HB5381 S EIM AM 3-9
Kraus 7502
The Committee on Energy, Industry, and Mining moved to amend the bill by striking out everything after the enacting clause and inserting in lieu thereof the following:
(a) The Legislature hereby finds and declares the following finds as follows:
(a)(1) Coal mining has made and continues to make significant contributions to the economy of West Virginia. These contributions include the creation of quality jobs that pay high wages and provide good benefits; the consequent stimulation and support of mining contractors, suppliers of mining equipment and services, other mining-related industries, and numerous providers of goods and services that are indirectly related to coal mining and dependent upon its existence and prosperity; the generation of significant severance and other tax revenues that support important economic development, infrastructure, and education initiatives in mining communities and throughout the state; the support of civic, education, and service groups in mining communities; and, in the case of surface mining operations, including mountaintop mining, the creation of much-needed flat land for economic development and recreational uses.
(b)(2) The development and increasing prominence of surface mining operations, including mountaintop mining, has brought increasingly high levels of productivity, safety, and efficiency to the state's mining industry, enabling the recovery of coal that could not otherwise be mined and marketed profitably, increasing the severance tax revenues and other economic benefits described in subsection (a) of this section subdivision (1) of this subsection, and ensuring the competitiveness of the state's coal industry from a national and international perspective.
(c)(3) Where implemented, surface mining operations, particularly mountaintop mining, tend to extract most, if not all, of the recoverable coal reserves in an accelerated fashion. For a state long dependent on the employment and revenue coal mining provides, this reality should be sobering and there is no place in which the comprehension of this reality is more crucial than the coalfields of West Virginia. Long dependent primarily on mining, this area must plan for a future without coal. The state and its subdivisions have a legitimate interest in securing that future.
(d)(4) The coal industry and those related to the extraction of mineral resources benefit from the mining of our the state's coal through mining practices which impact its citizens — some in a negative way — and through practices which will extract significant portions of coal reserves in an accelerated fashion. Those industries must therefore accept a greater responsibility to help address the long-term needs of the communities and citizens impacted by their activities.
(e)(5) Once it becomes public knowledge that a permit is being sought, the marketability of property may change and the relative bargaining power of the parties may change with it. The potential for negative impact on those living in communities near surface mining operations may limit the options and bargaining power of the property owners.
(f)(6) Surface mining operations, including mountaintop mining, present unique challenges to the coal mining industry and the state and its citizens, especially those living and working in communities that rely heavily upon these methods of mining. This requires that these communities, in conjunction with county commissions; state, local, county, and regional development authorities; landowners; and civic, community, and business groups; and interested citizens, develop plans related to the communities' long-term economic viability.
(g)(b) The Division Office of Energy, as the state agency charged with energy policy and development activities, shall: take a more active role in
(1) Engage in planning and coordinating the long-term economic development of communities in which these mining methods are prevalent; and shall
(2) Establish a formal process to assist property owners in the determination of determining the fair market value where the property owner and the coal company voluntarily enter into an agreement relating to the purchase and sale of such property.
(a) For the purpose of this article:
(1) "Department" means the Department of Environmental Protection established in §22-1-1 et seq. of this code;
(2) "Office" means the Office of Coalfield Community Development; Energy established in §5B-2F-1 et seq. of this code;
(3) "Operator" means has the definition provided in §22-3-3 of this code;
"Program" means the Coalfield Community Development Program within the Office of Energy;
(4) "Renewable and alternative energy" means energy produced or generated from natural or replenishable resources other than traditional fossil fuels or nuclear resources and includes, without limitation, solar energy, wind power, hydropower, geothermal energy, biomass energy, biologically derived fuels, energy produced with advanced coal technologies, coalbed methane, fuel produced by a coal gasification or liquefaction facility, synthetic gas, waste coal, tire-derived fuel, pumped storage hydroelectric power, or similar energy sources; and
(5) "Secretary" means the Secretary of the Department of Economic Development Commerce.
(b) Unless used in a context that clearly requires a different meaning or as otherwise defined herein in this article, terms used in this article shall have the definitions set forth in this section.
(a) All powers, duties, responsibilities, and rules of the Office of Coalfield Community Development is continued within the Department of Economic Development are transferred to the Office of Energy. The office shall administer those powers, duties, responsibilities, and rules as the Coalfield Community Development Program.
(b) The Governor shall appoint and set the salary of the director of the office who shall be responsible for hiring Director of the Office of Energy may hire such assistants and clerical staff as may be necessary to carry out the responsibilities of the program. office. The initial appointment for the director shall be made by July 1, 2026. Funding for this position and to carry out the duties of the office shall be as provided by appropriation of the Legislature.
(c) The director shall report quarterly to the energy and finance committees of the legislature on projects funded by the office. The report shall include the amount, the recipient and a description of each project funded.
(a) The office shall determine the land and infrastructure needs in the general area of the surface mining operations for which it makes the determination authorized in §5B-2A-6 of this code.
(b) For the purposes of this section, the term "general area" shall mean the county or counties means any county in which the mining operations are being conducted or any adjacent county.
(c) To assist the office, the operator, upon request by the office, shall be required to prepare and submit to the office the information set forth in this subsection as follows:
(1) A map of the area for which a permit under §22-3-1 et seq. of this code is being sought or has been obtained;
(2) The names of the surface and mineral owners of the property to be mined pursuant to the permit; and
(3) A statement of the post-mining land use for all land which may be affected by the mining operations.
(d) In making a determination of the land and infrastructure needs in the general area of the mining operations, the office shall consider at least the following:
(1) The availability of developable land in the general area;
(2) The needs of the general area for developable land;
(3) The availability of infrastructure, including, but not limited to, access roads, water service, wastewater service, and other utilities;
(4) The amount of land to be mined and the amount of valley to be filled;
(5) The amount, nature, and cost to develop and maintain the community assets identified in §5B-2A-8 of this code; and
(6) The availability of federal, state, and local grants and low-interest loans to finance all or a portion of the acquisition and construction of the identified land and infrastructure needs of the general area.
(e) In making a determination of the land and infrastructure needs in the general area of the surface mining operations, the office shall give significant weight to developable land on or near existing or planned multilane highways.
(f) The office may secure developable land and infrastructure for a Development Office or county through the preparation of a master land use plan for inclusion into a reclamation plan prepared pursuant to the provisions of §22-3-10 of this code. No provision of This section may be construed to does not modify the requirements of §22-3-1 et seq. of this code.
(1) The county commission or other governing body for each county in which there are surface mining operations that are subject to this article shall determine land and infrastructure needs within their jurisdictions through the development of a master land use plan which incorporates post-mining land use needs, including, but not limited to, renewable and alternative nonrenewable energy uses, residential uses, highway uses, industrial uses, commercial uses, agricultural uses, public facility uses, or recreational facility uses. A county commission or other governing body of a county may designate a local, county, or regional development or redevelopment authority to assist in the preparation of preparing a master land use plan. A county commission or other governing body of a county may adopt a master land use plan developed after July 1, 2009 only after a reasonable public comment period.
(2) Upon the request of a county or designated development or redevelopment authority, the office shall assist the county or development or redevelopment authority with the development of developing a master land use plan.
(3)(A) The Department of Environmental Protection and the Office of Coalfield Community Development office shall review master land use plans. existing as of July 1, 2009. If the office determines that a master land use plan complies with the requirements of this article and the rules promulgated pursuant to this article, the office shall approve the plan. on or before July 1, 2010.
(B)(A) Master land use plans developed after July 1, 2009 shall be submitted to the department and the office for review. The office shall determine whether to approve a master land use plan submitted pursuant to this subdivision subsection within three months of submission. The office shall approve the plan if it complies with the requirements of this article and the rules promulgated pursuant to this article.
(C)(B) The office shall review a master land use plan approved under this section every three years. No later than six months before the review of a master land use plan, the county or designated development or redevelopment authority shall submit an updated master land use plan to the department and the office for review. The county may submit its updated master land use plan only after a reasonable public comment period. The office shall approve the master land use plan if the updated plan complies with the requirements of this article and the rules promulgated pursuant to this article.
(D)(C) If the office does not approve a master land use plan, the county or designated development or redevelopment authority shall submit a supplemental master land use plan to the office for approval.
(4) The required infrastructure component standards needed to accomplish the designated post-mining land uses identified in a master land use plan shall be developed by the county or its designated development or redevelopment authority. These standards must shall be in place before the respective county or development or redevelopment authority can accept ownership of property donated pursuant to a master land use plan. Acceptance of ownership of such property by A county or development or redevelopment authority may not occur accept ownership of the property unless it is determined that:
(A) The property use is compatible with adjacent land uses;
(B) The use satisfies the relevant county county’s or development or redevelopment authority’s anticipated need and market use;
(C) The property has in place necessary infrastructure components needed to achieve the anticipated use;
(D) The use is supported by all other appropriate public agencies;
(E) The property is eligible for bond release in accordance with §22-3-23 of this code; and
(F) The use is feasible.
Required infrastructure component standards require approval of the relevant county commission, commissions, or other county governing body before such the standards are accepted. County commission or other county governing body approval may be rendered only after a reasonable public comment period.
(5) The provisions of this subsection shall do not take effect until legislative rules are promulgated pursuant to this code governing bond releases which assure sound future maintenance by the local or regional economic development, redevelopment, or planning agencies.
[Repealed]
The office shall propose rules for legislative approval in accordance with article three, chapter twenty-nine-a §29A-3-1 et seq. of this code to establish, implement, and enforce the provisions of this article. which The rules shall include, but are not be limited to:
(1) The development of Standards for establishing the value of property by the office; and
(2) Criteria for the development of developing a master plan by local, county, regional, or redevelopment authorities which coordinates the permitting and reclamation requirements of the Department of Environmental Protection with these authorities
§5B-2A-14. Sunset.
[Repealed.]
This chapter shall be known and article is and may be cited as the West Virginia Energy Policy and Development Act “Comprehensive Energy Policy and Development Plan Act”.
(a) Effective July 1, 2017, the Division of Energy is hereby continued, but shall be designated and known as The Office of Energy and shall be organized within the Department of Economic Development. All references throughout is continued under the Department of Commerce. Any reference in this code to the Division of Energy shall be construed to refer to means the Office of Energy. The office may receive federal funds.
(b) 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 office shall have authority over the energy efficiency program existing under the Department of Economic Development.
(b) The Legislature finds that West Virginia and the nation are in need of energy that is reliable, efficient, affordable and locally produced. To meet this need, the Office of Energy shall develop a long-lasting energy solution that embraces West Virginia’s vast coal and natural gas resources, by developing a comprehensive energy policy that emphasizes:
(1) Increased reliability from stable baseload generation;
(2) Increased efficiency through innovation;
(3) Low-cost energy as the bedrock of economic development; and
(4) Energy independence and security through increased domestic production.
(d)(c) The office shall develop an a comprehensive energy policy and shall report the same back to the Governor and the Joint Committee on Government and Finance on or before December 1, 2007 2026. The energy policy shall be a five-year plan setting set forth the state’s energy policies plan and priorities through January 1, 2032, and shall provide a direction for the private sector. Prior to the expiration of the energy policy. The office shall begin The office:
(1) May amend the policy at any time to reflect changes in energy opportunities;
(2) Shall ensure that the contents and goals of the energy policy and the comprehensive energy development plan required by §5B-2F-4 of this code are consistent with and achieve the requirements of §24-2J-1 et seq., §24-9-1 et seq., and §24-10-1 et seq. of this code; and
(3) Shall review of the policy prior to its expiration 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 on or before July 1, 2031.
(d) The comprehensive energy policy shall provide recommendations that, at a minimum:
(1) Prioritize baseload generation over intermittent generation;
(2) Support the state’s existing coal-fired power plants to remain fully operational through at least 2050, and ensure that public utilities make every possible effort to upgrade existing coal-fired power plants before building out any new alternative fuel generation;
(3) Present a strategy for developing baseload electricity generating projects throughout the state, including, without limitation, coal and natural gas;
(4) Set a goal of:
(A) Increasing the state’s current baseload generating capacity from 16 gigawatts to at least 50 gigawatts by 2050; and
(B) Making West Virginia the leading per-capita generator, situs of commercial and industrial users, and exporter of electricity in the nation by 2050;
(5) Expand the international market for West Virginia coal;
(6) Develop economical uses for West Virginia coal in addition to electricity generation and steel manufacturing;
(7) Create a robust in-state market for natural gas through increased manufacturing and electricity generation;
(8) Address the need for sufficient electricity transmission lines and natural gas pipelines to support the increase in baseload electricity generation; and
(9) Propose natural gas pipeline and electricity transmission line placement in locations:
(A) Throughout the state that lack sufficient access to electricity or natural gas; and
(B) Where access to an increased supply of electricity or natural gas will spur manufacturing or other economic development.
The secretary shall, working with such other agencies of the state as the secretary deems appropriate, establish an energy savings contracting program to support the design and installation of energy-savings contracts that may be entered into by agencies of the state under §5A-3B-1 et seq. of the code. Such program shall include the development and provision of model, template, or standardized contracts, guidelines, procedures, manuals, and other related documents regarding the use of energy-savings contracts.
As used in this article:
“Director" means the Director of the Office of Energy;
"Office" means the Office of Energy established in §5B-2F-2 of this code; and
"Pipeline" means any line of pipe used for transmission and distribution of natural gas together with all appurtenances, facilities, structures, equipment, machinery, and other items related to that transmission and distribution.
(a) No later than October 1, 2021, the secretary shall establish an energy savings program designed to reduce energy usage for electricity, natural gas, fuel oil, and steam in all state buildings under the care, custody, and control of the state by 25% below 2018 levels by 2030. The secretary shall report annually to the Legislature regarding the energy-conservation measures, as defined by §5A-3B-1(b) of this code, installed under the energy savings program, achieved reductions in energy usage, and additional energy-conservation measures, if any, necessary to achieve the required reductions by 2030. The secretary is authorized to enter into energy-savings contracts as defined in §5A-3B-1 et seq. of this code, as necessary, to implement the energy savings program. Energy-savings contracts entered into as part of the energy savings program shall require an annual energy audit performed by a third party and at the cost of the qualified provider. Energy audits shall include (1) A comparative analysis of anticipated to actual energy savings; and (2) the terms and conditions of agency payment and performance guarantees. Any such performance guarantees shall provide that the contractor is responsible for maintenance and repair services for any energy related equipment, including computer software.
(b) The department will collaborate with the Department of Administration to develop energy saving strategies and improve energy efficiency in state buildings under the control and care of the Department of Administration.
(a) The Office of Energy shall prepare and submit a five-year energy development plan to the Governor and the Joint Committee on Government and Finance on or before December 1 of 2026 and every five years thereafter. The development plan shall identify how the office anticipates implementing the state’s energy policy during the subsequent five-year period, as well as the policies enacted and actions taken in the previous five-year period in furtherance of said policy. The development plan shall provide direction for the private sector and shall include any recommended legislation. The Department of Environmental Protection and the Public Service Commission, in addition to their other duties prescribed by this code, shall assist the office in the development of an energy policy and related development plans. The energy development plan shall recognize the powers of the office 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.
(b) The energy policy and development plans required by §5B-2F-1 and §5B-2F-2 of this code shall further 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 Secretary of the Department of Homeland Security and the Director of the Division of Emergency Management, the 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.
(c) In preparing or revising the energy policy and development plan, the 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 Office of Energy may also involve national, state and local government leadership and energy experts.
(d) Any documentary material, data or other writing made or received by the Office of Energy or other public body for the purposes of preparing the energy policy and development plan, which is legally bound under a non-disclosure agreement, is exempt from the Freedom of Information Act under § 29B-1-1 et seq. of this code.
No later than July 1, 2021, the secretary shall establish a program for measuring and benchmarking the energy, including electricity, natural gas, fuel oil, and steam, efficiency of all state buildings under custody and control of the state. Such program shall use the benchmarking tool Energy Star Portfolio Manager® operated by the United States Environmental Protection Agency. No later than October 1, 2021 and each year thereafter, the secretary shall compile and submit energy usage data for all state buildings to such benchmarking tool. The secretary shall report annually to the Legislature regarding the building energy performance compared to similar buildings in similar climates, as determined by the Energy Star Portfolio Manager®.
(a) The Office of Energy may propose rules for legislative approval in accordance with §29A-3-1 et seq. of this code as needed to implement an energy policy and development plan in accordance with the provisions of this chapter.
(b) The Legislature finds that an emergency exists and, therefore, on or before August 1, 2026, the office may promulgate an emergency rule to implement the provisions of this article in accordance with §29A-3-15 of this code.
(a) The Legislature finds that:
(1) The advent and advancement of new and existing technologies and drilling practices have created the opportunity for the efficient development of natural gas contained in underground shales and other geological formations;
(2) With development of the Marcellus shale comes the opportunity for economic development in related areas of the economy including, but not limited to, manufacturing, transmission of natural gas and related products, and the transportation of manufactured products;
(3) It is in the interest of national security to encourage post-production uses of natural gas and its various components as a replacement for oil imported from other countries;
(4) Producers of natural gas, transporters of natural gas, and manufacturers of products using natural gas face a significant number of regulatory requirements, some of which may be redundant, inconsistent, or overlapping. Agencies should work together, where practical, to avoid duplication, promote better coordination, and reduce these requirements, thus reducing costs, simplifying and harmonizing rules, and streamlining regulatory oversight;
(5) In developing regulatory actions and identifying appropriate approaches, agencies should attempt to promote coordination, simplification, and harmonization;
(6) Agencies should also seek to identify, as appropriate, means to achieve regulatory goals that are designed to promote innovation;
(7) Agencies should review their existing significant legislative, interpretive, and procedural rules to determine whether any such rules should be modified, streamlined, expanded, or repealed so as to make the that agency’s regulatory program more effective or less burdensome in achieving the regulatory objectives; and
(8) The West Virginia Economic Development Authority established in §31-15-1 et seq. of this code, and the West Virginia Infrastructure and Jobs Development Council created in §31-15a-1 et seq. of this code, and the Office of Energy created in §5B-2F-1 et seq. of this code should, where appropriate, provide assistance that grows or sustains this segment of the economy.
(b) The Legislature declares that facilitating the development of business activity directly and indirectly related to development of the Marcellus shale serves the public interest of the citizens of this state by promoting economic development and improving economic opportunities for the citizens of this state.
This article shall be known and is and may be cited as the “Natural Gas Liquids Economic Development Act”.
(a) The Legislature finds that:
(1) The advent and advancement of new and existing technologies and drilling practices have created the opportunity for the efficient development of natural gas, including natural gas liquids such as ethane, propane, butane, isobutane, and pentanes, contained in underground shales and other geological formations;
(2) With the development of natural gas liquids from shales and other geological formations comes the opportunity for economic development in related areas of the economy including, but not limited to:
(A) Manufacturing, transmission, and storage of natural gas liquids and related products; the use of
(B) Using such products in manufacturing; the consumption of
(C) Consuming such products; and the transportation of
(D) Transporting manufactured products;
(3) Producers of natural gas liquids, transporters and storers of natural gas liquids, and manufacturers of products using natural gas liquids face a significant number of regulatory requirements, some of which may be redundant, inconsistent, or overlapping. Agencies should work together, where practical, to avoid duplication, promote better coordination, and reduce these requirements, thus reducing costs, simplifying and harmonizing rules, and streamlining regulatory oversight;
(4) In developing regulatory actions and identifying appropriate approaches, agencies should attempt to promote coordination, simplification, and harmonization;
(5) Agencies should also seek to identify, as appropriate, means to achieve regulatory goals that are designed to promote innovation;
(6) Agencies should review their existing significant legislative, interpretive, and procedural rules to determine whether any such rules should be modified, streamlined, expanded, or repealed so as to make the that agency’s regulatory program more effective and less burdensome in achieving the regulatory objectives; and
(7) The West Virginia Economic Development Authority established in §31-15-1 et seq. of this code, and the West Virginia Infrastructure and Jobs Development Council created in §31-15a-1 et seq., of this code, should and the Office of Energy created in §5B-2F-1 et seq. of this code should, where appropriate, provide assistance that grows or sustains the natural gas liquids segment of the economy.
(b) The Legislature declares that facilitating the development of business activity directly and indirectly related to development, transportation, storage, and use of the natural gas liquids serves the public interest of the citizens of this state by promoting economic development and improving economic opportunities for the citizens of this state.
(a) This article shall be known and is and may be cited as the Comprehensive Grid Stabilization and Energy Security Act.
(b) As used in this article:
"Company" means a for-profit sole proprietorship, organization, association, corporation, limited liability partnership, limited liability company, including a wholly owned subsidiary, majority owned subsidiary, parent company, or affiliate of those entities or business associations that exist to make a profit.
"Critical Energy Infrastructure" means a communication infrastructure system, cybersecurity system, electric grid, hazardous waste treatment system or water treatment facility that directly or indirectly affects the ability to generate, transmit, transport or distribute electricity, coal, oil, and natural gas within the state.
"Cybersecurity means the measure taken to protect a computer, computer network, computer system or other technology infrastructure against unauthorized use or access.
"Director" means the Director of the West Virginia Office of Energy.
"Office" means the West Virginia Office of Energy.
(a) The Legislature finds that:
(1) The advent and advancement of new and existing technologies and drilling practices have created the opportunity for efficient development of use of coal and natural gas in West Virginia, including opportunities for the production of electricity;
(2) Production of electricity utilizing coal and natural gas produced in West Virginia is highly underdeveloped in comparison to nearby states with which West Virginia competes for economically beneficial projects. Natural gas Coal and natural gas electric generation projects have been undermined by existing regulatory requirements and related time delays;
(3) In developing regulatory actions and identifying appropriate approaches to encourage development of coal and natural gas electric generation projects, agencies should attempt to promote coordination, simplification, and harmonization. Agencies should also seek to identify appropriate means to achieve regulatory goals that are designed to promote innovation and enhance West Virginia's competitiveness with surrounding states;
(4) Agencies should review their existing legislative and procedural rules to determine whether any such rules should be modified, streamlined, expanded, or repealed to make the agency's regulatory program more effective or less burdensome in achieving the regulatory objectives related to coal and natural gas electric generation projects. Agencies should also evaluate the data that they have to determine what information might be useful to prompt permitting and approving coal and natural gas generated electricity; and
(5) The West Virginia Department of Economic Development, established in §5B-2-1 et seq. of this code, Office of Energy is responsible for implementing this Grid Stabilization and Security Act of 2026 and providing as much assistance as possible to grow and sustain the coal and natural gas electric generation segment of the economy.
(b) The Legislature declares that facilitating the development of business activity directly and indirectly related to coal and natural gas electric generation development, transportation, storage, and use serves the public interest of the citizens of this state by promoting economic development, improving economic opportunities for the citizens of this state, and providing additional opportunities to stabilize the price of electricity while increasing its reliability and availability.
(a) The Office of Energy shall develop a recommended strategy to the Governor and Secretary of Commerce for developing coal and natural energy in West Virginia's economy and energy infrastructure.
(b) Such strategy shall include, without limitation:
(1) A review of regulations and legislation needed to guide the development and achievement of economies of scale for the energy ecosystem in the state;
(2) Recommendations for post-secondary education or workforce initiatives to prepare the state's workforce for coal and natural gas jobs;
(3) Recommendations, legislation, and policies to support coal and natural gas fueled energy facilities at sites throughout West Virginia;
(4) Recommendations regarding funding sources for developing coal and natural gas fueled energy programs and infrastructure; and
(5) Recommendations for potential end uses of coal and natural gas fueled energy.
(6) Consideration and study of feasibility of other forms of energy with significant potential, including geothermal, or hydropower.
(a) The Secretary of the Department of Economic Development is authorized and directed to Director of the Office of Energy shall identify economically viable sites within the state that are:
(1) Located near a convenient and sufficient supply of coal and natural gas; and
(2) Likely to create economically viable coal and natural gas electric generation projects that provide economic benefits to the local and state governmental units and the citizens of the state; and
(3) Optimally located to provide a convenient supply of the generated electricity to consumers.
(b) The Secretary of the Department of Economic Development director shall use the following criteria in identifying economically viable sites for natural gas the electric generation projects:
(1) Geographic locations near coal or, producing natural gas wells, or pipelines carrying natural gas produced in the state that are capable of supplying and sustaining one or more natural gas electric generation facilities for the economic life of the facilities;
(2) Geographic locations near existing electric transmission infrastructure capable of transmitting the generated electricity to wholesale markets by coal or natural gas generation facilities for the economic life of the facilities;
(3) Geographic locations that fulfill meet the air quality conditions imposed by the Division of Air Quality of the West Virginia Department of Environmental Protection for one or more natural gas the electric generation facilities; and
(4) Geographic locations that can demonstrate that allowable emission increases from one or more natural gas electric generation facilities, in conjunction with all other applicable emission increases or reductions, including secondary emissions, would not cause or contribute to air pollution in violation of:
(A) Any national or West Virginia ambient air quality standard in any air quality control region; or
(B) Any applicable maximum allowable increase over the baseline concentration in any area.
(a) Following identification of any economically viable sites site that may be suitable for coal or natural gas electric generation projects, the Secretary of the Department of Economic Development shall identify and designate each site it has determined to be suitable for natural gas electric generation projects Director of the Office of Energy shall:
(1) Further identify that site as a designated site for purposes of §5B-2N-5 of this code; and shall communicate the designated sites to
(2) Notify the West Virginia Department of Environmental Protection's Division of Air Quality and the West Virginia Public Service Commission as sites of the designated site as suitable for the construction and operation of coal and natural gas electric generation projects.
(b) Any application for a siting certificate pursuant to §24-2-11c of the West Virginia Code this code filed with the Public Service Commission to construct or to construct and operate a coal or natural gas electric generation project at a designated site shall be adjudicated, inclusive of public hearings, and a final order issued by the Public Service Commission, within 270 180 calendar days after the date of the filing of the application is filed, notwithstanding the requirements of any other provision of this code to the contrary.
(c) Nothing in this section is intended to preclude, modify, or establish new Public Service Commission jurisdiction over:
(1) Any exercise of powers, duties, and obligations pursuant to the West Virginia Public Energy Authority Act; nor
(2) The right of end-user consumers of electricity to develop, invest in, or otherwise contract for on-site electric self-generation or cogeneration facilities, including those utilizing natural gas as a fuel source.
(3)(d) This section does not:
(1) Alter, modify, or cancel any existing cogeneration tariffs authorized by the Public Service Commission; and (4) This section does not nor
(2) Authorize the sale of electricity to end-users in the state.
(d)(e) Where a designated site has been identified in accordance with §22-5-11b(b) of this code as a location where additional data would be helpful for modeling or other evaluation of the potential emission of a natural gas electric generation project, the Department of Economic Development shall Office of Energy may consult with or retain such experts as construct such facilities as are necessary to acquire such data.
(a) The Office of Energy shall propose rules for legislative approval in accordance with the provisions of §29A-3-1 et seq. of this code to establish a procedure and criteria for awarding a coal or natural gas fueled community designation to demonstrate a community's voluntary readiness to welcome electric generation-related development. The procedure and criteria to attain the designation shall include:
(1) The holding of local public educational meetings, by a county or municipality, to educate the community on coal or natural gas electric generation technologies, the related ecosystem, and the role that energy-related development could play in the community;
(2) The availability of at least one site within the community that has been designated by the Office of Energy as a "Designated Site" suitable for a coal or natural gas electric generation project; and
(3) The adoption of resolutions from the county or the municipalities within the designation area requesting a designation of the community's readiness for energy-related projects to be developed and sited there.
(b) Communities may voluntarily apply to the Office of Energy for an energy-ready community designation in the form and manner as the office may require, and the office shall evaluate the application and award the designation based on the criteria established under subsection (a) of this section.
(c) An application for an Energy Ready Community for a specific type of electrical generation shall not be amended or redesignated for a different type or fuel source of electrical generation without a written request originating from the county or municipality.
(a) The Office of Energy shall develop a State Energy Security Plan and shall submit a report of its plan to the Governor and the Joint Committee on Government and Finance before on or before December 1, 2026, and every five years thereafter. The State Security Energy Plan shall at a minimum:
(1) Provide a state energy profile, including an assessment of energy production, transmission, distribution and end-use;
(2) Identify all energy sources and regulated and unregulated energy providers;
(3) Address potential hazards to each energy sector or system, including physical threats, cybersecurity threats and vulnerabilities;
(4) Provide a risk assessment of energy infrastructure and cross-sector interdependencies;
(5) Provide a risk-mitigation approach to enhance reliability and end-use resilience;
(6) Identify existing legislation and institutions responsible for energy security in West Virginia, including federal and state agencies and emergency response procedures;
(7) Address coordination between state agencies, local governments and energy providers; and
(8) Describe response processes and responsible authorities for energy emergencies.
(b) Nothing in this section is intended to preclude, modify or interfere with other state agencies in the performance of their duties and obligations during an energy emergency.
(c) Any plan and any information obtained or developed by the Office of Energy pursuant to this section shall be kept confidential and exempt from disclosure under the Freedom of Information Act under §29B-1-1 et seq., of this code.
(a) The Office of Energy shall conduct an energy emergency exercise by no later than July 1, 2027. It shall conduct additional energy emergency exercises every two years thereafter. The office shall invite representatives from the following entities to participate in the energy emergency exercise and shall provide said representatives with at least 30-days advance written notice of the energy emergency exercise:
(1) All electric utilities regulated by the West Virginia Public Service Commission;
(2) West Virginia Public Service Commission;
(3) West Virginia Office of Technology;
(4) West Virginia Governor’s Office;
(5) West Virginia Legislature;
(6) West Virginia Fusion Center;
(7) West Virginia Department of Homeland Security;
(8) West Virginia Emergency Management Division;
(9) West Virginia National Guard;
(10) West Virginia Department of Transportation;
(11) West Virginia Department of Environmental Protection;
(12) Federal Emergency Management Administration;
(13) United States Department of Energy, Office of Cybersecurity, Energy Security and Emergency Response;
(14) United States Department of Homeland Security;
(15) United States Cybersecurity and Infrastructure Security Agency;
(16) West Virginia University; and
(17) Marshall University.
(b) The Office of Energy shall conduct the energy emergency exercise so as to allow the various participating state and federal agencies and other entities to access their energy emergency preparedness in a risk-free environment.
(c) Within 30 days of completing the energy emergency exercise, the office shall provide a strictly confidential report to the Governor and the Joint Committee on Government and Finance. The report shall:
(1) Address whether the State Energy Security Plan properly delineates the roles and responsibilities of the various entities participating in the exercise and provide recommendations for improving the State Energy Security Plan; and
(2) Recommend improvements in the communication protocols among state agencies, the federal government, the private sector, other participating entities and the public.
(d) Any plan and any information obtained or developed by the Office of Energy pursuant to this section shall be kept confidential and exempt from disclosure under the Freedom of Information Act under §29B-1-1 et seq., of this code.
This article shall be known and cited as the "Coal Fired Grid Stabilization and Security Act." "Southern West Virginia Economic Growth Act of 2026."
(a) The Legislature finds that:
(1) The advent and advancement of new and existing technologies and mining/drilling practices have created the opportunity for efficient mining of coal in West Virginia, including opportunities for the production of electricity and coke for making steel;
(2) Production of electricity utilizing coal produced in West Virginia is now inadequately developed in comparison to nearby states with which West Virginia competes for economically beneficial projects. Coal electric generation projects have been undermined by existing regulatory requirements and related time delays. Additionally, changes in federal economic and trade policy are imminent, with a renewed focus on domestic manufacturing and steel production. West Virginia is uniquely situated to capitalize on this development through our vast reserves of metallurgical coal required to produce coke for making steel. To facilitate this, our state regulatory and economic policies must be brought into alignment with the opportunity before us.
(3) In developing regulatory actions and identifying appropriate approaches to encourage development of coal electric generation and coke production projects, agencies should attempt to promote coordination, simplification, and harmonization. Agencies should also seek to identify appropriate means to achieve regulatory goals that are designed to promote innovation and enhance West Virginia’s competitiveness with surrounding states;
(4) Agencies should review their existing legislative and procedural rules to determine whether any such rules should be modified, streamlined, expanded, or repealed so as to make the agency’s regulatory program more effective or less burdensome in achieving the regulatory objectives related to coal electric generation and coke production projects. Agencies should also evaluate the data that they have to determine what information might be useful to prompt permitting and approval of coal generated electricity; and
(5) The West Virginia Division of Economic Development established in §5B-2-1 et seq. of this code is responsible for implementing this Coal Fired Grid Stabilization and Security Act of 2023 Southern West Virginia Economic Growth Act of 2026 and provide as much assistance as possible to grow and sustain the coal electric generation segment of the economy.
(b) The Legislature declares that facilitating the development of business activity directly and indirectly related to coal electric generation development, transportation, storage, and use serves the public interest of the citizens of this state by promoting economic development, by improving economic opportunities for the citizens of this state, and providing additional opportunities to stabilize the price of electricity while increasing its reliability and availability.
(c) The Legislature declares that developing the regional steel industry in West Virginia and neighboring states has a profoundly positive effect on the overall economy of West Virginia, particularly when such steel is manufactured with metallurgical coal and coke produced within West Virginia. The Legislature finds that the secondary and tertiary economic benefits to the citizens and economy of West Virginia from such industrial activities are of inestimable value, and critical to the continuing viability of our state.
(a) The Division of Economic Development is authorized and directed to identify economically viable sites within the state that are, respectively:
(1) Located near a convenient and sufficient supply of thermal coal for power generation and metallurgical coal for producing coking as used in making steel.
(2) Located near consumers of electricity to provide a convenient supply of the generated electricity, or near rail facilities sufficient to transport the coke to steel producing facilities, respectively; and,
(3) Likely to create economically viable coal electric generation projects or coke production plants that provide economic benefits to the local and state governmental units and the citizens of the state.
(b) The Division of Economic Development shall use the following criteria in identifying economically viable sites for coal electric generation projects:
(1) Geographic locations near coal deposits in the state capable of supplying and sustaining one or more coal electric generation facilities for the economic life of the facilities;
(2) Geographic locations near existing electric transmission infrastructure capable of transmitting the generated electricity to wholesale markets of electricity by one or more coal electric generation facilities for the economic life of the facilities;
(3) Geographic locations that fulfill the air quality conditions imposed by the Division of Air Quality of the West Virginia Department of Environmental Protection for one or more coal electric generation facilities; and
(4) Geographic locations that can demonstrate that allowable emission increases from one or more coal electric generation facilities, in conjunction with all other applicable emission increases or reductions (including secondary emissions), would not cause or contribute to air pollution in violation of:
(A) Any national or West Virginia Ambient Air Quality Standard in any air quality control region; or
(B) Any applicable maximum allowable increase over the baseline concentration in any area.
(c) The Department of Economic Development shall use the following criteria in identifying economically viable sites for coke production projects:
(1) Geographic locations near metallurgical coal deposits in the state capable of supplying and sustaining one or more coke production facilities for the economic life of the facilities;
(2) Geographic locations near existing rail infrastructure capable of transporting the produced coke to steel-making facilities for the economic life of the coking facilities;
(3) Geographic locations that fulfill the air quality conditions imposed by the Division of Air Quality of the West Virginia Department of Environmental Protection for coke producing facilities; and
(4) Geographic locations that can demonstrate that allowable emission increases from one or more coke producing facilities, in conjunction with all other applicable emission increases or reductions (including secondary emissions), would not cause or contribute to air pollution in violation of:
(A) Any national or West Virginia Ambient Air Quality Standard in any air quality control region; or
(B) Any applicable maximum allowable increase over the baseline concentration in any area.
(a) Following identification of economically viable sites that may be suitable for coal electric generation or coke production projects, the Division of Economic Development shall identify and designate each site it has determined to be suitable for coal electric generation or coke production projects as a "Designated Site," and shall communicate the Designated Sites to the West Virginia Department of Environmental Protection’s Division of Air Quality and, in the case of coal electric generation, the West Virginia Public Service Commission as sites suitable for the construction and operation of coal electric generation projects.
(b) Any application for a siting certificate pursuant to §24-2-11c of this code filed with the Public Service Commission for development of a coal electric generation or coke production project at a Designated Site shall be adjudicated, inclusive of public hearings, and a final order issued by the Public Service Commission, within 270 calendar days after the date of the filing of the application, notwithstanding the requirements of any other provision of this code.
(c) Nothing in this section is intended to preclude, modify, or establish new Public Service Commission jurisdiction over:
(1) Any exercise of powers, duties, and obligations pursuant to the West Virginia Public Energy Authority Act; and
(2) The right of end-user consumers of electricity to develop, invest in, or otherwise contract for on-site electric self-generation or cogeneration facilities, including those utilizing coal as a fuel source.
(3) This section does not alter, modify and/or cancel any existing cogeneration tariffs authorized by the Public Service Commission.
(4) This section does not authorize the sale of electricity to end-users in the state.
(d) Where a designated site has been identified, in accordance with §22-5-11c of this code, as a location where additional data would be helpful for modeling or other evaluation of the potential emission of a coal generation project, the Division of Economic Development shall construct such facilities as are necessary to acquire such data.
(a) Division of Economic Development shall issue a preliminary report to the Joint Committee on Energy and Manufacturing no later than December 31, 2026, outlining a minimum of one prospective location under consideration for coke production, respectively.
(b) Division of Economic Development shall identify and designate at least one site pursuant to code section §5B-2O-4 located in one of the Southern Coalfield Counties as defined in §5B-2P-3 for coke production, respectively, and issue a report to the Joint Committee on Energy and Manufacturing no later than December 31, 2027.
This article is and may be cited as the “Energy Economic Load Dispatch Act”.
(a) General authority. — The Public Service Commission shall implement and enforce this article when exercising its authority under §24-1-1 et seq. of this code and shall ensure that all regulated electric utilities operate and plan resources consistent with true cost economic load dispatch, as informed by technical findings issued by the Public Energy Authority.
(1) As used in this chapter, “Public Energy Authority” or “authority” means the West Virginia Public Energy Authority created in §5D-1-4 of this code.
(2) As used in this chapter, “true cost economic load dispatch” means the operation and dispatch of electric generation resources based solely upon the lowest total demonstrable cost of producing and delivering electricity, calculated using complete, transparent, and non-preferential cost accounting, including all direct and indirect system costs attributable to each generating resource. True cost economic load dispatch shall require that dispatch determinations incorporate, at a minimum:
(A) All fuel acquisition and transportation costs;
(B) Capital, financing, and depreciation costs;
(C) Operations and maintenance expenses;
(D) Reliability and capacity assurance costs;
(E) Transmission, congestion, and interconnection costs caused or required by the resource;
(F) Backup generation, reserve margin, balancing, and intermittency costs imposed on the system;
(G) Grid stabilization and ancillary service requirements;
(H) Subsidies, tax credits, mandates, or external financial supports received by a resource, which shall be normalized or removed to reflect unsubsidized market cost; and
(I) Any ratepayer-borne or publicly-socialized cost necessary to enable operation of the resource.
(3) Dispatch may not prioritize any generating resource on the basis of fuel type, technology class, emissions attribute, policy preference, or market construct unless the preference demonstrably results in the lowest true total system cost to ratepayers.
(b) Condition for certification. — Compliance with true cost economic load dispatch is a continuing condition for:
(1) Receiving or retaining a certificate of public convenience and necessity;
(2) Receiving or retaining a siting certificate or approval; and
(3) Constructing, expanding, modifying, retiring, or materially altering electric generation or transmission facilities.
A certificate of public convenience and necessity or siting certificate or approval may not be granted unless the commission determines the applicant is compliant with this article based on certified findings of the authority.
(c) Required considerations. — The findings, technical evaluations, and certifications issued by the authority constitute prima facie evidence in commission proceedings. In making determinations under this section, the commission shall incorporate the authority’s findings, technical evaluations, and certifications concerning:
(1) Logistics and transportation costs associated with electric generation;
(2) Externalized reliability and fuel-security costs;
(3) Market distortions arising from subsidized or externally supported resources;
(4) Transmission, pipeline, rail, barge, highway, or fuel delivery infrastructure dependency;
(5) The quantified reliability value of on-site fuel inventory; and
(6) Any additional system costs affecting fully delivered electricity cost to West Virginia ratepayers.
(d) Non-compliant market reliance. — The commission shall deny, condition, suspend, or revoke a certificate of public convenience and necessity where an electric utility materially relies upon regional transmission organization dispatch outcomes, planning assumptions, or market participation practices that fail to reflect true cost economic load dispatch.
(e) Alternative analysis requirement. — If a regional transmission organization fails to provide sufficient data necessary for true cost evaluation, the commission shall require utilities to submit alternative analyses utilizing methodologies approved or certified by the authority.
(f) Presumption of imprudence. — Costs incurred as a result of dispatch, bidding, planning, or investment decisions inconsistent with true cost economic load dispatch are presumed imprudent and may not be recovered from ratepayers, unless rebutted by clear and convincing evidence.
(g) Integrated resource planning requirements. — Any integrated resource plan filed by an electric utility shall be reviewed jointly by the commission and the authority. An electric utility shall include the following within its integrated resource plan:
(1) A resource adequacy analysis;
(2) Reliability and resiliency planning;
(3) A logistics and fuel transportation risk analysis;
(4) Identification of subsidies or externally supported competing resources;
(5) An evaluation of externalized reliability and fuel-security costs; and
(6) An assessment of on-site fuel inventory capability and fuel assurance attributes.
(a) Essential reliability resource designation. — Upon recommendation or certification of the Public Energy Authority, the Public Service Commission may designate a generating facility as an essential reliability resource where the facility provides demonstrated fuel security, logistics independence, or reliability benefits to the state electric system.
(b) Market participation requirements. — Each essential reliability resource shall:
(1) Offer into PJM day-ahead and real-time markets at not less than verified logistics-adjusted variable operating cost as certified by the authority;
(2) Refrain from economic withholding, strategic underbidding, or participation practices that materially suppress utilization inconsistent with state reliability needs;
(3) Participate in PJM capacity markets using commission-approved strategies informed by the reliability findings of the authority; and
(4) Submit quarterly compliance reports to both the commission and the authority detailing:
(A) Bidding behavior;
(B) Dispatch outcomes;
(C) Utilization levels;
(D) Transportation or fuel constraints; and
(E) Instances of non-dispatch.
(c) Utilization review. — The commission, with technical assistance from the authority, shall determine whether reduced utilization results from:
(1) Market distortion;
(2) Transportation or logistics constraints;
(3) Fuel insecurity of competing resources;
(4) Strategic participation decisions; or
(5) Non-compliance with this article.
(d) Self-scheduling authorization. — Where necessary to preserve electric reliability, fuel security, or logistics resilience within the state, the commission may require self-scheduling or must-offer participation of essential reliability resources to the extent permitted under PJM market rules.
Such requirements shall operate solely as conditions of retail cost recovery and may not alter wholesale market clearing prices.
(e) Enforcement. — Failure to comply with this section may result in:
(1) Reduced or denied cost recovery;
(2) Modification or suspension of certificates;
(3) Prudence disallowances; or
(4) Other remedies authorized under this code.
§24-2J-4. Annual reliability and true cost report.
The Public Service Commission, in coordination with the Public Energy Authority, shall submit an annual report to the Joint Committee on Government and Finance that includes the following:
(1) The impact of this article on electric rates, reliability, and fuel security;
(2) Quantified logistics and transportation cost impacts;
(3) Evaluation of externalized reliability and fuel-security costs;
(4) Assessment of on-site fuel inventory contributions to grid resilience;
(5) Effects of PJM participation on West Virginia ratepayers; and
(6) Recommendations to maintain energy affordability, reliability, and fuel diversity.
§24-2K-1. Short title.
This article shall be known and cited as the "West Virginia Utility Affordability and Economic Competitiveness Act".
§24-2K-2. Legislative findings and declarations.
The Legislature finds and declares that:
(1) West Virginia households and businesses bear unreasonably high utility costs when electricity and water rates, riders, surcharges, and mandatory fees are considered collectively;
(2) Excessive utility costs impose a regressive burden on families and materially reduce disposable income;
(3) High utility costs undermine the competitiveness of the State for business investment, workforce attraction, and population retention;
(4) Utility costs create an economy-wide drag that compounds poverty and suppresses long-term economic growth;
(5) Existing regulatory frameworks have insufficiently prioritized the positive effects of full utilization of existing electrical generation assets toward improving affordability, competitiveness, and reducing system-wide costs;
(6) The State has a compelling interest in restoring utility affordability as a matter of economic policy, fiscal responsibility, and household financial security; and
(7) Utility affordability and reliability through utilization of our core energy resources such as coal and natural gas are foundational to economic development and shall be treated as core functions of state government.
§24-2K-3. Definitions.
For purposes of this article and all proceedings conducted pursuant to this article, the following terms have the meanings ascribed to them unless the context clearly indicates otherwise:
"Affordable" or "Affordability" means:
(A) The lowest cost method of providing electricity is used, factoring in the true and total cost of each generation source including, but not limited to, potential foreign and domestic supply chain disruptions, environmental degradation, environmental remediation, and excluding any direct or indirect payment by any level of government for the past five years; and
(B) The degree to which utility service costs, when measured on a true, total and comprehensive basis, minimize the financial burden on residential, commercial, and industrial customers, including consideration of:
(i) All rates, riders, surcharges, and mandatory fees;
(ii) Impacts on household disposable income;
(iii) Cost competitiveness relative to surrounding and peer states; and
(iv) Long-term cost stability.
Affordability shall be evaluated on a system-wide basis and not solely by reference to individual projects or short-term rate impacts.
"Clean" or "Green" means any energy generated by utilizing those energy sources listed in 42 U.S.C. 15852(b) or, in the case of hydrocarbons, when combusted for the purpose of electricity generation meet the National Ambient Air Quality Standards set by the United States Environmental Protection Agency under the authority of the Clean Air Act and includes energy generated by coal or natural gas.
"Comprehensive cost of electricity" means the all-in cost per kilowatt-hour paid by ratepayers, including but not limited to:
(A) Base rates;
(B) Fuel adjustment charges;
(C) Riders and surcharges;
(D) Transmission and distribution charges;
(E) Capacity, reliability, and ancillary service charges; and
(F) Any other mandatory utility-related fees.
"Reliability" means a source of electricity that is not subject to intermittent availability or routine expected daily weather and has a performance standard of 70 percent or greater and only falls below that level during routine maintenance or repairs, excluding natural gas turbine peaker plants.
"Foreign adversary nation" means any country that is designated by the federal government of the United States as a foreign adversary or country of concern, including any country that:
(A) Is designated as a foreign adversary under 15 C.F.R. § 7.4, or any successor regulation;
(B) Is designated as a state sponsor of terrorism by the United States Department of State; (C) Is subject to comprehensive United States sanctions administered by the Office of Foreign Assets Control;
(D) Includes any entity that is owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary nation, including state-owned enterprises, instrumentalities, or companies operating pursuant to compulsory national laws; or
(E) Is otherwise determined by the Governor, in consultation with the Attorney General, to pose a national security, economic security, or supply-chain risk to the United States.
"Total system cost" means the aggregate cost to the utility system and ratepayers over the useful life of utility resources or policies, including, but not limited to:
(A) Capital costs;
(B) Operating and maintenance costs;
(C) Fuel costs;
(D) Transmission and distribution expansion;
(E) Capacity and reserve requirements;
(F) Backup generation and intermittency mitigation;
(G) Grid resilience and reliability impacts; and
(H) Decommissioning or replacement costs;
(I) Potential supply chain disruptions;
(J) Environmental degradation and subsequent remediation; or
(K) Excluding any payment made by federal, state, or local government over the preceding five years for the construction or operation of any energy generation facility.
No evaluation of cost-effectiveness shall rely solely on project-level without consideration of total system cost.
"Competitive benchmarking" means the evaluation of utility costs, performance, and planning decisions by comparison with contiguous surrounding states, peer states, and available regional market alternatives.
"Electric utility" has the same meaning as provided in §24-2-1 of this code.
"Water utility" has the same meaning as provided in §24-2-1 of this code.
"Commission" or "Public Service Commission" means the Public Service Commission of West Virginia.
§24-2K-4. Statement of policy and statewide goals.
It is the policy of the State of West Virginia to ensure that utility services are affordable, reliable, and economically competitive while maintaining system integrity and energy security.
(1) Electricity affordability goals. – By January 1, 2030, the comprehensive cost of electricity in this state shall be lower than the comprehensive cost in all contiguous surrounding states and positioned to maintain such a level that preserves regional cost leadership for not less than 10 years thereafter.
(2) Water utility affordability goals. – By January 1, 2030, average residential water utility costs shall fall below the 75th percentile nationally, adjusted for inflation and median household income.
(3) Aggregate utility burden. – Combined household utility expenditures for electricity and water shall decline by not less than 25 percent in inflation-adjusted dollars by January 1, 2030.
§24-2K-5. Temporary moratorium on utility rate increases.
A three-year moratorium is imposed on increases in base rates, riders, surcharges, or other charges for electric and water utilities, subject only to legislative approval for the duration of the moratorium upon a clear and convincing showing of necessity to address reliability threats, federal mandates, or catastrophic infrastructure failure.
§24-2K-6. Whole-of-government coordination.
The Department of Commerce shall serve as the coordinating authority for statewide utility affordability and competitiveness efforts and may require inter-agency data sharing, cost analyses, and recommendations for regulatory or statutory reform.
§24-2K-7. Utility affordability as a budgetary priority.
Utility affordability and competitiveness are declared core budgetary priorities of the State and shall be considered in agency expenditures, discretionary spending, and economic development incentives.
§24-2K-8. Phase I – needs assessment.
Within 12 months of the effective date of this article, the Department of Commerce shall submit a comprehensive utility cost and competitiveness assessment to the Legislature.
§24-2K-9. Phase II – statutory and regulatory reform.
The Legislature and executive agencies shall enact statutory, regulatory, and administrative reforms necessary to achieve the goals of this article.
§24-2K-10. Phase III – implementation and oversight.
Agencies and utilities shall implement approved reforms and submit annual progress reports to the appropriate legislative committees.
§24-2K-11. Energy affordability, reliability, security and supply-chain standards.
(a) The Commission shall implement standards to prioritize affordable, reliable, and clean energy by:
(1) Requiring energy in West Virginia is affordable as defined in this section;
(2) Requiring energy in West Virginia is reliable as defined in this section;
(3) Requiring energy in West Virginia is clean as defined in this section;
(4) Ensuring electric utilities prioritize fuel sources primarily produced within West Virginia, except for generation technologies; and
(5) Prohibiting the use of critical materials, as defined by federal statute under the Energy Act of 2020, that are sourced, processed, manufactured by, or subject to the jurisdiction of a foreign adversary nation or that are prohibited under 19 U.S.C. § 1307.
(b) Any utility seeking cost recovery bears the burden of demonstrating compliance with this section.
§24-2K-12. Construction and severability.
This article shall be liberally construed to effectuate its purposes. If any provision is held invalid, the remainder shall remain in effect
(a) This article is and may be cited as the “West Virginia First Energy Act”.
(b) The Legislature finds as follows:
(1) Coal-fired and natural-gas-fired electric generation are essential to West Virginia’s reliability, affordability, and energy security;
(2) For decades, West Virginia maintained some of the most stable electric rates in the nation due to the consistent use of in-state coal generation;
(3) As the utilization of coal-fired generation has declined and greater dependence has developed on out-of-state and intermittent sources, West Virginia’s electric rates have become increasingly volatile, threatening both affordability and reliability;
(4) United States President Donald J. Trump issued Executive Order Numbers 14156 and 14154, declaring a National Energy Emergency, directing the federal government to unleash American energy production, and pledging to reverse federal initiatives and regulations that undermine domestic fossil energy, including coal, and to restore policies that support affordable, reliable energy production for American families and industry;
(5) President Trump’s National Energy Emergency directives recognize that:
(A) Coal, natural gas, and other domestic fossil energy resources are central to national security, grid reliability, and economic competitiveness; and
(B) West Virginia’s abundant coal and natural-gas resources provide the foundation of dispatchable generation needed to maintain year-round reliability, economic competitiveness, and protection from external market disruptions;
(6) President Trump, through his National Energy Dominance Council and the federal Environmental Protection Agency, is revamping all policies and regulations impacting coal-fired electric generators so they can run more efficiently, for greater duration at optimum operation, and thus contribute more to West Virginia’s energy output, coal-related employment levels, and overall economic health;
(7) In enacting House Bill 2014 (2025 Regular Session), the Legislature incorporated provisions in §24-2-19 of this code requiring in-state coal-fired electric generators to file revised integrated resource plans specifying the necessary plant upgrades and improvements so their plants can operate well beyond their scheduled retirement dates at higher operating capacity levels;
(8) Matters generally related to homeland security and national defense are of paramount importance to West Virginia and its residents and coal-fired power plants provide optimal protection and resiliency toward state security and uninterrupted power supplies for household, industrial, and military applications; and
(9) In 2023, the Public Energy Authority was reactivated to provide needed assistance to the state’s coal and natural gas industries and coal-based electric generation but has not been given the proper support and resources to achieve its purpose, intent, and desired results.
(c) The purpose of this article is to:
(1) Restore electric rate stability through the continued utilization of in-state coal generation;
(2) Preserve employment and investment in West Virginia’s coal and natural gas industries;
(3) Coordinate with the Electric Grid Stabilization and Security Fund to sustain dependable baseload and mid-load generation capacity statewide; and
(4) Empower the Public Energy Authority to collect and assemble real-time knowledge of in-state electric-generating facilities, their continuous output of power, and the upgrades completed or planned for plants to achieve a higher capacity factor and optimum performance;
(d) As used in this article:
“Coal-fired facility” means a coal-fired electric-generating facility that is regulated by the Public Service Commission;
“Dispatchable, non-intermittent replacement resource" means a coal-fired or natural gas-fired electric generating unit that is physically located in West Virginia and capable of continuous operation regardless of weather conditions or time of day;
“PJM” means the PJM Interconnection LLC regional transmission organization; and
“Public Energy Authority” means the West Virginia Public Energy Authority created in §5D-1-4 of this code.
(a) Each coal-fired facility located in West Virginia that supplies regulated utilities shall strive to achieve a minimum 69 percent utilization rate, measured on a 12-month rolling average.
(b) This utilization standard does not apply to natural gas-fired generation, which serves as a load-following and reliability-balancing resource within the state’s dispatchable fleet.
(c) Monthly utilization data for coal-fired facilities shall be reported to the Public Service Commission and Public Energy Authority in a manner prescribed by rules promulgated by the commission in conjunction with the Public Energy Authority.
(d) The commission, in consultation with the Public Energy Authority, shall promulgate rules within 100 days of the effective date of this section to establish a rate recovery program based on a utility’s good faith effort to maintain the 69 percent capacity factor program. At a minimum, the program shall assign a percentage of cost recovery to each range of compliance comprised of increments of 10 percentage points. Any time a utility is not generating electricity due to a planned outage for upgrades or necessary maintenance is not factored into the calculation used to measure compliance and corresponding rate recovery with this section.
(a) A utility may not retire, deactivate, or otherwise reduce the capacity of any coal-fired or natural gas-fired electric generating facility without prior approval of the Public Service Commission and Public Energy Authority. The commission may approve such an action only if it finds that:
(1) The change will not:
(A) Increase retail rates;
(B) Increase exposure to wholesale market volatility; and
(C) Reduce grid reliability or resource adequacy; and
(2) An in-state, dispatchable, non-intermittent replacement resource of equal or greater capacity is already operational and available on the West Virginia grid at the time of the proposed retirement, deactivation, or reduction.
(b) Unauthorized retirement, deactivation, or reduction is a violation of this section that is enforceable by the commission.
(a) A utility regulated by the Public Service Commission may not include in rate base, seek regulated rate of return on, nor obtain cost recovery for any capital expenditure associated with construction, acquisition, expansion, or repowering of any new intermittent generation resource, including wind or solar.
(b) Any utility subject to but not in compliance with §24-9-2 or §24-9-3 of this code is prohibited from entering into a power purchase agreement for any new intermittent generation resource, including wind or solar.
(c) The commission may not approve cost recovery for intermittent resource generation unless the utility demonstrates that the investment:
(1) Does not increase retail rates;
(2) Does not increase reliance on PJM wholesale markets; and
(3) Does not reduce seasonal reliability.
(d) The burden of proof rests solely on the utility to demonstrate the provisions of subsection (c) of this section.
The Public Service Commission may consider or approve any rate increase only as is consistent with the utility’s compliance with §24-9-2 of this code.
Notwithstanding any provision of this code to the contrary, moneys from the Electric Grid Stabilization and Security Fund, created in §5B-2N-1 et seq. of this code, shall be used to stabilize generation costs and to support life-extension projects, fuel-security infrastructure, and grid-balancing measures, but may not be used for decommissioning or closing operating units.
(a) The Public Service Commission and the Public Energy Authority shall evaluate each PJM capacity auction and ensure West Virginia generating units participate to maximize ratepayer benefit and limit exposure to market volatility. To the extent allowable by PJM market rules, any generating unit located in West Virginia with a capacity factor greater than 80% as listed by PJM on the date of enactment shall be designated an essential reliability resource for purposes of state oversight and participation.
(b) Each regulated utility shall include coal and natural gas utilization, maintenance, and life-extension analysis in its integrated resource plan.
(c) The commission shall promulgate rules or adopt orders to implement this section and ensure alignment with state reliability and affordability goals.
(a) Any coal-fired utility shall perform an operational analysis of each coal-fired unit within its plan or system of generators to identify feasible and technological upgrades to improve performance and extend efficient plant life cycle.
(b) On or before January 1, 2027, each utility shall submit the findings of its operational analysis to the Public Service Commission and Office of Energy along with the operation plan required by this section. A utility’s integrated resource plan required by §24-2-19 of this code will satisfy the initial submission requirement of this section. The operational plan shall be updated annually thereafter.
(c) The commission may not consider an application for cost recovery until the Office of Energy accepts the operational plan and determines that it is administratively complete and authentic.
(d) For purposes of fuel and grid resiliency and homeland security, on or before January 1, 2027, any utility generating electric power for industrial or residential consumption within the state shall establish, and thereafter maintain, a minimum 30-day supply of the base fuel used to generate electricity.
(e) Operational plan; minimum requirements. — At a minimum, the operational plan shall contain the following:
(1) The plant fuel supply for the generation of electricity;
(2) The total distribution of electricity for each plant;
(3) How coal supply levels are to be maintained for each plant, including all fuel supply contracts and a complete listing of fuel suppliers;
(4) All necessary plant upgrades to be proposed, started, or completed over the ensuing three-year cycle along with all pertinent contractors, including a copy of the scope of work and beginning and completion dates;
(5) The status of all upgrades completed, announced, or previously incorporated into the plan for any previous cycle;
(6) A maintenance schedule of all routine, scheduled, or planned maintenance along with a record of all unplanned or nonscheduled events leading to or causing emergency or needed maintenance;
(7) An up-to-date accounting of all expenditures or costs which have been recovered or for which an application for recovery has been submitted; and
(8) Information on any grants or low interest loans received from any state or federal agency.
(f) The commission shall coordinate with each utility and the Office of Energy and may require utilities to submit any documents, records, or data necessary to ensure accurate calculation and reporting under this article.
(a) In addition to those specified in §5B-1-1 et seq. of this code, the Office of Energy has the following powers, duties, and responsibilities to ensure electric grid stability and homeland security:
(1) Meet with every public utility operating within this state to:
(A) Ascertain the general condition of each plant;
(B) Ascertain implementation of the operational plan;
(C) Consult with the plant operator to solicit any information required to verify progress completed on the most recently approved operational plan; and
(D) Verify the 30-day base fuel supply as required by §24-9-8 of this code; and
(2) At least annually, submit a report of its inspection findings and overall condition of public utilities operating within the state to the Department of Homeland Security’s Division of Emergency Management, the Public Service Commission, and the Joint Committee on Government and Finance.
(b) Before any public utility publicly announces the retirement of a coal-fired unit, proposed shutdown of a coal-fired unit, closure of a plant, or proposed sale of a plant to another operator, the plant operator or public utility shall:
(1) Provide notice of the impending action to the Office of Energy, Public Energy Authority, Department of Homeland Security’s Division of Emergency Management, Public Service Commission, and Joint Committee on Government and Finance; and
(2) Receive approval for the impending action from the Office of Energy and Public Service Commission.
(c) The provisions of subsection (b) of this section do not apply where a plant would require emergency deenergization or shutdown for imminent danger or public safety.
The Public Service Commission, in consultation with the Office of Energy, shall issue such general orders, directives, and requirements as are necessary to implement and enforce the provisions of this article. The commission may require utilities to file data, reports, plans, or other information as necessary to ensure compliance with this article.
(a) This article is and may be cited as the “Stable Energy Rates Protection Act”.
(b) Prohibition on rate base for intermittent power sources. — Notwithstanding any provision of this code to the contrary, the Public Service Commission may not approve, consider, nor incorporate into any new fee or any fee or rate increase any costs associated with construction, operation, maintenance, or decommissioning of:
(1) An energy facility that produces power solely from an intermittent power source; nor
(2) Any intermittent power source-related component of an energy facility that produces power from an intermittent power source.
(c) As used in this chapter:
(1) “Externalized reliability and fuel-security costs” means costs necessary to maintain electric system adequacy, resilience, and continuous service that are not reflected in wholesale market clearing prices but are borne directly or indirectly by ratepayers;
(2) “Intermittent power source” means an energy source:
(A) Whose electrical output is inherently variable and not continuously available due to its dependence on external natural conditions; and
(B) That cannot be fully controlled or dispatched on demand;
(3) “PJM” means the PJM Interconnection LLC regional transmission organization;
(4) “Public Energy Authority” or “authority” means the West Virginia Public Energy Authority created in §5D-1-4 of this code; and
(5) “Value of on-site fuel inventory” means the measurable reliability and economic benefit provided by electric generating facilities capable of sustained operation independent of real-time fuel transportation systems.
(d) Existing contracts. — The prohibition in subsection (b) of this section does not apply to costs associated with any contract executed prior to the effective date of this article, except that a rate increase after the effective date may not be based on expansion of any such contract nor any new commitment to an energy project using an intermittent power source under any such contract.
(e) The prohibition in subsection (b) of this section applies to any new fee or any fee or rate increase that affects a ratepayer in this state, regardless of whether the energy facility is located within or outside this state.
(f) The commission shall review all pending rate cases and adjust any current or proposed new fee or rate or fee increase consistent with this section.
§24-10-2. Fuel neutrality and market equalization.
(a) The Legislature finds that:
(1) Wholesale electricity market outcomes affecting electric utilities serving this state may fail to reflect the true and fully delivered cost of electricity, including logistics, transportation, reliability, and fuel-security attributes necessary to ensure continuous electric service to the citizens of West Virginia; and
(2) Accurate evaluation of such costs requires independent technical review to ensure that ratepayer interests, electric reliability, and fuel security are preserved through fuel-neutral and subsidy-neutral market participation.
(b) Designation of reviewing authority. — The Public Energy Authority serves as the state’s centralized technical energy reliability evaluator for purposes of this article and is the state entity responsible for the technical evaluation, review, and certification of:
(1) Externalized reliability and fuel-security costs;
(2) Logistics and transportation costs associated with electric generation;
(3) Market distortions arising from subsidized or externally supported generation resources;
(4) The reliability and resiliency value of on-site fuel inventory maintained by dispatchable generating facilities; and
(5) Any additional system costs affecting true cost economic load dispatch within this state.
(c) Externalized reliability and fuel-security costs; review and certification. — The authority shall:
(1) Identify and quantify reliability-related system costs shifted outside wholesale market price formation, including but not limited to:
(A) Operating reserve and standby generation requirements;
(B) Balancing and intermittency integration costs;
(C) Voltage support, inertia, frequency regulation, and grid stabilization services;
(D) Reliability-must-run payments or emergency retention actions;
(E) Fuel supply interruption risks and transportation constraints;
(F) Emergency procurement or replacement power costs;
(G) Pipeline curtailment or just-in-time fuel delivery risks; and
(H) Transmission redispatch or congestion management required to maintain reliability;
(2) Determine the extent to which such costs are avoided or reduced through operation of fuel-secure dispatchable generation; and
(3) Issue written findings certifying quantified externalized reliability and fuel-security costs applicable to commission proceedings. These certified findings are prima facie evidence in proceedings before the Public Service Commission.
(d) Value of on-site fuel inventory; determination by authority. — The Public Energy Authority shall establish standardized methodologies for calculating fuel inventory reliability value using measurable operational data. The authority shall evaluate and certify the value based upon:
(1) Verified duration of on-site fuel supply;
(2) Ability to operate during interruption or congestion of pipelines, rail systems, highways, waterways, or fuel delivery networks;
(3) Historical operational availability during grid emergencies or declared reliability events;
(4) Avoided emergency energy procurement costs;
(5) Reduction in dependence upon just-in-time fuel logistics;
(6) Contribution to system resilience during extreme weather or fuel shortages; and
(7) Avoided reserve capacity otherwise required due to fuel insecurity.
(e) Coordination with the Public Service Commission. — The commission may not disregard the authority’s findings absent clear and convincing evidence contained within the administrative record. The commission shall:
(1) Incorporate certified findings issued by the authority into all relevant proceedings involving:
(A) Retail ratemaking;
(B) Prudence review:
(C) Integrated resource planning;
(D) Cost-recovery determinations; and
(E) Market participation compliance reviews;
(2) Adjust rates, cost-recovery mechanisms, or reliability credits as necessary to reflect certified true cost determinations; and
(3) Ensure that regulated utilities’ participation in PJM markets reflects fully allocated logistics, reliability, and fuel-security costs affecting West Virginia ratepayers.
(f) Utility cooperation requirement. — Each regulated electric utility participating in PJM markets shall provide to the authority all operational, fuel supply, transportation, logistics, and reliability data reasonably necessary to conduct evaluations required under this section. Failure to provide requested information may constitute grounds for denial or limitation of cost recovery before the commission.
(g) Federal jurisdiction preservation. — This section may not be construed to:
(1) Directly alter wholesale market clearing prices;
(2) Require PJM to modify market rules; nor
(3) Conflict with federal jurisdiction under the Federal Power Act.
§24-10-3. Report.
The Public Service Commission shall report annually to the Joint Committee on Government and Finance regarding:
(1) An assessment of the impact of this article on energy rates and reliability in the state; and
(2) Any recommendations for ensuring energy affordability, reliability, and stability in the state.
Adopted
Rejected