Environment (Economic Development)

SB 424, the Affordable Electricity and Economic Growth Act of 2026, would amend West Virginia law to streamline regulations for coal-based electricity generation and coke production (used in steelmaking) by requiring state agencies to simplify permitting processes. The bill directs the Department of Economic Development to lead efforts in promoting these industries, with the goal of leveraging the state's metallurgical coal resources to boost economic growth. It states that developing these sectors would improve economic opportunities, stabilize electricity prices, and strengthen West Virginia's competitiveness with neighboring states. The legislation aims to address regulatory barriers that have hindered coal-related projects compared to other states.

SB 131 creates a tax credit against West Virginia's severance tax for businesses that make qualifying investments in road/highway infrastructure improvements or coal production/processing facilities. It directly affects coal industry businesses and infrastructure developers in coal-producing regions by allowing them to reduce their severance tax liability. The credit covers costs for labor, materials, and real property improvements tied to certified road projects or coal facilities, with applications required through the Transportation Secretary. Unused credits can be carried forward, and the credit may be transferred to successors. This policy aims to incentivize private investment in infrastructure and coal sector capital projects.

SB 623, titled the "West Virginia-Powered Data Center Incentive Act," creates new economic incentives for *new* data centers to locate in West Virginia by offering reduced property taxes and a tax credit for coal-fired electric utilities supplying them with power. To qualify, data centers must meet specific eligibility criteria and apply through a state process, with incentives requiring ongoing compliance to avoid recapture. The bill aims to attract data center investment to generate jobs, boost economic growth, and support West Virginia's coal industry by leveraging its coal-generated electricity infrastructure.

HB 4832 creates a program to support data center development in West Virginia by requiring "high impact" data centers (those meeting specific water and energy use thresholds) to report their water needs and obtain environmental certification that their operations won't harm state water resources. The environmental agency can limit or stop water withdrawals if adverse impacts are likely, and must hold public hearings for these facilities. The bill mandates transparency through standardized reporting while exempting certain business information from public disclosure requests. This aims to balance economic growth from data centers with protection of local water resources.