HB 2014: Certified Microgrid Program - West Virginia

Committee Substitute → hb2014 s ecd am _1 4-8 adopted.htm · 6 edits

MODERATE

This bill was amended to shift its focus from exclusively promoting renewable energy microgrids to actively encouraging the development of high-impact data centers, including those powered by coal or natural gas. The changes remove previous requirements for renewable energy sources, adjust the cap on certified districts to allow more data centers, and modify tax distribution rules to fund state-wide infrastructure rather than just grid stabilization.

Scope change

The bill's scope expanded from a narrow focus on renewable energy microgrids to a broader initiative supporting data centers regardless of their energy source, while also adding a sunset provision for the entire article.

ELIGIBILITY

Removed the requirement that microgrids must generate electricity from renewable sources and added a new provision allowing the use of decommissioned coal or natural gas plants.

REQUIREMENT

Changed the limit on certified high-impact industrial districts from two to two, but removed the 60% renewable energy threshold for the exception, replacing it with a 70% consumption threshold by data centers.

FISCAL

Altered the distribution of tax increments from data centers, moving funds from a specific grid stabilization fund to a general pool that includes all counties, the state road fund, and the personal income tax reduction fund.

TIMELINE

Added a sunset provision stating that the special valuation and tax distribution rules for data centers will expire on December 31, 2055.

DEFINITION

Added a new definition for 'Situs county' to determine how tax revenues are distributed among counties based on property location.

TECHNICAL

Corrected several formatting errors, removed duplicate clauses, and updated the legislative findings to reference the new data center focus.

hb2014 sfa rose _2 4-11 adopted.htm → hb2014 sfat jeffries _1 4-11 adopted.htm · 8 edits

MODERATE

The bill's title was changed from Senator Rose's version to Senator Jeffries's version, which significantly expands the bill's scope to include new programs for microgrids, high-impact data centers, and electronic grid stabilization, while also modifying existing utility closure and rate adjustment provisions.

Scope change

The bill's scope was substantially expanded from primarily addressing utility plant closures and rate adjustments to also include new programs for microgrid development, data center certification, and electronic grid stabilization funds.

SCOPE

Bill title changed to reflect expanded scope including microgrid and data center programs in addition to existing utility provisions

New sections added for microgrid development program, microgrid certification requirements, and microgrid customer eligibility

New sections added for high-impact data center program with notification, certification, and recordkeeping requirements

New article added relating to special valuation method for certain high-technology property

FISCAL

New electronic grid stabilization and security fund established with specific purpose

REQUIREMENT

New personal income tax reduction fund established with specified purpose

Removed Senator Rose's amendment proposal regarding utility plant closure consent and new section 21a

ENFORCEMENT

Bill now includes provisions prohibiting local jurisdiction regulation of microgrid districts and high-impact data centers

hb2014 sfa jeffries _1 4-11 adopted.htm → hb2014 sfa rose _2 4-11 adopted.htm · 4 edits

MODERATE

The bill was amended to change the amendment sponsor from Senator Jeffries to Senator Rose, and the amendment location was moved from pages 21-22 to page 28. The substantive content was replaced with new language requiring public electric utilities to obtain commission approval before retiring or closing electric generating plants, and prohibiting the use of specific funds for plant closures. Additionally, the bill now addresses situations where utilities serving both West Virginia and other jurisdictions are ordered to cease operations by another authority, requiring cost recovery from West Virginia customers.

Scope change

The bill's scope expanded to include new requirements for utility plant closures, including commission approval mandates and cross-jurisdictional cost recovery provisions.

REQUIREMENT

New requirement that public electric utilities must obtain commission approval before retiring, abandoning, closing, or permanently rendering incapable of operating any electric generating plant or unit.

FISCAL

Prohibition on using Grid Stabilization and Security Fund, environmental control bonds, consumer rate relief bonds, or utility consumer rate relief bonds to retire, abandon, close, or permanently render incapable of operating any electric generating plant or unit.

ELIGIBILITY

New provisions addressing utilities serving both West Virginia and other jurisdictions, requiring cost recovery from West Virginia customers when plants are ordered closed by another jurisdiction's authority.

TECHNICAL

Changed amendment sponsor from Senator Jeffries to Senator Rose and moved amendment location from pages 21-22 to page 28.

hb2014 sfa helton _3 4-11 adopted.htm → hb2014 sfa jeffries _1 4-11 adopted.htm · 2 edits

MINOR

The amendment was changed from Senator Helton's proposal to Senator Jeffries' amendment, which focuses on correcting a typo in the fund name (changing 'Electronic Grid Stabalization' to 'Electric Grid Stabilization') and adding a new section about public hearings when property tax appraisals result in tax increases.

TECHNICAL

Corrected a typo in the fund name from 'Electronic Grid Stabalization' to 'Electric Grid Stabilization' in paragraph (E).

REQUIREMENT

Added a new section requiring public hearings when property tax appraisals result in tax increases.

hb2014 hfat anderson 4-12 adopted.htm → hb2014 sfa helton _3 4-11 adopted.htm · 3 edits

MINOR

The bill title was changed from Delegate Anderson's version to Senator Helton's version, and a significant amendment was made to how tax increments from high-impact data centers are distributed. The amendment specifies exact percentages for different funds and programs, replacing the previous unspecified allocation method.

Scope change

The amendment narrows the scope of tax increment distribution by establishing specific percentages for different recipients rather than leaving allocation unspecified.

FISCAL

Changed the distribution of tax increments from data centers to specify exact percentages: 50% to Personal Income Tax Reduction Fund, 40% to the county where the data center is located, 5% to all counties per capita, 3% to Low Income Energy Assistance Program, and 2% to Electronic Grid Stabilization and Security Fund.

Added a specific reference to the Electronic Grid Stabilization and Security Fund in the tax increment distribution formula, ensuring this fund receives a designated 2% portion of the increment.

TECHNICAL

Changed the bill header from Delegate Anderson's version dated 4-12 to Senator Helton's version dated 4-11, indicating a different legislative sponsor and version of the bill.

hb2014 hfat anderson 4-12 _2 adopted.htm → hb2014 hfat anderson 4-12 adopted.htm · 2 edits

MINOR

The bill title was updated to remove a version number (#2) and add a new provision about repealing the effect on regular levy rates when property appraisals result in tax increases. This change clarifies the bill's scope to include tax levy protections for property owners facing assessment increases.

Scope change

The bill now explicitly addresses how property tax levy rates are affected when appraisals result in tax increases, adding a new provision to the legislative scope.

SCOPE

Removed version number (#2) from the bill header, indicating this is a revised version of the legislation.

Added provision regarding repeal of the effect on regular levy rate when property appraisals result in tax increases, expanding the bill's scope to include tax levy protections.

hb2014 hfat anderson 4-1 adopted.htm → hb2014 hfat anderson 4-12 _2 adopted.htm · 6 edits

MODERATE

The bill title was updated from a 4-1 version to a 4-12 version with significant substantive changes. The scope was narrowed from a broad 'Power Generation and Consumption Act' to focus specifically on microgrids, data centers, and grid stabilization. Several sections were added to address microgrid certification and requirements, while the original title's emphasis on renewable energy requirements was removed.

Scope change

The bill's scope shifted from a comprehensive energy reform act to a more targeted focus on microgrids, data centers, and grid stability, with specific provisions for microgrid eligibility and certification.

SCOPE

The bill title changed from 'Power Generation and Consumption Act of 2025' to focus specifically on 'generation and consumption of electric power' with emphasis on microgrids and data centers.

REQUIREMENT

New provisions were added for microgrid certification requirements, customer eligibility, and special contracts for microgrids.

New requirements were added prohibiting microgrids from participating in Pilot and tax increment financing programs.

The original title's emphasis on 'eliminating requirements that electrical service in districts be generated from renewable sources' was removed from the description.

DEFINITION

New section §24-2-21a was added to the list of amended sections, indicating new content related to microgrids.

FISCAL

The description was updated to focus on 'electric grid stabilization and security fund' rather than the broader 'grid stabilization fund' mentioned in the original.

hb2014 hfa fehrenbacher 3-31 _2 adopted.htm → hb2014 hfat anderson 4-1 adopted.htm · 5 edits

MODERATE

The bill title was updated to reflect comprehensive changes including renaming programs, removing renewable energy requirements, and adding new sections for microgrid and data center certification. The amendment removes a previous provision that would have protected pre-2024 certified microgrid districts from new legislative changes, while the new title indicates broader program modifications.

Scope change

The bill now explicitly removes requirements that electrical service in districts be generated from renewable sources and eliminates location restrictions on districts, significantly broadening eligibility criteria.

ELIGIBILITY

Removed a provision that would have exempted microgrid districts certified before January 1, 2024, from new amendments enacted in 2025

New title indicates removal of requirements that electrical service in districts be generated from renewable sources

New title indicates removal of requirements that districts be located on certain lands

SCOPE

Bill now includes provisions for creating a Certified Microgrid Development Program administered by Economic Development

DEFINITION

Bill now includes new sections for high impact data centers and microgrid districts under defined circumstances

hb2014 hfa anderson 3-29 _1 adopted.htm → hb2014 hfa fehrenbacher 3-31 _2 adopted.htm · 4 edits

MODERATE

The bill amendment shifts from a technical edit on page 27 to a major policy addition on page 2 that protects existing microgrid districts and special contracts from changes made during the 2025 legislative session. This change ensures that microgrid districts certified before January 1, 2024, and special contracts approved before January 1, 2025, remain unaffected by new amendments, preventing retroactive policy disruptions.

Scope change

The amendment expands the bill's scope by adding a protective exemption clause for pre-existing microgrid certifications and special contracts, shielding them from future legislative changes.

ELIGIBILITY

Added a new subdivision (8) that exempts microgrid districts certified on or before January 1, 2024, from the impact of amendments enacted during the 2025 legislative session.

Added protection for special contracts entered into and approved by the Public Service Commission on or before January 1, 2025, from being affected by 2025 legislative amendments.

REQUIREMENT

Added a requirement that no amendments to this section during the 2025 session shall be interpreted to remove existing microgrid district certifications.

TECHNICAL

Removed Delegate Anderson's amendment proposal to insert 'thermal baseload' on page 27, section 1d, line 57.

hb2014 s ecd am _1 4-8 adopted.htm → hb2014 hfa anderson 3-29 _1 adopted.htm · 1 edit

MINOR

The bill was amended to add specific language requiring public utilities to maintain thermal baseload generating units at a minimum 69% capacity factor to ensure grid resiliency and maximize coal production within the state. This change strengthens the state's energy security goals by ensuring existing coal plants operate at higher capacity levels rather than being allowed to run at lower efficiency rates.

Scope change

The amendment narrows the scope of §24-2-1(f) by adding a specific requirement for thermal baseload generating units to maintain a 69% capacity factor, making the provision more explicit about the type of generating units affected.

REQUIREMENT

Added requirement that electric utilities must maintain thermal baseload generating units at a minimum 69% capacity factor to ensure grid resiliency and maximize in-state coal production.

Enrolled Committee Substitute → Committee Substitute · 8 edits

MODERATE

This bill significantly restructures the Certified Microgrid Development Program by renaming it to the Certified Industrial Business Expansion Microgrid Development Program and adding a new High Impact Data Center Program. The changes expand eligibility requirements, introduce new tax distribution rules for data centers, and establish a new fund for grid stabilization. The bill also removes certain restrictions on microgrid districts and adds provisions to protect data centers from local regulation.

Scope change

The bill's scope expanded from a general microgrid development program to specifically include industrial business expansion and high-impact data centers, with new provisions protecting these facilities from local zoning and regulatory restrictions.

SCOPE

Added a new High Impact Data Center Program to encourage data center development in West Virginia, including special tax treatment and protection from local regulations.

ELIGIBILITY

Modified microgrid district certification requirements to mandate that districts be located on state-owned or leased land or former coal mining sites, and added requirements for good faith negotiations with local utilities.

FISCAL

Created a new Electronic Grid Stabilization and Security Fund to support utility infrastructure maintenance and coal generation facilities.

REQUIREMENT

Added special tax distribution rules for data center property, directing tax increments to state funds including a Personal Income Tax Reduction Fund.

Removed the requirement that microgrid electricity must be generated from renewable sources, allowing conventional generation options.

ENFORCEMENT

Added provisions prohibiting counties and municipalities from regulating certified microgrid districts and data centers, preempting local jurisdiction over these facilities.

DEFINITION

Added new definitions for 'High Impact Data Center' requiring a minimum 90 megawatt critical IT load and placement into service on or after July 1, 2025.

TIMELINE

Added sunset provisions requiring the data center valuation article to expire on December 31, 2055.

Engrossed Committee Substitute → Enrolled Committee Substitute · 10 edits · Apr 30, 2025

MAJOR

This bill was finalized into its enrolled version with minor formatting and navigation text removed, while retaining all substantive policy changes from the committee substitute. The core legislation establishes a Certified Microgrid Program and High Impact Data Center Program to attract industrial development and data centers to West Virginia, with provisions for special tax treatment, local jurisdiction exemptions, and grid security funding.

Scope change

The bill's scope remains substantively unchanged from the committee version; the enrolled version is the final legislative text ready for signature and implementation.

TECHNICAL

Removed committee header text, navigation links, and website footer elements that were present in the committee substitute but not needed in the final enrolled version.

DEFINITION

Changed 'Certified Industrial Business Expansion Microgrid Development Program' to 'Certified Microgrid Development Program' and 'high impact Industrial business development microgrid' to 'microgrid district' for consistency and clarity.

Added comprehensive definitions for high impact data centers requiring 90+ megawatts critical IT load, and defined terms like 'base assessed value,' 'current assessed value,' and 'tax increment' for special property tax treatment.

REQUIREMENT

Added new requirement that microgrid districts must be 'nearly contiguous' and that the Secretary of Commerce may not certify more than two microgrid districts unless greater than 70% of electricity is consumed by high impact data centers.

Added requirement for Public Service Commission to review consumer economic dispatch and maintain thermal baseload generating units at at least 69% capacity factor to ensure grid reliability.

TIMELINE

Added sunset provision stating Article 6N provisions expire on December 31, 2055, providing a 30-year timeframe for the special valuation rules.

ELIGIBILITY

Modified microgrid customer eligibility to clarify that new electric load includes facilities making capital investment in new facilities, even if the owner previously received utility service at or near the same location.

ENFORCEMENT

Added explicit prohibition on local jurisdictions enacting ordinances that limit certified microgrid districts or high impact data centers, and prohibited use of payment in lieu of taxes or tax increment financing for microgrid properties.

FISCAL

Created the Electric Grid Stabilization and Security Fund to support coal and natural gas generation maintenance, grid stabilization, and security measures, funded by tax increments from high impact data centers.

SCOPE

Expanded scope to include High Impact Data Center Program with special certification, notification requirements, and tax distribution rules separate from the microgrid program.

Introduced Version → Engrossed Committee Substitute · 8 edits · Apr 12, 2025

MODERATE

The bill was amended to rename and restructure the Certified Industrial Business Expansion Microgrid Development Program, removing renewable energy requirements and expanding eligibility to any plant or facility. It added new sections creating a High Impact Data Center Program with special tax treatment, a state fund for grid stabilization, and provisions to limit data center growth to protect against foreign competition. The changes also include new definitions, tax distribution rules, and sunset provisions for the data center program.

Scope change

The bill's scope expanded from a microgrid-focused industrial development program to include a broader Certified Microgrid Program and a new High Impact Data Center Program with special tax incentives. Eligibility was broadened to allow any plant or facility to participate in the business expansion program, and new data center-specific provisions were added.

ELIGIBILITY

Removed the requirement that high impact business development districts must be located on state-owned land or previously used coal mining sites, allowing any plant or facility to participate.

REQUIREMENT

Eliminated the requirement that electrical service to business development districts must be generated from renewable sources.

Established special tax distribution rules for high impact data centers, directing tax increments to various state funds including a personal income tax reduction fund.

DEFINITION

Added new definitions for 'High Impact Data Center' requiring 90 megawatts or more of critical IT load and placement into service on or after July 1, 2025.

FISCAL

Created a new Electronic Grid Stabilization and Security Fund to support coal and natural gas generation and grid security.

ENFORCEMENT

Added provisions prohibiting counties and municipalities from enacting ordinances that limit the creation or operation of certified microgrid districts or high impact data centers.

TIMELINE

Added a sunset provision stating the data center valuation and tax provisions will expire on December 31, 2055.

SCOPE

Added findings and purpose sections emphasizing national security interests in limiting data center growth to protect against foreign competition and data flow to China.

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