steel.