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West Virginia Governor’s Office weighs in on almost special legislative session

Brian Abraham, chief of staff to Gov. Jim Justice, said in a statement Friday night that a bill that would have been introduced in a proposed special session would have allowed for an economic development project with a connected renewable energy in southern West Virginia. (File Photo)

CHARLESTON — The chief of staff to Gov. Jim Justice provided more details Friday night on a proposed Saturday special session to expand an economic development/renewable energy program that was waved off as logistics began untenable.

In message sent Friday night, Chief of Staff Brian Abraham said he had worked with leadership in the West Virginia Legislature towards a possible special session that would have taken place Saturday evening to consider one bill making changes to the Certified Industrial Business Expansion Development program in connection with an unnamed project for southern West Virginia.

“For the past three years, the Governor has been pushing his team to get economic development projects into Southern West Virginia,” Abraham said. “We have seen so much growth and investment in many parts of the State, but the Governor specifically directed us to get big projects going in the southern coalfields. All of our people deserve opportunity.”

News of the proposed special session began to spread Wednesday night among lawmakers on social media after a letter was circulated alerting members to the possible special session and after a press release from a conservative group raising concerns about the session. But by Thursday evening, Abraham confirmed that the special session would not happen.

The draft bill that would have been the sole focus of the special session would have increased the number of allowed certified high-impact industrial business development district from two 2,250-acre districts to as many as six with approval of the Department of Economic Development. Only three districts could be within the same service territory of an investor-owned electric utility in the state.

The Certified Industrial Business Expansion Development program, created by Senate Bill 4001 in 2022, is an incentive program designed to encourage new construction or expansion of industrial plants and facilities that also desired to incorporate renewable energy generation into their facilities.

The program was created for Berkshire Hathaway Energy (BHE) Renewables and Precision Castparts Corp. (TIMET), which announced a new titanium melt facility/solar microgrid project on the site of the former Century Aluminum in Jackson County shortly after the passage of SB 4001 in September 2022.

According to current state code, renewable energy projects in these districts would not be subject to approval by the Public Service Commission as far as rates, obtaining a certificate of convenience and necessity, conditions of service or complaints.

The draft bill would have amended state code to remove the requirement that certified high-impact industrial business development districts be established on land sold or leased by the state. It would increase the acreage from 2,250 acres to no greater than 5,000 acres as long as it was large enough to support between 500 megawatts and 1,000 megawatts of renewable energy generation.

The draft bill would require completion of economic development projects in a certified high-impact business development district within five years. It would also allow electric-generating units in these districts to be taxed at salvage value for property tax purposes, lower than the fair market value.

Abraham did not name the company or utility companies that approached the Governor’s Office about making changes to the Certified Industrial Business Expansion Development program, though multiple sources have said it was BHE Renewables, which has yet to comment publicly.

“A few weeks ago, a once-in-a-lifetime opportunity presented itself,” Abraham said. “A major company that currently does business in West Virginia, together with one of our utility companies and leadership from both the House and Senate, approached us with a proposal to change one section of Code to enable the investment of tens of billions of dollars — without any request for public funds — in Southern West Virginia.

“Given the Governor’s coaching to all of us, we of course tried to make that happen,” Abraham continued. “We met with Legislative leadership to plan a one-day special session right on the front end of already-scheduled interim meetings. One day. One bill. One enormous opportunity missed.”

But by Thursday afternoon, it became clear that a special session called after the November elections, but before newly elected lawmakers are officially seated on Wednesday, Jan. 8, would create logistical issues. The state Constitution sets Dec. 1 as the start date for terms for new lawmakers following an election.

State code would also require the Secretary of State’s Office to deliver the certified election results during the special session instead of the first day the Legislature meets on Jan. 8, meaning the new Legislature would need to be seated. But Abraham said the reason the Governor’s Office decided against calling the special session was after concerns were raised that expanding solar for a southern West Virginia project would harm demand for coal.

“The Governor thoroughly instructed us to make certain that this was going to positively impact our miners and not hurt thermal coal jobs in the state. That was a mandatory requirement by Governor Justice,” Abraham said. “However, It became apparent that it would be better to wait until the Regular Session to give more opportunity to assure there’s no negative impact on coal jobs. Anytime we can attract new business to West Virginia, it’s worth trying to see if it can be done. But for now, it’s better for the new Legislature take this up.”

House Speaker Roger Hanshaw, R-Clay, was unavailable for comment Friday evening, as was Senate President Craig Blair, R-Berkeley.

Steven Allen Adams can be reached at sadams@newsandsentinel.com

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