This bill reduces the severance tax rate on metallurgical coal produced in West Virginia, affecting coal mining companies that extract this type of coal. The new rates will take effect in stages starting July 1, 2026, lowering the tax from 5% to 4.5% for the first year, then to 4% the following year, and finally to 3.5% beginning July 1, 2028. Metallurgical coal is defined as coal used for making steel and other metals, distinct from thermal coal used for electricity generation. The tax reduction applies to the gross value of coal produced and includes additional local taxes that are normally part of the total severance tax.
SB 790 reorganizes West Virginia's energy governance by transferring the Office of Coalfield Community Development into the Office of Energy and creating a new Comprehensive Energy Policy and Development Plan. It requires the Office to develop a long-term strategy covering coal, natural gas, nuclear, hydropower, hydrogen, and geothermal energy sources, including annual reports and stakeholder meetings. The bill grants the Office new authority to approve power plant decommissioning, designate energy-ready communities, and establish site criteria for energy projects. This directly affects the Office of Energy's operations and state energy planning processes, eliminating outdated programs like the Coal Fired Grid Stabilization Act.
HB 5039, titled "Fueling Modern Life," repeals all existing West Virginia air pollution control statutes (§22-5-1 through §22-5-20) and replaces them with a new policy declaring carbon dioxide (CO₂) a "foundational nutrient" necessary for life, not a pollutant. The bill mandates that West Virginia will not treat CO₂ as a pollutant, reject "net-zero" emission targets, and actively support carbon-based fuels like coal, oil, and natural gas. This directly affects all entities regulated under air pollution laws, including power plants and industrial facilities, by eliminating CO₂ emission requirements. The legislation shifts state policy to prioritize fossil fuel use for economic development while asserting CO₂ levels are beneficial and historically low.
HB 5539 would allow West Virginia employers (both public and private) to give hiring preference to unemployed coal miners who meet specific criteria. To qualify, a miner must have worked in coal mining for at least five years, been unemployed as a coal miner for over one year, not be retired, and not have been fired for cause (like safety violations). Employers could prioritize these miners only if they meet all job-specific knowledge, skills, and eligibility requirements. The bill aims to support coal miners displaced by industry changes by creating a legal pathway for targeted hiring. This is a proposed policy change, not yet enacted.
HB 5038, the Affordable Electricity and Economic Growth Act of 2026, directs West Virginia's Department of Economic Development to identify suitable sites for coal-fired electricity generation and coke production facilities near coal deposits, transmission infrastructure, and steel manufacturing locations. It requires state agencies to streamline regulations and review existing rules to reduce delays for projects using locally mined coal. The bill aims to support economic development by making it easier to build facilities that produce electricity and coke (used in steelmaking) within the state. This directly affects coal producers, steel manufacturers, and state regulatory agencies responsible for permitting and oversight.
This bill directs West Virginia's Office of Energy to develop a comprehensive energy policy and plan covering coal, natural gas, nuclear, renewable, hydrogen, and geothermal sources. It transfers the Office of Coalfield Community Development into the Office of Energy, eliminates outdated duties like the annual coalfield report, and grants the Office new authority to hold stakeholder meetings, set energy-ready community criteria, and designate project sites. The legislation also repeals the 2023 Coal Fired Grid Stabilization Act, merging its provisions into a new "Comprehensive Grid Stabilization and Energy Security Act." The Office must submit annual reports on its findings and develop strategies for multiple energy sectors, including state energy security planning. This restructures state energy policy to embrace diverse energy sources while focusing on stability, cost, and security.
This Senate Resolution (SR 32) expresses the West Virginia Senate's commitment to protecting coal-dependent communities and energy infrastructure. It specifically requires coal-fired power plants to operate at a minimum 69% annual capacity factor to maintain grid reliability and protect over 10,000 coal jobs, while opposing actions that threaten mine closures or job losses. The resolution also pledges to prioritize local coal jobs over "out-of-state contracting" and prevent ratepayers from bearing higher costs due to reduced coal generation. As a non-binding resolution (adopted February 18, 2026), it does not create new law but formally commits the Senate to supporting coal through policy advocacy and oversight.
SB 935 repeals a tax exemption for certain coal-fired power plants in West Virginia, directly affecting owners/operators of coal plants operational before January 1, 1995. The bill reduces the taxable generating capacity for these plants to 45% of their official capability (instead of 100%) for tax years starting July 1, 2021, but requires plants to remain operational until at least July 1, 2025, to qualify. If such plants close before July 1, 2025, owners must repay tax savings through a recapture tax, though federal mandates exempting closures avoid this requirement. The law applies specifically to "merchant power plants" (independent generators) and modifies existing tax calculation rules under West Virginia Code §11-13-2o.
HB 5359 creates a new tax method for high voltage electric transmission line property in West Virginia, directing property tax revenue from newly constructed transmission projects into the existing Electric Grid Stabilization and Security Fund. This fund will use the collected revenue to support grid stabilization, security, and efficiency upgrades for regulated utilities, including maintenance of coal and natural gas generation facilities serving West Virginia ratepayers. The bill specifies that these funds must be used to lower electricity rates for West Virginia consumers, directly benefiting all ratepayers by reducing costs through improved grid infrastructure. Key provisions include defining "high voltage transmission line property," requiring tax returns to the Board of Public Works, and ensuring unspent fund balances carry forward annually. The bill is currently in the House Finance Committee for review.
West Virginia's SB 685, the Natural Resources Anti-Commandeering Act, prohibits state agencies, local governments, and their employees from enforcing or assisting with federal regulations on coal, oil, gas, timber, or related extractive resources that conflict with West Virginia law. It bans the use of state funds for such federal enforcement activities and requires the state Attorney General to legally challenge federal actions they deem unconstitutional under anti-commandeering principles (citing Supreme Court cases like *Printz v. United States*). The bill also mandates the Attorney General to publish guidance for state agencies on resisting federal enforcement efforts and to pursue legal action using state funds. This applies directly to state officials, law enforcement, and local government entities handling natural resource regulations. The law focuses on preventing state cooperation with federal rules, not altering existing state resource management.
