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Senate committee approves substitute to repeal West Virginia wind project property-tax treatment
Summary
The West Virginia Senate Energy Committee approved a committee substitute for Senate Bill 439 that would repeal the state’s pollution-control property-tax treatment for wind projects, after testimony from Clearway Energy and discussion of jobs, local tax revenues and competitiveness.
The West Virginia Senate Energy, Industry and Mining Committee on an agreed voice vote approved a committee substitute for Senate Bill 439 that repeals the pollution-control property-tax treatment currently available to wind energy projects.
The substitute, as explained to the committee, would repeal the statutory provision cited in the hearing as West Virginia Code section 11-6-8-58 and thereby eliminate the special property-tax treatment used by wind projects in the state.
Why it matters: The change would alter the tax treatment of existing and planned wind projects in West Virginia, a point supporters of wind development say could jeopardize planned investments and local revenues while opponents say it would equalize tax treatment across energy sources.
Clearway Energy representative Chris Hall told the committee that the company has more than 1 gigawatt of wind capacity in operation or development in West Virginia and described current and planned investments tied to the existing tax treatment. "This legislation here would endanger both of those projects," Hall said, adding later that repeal would raise costs and could push investment to other states. Hall gave figures the company says reflect its West Virginia activity: roughly $2.2 billion in direct investment through 2030, an $800 million repowering project at Mount Storm, a roughly $300 megawatt project, an expected nearly $400 million project slated for 2026, and recurring local contributions he said total tens of thousands of dollars annually to host counties and organizations. He also said the company estimates repeal would increase property taxes for the affected energy companies substantially and raise the cost of power by about $5 per megawatt-hour.
Committee members questioned Hall on jobs, local tax receipts and whether the projects affect regulated retail electricity rates. Hall said the energy sold from the wind projects is wholesale and sold under long-term contracts to corporate buyers such as Toyota and Google, and he said the projects do not directly feed regulated retail markets in West Virginia.
Senators on the committee gave competing views. Several members stressed the jobs and local tax revenues Clearway and other developers bring to counties such as Grant and Mineral and warned that reversing the tax treatment could jeopardize planned projects and future investment. Other senators spoke for equalizing tax treatment across energy sources and expressed concern about granting an industry-specific abatement when coal and natural-gas projects use pilot agreements or other mechanisms.
Procedure and outcome: The committee agreed to the committee substitute as amended and then voted to report the substitute to the full Senate with a recommendation that it pass, under the original double-reference to be first sent to the Finance Committee. The votes were voice votes; no roll-call tallies were recorded in the committee transcript.
The committee also adopted procedural motions earlier in the session, including a rule that witnesses other than Senate staff and West Virginia elected officials be sworn under the oath authorized by Senate Rule 28(a).
What’s next: With the committee’s recommendation, the substitute for SB 439 will move to the full Senate and, under committee action, be referred first to the Finance Committee for further consideration.
