2 weeks Ago By by Charles Young SENIOR STAFF WRITER
CHARLESTON, W.Va. (WV News) — As House Bill 2014, the Certified Microgrid Program , was in development in the West Virginia Legislature, representatives of county governments voiced concern about how the bill divided property tax revenues from expected data center projects.
The bill is intended to incentivize companies to build data center projects in the state by changing state code to lift restrictions on the construction of microgrids. Microgrids are self-contained energy systems that can operate independently from the main power grid. They have the ability to disconnect from larger networks — such as the PJM Interconnection, which supplies electricity to much of the eastern United States — and continue supplying power to connected facilities without interruption.
Data centers that power artificial intelligence systems require enormous amounts of electricity, which can strain traditional electrical grids. Many of the data centers planned by companies like OpenAI, the maker of ChatGPT, and Google parent company Alphabet, as well as others leading the AI computing revolution, are powered by microgrids. As originally proposed by Gov.
Patrick Morrisey, the bill specified 60% of property tax revenues from data center projects would be dedicated to the Personal Income Tax Reduction Fund, 15% to the Closing and Promotion Fund, 15% to the Electronic Grid Stabilization and Security Fund, and 10% to the state’s General Revenue Fund. The version of the bill that ultimately passed the Legislature specifies a greater share of tax revenues would remain in the county where the data center project is located. In the final version of the bill, 50% of revenues would be dedicated to the Personal Income Tax Reduction Fund, 30% to the county where the data center is located, 10% to all 55 counties in the state, 5% to an economic enhancement grant fund, and 5% to the Electronic Grid Stabilization and Security Fund.
Tammy Tincher, president of the Greenbrier County Commission and president of the West Virginia Association of Counties, said she appreciates the “concerted effort taken by many legislators” to increase the share of tax revenues counties will receive. “As well as recognition for counties who may not have an opportunity to locate a data center to still benefit financially,” she said. Tincher However, she was disappointed that “changes to include any local input for planning and zoning were not included,” Tincher said.
“Economic development provides many opportunities for the citizens of the site county as well as the surrounding counties and the state,” she said. “However, the local site county also bears the increased responsibility of public safety and other infrastructure to make sure these projects are successful.” She would have liked for leaders in Charleston to have more carefully considered county governments when working on the bill, Tincher said.
“The allocation, while appreciated, demonstrates the lack of value the state has on county government and the services it provides to residents and businesses,” she said. “I firmly believe state and local governments must work together for economic development projects to be successful, and counties will continue to champion that effort.”.
