photo by: Steven Allen Adams

Gov. Patrick Morrisey, right, discusses proposed Power Generation and Consumption Act on Tuesday. He is joined, from left, by House Majority Leader Pat McGeehan, R-Hancock; House Speaker Roger Hanshaw, R-Clay; and Senate President Randy Smith, R-Tucker.

CHARLESTON — A bill introduced in the West Virginia House of Delegates Tuesday on behalf of Gov. Patrick Morrisey is aimed at incentivizing the growth of certified microgrids and high-impact data centers in the state.

House Bill 2014, creating the Certified Microgrid Program, was introduced in the House Tuesday morning, meeting a deadline in the House’s rules for House bills to be introduced.

HB 2014 would create the Power Generation and Consumption Act, with a primary focus on attracting and supporting high-impact data centers and establishing certified microgrid districts. The bill establishes a “High Impact Data Center Program” within the Division of Economic Development — pending passage of the bill to return the Department of Economic Development to the Department of Commerce — to encourage their development and expansion.

“Right now, we have a lot of data centers that have been knocking on our doors and they’re anxious to come to West Virginia and start using our natural resources as a main source of power,” Morrisey said. “Under our proposal, we are going to make it easier for these data centers to do that. West Virginia will be the most attractive state in the country for data centers after this bill is passed.”

The bill renames the Certified Industrial Business Expansion Development Program to the Certified Microgrid Program. Senate Bill 4001 created the program in 2022 to encourage new construction or expansion of industrial plants and facilities that also desired to incorporate renewable energy generation into their facilities.

Renewable energy projects in these districts are not subject to approval by the Public Service Commission as far as rates, obtaining a certificate of convenience and necessity, conditions of service or complaints.

The Certified Industrial Business Expansion Development Program was created for Berkshire Hathaway Energy Renewables, which partnered with Precision Castparts Corp. (TIMET) for a new titanium melt facility/solar microgrid project on the site of the former Century Aluminum in Jackson County.

The limit of two certified microgrid districts does not apply if greater than 60% of the electricity generated within the microgrid district is consumed by one or more high-impact data centers. The requirement that high-impact business development districts be located on certain state-owned/leased lands or former coal mining land is removed. The stipulation that electrical service to business development districts be generated from renewable sources is eliminated.

“It … allows these new microgrids to burn coal, gas and all types of energy resources rather than just being limited to certain renewables,” Morrisey said. “When I look at this bill, I think it’s a once-in-a-generation opportunity for West Virginia to power the future of data and help America compete with China on an international level.”

HB 2014 would create a new “Special Method for Valuation of Certain High-Technology Property” for high-impact data center property, which would be assessed by the Board of Public Works. A unique system for distributing ad valorem property tax revenue from high-impact data centers would be established, allocating portions to local taxing bodies based on the “base assessed value.”

Revenues would be distributed the following way: 60% of revenues would go to the Personal Income Tax Reduction Fund, 15% would go towards the Economic Development Closing and Promotion Fund, and.10% would go into the general revenue fund.

Another 15% would go towards a new Electric Grid Stabilization and Security Fund administered by the Department of Commerce to support electric grid stabilization and security, including coal and natural gas electric generation and transmission resources.

“We want to make sure we’re addressing the legitimate needs to come from the utilities,” Morrisey said. “We know that the price of energy is too high for consumers. We want to make sure that we’re shoring up the grid and helping consumers along the way.”

These districts may not be subject to county or municipal zoning, horticultural, noise, viewshed, lighting, development, or land use ordinances, building permitting/inspection, license requirements, or the legal jurisdiction of the locality. Counties and municipalities are also prohibited from enacting or enforcing ordinances, regulations, or rules that limit the creation, acquisition, construction, equipping, development, expansion, and operation of certified microgrid districts or certified high-impact data center projects.

The PSC is authorized to approve special electric utility rates for eligible retail electric microgrid customers within high-impact industrial business development microgrid districts. Regulated utility customers are protected from bearing costs associated with non-utility owned generation within microgrids or new transmission facilities built for microgrid facilities.

HB 2014 is similar to a bill first proposed by former governor Jim Justice at the end of 2024. The Justice administration nearly called a special session in December to pass the bill, aimed at an unnamed company involved with a proposed data center project in Logan County that would be powered in part by both renewable and fossil fuel energy — a potential $30 billion investment.

Morrisey said HB 2014 was designed to not just favor one particular company but to be attractive to multiple companies looking for locations for these energy-intensive data centers.

“I think that’s going to have a bigger impact … to start to have needle movers instead of just having one specific company,” he said.

Also in the bill, it requires the PSC to maximize the use of in-state generated electricity, such as coal or natural gas, when determining future capacity needs. It also requires coal-fired power plants owned by public utilities to maintain a minimum 30-day aggregate coal supply on-site.

The bill reinforces restrictions on automatic adjustment clauses, price indexes, or fuel adjustment clauses that lead to a net increase in electric energy charges. It also requires the PSC to order electric utilities to supplement their integrated resource plans by July 1 to include detailed plant upgrade and maintenance plans, improvement compliance schedules, and cost estimates for ensuring operation through 2040, as well as analysis of extending plant life beyond planned retirement.

Morrisey was joined Tuesday by state Senate President Randy Smith, House Speaker Roger Hanshaw, and House Majority Leader Pat McGeehan. All said their bodies would give HB 2014 full consideration, and expressed hope that the bill could lead to more economic development opportunities, job growth, and growth in construction trades.

“I knew nothing about microgrids still just a few years ago, which probably most of us did,” said Smith, R-Preston. “It’s just a team effort…This is a huge opportunity for us. I’m anxious for the two bodies to get together with the governor and then come up with the best possible plan and the best possible bill for this.”

“Any serious conversation about the economic future of West Virginia we know has to, if not begin with, include a conversation about how we utilize the energy resources of West Virginia,” said Hanshaw, R-Clay. “We in the House, we’re certainly happy to participate in any conversation about how we can best position the State of West Virginia to continue to be a leader in providing energy resources to those who want to bring a facility here to West Virginia.”

“I’m just really excited for this particular policy, because it has a chance to open up and develop more vocational trades for our youth,” said McGeehan, R-Hancock. “I think that’s something that’s been lost and we really need to push going forward, because the vocational trades can develop…the old classical forgotten virtues, like self-control and temperance.”