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SB 76

Providing exemption from state severance tax for coal sold to coal-fired power plants located in WV

2026 Regular Session Introduced by Kevan Bartlett and 4 co-sponsors

SB 76 exempts coal sold to West Virginia's coal-fired power plants from state severance tax, reducing state revenue while lowering generation costs for in-state utilities.

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Bill Summary · SB 76

Legislative bill overview

SB 76 would exempt coal sold to coal-fired power plants located in West Virginia from state severance tax. The bill targets domestic coal transactions between in-state producers and in-state power generation facilities, reducing the tax burden on this specific market segment.

Why is this important

West Virginia's economy relies significantly on coal production and power generation. This exemption could affect state revenue while potentially lowering operational costs for power plants, which might influence electricity prices and employment in coal-related industries. The bill reflects ongoing policy choices about supporting coal as an energy source amid broader energy transitions.

Potential points of contention

  • Revenue impact: Removing severance tax on coal sold to in-state power plants reduces state government revenue; the fiscal note would clarify the magnitude of lost revenue
  • Market distortion: The exemption creates preferential treatment for domestic power plants over other coal buyers (exporters, out-of-state utilities), raising questions about fair competition and trade implications
  • Energy policy alignment: The exemption supports coal infrastructure while many states are diversifying energy sources; this conflicts with climate and renewable energy goals some stakeholders prioritize
  • Long-term viability: The bill assumes continued profitability of coal plants without addressing industry headwinds from natural gas competition and coal plant retirements

Compiled from official sources — confirm details with the bill’s official record.

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