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 5039, titled "Fueling Modern Life," repeals all existing West Virginia air pollution control statutes (§22-5-1 through §22-5-20) and replaces them with a new policy declaring carbon dioxide (CO₂) a "foundational nutrient" necessary for life, not a pollutant. The bill mandates that West Virginia will not treat CO₂ as a pollutant, reject "net-zero" emission targets, and actively support carbon-based fuels like coal, oil, and natural gas. This directly affects all entities regulated under air pollution laws, including power plants and industrial facilities, by eliminating CO₂ emission requirements. The legislation shifts state policy to prioritize fossil fuel use for economic development while asserting CO₂ levels are beneficial and historically low.
HB 5539 would allow West Virginia employers (both public and private) to give hiring preference to unemployed coal miners who meet specific criteria. To qualify, a miner must have worked in coal mining for at least five years, been unemployed as a coal miner for over one year, not be retired, and not have been fired for cause (like safety violations). Employers could prioritize these miners only if they meet all job-specific knowledge, skills, and eligibility requirements. The bill aims to support coal miners displaced by industry changes by creating a legal pathway for targeted hiring. This is a proposed policy change, not yet enacted.
HB 5038, the Affordable Electricity and Economic Growth Act of 2026, directs West Virginia's Department of Economic Development to identify suitable sites for coal-fired electricity generation and coke production facilities near coal deposits, transmission infrastructure, and steel manufacturing locations. It requires state agencies to streamline regulations and review existing rules to reduce delays for projects using locally mined coal. The bill aims to support economic development by making it easier to build facilities that produce electricity and coke (used in steelmaking) within the state. This directly affects coal producers, steel manufacturers, and state regulatory agencies responsible for permitting and oversight.
This Senate Resolution (SR 32) expresses the West Virginia Senate's commitment to protecting coal-dependent communities and energy infrastructure. It specifically requires coal-fired power plants to operate at a minimum 69% annual capacity factor to maintain grid reliability and protect over 10,000 coal jobs, while opposing actions that threaten mine closures or job losses. The resolution also pledges to prioritize local coal jobs over "out-of-state contracting" and prevent ratepayers from bearing higher costs due to reduced coal generation. As a non-binding resolution (adopted February 18, 2026), it does not create new law but formally commits the Senate to supporting coal through policy advocacy and oversight.
HB 5359 creates a new tax method for high voltage electric transmission line property in West Virginia, directing property tax revenue from newly constructed transmission projects into the existing Electric Grid Stabilization and Security Fund. This fund will use the collected revenue to support grid stabilization, security, and efficiency upgrades for regulated utilities, including maintenance of coal and natural gas generation facilities serving West Virginia ratepayers. The bill specifies that these funds must be used to lower electricity rates for West Virginia consumers, directly benefiting all ratepayers by reducing costs through improved grid infrastructure. Key provisions include defining "high voltage transmission line property," requiring tax returns to the Board of Public Works, and ensuring unspent fund balances carry forward annually. The bill is currently in the House Finance Committee for review.
West Virginia's SB 685, the Natural Resources Anti-Commandeering Act, prohibits state agencies, local governments, and their employees from enforcing or assisting with federal regulations on coal, oil, gas, timber, or related extractive resources that conflict with West Virginia law. It bans the use of state funds for such federal enforcement activities and requires the state Attorney General to legally challenge federal actions they deem unconstitutional under anti-commandeering principles (citing Supreme Court cases like *Printz v. United States*). The bill also mandates the Attorney General to publish guidance for state agencies on resisting federal enforcement efforts and to pursue legal action using state funds. This applies directly to state officials, law enforcement, and local government entities handling natural resource regulations. The law focuses on preventing state cooperation with federal rules, not altering existing state resource management.
SB 79 creates a tax credit for West Virginia businesses that invest in road or highway infrastructure projects or coal production and processing facilities. Eligible taxpayers - such as corporations and consolidated groups subject to the state's severance tax - can claim the credit based on qualified expenditures like labor, materials, equipment, and real property costs for these projects. Businesses must apply for certification before claiming the credit for road projects, and unused credits can be carried forward to future tax years. The credit is transferable to business successors, and failure to maintain required records may trigger penalties.
HB 4035 provides a 35% tax credit against West Virginia's business and occupation tax for coal-fired electric power plants that spend on pollution control equipment. It directly affects coal-fired power plants operating in West Virginia (excluding those exempt from the tax), covering costs for installing, repairing, or maintaining equipment to meet environmental regulations like air/water pollution controls or carbon capture. The credit cannot reduce a plant's tax bill by more than 50% in a single year, and unused portions can be carried forward for up to five years. This bill aims to offset compliance costs while supporting continued operation of coal plants serving West Virginia residents.
SB 76 would exempt coal sold to coal-fired power plants located within West Virginia from the state's 5% severance tax. This directly affects coal producers who sell thermal coal (used for electricity generation) to in-state power plants, reducing their tax burden on these specific sales. The bill amends existing law to create this exemption, removing the tax that would otherwise apply to coal sold for electricity generation at facilities operating in West Virginia. The change would provide immediate tax savings for coal producers supplying local power plants, without altering other severance tax rates or provisions.
