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Legislation to repeal a five-year-old law that hasn't fully
taken effect yet is moving through the State Senate. But Democratic leaders are
calling for a economic impact study on repealing the measure, just as their GOP
counterparts have called for the same studies on bills introduced this
session.
The Alternative and Renewable Energy Portfolio Standard,
championed by then-Gov. Joe Manchin, required utility companies to earn credits
by producing electricity from alternative fuel sources, including advanced coal
technology, coal bed methane, waste coal, coal gasification, natural gas and
pumped storage from hydroelectric projects.
The Act also allows for "net metering," credits
given from utility companies back to residents who produce their own
electricity through solar panels or windmills. Those residents can sell
electricity to their providers, as well.
Measures in both houses now preserve net metering in the
West Virginia Code.
Called the "West Virginia Cap and Trade Law"
during the campaign last year, the standard's "cap" is generally
thought to be the 25-percent minimum requirement of alternative fuels and the
trade is ability for small utility companies to buy or trade energy credits.
The federal push for cap and trade calls for capture of
carbon emissions, with profit incentives for doing so, and gives those
companies the ability to sell or trade their unused credits.
Former House Speaker Tim Miley, D-Harrison, called the original
bill a "toothless tiger" last week, and said its repeal would not
help state residents in coal-producing counties.
This week, Miley sent a letter to House Speaker Tim
Armstead, R-Kanawha, asking for an economic impact study on the bill's
repeal. “It’s important to know whether the repeal of the Alternative and
Renewable Energy Portfolio Act accomplishes meaningful results, or whether the
repeal of the legislation is mere campaign fluff,” he said.
“This legislation has been touted by many members of the
Legislature and coal industry representatives as a vital jobs-saving bill for
the coal industry,” Miley said. “I believe it is imperative for members of the
Legislature to know the real impact of this legislation — to coal miners and
their families and to other industries that may be affected by the repeal —
prior to being asked to cast their votes.”
The House of Delegates adopted changes to the House Rules on
the first day of session that included a provision (House Rule 95C) that
permits the Speaker to request an Economic Impact Statement on any piece of
legislation to determine how many jobs would be gained or lost as a result of
the legislation and any effect on wages and compensation.
Sen. Jeff Kessler, D-Marshall, the former Senate president,
likewise made the same challenge to leadership in the upper chamber Monday
morning. Kessler said he favors repeal, but wants to see if the Legislature is
passing "sound public policy."
Sen. President Bill Cole, R-Mercer, said the study is
unlikely.
As chair of the Committee on Energy, Industry and Mining,
Sen. Jeff Mullins, R-Raleigh, said repealing the law allows free markets to
decide what fuels energy companies use.
"(I)f an energy company decides that coal is the cheapest
way to provide energy, they will not be limited by state government in ability
to provide energy through coal. This in turn will ensure that no coal jobs in
West Virginia are limited now or at any time in the future by a cap on
coal-fueled energy," Mullins said.
Mullins said he is happy that the committee was able to
reach a compromise on net metering so that consumers who generate their own
power are given credit for that.
The Alternative Energy Act took effect Jan. 1.
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