The night before the conclusion of this year’s regular legislative session, senators passed a bill intended to allow developers, particularly data centers, to harness localized, self-sufficient energy systems.
Senators passed the bill on a 32-1 vote.
The House of Delegates has already passed the bill but will get another look on the final day of the regular legislative session because of changes made in the Senate.
Senate Economic Development Committee Chairman Glenn Jeffries, R-Putnam, said the bill could result in “billions of dollars of opportunity of investment in the state and increased tax collections.”
Senators approved an amendment for how to divvy up the property tax base generated under the terms of the bill:
50% in the state’s Personal Income Tax Reduction Fund;
40% to a county where a data center is located;
5% to all counties on a per capita basis;
3% in the Low Income Energy Assistance Program administered by Department of Human Services; and
2% in a power grid stabilization fund.
HB 2014 introduces a Certified Microgrid Program and a High Impact Data Center Program for West Virginia, aiming to attract and support these industries.
“We are taking a step today to be able to put ourselves in a position that we have companies that are looking at us,” Jeffries said. “They’re looking at the state of West Virginia, We are people we have companies that are looking at this bill right now.”
Not everyone agrees.
“Mamaw can’t afford it,” said Senator Rupie Phillips, R-Logan, using a phrase he intends to mean an average West Virginia utility ratepayer.
Phillips was the only senator to vote against passage of the bill.
“I want the data centers. I’m all for the data centers, but the only way we’re going to help these folks get their power bills down is being on the grid.”
Gov. Patrick Morrisey and his administration have touted the bill’s focus on data centers, the physical facilities that house computer structures like servers and storage.
“Data centers represent a significant and growing sector of the economy, generating substantial economic activity, including jobs, infrastructure investments, and technological innovation,” the bill states.
Data centers are enormous energy users, and that is only expected to grow as artificial intelligence and other computing innovations gain traction.
They are prolific in states like neighboring Virginia, but they are also controversial among residents because of their aesthetics and noise. They are not major employers but can contribute significantly to local property taxes.
The bill offers a possibility for data center developers who might want their own energy framework, the microgrids in the bill’s name.
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.
“Power generation is not just part of our economy, it is our economy, and this bill gives us the tools to grow it,” said Senator Ben Queen, R-Harrison.
“For the first time, we’re creating a policy framework that welcomes new energy development and attracts the next generation of technology: data centers, AI infrastructure and computing power. That demands real electricity and real reliability. That’s West Virginia’s moment.”