Energy

This bill reduces the severance tax rate on metallurgical coal produced in West Virginia, affecting coal mining companies that extract this type of coal. The new rates will take effect in stages starting July 1, 2026, lowering the tax from 5% to 4.5% for the first year, then to 4% the following year, and finally to 3.5% beginning July 1, 2028. Metallurgical coal is defined as coal used for making steel and other metals, distinct from thermal coal used for electricity generation. The tax reduction applies to the gross value of coal produced and includes additional local taxes that are normally part of the total severance tax.

HB 5648 updates West Virginia's electrical power regulations to prioritize consumer interests and modernize utility oversight. It requires utilities to notify customers before rate increases and hold public hearings for significant rate changes affecting large customer groups. The bill exempts small portable solar devices from connection agreements, allows customers to generate and store power through distributed programs, and mandates utilities to track customers dependent on life support systems. Additionally, it sets new rules for disconnecting service due to non-payment and requires utilities to develop community energy programs under a subscriber model.