Senate committee advances bill to certify microgrids, data centers after hours of debate on taxes and local authority

The Senate Economic Development Committee on an unrecorded voice vote moved an engrossed committee substitute for House Bill 2014 to the full Senate with a recommendation that it pass after more than four hours of testimony and amendments.

The bill would create a certified microgrid program and a high‑impact data center program. It authorizes additional microgrids when 60% of the microgrid’s electricity is consumed by data centers; defines a “data center” by critical IT load (90 megawatts or higher and placed in service on or after July 1, 2025); requires applicants to negotiate with local utilities for service before filing with the Public Service Commission (PSC); and establishes a distribution formula that reallocates certain property tax increments into new state funds, including a Personal Income Tax Reduction Fund and an Electric Grid Stabilization and Security Fund.

Committee members heard repeated concerns from county officials about the tax and local‑control impacts. Tammy Tincher, president of the County Commissioners Association of West Virginia and Greenbrier County commissioner, told the committee that counties provide “boots on the ground” and worried the bill would discourage counties and local authorities from pursuing data centers because county revenue would be reduced. “Will the local development authorities and county leaders want a data center if there is no input or oversight by local officials who boots on the ground daily?” Tincher asked.

Berkeley County Commissioner Eddie Gokhan said a deal currently moving through his county would have been unlikely if the county expected to forfeit “a vast majority” of tax revenue: “No. Certainly would not, because that’s part of their vision…to expand the tax base in the county and create jobs.” Jefferson County Commission President Pasha Majdi raised similar concerns about funding for emergency services and preserving local zoning authority.

State officials and industry representatives argued the bill opens opportunities that do not exist under current law. Deputy Secretary of Commerce Nick Prezervati said without the bill West Virginia could lose projects that require third‑party generation or on‑site microgrids: “If a data center wants a microgrid, we will miss those opportunities and those tens of billions of dollars of investment in this state without this bill.” Charlotte Lane, chairman of the West Virginia Public Service Commission, told senators that data centers can still connect to the grid under current law, but the bill “sets forth rules…that I think we can all live with and create an orderly development.”

Utilities and the coal industry also testified. Appalachian Power representatives said incumbent utilities can serve data centers but acknowledged speed‑to‑market and transmission build times can complicate projects; coal industry representatives said the bill and associated projects could increase in‑state coal consumption and preserve generating capacity.

The committee considered and adopted multiple amendments that changed the bill’s language and revenue allocations. One adopted amendment directs the state auditor to maintain separate accounting for each certified high‑impact data center project and requires distributions for counties to be made directly to the county for each project. Other committee amendments adjusted definitions, clarified statutory cross‑references and added findings recognizing local resources such as coal mine methane as a potential energy source.

Discussion in committee repeatedly distinguished negotiation, direction and formal decision. County officials’ testimony was categorized as advisory public input; the committee adopted substantive statutory changes and a final motion to report the engrossed committee substitute as amended was adopted by voice vote. The bill will be reported to the full Senate with its second reference to the Committee on Finance.