Delegates got under the hood of complex legislation intended to allow developers, particularly data centers, to harness localized, self-sufficient energy systems.
Members of the House Energy Committee explored facets of the “Power Generation and Consumption Act” for two and a half hours on Monday evening.
It’s a piece of legislation that Gov. Patrick Morrisey introduced with fanfare last week.
Delegate Daniel Linville, R-Cabell, started off the committee meeting with some basics.
“What is the problem that this Bill is trying to solve? And more specifically, what advantages do you believe will accrue to the state of West Virginia should we pass this bill.”
Curtis Capehart, policy director for the Governor’s Office, responded that West Virginia has significant development opportunities based on the proliferation of data centers.
“We’re in a unique time where there are many, many decisions being made on a weekly basis for billions of dollars in relation to these data centers that are trying to decide where they want to land, where they want to invest, put steel in the ground and start pulling power. We obviously would like West Virginia to be that place,” Capehart replied.
“We know that we are already high up on the lists of states where these people are looking to site. We have a lot of the things that they want in terms of, you know, massive rivers, flat ground actually next to those that can be developed, closeness to the energy resources, as well as fiber tunnels and other things that are close enough, as they say.
Capehart said the state aims to do everything possible to maximize the state’s potential to secure as many as possible.
“This is an effort to demonstrate and to do everything we can to make West Virginia as attractive, to turn us into a magnet to these to these developments, especially the data centers, that are driving the interest in the micro grids,” he said.
HB 2014 introduces a Certified Microgrid Program and a High Impact Data Center Program for West Virginia, aiming to attract and support these industries.
Much of the legislation is focused on data centers, the physical facilities that house computer structures like servers and storage.
The bill outlines certification processes, incentives and exemptions, including modifications to utility regulations and tax structures.
In the microgrid piece of the legislation, the secretary of the Department of Commerce can identify and certify the districts following conclusions that there would be a significant and positive economic impact for the state.
An industrial plant or facility choosing to locate and operate within a certified district must represent a new electric generating load to take advantage of the program’s provisions.
In the House Energy Committee, delegates explored specific aspects of how the bill might work and whether it would be worthwhile for the state.
Delegate George Street, R-Preston, asked several questions about what kinds of developers might be interested in the kind of microgrid program that the state is proposing and why.
“Would you be able to maybe specify or provide a little enlightenment on — are there certain types of data centers which are seemingly more interested in a microgrid as a condition of locating or any any details you could provide on that? Does it tend to be private industry or more governmental?” Street asked.
Capehart responded, “From everything that we’ve heard, from the conversations we’ve had, as much across the sphere as we can get, in these people in and around these issues with data centers and micro grids and the preference for ready certain power, it seems to be — a personal preference isn’t exactly the right phrase
“But that some of these developers, some of these projects, they all have a concern about power. But some of them feel that it’s so hyper mission critical that they do have concerns about being tied in only to a utility.”
Later, Street asked for elaboration. “Why is it we think we need these microgrids or co-locations — why do we need them when the other various states who have many data centers already are not currently using this model. Why can’t we fit this into our existing model?
Capehart responded, “I think if you’re speaking in terms of, can the data centers just come in and sort of plug into the wall, right — that’s the way I oftentimes think of it — we have a utility grid, and I think a great many of them will.
“But also it was the recognition that, as we were talking earlier, that there are some of these developers, some of these data centers that have it very much in their head, that this is something they have to have for part of their project to get off the ground.”
Delegate Clay Riley asked state Tax Commissioner Matt Irby about the potential sizes of data centers and the amount of revenue they might generate on average.
Irby responded that that’s hard to pin down — with huge ranges about what the investment potential might be.
“If you were to try to use the center point of whatever that is. I mean, you’re maybe looking at 10 billion dollars in investment on the real property side,” Irby said.
The tax commissioner said the best guess is “a really, really big number. It’s roughly half the value of all the oil and gas property in the state.”
He reiterated, “That’s a single data center — about half the value of all the oil and gas property in the state. So it’s a really, really big number.”