The full House of Delegates will vote on legislation backed by the governor to allow developers, particularly data centers, to harness localized, self-sufficient energy systems.
Members of the House Energy Committee asked questions and debated amendments to the “Power Generation and Consumption Act” for about an hour and a half Wednesday. That was after exploring the bill for about two and a half hours on Monday evening.
Committee members voted 18-2 to advance the bill to the full House.
Delegate Mark Zatezalo, the vice chairman of the committee, said he has consistently tried to promote West Virginia’s use of its own resources. “It adds value to those resources,” said Zatezalo, R-Hancock.
“Use it here. Add value here.”
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.
Delegate Henry Dillon, R-Wayne, said after all the discussion he felt assured that West Virginia fossil fuels would be used as the energy source.
“I see an opportunity for West Virginia to utilize more of our beautiful organic energy assets,” Dillon said. “And I guess the question will be, what is organic energy?” he said.
“And I think those of you who are familiar with the terminology might understand that that is anything that’s derived from carbon based molecules, which occur naturally within the Earth’s crust. And here’s hoping we produce a whole lot more organic energy in West Virginia, and here’s hoping a lot of it goes into these micro grids and into the grid itself.”
Some delegates questioned aspects of the bill. Delegate Evan Hansen, D-Monongalia, expressed concern that the bill is too limiting for local governments. In other states, some local governments have placed limitations on data centers because of factors like noise.
“These are data centers that are allowed and have significant potential impacts to people who might live nearby, or green space or parks or things like that,” Hansen said.
He continued, “These are significant industrial development sites with significant local impacts, and local governments need to be able to protect their citizens.”
Delegate Kayla Young, D-Kanawha, worried that electricity ratepayers could be subject to increases. She noted a grid stabilization fund as an aspect of the bill, but said she is concerned that might not be enough.
“I wish that a much higher percentage of this money was going to that fund. I think I would feel a lot better if it was to make sure that we were protecting ratepayers and to put ratepayers first in all of this,” Young said.
“I do hope this is a turning point and does lead to really good things, but I’m just nervous that it might not.”
Delegate Daniel Linville, R-Cabell, took note of the significant interest, including concern, that the bill has received.
“You want to know why there’s that sort of concern, and we’ve had as much work as we’ve had on this? Because there’s billions and billions of dollars of opportunity,” Linville said.
“You know, I hear from folks, and you look at the media, you do some of these things, and they say, ‘Where’s your economic development bill? What are you doing? What are you doing to improve the economy of the state?’ This bill right here, this one that’s right here in front of us.”