H. B. 4421
(By Delegates Evans, Thomas,
Everson and Collins)
[Introduced February 13, 1998; referred to the
Committee on Finance.]
A BILL to amend the code of West Virginia, one thousand nine
hundred thirty-one, as amended, by adding thereto a new
chapter, designated chapter five-h, relating to procurement
of electric power by the state.
Be it enacted by the Legislature of West Virginia:
That the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended by adding thereto a new
chapter, designated chapter five-h, to read as follows:
CHAPTER 5H.
PROCUREMENT OF ELECTRIC POWER
BY THE STATE AND ITS SUBDIVISIONS.
ARTICLE 1. PROCUREMENT OF ELECTRICAL POWER.
§5H-1-1. Declaration of legislative policy.
The Legislature hereby declares it to be the policy of the
state and its political subdivisions to procure electric power
from an existing inactive power plant located on county route 50/1 known as cemetery road near Bayard, Grant County, West
Virginia.
§5H-1-2. Legislative findings.
(a) A power plant located on county route 50/1 known as
cemetery road near Bayard, Grant County, West Virginia, commonly
known as the North Branch Power Plant, owned by the Virginia
Electric Power Company, is currently inactive due to the over- capacity condition of its parent company.
(b) The general area surrounding Bayard, Grant County, West
Virginia is an economically depressed area.
(c) The North Branch Power Plant previously employed up to
sixty-five persons in salaried positions and indirectly generated
up to fifty employment positions for miners, truck drivers,
limestone quarry workers and water suppliers.
(d) The North Branch Power Plant previously expended
approximately ten million dollars annually for salaries, parts
and contractors.
(e) The North Branch Power Plant is state-of-the-art
regarding air emissions in an area in which West Virginia
currently has a serious problem.
(f) The North Branch Power Plant would burn West Virginia
waste coal, reducing further stockpiling.
(g) The ash by-product of this plant would be beneficial for the reclamation of mining areas.
(h) The North Branch Power Plant can utilize as a percentage
of its fuel waste tires, waste waxed cardboard boxes, and chicken
litter, which are now a landfill environmental concern in West
Virginia.
(i) When restarted, the North Branch Power Plant will
provide tax benefits to Grant County and to the state.
(j) By purchasing electric power from North Branch Power
Plant, the state will derive substantial financial benefits.
(k) The cost savings to the state in procurement of electric
power pursuant to this chapter will be five hundred thousand
dollars annually.
§5H-1-3. State procurement of power from currently inactive
plant; terms of procurement; terms of employment; sources of fuel; facilitation of transactions; bonds; sunset provision.
(a) Beginning on the first day of July, one thousand nine
hundred and ninety-eight, and continuing for a period of five
years thereafter, the state and its political subdivisions shall
purchase the entire electric power output of the plant commonly
known as the North Branch Power Plant located on county route
50/1 known as cemetery road near Bayard, Grant County, West
Virginia, up to eighty megawatts.
(b) The North Branch Power Plant shall employ more than
fifty full-time employees at higher than average wages and shall
provide benefits including medical.
(c) Ninety percent of the North Branch Power Plant's
employees shall be residents of West Virginia.
(d) The North Branch Power Plant shall burn waste coal fuel,
all of which shall originate in West Virginia.
(e) The North Branch Power Plant shall use limestone, all of
which shall originate in West Virginia.
(f) The North Branch Power Plant may utilize as a percentage
of its fuel waste tires, waste waxed cardboard boxes, and chicken
litter.
(g) In order to obtain maximum benefit to the state, the
state shall facilitate transactions between the present owner,
Virginia Electric Power Company, the lease operator, the utility
owner of transmission lines, and the present supplier of energy.
(h) The state or the local government entities shall provide
to the operator any necessary bonds for the installation of any
equipment required for processing waste tires, waste waxed
cardboard boxes, and chicken litter as fuel.
(i) If the North Branch Power Company does not begin full
operation by the thirtieth day of June, one thousand nine hundred
and ninety-nine, this chapter shall become void.
NOTE: The purpose of this bill is to require the state to
purchase electric power from an existing inactive plant located
in a distressed area, which will use waste coal, tires, waxed
cardboard boxes, and chicken litter as a percentage of its fuel,
and which will promote economic and environmental concerns.
This chapter is new; therefore, strike-throughs and
underscoring have been omitted.