HCR 94 Text

House Concurrent Resolution No. 94

(By Delegates Michael, Leach, Kominar, Stalnaker, Proudfoot, R.M. Thompson, H.K. White, Cann, Williams, Palumbo, Frederick, Houston, Susman, Browning, Boggs, Varner, Hall, Anderson, Ashley, Carmichael, Evans, Wakim, G. White, and Border)

(Originating in the Committee on Finance)
[April 6, 2005]

Requesting the Joint Committee on Government and Finance to study the actions that may be undertaken to ensure the competitiveness of West Virginia's coal industry and sustained production in excess of one hundred forty-four million tons each year.

Whereas, Coal is an integral component of West Virginia's history, society and economy;
Whereas, The West Virginia coal industry directly employees over forty thousand individuals at an average annual wage in excess of fifty-three thousand dollars per year and provides benefits to them and their families;
Whereas, West Virginia's citizens and those of other states and nations rely daily on West Virginia coal for energy and metallurgy in their productive and private lives;
Whereas, West Virginia's coal industry underwrites much of the State budget through severance, additional severance, transportation, business franchise, corporate net income and other taxes with in excess of two hundred sixty-five million dollars in severance taxes alone flowing to the State General Revenue Fund;
Whereas, West Virginia's coal industry also underwrites much of the budgets of each of the State's political subdivisions with more than eighteen million dollars each year flowing to counties and municipalities;
Whereas, West Virginia has nearly fifty-three billion tons of recoverable coal reserves, enough for more than three hundred fifty years of production at current production levels;
Whereas, West Virginia coal and coal miners are the world's finest and the State possesses clear competitive and natural advantages in coal production in the world market place;
Whereas, Scarcity of petroleum, natural gas and other fossil fuels and energy sources and fine metallurgical coal itself and advances in clean coal technologies bode well for sustaining or increasing the coal demand and price levels in future years;
Whereas, The development of reserves in the Western United States and other nations, tax disadvantages, permitting costs and difficulties, reclamation costs, and the increasing difficulty and cost of accessing the State's remaining coal reserves represent serious threats to the long-term viability of West Virginia's coal industry;
Whereas, In January, 2005, the State's coal industry was confronted with the largest tax increase ever levied against any industry in the State's history;
Whereas, The new fifty-six cents per ton additional severance tax was based on sustained production of one hundred forty-four million tons of annual production in order to pay a designated portion of the workers' compensation fund debt each year;
Whereas, The new fifty-six cents per ton additional severance tax when combined with the other taxes paid by the State's coal industry cause the West Virginia coal industry to be the highest taxed industry in the State;
Whereas, The West Virginia coal industry has the highest tax burden of any coal producing state in the Eastern or Midwestern United States;
Whereas, It is more expensive and time consuming to permit a new mine or an expansion in West Virginia than it is in any surrounding coal-producing state;
Whereas, If West Virginia producers cannot competitively sell their coal in today's aggressive domestic and world coal markets, it will not be mined in West Virginia;
Whereas, Actions must be taken to encourage investment in the West Virginia coal industry as soon as possible so as to take advantage of the strong world-wide energy market, and to prepare the industry for sustained production through the next two decades; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to study what urgent and immediate actions may be undertaken to ensure the competitiveness of West Virginia's coal industry and sustained production in excess of one hundred forty- four million tons each year; and, be it
Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, two thousand six, on its finding, conclusions and recommendations together with drafts of any legislation to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from appropriations to the Joint Committee on Government and Finance.

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