WEST virginia legislature
2017 regular session
Introduced
House Bill 3037
By Delegate Anderson
(By request of the Department of Commerce)
[Introduced March 14, 2017;
Referred
to the Committee on Energy then Government Organization.]
A BILL to amend and reenact §5B-2F-2 of the Code of West Virginia, 1931, as amended; and to amend and reenact §5D-1-4 of said code, all relating to removing the Division of Energy as an independent agency; redesignating the Division of Energy as the Office of Energy within the Development Office of the Department of Commerce; and designating the Secretary of Commerce, or his or her designee as the Chair of the West Virginia Public Energy Authority Board.
Be it enacted by the Legislature of West Virginia:
That §5B-2F-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that §5D-1-4 of said code be amended and reenacted, all to read as follows:
CHAPTER 5B. ECONOMIC DEVELOPMENT ACT OF 1985.
ARTICLE 2F. DIVISION
office OF ENERGY.
.§5B-2F-2. Purpose; office of Director for Energy
Development; director to be member of Public Energy Authority; division to
develop energy policy and development plan; contents of energy policy and
development plan; and division office to promote energy initiatives.
(a) Effective July 1, 2007
2017, the Division of Energy is created as a state agency under the
Department of Commerce continued but
is designated and shall be known as the Office of Energy, and assigned within
the Development Office of the Department of Commerce. All references in this
code to the Division of Energy shall be construed as references to the Office
of Energy. The division office
may receive federal funds. The division shall be administered by a director,
who shall be appointed by the Governor, by and with the advice and consent of
the Senate, and shall continue to serve until his or her successor is appointed
and qualified as provided. The director shall be selected with special
preference and consideration given to his or her training, experience, capacity
and interest in energy policy and development activities
(b) Creation of the
division The office is intended to provide leadership for developing
energy policies emphasizing the increased efficiency of energy use, the
increased development and production of new and existing domestic energy
sources, the increased awareness of energy use on the environment and the
economy, dependable, efficient and economical statewide energy systems capable
of supporting the needs of the state, increased energy self-sufficiency where
the ratio of indigenous to imported energy use is increased, reduce the ratio
energy consumption to economic activity and maintain low-cost energy. The
energy policies and development plans shall also provide direction for the
private sector.
(c) The director shall
administer the daily operations of the Public Energy Authority provided under
the provisions of chapter five-d of this code. The director shall also have
authority over the Office of Coalfield Community Development, created by the
provisions of article two-a of this chapter, and The office has
authority over the energy efficiency program existing under the West
Virginia Development Office. which are hereby transferred to the division.
The director shall effectuate coordination of these entities relative to the
purposes provided in this article
(d) The division office shall develop an energy policy and shall report the
same back to the Governor and the Joint Committee on Government and Finance
before December 1, 2007. The energy policy shall be a five-year plan setting
forth the state's energy policies and shall provide a direction for the private
sector. Prior to the expiration of the energy policy, the division office shall begin review of the policy and submit a revised
energy policy to the Governor and the Joint Committee on Government and Finance
six months before the expiration of the policy.
(e) The director shall
be a member of the Public Energy Authority and as such shall attend and
participate in all official meetings and public hearings conducted under the
auspices of the authority
(f) (e) The division office shall prepare and submit an annual energy development
plan to the Governor and the Joint Committee on Government and Finance on or
before December 1 of each year. The development plan shall relate to the division’s office’s implementation of the energy policy and the
activities of the division office
during the previous year. The development plan shall include any recommended
legislation. The Public Energy Authority, the Office of Coalfield Community
Development, the energy efficiency program, the Department of Environmental
Protection and the Public Service Commission, in addition to their other duties
prescribed by this code, shall assist the division and the director office
in the development of an energy policy and related development plans. The
energy development plan shall set forth the plans for implementing the state's
energy policy and shall provide a direction for the private sector. The energy
development plan shall recognize the powers of the Public Energy Authority as
to development and financing of projects under its jurisdiction and shall make
such recommendations as are reasonable and practicable for the exercise of such
powers.
(g) (f) The division office
shall hold public hearings and meetings with notice to receive public input
regarding proposed energy policies and development plans. The energy policy and
development plans required by subsections (d) and (f) (e) of this
section shall address increased efficiency of energy use, traditional and
alternative energy, water as a resource and a component of energy production,
energy distribution systems, the siting of energy facilities, the increased
development and production of new and existing domestic energy sources,
increased awareness of energy use on the environment and the economy, energy
infrastructure, the development and implementation of renewable, clean,
technically innovative and advanced energy projects in this state. Projects may
include, without limitation, solar and wind energy, low-impact hydro power,
geothermal, biomass, landfill gas, fuel cells, renewable hydrogen fuel
technologies, waste coal, coal mine methane, coal gasification to ultraclean
fuels, solid waste to fuel grade ethanol and coal liquefaction technologies.
(h) (g) The division office
may propose rules for legislative approval in accordance with the provisions of
article three, chapter twenty-nine-a of this code designed to implement an
energy policy and development plan in accordance with the provisions of this
chapter.
(i) (h) The energy policy and development plans
required by subsections (d) and (f) (e) of this section shall
identify and report on the energy infrastructure in this state and include
without limitation energy infrastructure related to protecting the state's
essential data, information systems and critical government services in times
of emergency, inoperativeness or disaster. In consultation with the Director of
the Division of Homeland Security and Emergency Management, the director of
the division office shall encourage the development of energy
infrastructure and strategic resources that will ensure the continuity of
governmental operations in situations of emergency, inoperativeness or
disaster.
(j) (i) In preparing or revising the energy policy
and development plan, the division office
may rely upon internal staff reports or the advice of outside advisors or
consultants and may procure such services with the consent of the Secretary of
Commerce. The division office
may also involve national, state and local government leadership and energy
experts.
(k) (j) The division office
shall prepare an energy use database, including without limitation, end-use
applications and infrastructure needs for different classes of energy users
including residential, commercial and industrial users, data regarding the
interdependencies and sources of electricity, oil, coal, water and gas
infrastructure, data regarding energy use of schools and state-owned facilities
and collect data on the impact of the energy policy and development plan on the
decisions and strategies of energy users of the state.
(l) (k) The division office
shall promote collaboration between the state's universities and colleges,
private industry and nonprofit organizations to encourage energy research and
leverage available federal energy research and development resources.
(m) (l) The division office
shall promote initiatives to enhance the nation's energy security through
research and development directed at transforming the state's energy resources
into the resources that fuel the nation.
(n) The Performance
Evaluation and Research Division of the Legislative Auditor's office shall
perform an agency review of the Division of Energy in 2010 as part of its
review of the Department of Commerce as set forth in article four, chapter ten
of this code
(o) (m) The division office
shall work with the President of the United States and his or her
administration to develop a plan that would allow West Virginia to become the
leader in transitioning the United States to a new energy future.
(p) (n) The division office
is to determine the best way for West Virginia to utilize its resources and any
federal funding to develop the technologies that are necessary for such a
transition.
(q) (o) The division office
is to clearly articulate West Virginia's position on an energy solution for the
United States that encompasses clean coal, natural gas, transtech energy
technologies and renewable energy technologies.
(r) (p) The division office
shall develop and distribute an informational program and policies that
emphasize the importance of West Virginia energy resources and their positive
impact on the eastern seaboard and the nation.
(s) (q) The division office
shall monitor legal challenges to the energy industries in the state and submit
a report quarterly to the Joint Committee on Government and Finance. The report
shall contain information relating to any litigation that challenges any
statute that could affect the production, distribution and utilization of
natural resources of the state.
CHAPTER 5D. PUBLIC ENERGY AUTHORITY ACT.
ARTICLE 1. PUBLIC ENERGY AUTHORITY OF THE STATE OF WEST VIRGINIA.
§5D-1-4. West Virginia Public Energy Authority continued; West Virginia Public Energy Board continued; organization of authority and board; appointment of board members; term, compensation and expenses; director of authority; appointment.
(a) The West Virginia Public Energy Authority is continued. The authority is a governmental instrumentality of the state and a body corporate. The exercise by the authority of the powers conferred by this article and the carrying out of its purposes and duties are essential governmental functions and for a public purpose.
(b) The authority shall be
controlled, managed and operated by a seven-member board known as the West
Virginia Public Energy Authority Board, which is continued. The seven members
include the Director of the Division of Energy Secretary of the
Department of Commerce or designee; the Secretary of the Department of
Environmental Protection or designee; the Director of the Economic Development
Authority or designee; and four members representing the general public. The
public members are appointed by the Governor, by and with the advice and
consent of the Senate, for terms of one, two, three and four years,
respectively.
(c) On June 30, 2007, the terms of all appointed members shall expire. Not later than July 1, 2007, the Governor shall appoint the public members required in subsection (b) of this section to assume the duties of the office immediately, pending the advice and consent of the Senate.
(d) The successor of each appointed member is appointed for a four-year term. A vacancy is filled by appointment by the Governor in the same manner as the original appointment. A member appointed to fill a vacancy serves for the remainder of the unexpired term. Each board member serves until a successor is appointed.
(e) No more than three of the public members may at any one time belong to the same political party. No more than two public members may be employed by or associated with any industry the authority is empowered to affect. One member shall be a person with significant experience in the advocacy of environmental protection. Board members may be reappointed to serve additional terms.
(f) All members of the board shall be citizens of the state. Before engaging in their duties, each member of the board shall comply with the requirements of article one, chapter six of this code and give bond in the sum of $25,000 in the manner provided in article two of said chapter. The Governor may remove any board member as provided in section four, article six of said chapter.
(g) The Director of the
Division of Energy shall serve Secretary of the Department of Commerce
or designee serves as chair. The board annually elects one of its members
as vice chair and appoints a secretary-treasurer who need not be a member of
the board.
(h) Four members of the board constitute a quorum and the affirmative vote of the majority of members present at any meeting is necessary for any action taken by vote of the board. A vacancy in the membership of the board does not impair the rights of a quorum by such vote to exercise all the rights and perform all the duties of the board and the authority.
(i) The person appointed as secretary-treasurer, including a board member if so appointed, shall give bond in the sum of $50,000 in the manner provided in article two, chapter six of this code.
(j) Each public member shall be reimbursed for reasonable expenses incurred in the discharge of official duties. All expenses incurred by the board shall be paid in a manner consistent with guidelines of the Travel Management Office of the Department of Administration and are payable solely from funds of the authority or from funds appropriated for such purpose by the Legislature. Liability or obligation is not incurred by the authority beyond the extent to which moneys are available from funds of the authority or from such appropriations.
(k) In addition to such
other duties and responsibilities as may be prescribed in this code, the Director
of the Division Office of Energy is responsible for managing and
administering the daily functions of the authority and for performing all other
functions necessary to the effective operation of the authority.
NOTE: The purpose of this bill is to remove the Division of Energy as an independent agency and redesignate the Division of Energy as the Office of Energy within the Development Office of the Department of Commerce, and designate the Secretary of Commerce, or his or her designee, as Chair of the West Virginia Public Energy Authority Board.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.