The West Virginia Senate has given the green light to a major new bill designed to draw high-tech businesses and boost the state’s energy and economic infrastructure.
House Bill 2014, also known as the Power Generation and Consumption Act, passed with a strong 32-1 vote. The bill, introduced on behalf of Governor Patrick Morrisey, now returns to the House of Delegates for final approval.
The goal? Attract more data centers and energy projects by creating special “microgrid” zones and offering tailored incentives.
A Big Step Toward High-Tech Growth
This legislation focuses on two major programs:
- Certified Industrial Business Expansion Microgrid Development Programs
- High-Impact Data Center Program
Together, these initiatives are aimed at streamlining development and reducing red tape for companies investing in energy-intensive infrastructure like data centers.
Senator Glenn Jeffries, R-Putnam, highlighted the urgency:
“We’re in a race in AI and tech development. This bill helps position West Virginia as a serious contender.”
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What the Bill Does
The bill allows microgrids—small, localized power systems—to be built if at least 70% of the electricity is used by data centers. These microgrid districts would be exempt from Public Service Commission oversight, provided they haven’t previously used electricity from a utility and won’t negatively impact existing electricity loads.
Key points include:
- No cost burden on regulated utility customers
- No payment-in-lieu-of-taxes agreements or tax increment financing for these projects
- Local governments cannot block development through zoning or permitting laws
Despite regulatory breaks, these projects will still pay business and occupation taxes, sales taxes, property taxes, and utility fees.
New Property Tax Formula Introduced
Senators added an amendment changing how property tax revenues from data centers are split:
- 50% to the Personal Income Tax Reduction Fund
- 40% to the host county
- 5% divided among other counties
- 3% for low-income energy assistance
- 2% to the Electric Grid Stabilization and Security Fund
“This isn’t just a tax bill—it’s about shaping the future of energy in America,” said Senator Ben Queen, R-Harrison.
Guardrails for Grid Stability
Another key amendment ensures funds from the new Electric Grid Stabilization Fund can’t be used to shut down power plants. The bill is designed to add energy capacity, not eliminate it.
Not Everyone On Board
Senator Rupie Phillips, R-Logan, cast the lone dissenting vote. He argued that despite its goals, the bill could eventually lead to higher electric bills for everyday West Virginians.
“Mamaw can’t afford it,” he said. “They can already build a microgrid now—this bill just isn’t needed.”
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Budget Bill Also Approved
In addition to HB 2014, the Senate also passed a revised $5.318 billion general revenue budget for the 2025 fiscal year. This compromise budget includes more than $210 million in one-time funding for specific projects, depending on surplus tax collections.
The budget passed with minimal resistance, reflecting broad legislative agreement on fiscal priorities.
Looking Ahead
With this microgrid and data center legislation, West Virginia is sending a clear message: it’s ready to become a serious player in the high-tech and energy sectors.
Lawmakers hope the bill not only attracts AI and data-driven industries but also encourages broader economic growth along the state’s growing energy infrastructure.
As Senator Jeffries put it:
“We’ve opened the door for real opportunity. Let’s keep moving forward.”
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