Energy

HB 4983 authorizes the West Virginia Department of Commerce to implement a legislative rule for certifying microgrid districts and high impact data centers. The rule, which was drafted and modified after review by the Legislative Rule-Making Review Committee, establishes a formal process for businesses and communities to seek these certifications. This rule directly affects developers of microgrids (localized energy systems) and data centers meeting high impact criteria by setting clear certification standards. The bill does not alter the rule's content but officially authorizes its use as a regulatory tool.

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.